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HomeMy WebLinkAboutOSTERHOUDT, ROBERT G. & KATHY M. - 1997-04-21 • CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department °�� DATE: June 12, 2000 TO: Gus Duran, Housing/Redevelopment Manager FROM: Joyce DeKreek, Housing/Redevelopment Consultan SUBJECT: Research on Loan Forgiveness, I"Time Home-Buyers Program Redevelopment Set-Aside,$400,000 and Redevelopment Set-Aside, $750,000 1 have reviewed our records regarding funding of 1 S`Time Home-Buyers Program to determine the names and amount of assistance which benefited the applicants from the $400,000 in Redevelopment Set-Aside funds approved by the Redevelopment Agency (RDA) at their November 1, 1993, meeting and from the $750,000 in Redevelopment Set-Aside funds approved by the RDA for the Pacific Park Villas at their February 6, 1995 meeting. The Redevelopment Agency approved nine applicants from the$400,000 allocation in conjunction with the City's CDBG I`Time Home-Buyers Program and one additional applicant for the RDA I`Time Home-Buyers Program only. The RDA portion of these loans are Bastou ($25,000), Dieckmeyer($23,000), Griffen ($25,000), Hoang ($23,000), Lawson ($23,000), Melvin($35,000), Otto ($23,000), Quick, S. ($16,717), Quick, T. ($25,000),Rivera H. ($25,000). Quick,T.withdrew from the CDBG loan but maintains the RDA loan. These loans total $243,717. The Redevelopment Agency approved fifteen (15) applicants from the $750,000 allocation at Pacific Park Villas (PPV)to participate in the Redevelopment Agency I" Time Buyer Program. The names and amounts are(Carrillo ($35,000), Forchione ($35,000), Heckethorn ($35,000), Hosseinali ($35,000), Hocker($35,000), Lawrence ($35,000),Murch($35,000), Osterhoudt($35,000),Peltier($35,000),Rivera-Burgess ($35,000), Wallace($35,000), Weinfeld($35,000), Wong ($35,000), Krueck ($35,000), Margoles ($35,000). These loans total $525,000. Four loans(Melkerson/Uniack, Ojeda, Rene/White, Stratton), previously approved by RDA were not funded. GljoyceRntermemo Reconvey.doc u One loan (Wallace) was assumed by another qualified buyer(Stay). Two applicants have paid their loans: Melvin,paid off his RDA loan 10/21/1997 in the amount of$40,794.31 and Hoang, paid off his RDA Ioan on 12/21/1999 in the amount of $47,208.80. A check in the amount of$4,116.57 was issued to Mr. Hoang for overpayment, reducing the loan repayment to $43,092.23. These loans accrue simple interest at 5%, due and payable upon sale to a non qualified buyer and has shared equity. Cc: Connie Brockway, City Clerk Paul D'Alessandro, Deputy City Attorney David Biggs, Director, Economic Development John Reekstin, Director of Administrative Services Dan Villella, Director of Finance Jake Rahn, Administrative Services Hank Reveles, Sr. Accountant Joyce de Kreek, Economic Development Steve Holtz, Development Specialist Gloyce/Intenmemo Reeonvey doc PACIFIC PARK VILLAS ($750,000— RDA) 95-01 (2-1-95) Carillo, Ann S 35,000 7861 Happy Drive, #102 RDA 12-19-94 95-02 (2-1-95) Lawrence, James and Jeanette $ 35,000 18051 Joyful Lane, #16 RDA 12-19-94 95-03 (2-1-95) Wong, Wesley Chi $ 35,000 7681 Happy Drive, #202 RDA 12-19-94 95-04 (2-1-95) Hocker, Christopher/Vandereb, Gayle$ 35,000 7681 Happy Drive, #101 RDA 12-19-94 95-06 (4-12-95) Rivera, Victor/Burgess, Debra S 35,000 18061 Joyful Lane, #104 RDA 4-3-95 96-01 (1-24-96) Heckethorne, Sean &Jacquelyn S 35,000 7871 Happy Drive, #102 RDA 1-16-96 96-02 (3-7-96) Margolis, Peter $ 35,000 18651 Joyful Lane, #104 RDA 3-4-96 96-03 ( Weinfeld,Julie $ 35,000 18061 Joyful Lane, #205 RDA 4-1-96 96-04 (7-17-96) Peltier, Edward $ 35,000 7871 Happy Drive, #201 RDA 7-15-96 96-05 (8-7-96) Wallace, Barbara Jo $ 35,000 18051 Joyful Lane, #205 RDA 8-5-96 96-06 (8-7-96) Murch, Gregory $ 35,000 18051 Joyful Lane, #102 RDA 8-5-96 97-01 (1-29-97) Krueck, Deborah $ 35,000 18061 Joyful Lane, #101 RDA 1-21-97 97-02 (4-30-97) Osterhoudt, Robert and Kathy $ 35,000 18061 Joyful Lane, #102 RDA G:rjoycellnW==Reeonvey_doc 97-03 (5-14-97) Hosseinali, Faroukh $ 35,000 18061 Joyful Lane, #201 RDA 97-04 (7-23-97) Forchine, Richard S 35,000 18051 Joyful Lane, #201 RDA 7-21-97 1"TIME BUYER ASSISTANCE($400,000 RDA) 94-4 (2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue#A-1 - (RDA 1-18-94) 94-5 (2-11-94) Quick, Shauna S 16,717 409 Utica Avenue #C-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, T.IShorb R. $ 23,000 409 Utica Avenue#A-7 (RDA 1-18-94) 94-10 (2-11-94) Hoang, Tam $ 23,000 409 Utica Avenue #D-37 (RDA 2-22-94) 94-11 (5-18-94) Bastou, Valerie S 25,000 409 Utica Avenue#D-43 (RDA 5-18-94 94-12 (5-18-94) Quick La Reine, Teresa $ 25,000 409 Utica Avenue#A-9 (RDA 5-I8-94) 94-I3 (6-23-94) Melvin, Patrick $ 35,000 409 Utica Avenue 913-39 (RDA 6-20-94) 94-14 (7-27-94) Rivera, Hector& Iciar $ 25,000 409 Utica Avenue#A5 (RDA 7-18-94) 94-17 (10-4-94) Griffen, Olga Christina 25,000 409 Utica Avenue##C-23 (RDA 9-19-94) $243,717 Gloycc?3ntcm emo Rcconvcy.doc J1 OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION MVN'nNG70v e(ACH TO: Future City Clerks and Deputy City Clerks FROM: Janelle Case, Deputy City Clerk per Instructions by Connie Brockway, City Clerk SUBJECT. Down Payment Assistance Forgivable Loans DATE. September 16, 1999 The attached documents are included in this file to assist you in the future to determine the forgiveability of the down payment assistance loans. DOWN PAYMENT ASSISTANCE PROGRAM Pacific PaZI Villas f C0unciI/Agency Loan No. Name I Property Address Amount Date 95-01 Carillo, Ana 7861 Happy Drive #102 92648 35,000 113195 95-02_ Lawrence, James/Jeanette_ __ _ :18051 Joyful Lane #101A 92648 35,000 _ 1/3/95 95-03 Wong, Wesley - 7$61 Happry Drive#202 92648 35,000 113195 • Hocker, Christopher 8 Vandereb, Gayle 7861 Happy Drive #101 92648 35,000 1/3195 95-06 Rivera, Victor& Burgess, Debra 18061 Joyful Lane #104 92648 35,000 413195 96-01 ti/ Heckethorne,Sea_n!_Jacquetyn 7871 Happy Drive #102 92648 35.000 1/16/96 96-02 Margolis, Peter 18051 Joyful Lane #104 92648 35,000 _ 3/4/96 96-03 Wienfeld, Julie 18061 Joyful Lane#205 92648 35.000 4/1/96 9-6 4 ✓ Peltier, Edward 7871 Happy Drive #201 92648 35,000 7/15/96 ;Wallace, Barbara Jo 18051 Joyful Lane#205 92648 35,000 815/96 96-06 jMurch, Gregory s. 18051 Joyful Lane#102 92648 35,000 815/96 97-01 Krueck, Deborah J. 18061 Jo ful Lane#103 92648 35.000 1/21/97 97-02 _ Osterh—au elt, RobeiTathy_ 18061 Joyful Lane#102 92648 35,000 4130/97 97-03 lHosseinali, Faroukh 18061 Joyful Lane#201 92648 35.000 515197 97-04 ITorchione, Richard 18051 Joyful Lane#201 92648 35,000 711197 ? r F J� CITY OF HUNTINGTON BEACH Inter-Department Communication TO: Gus Duran, Economic Development FROi<I: Gail Hutton, City Attorney DATE: June 1, 1999 SUBJECT: Determination of Loan Forgiveness RLS 99-359 INDEX: BACKGROUND You have asked for a determination of whether several loans made by the City of Community Development Block Grant funds, for the first time home buyer down payment assistance program, are forgivable. ISSUE Are the nine loans forgivable? ANSWER Yes, if they were funded with the first $100,000 appropriated for this program. ANALYSIS As part of the 1993-94 CDBG program the City Council approved $100,000 as a pilot program to provide down payment assistance to moderate 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 $40,475. (RCA attached hereto as Attachment 1). 1 41s_4-99%lemos Duran527 i 1/15/93: The City Council «vas requested to approve and additional S100,000 in CDBG funds for the program. The Council deferred the item to December 6, 1993. (RCA attached hereto as Attachment 2). 12/6/93: The City Council approved three more participants in the original program: vlichelle 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 S10,000, and increased the amount for participant Nicholas Kormeluk from S8,600 to S 10,600. (RCA attached hereto as Attachment 4.) 12/20/93, Item F-2: The City Council approved an additional S100,000 for the progam, 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 S61,952.2 The second important document attached to this RCA is the list of"Pending Participants." It shows eight more participants in the total amount of S59,100. It is not determinable from this RCA whether these persons v-ere intended to be in the grant program or the loan program, and we do not know when, if ever, these participants were actually approved. 1/3/94: The City Council approved three more participants in the original, non-repayment program: Judy Young,Treva Love, and Ellen Ommondson, in the total amount of S31,000. When added to the previously committed amount of S73,952, the total amount of funds committed is S104,952. This exceeds the original S100,000 appropriated for the original, non- repayment program. The analysis portion of this RCA states that "the approvals herein will be the first funded with the new appropriation," which implies that at least a portion of the funds used for these participants were part of the funds that were conditioned for repayment, as opposed to the original, non-repayment funds. However, the total numbers listed are roughly consistent with the original S 100,000 set aside for the grant program. The total amount of loan funds used is less than $5,000. (RCA attached hereto as attachment 5). Our review of the above documents and chronology of events indicates that the Council did not intend to require repayment of the original S 100,000 appropriation. Clearly, then,the loans made to Culiaciati, Taban, Sutherland, Schmaderer, Kanarski, Dixson and Kon neluk are forgivable, because they were funded using S73,952 of the first S 100,000 appropriation. The problem is presented by the transactions with Young, Love, and Ommondson. We believe that the Council's intent was to not require repayment from these participants. Unfortunately, there was only$26,048 of the original, non-repayment funds available to these participants, and collectively, they received $31,000. Thus, a small portion of the funds used for these 1 Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council meeting of 12/6/93,xvc believe that this list has been erroneously added to the 12/6/93 RCA. 2 Please note that earlier during the same meeting,the Council had also approved David Dixson for S 10,000,and an additional S2000 for Kormeluk. Thus the amount committed from the original S 100,000 was actually S73,952. 2 4/s_4-99`1cmos-Duran527 participants must have come from the second S 100,000, which the Council appropriated •4-ith the condition that the loans be repaid, not forgiven. CONCLUSION There are t-,vo conflicting, Council actions- The Council's intent was to include participants Young, Love and Ommondson in the original, forgivable loan program. However, it appears that a portion of the funds actually used for the loans to Young, Love and Ommondson were from the second appropriation of funds, which included a repayment condition. Therefore, we recommend that the Council clarify this conflict by approval of an RCA that forgives the Ioans made to Young, Loge and Ommondson. I Gail Hutton City Attomey 3 4isA-99Memos=Dorari527 • i Council/Agency Meeting Held: 5-1 -9 Deferred/Continued to: Approved ❑ Conditionally Approved 0 Denied City Clerk's ignature C• 13Qoct key �� k�. A r Council Meeting Date: May 17, 1999 Department ID Number: ED 99-29 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY_ == MEMBERS SUBMITTED BY: RAY SILVER, Executive Director PREPARED BY: DAVID C. BIGGS, Economic Development Director , n 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). 6 ,5 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 AttachmenNs]: City Clerk's Page Number No. Description i. City Attorney's Office Memorandum. 2. Sample Loan Documents. 3. List of Down Payment Assistance Borrowers at Pacific Park Villas. RCA Author: Gus Duran X1529 RCAPPV.DOC -2• 05l05199 9:34 AM City Attorne 's Office Memorandum 0 CITY OF HUNTINGTON BEACH - Inter-Department Communication TO: David Biggs, Director of Economic Developmeut FROM: Gail Hutton, City Attorney DATE: April 26, 1999 SUBJECT: «'allaee 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 a eater than 120% of median income (moderate income) pursuant to Section 9 of the Loan Agreement. 3. Does the new buyer need to meet the income requirements of the CC&Rs? A. Yes. 4. Is the Equity Share payable if the buyer qualifies under the CC&Rs? A. Yes. 5. Can the interest be forgiven if the property's fair market value does not exceed 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. r Gail Hutton City Attorney 4is.1•992--ttmos giggs425 0 CITY OF HUNTINGTON BEACH Inter-Office Communication w Economic Development Department TO: Gail Hutton, City- :attorney Paul D'Alessandro, Deputy City Attorney FROM: David C. Biggs, Director of Economic Development DATE: April 20, 1999 SUBJECT: First Time Home Buyer loan for Barbara Jo Wallace Yesterday, April 19, 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, fir. Bob Osterhoudt made a plea to the City Council requesting assistance for the property o%ners 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? (Sec attached 1999 Orange County Affordable Housing Worksheet issued by the law firm of Stradling, Yocca,Carlson& Rauth.) 3. Does a new buyer need to meet the income requirements established in the CC & R's? 4120199=Gus Duran:Eioudev:WALLACE 4. is the "Equity" payable if the sellers sell their home to a buyer that meets the incoriie requirements established in the Note and the CC&R's? �. 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: 1. Loan Agreement to Ms. Wallace from the Redevelopment Agency. 2. Promissory Note 3. Deed of Trust with Assignment of Rents 4. Lending Instructions S. Certificate of Proposed Transferee 6. Declaration of Conditions, Covenants and Restrictions for Property V20M:Gus Du ran.HoudevWALLACE Sample Loan Documents ATTACHMENT #2 LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 5tf, day of _.., 1996, 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 9205 Huntington Beach, California, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Property")- B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance Participant is a person or family of low or moderate income and currently earns less than 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 (tile "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 TIEMPO ESCR(M, INC., A CALIFORNIA CORPORATION (the "Escrow Agent") (Escrow No_ 9442—e . The Agency shall direct the Escrow Agent to apply the proceeds of the Agency Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a Loan Agreement Page l of 8 4W(i 4.9G-Abrcc_Wa1taccAoan31ycc Itl-$96.523 7126196 Promissory note in favor of the Agency as holder, in the amount of the Agency Loan, Nvith simple interest at five percent (5%) per annuni, due in thirty (30) years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Dote" 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 I'rooertx 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 Sharing In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1_ Prior to fifth anniversary of the Agency Deed of Trust' fifty percent (50%) 2. After fifth anniversary but prior to sixth anniversary: forty-eight percent (48%) 3 After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary= forty-four percent (44%) Loan Agreement Page 2 of 8 4",'G.4-96-ngrcc:Wa l l ZCC:loarngrcC R1S 96.523 7r2rr7L 5. After ei;hth anniversary but prior to ninth anniversary: forty two percent (42%) 6 ARer 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 t«el#th 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%) I4. 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%) IT 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 41s`GA-9G-Agrcc-Wallacc loanag:cc RUS 96.523 7r26/96 20 After twenty-third anniversary but prior to twerity-fourth anniversary- twelve percent {12%) 21_ After twenty-fourth anniversary but prior to twenty-fifth anniversary ten percent (I 0%) 22. After twenty-fifth anniversary but prior to t"•enty-sixth anniversary. eight percent (8%) 23 After twenty-sixth anniversary but prior to twenty-seventh anniversary. six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary_ four percent (4%) 25_ After twenty-eighth anniversary but prior to twenty-ninth anniversary two percent (2%) 26 After twenty-ninth anniversary but prior to thirtieth anniversary- one percent 0%) 27 After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following,- No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements_ The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan_ The "Sales Price" is the price paid by the Buyer of the Property to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 of 8 41s`-G 4-9G-AWc.AVall2ccA03a2Ercc I0,S 9G-52J W20f% 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 "Bu}.er") whose income exceeds 120% of the current annual median income for the Orange Count}I area If the Buyer does not submit an income verificatio-i 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. Eauity Share Upon Refinancing or Failure to Occupy The Equity Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property or material breach of any other provision of this Agreement which causes the Agency Loan to become due and payable- The Sales Price for purposes of determining the Equity Share Amount shall be determined by an appraisal of the Property The Agency shall appoint a certified, independent, appraiser to conduct an appraisal of the Property, at Participant's expense, and Par CIpant 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 Equity Share Obligation. In the event the Participant does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or is not in material breach of any other provision of this Agreement before the Thirtieth anniversary of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share Amount to Agency upon any later sale, transfer or refinancing 5 Occupancy Standards.The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property- 6. Income Information. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120% of the area median income_ 7. Loan Servicing The Agency may contract with a private lender to originate and service the Agency Loan 8_ Participant Financin . Participant shall obtain financing for the purchase of the Property from the Southern California Horne 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 41s1G:4.96-Agree_Wallace_lOanagrec R[S 96-523 7/2G/9G shall only be subordinated-to a first lien on the PropL-rty held by the Lender or Lender's assigns. In addition, not less than three percent (3%) ofthel 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 Proper-,y shall only be owned by Participant or other persons or families of low or moderate income ava lable at an affordable housing cost, as those terms are defined in California Health & Safety Comae Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry_ Such covenants shall run with the land, in favor of the Agency and the City. 10. Non-Waiver Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not con_6tute a waiver of such right or any other right in the event of a subsequent default. t l. 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 responsibil-Ity 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 tirne 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 Pane 6 of 8 41s1(j_4-96-Agrce_W altacetoanagee nrs nc-s13 �/2G+7G (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_ 1 S. 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 t of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shaft be made except by a written agreement executed by the Participant and Agency. 17. Agenc 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 Assig gnment 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 4•sG 4.7G-Ap�c:_Watfacc,toansgrcc It I S 76-52 J 712"(, 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. "PARTICIPAN`E", J Date AUGUST 13, 1996 I9 I3y !- %LeLlzu' YV �L— WALLA E Printed Naine: Date: 19 By Printed Name: Date- , 19 By: Printed Name- THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic Date: , 19%_ By: Chairman ATTEST: APPROVED AS TO FORM- Agency Clerk %�.��;�- Agency Counsel REVIEWED AND APPROVED: TMTIATED AND APPROVED: (� c, gvr-) Executi a irector Director of Economic evelopnient Loan Agreement Page 8 of 8 4\z\(i:4-96-Agrce=Wa11acc loanagrce IZIS 96.523 7rMM EXHIBIT A LE Ai_ DESCRIPTION OF PROPERTY PARCEL 1 : An undivided one twenty second ( 1/22) fee simple interest as a tenant in col:tmon in and to all of the common Area defined in Declaration referred to below and described in tiie ' Condominium Plan (-Plan") for Lot 1 of 'tract 11o. 14828, Mhicli 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 daps, in the office of the county Recorder of said county. ; Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other Hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit 110. 22 consisting of c©rtain 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 Roservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 Of Official Records . Parcel 4 : Exclusive easements appurtenant. to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas .-defined, depicted and assigned on the Plan. Exhibit A to Loan Agreement Page 1 of 1 4uVlgrcc_�targol is:LxleibilA'47126196 EXHIBIT B PROMISSORY NOTE S 35,00000 Huntington Beach, California AUGUST 5TH 19 96 FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The Redevelopment Agency of the City of Huntington Beach ("Holder") at 2000 Main Street, P.O_ Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in writing, Thirty-five Thousand Dollars (S35,000.00) (the "\Tote Amount") together with interest thereon at the rate set forth lierein. 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 Dote Amount shall be forgiven by the Holder. 2_ Maturity Date The balance of all unpaid principal and accrued interest shall be due and payable on AUGUST STH , 20 6 (thirtieth (30th) anniversary date of this Promissory Note)_ 3. Acceleration The whole of the Note Amount plus accrued interest and all other payments due hereunder shall become due and be immediately payable to the Holder by the Maker upon the occurrence of any one of the following events: (a) Maker sells or otherwise transfers title to the Property, or (b) Maker refinances any lien or encumbrance to which the Agency Deed of Trust is subordinate for a loan amount which is in excess of the then current loan balance of such prior lien or extends the amortization period of the loan secured by such prior lien; or (c) Maker fails to occupy the Property or to perform any obligation under the Agreement (as hereinafter defined)_ "Exhibit B" to Loan Agreement Pagel of 3 414\4.96AWce Wali,2cc C.xfvbrtI3 ui.s 06-523 7r2G/96 4- Security for Note This Promissory Note shall be secured by a second deed of trust encumbering the Property (tile "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee. 5 Prepavment of Note Amount Maker may prepay to Bolder the full Note Amount, together with simple interest thereon at a rate of five percent (5 00%) per annum, at any time prior to the due date of the Note Amount 6_ Loan Agreement This Promissory Note is made and delivered pursuant to and in implementation of Loan Agreement entered by and between the Holder and the Maker dated AUGUST 5, i 9 96 (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 \ote, the Holder would not enter into the Agreement or make the loan contemplated therein Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition as set forth in the Agreement- 7 Holder May Assign Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. 8- Maker Assignment Prohibited In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder, which consent may be given or withheld in the Holder's sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holders 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 41s14-96Agrcc-Wallace LxbibitU I Z I C 96•S21 712r,P)r, I I Successors Bound ' This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "MAKER" /I > / Printed Name- BARgAR11 70 ALA' By: Printed Name-- By. Printed Name "Exhibit B" to Loan Agreement Page 3 of 3 41s`.4-96Atfcc:W sllace-F xhibAU RL,S 96.5231 7l2G!%G 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 ) tSpacc Abo,c T n Linc For Rccofdc�s Usc This document is exempt from recording fees pursuant to Government Code Section 6103_ DEED OF TRUST WITH ASSIGNMFNTS OF RENTS THIS DEED OF TRUST is made this 5Tni day of AUG. , 19 96, by and among BARBARA JO WALLACE, whose address is 18051 Joyful Lane, „205, Huntington Beach, California (the "Trustor") and THE CITY OF HUNTINGTON' BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPI ENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH- (a) all buildings, improvements and fixtures, no%v or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. "Exhibit C" to Loan Agreement Page 1 of 15 4\s\C14-96agrce:Wallacc-ExhibilC R}S 95-523 7r2Gr96 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 here«•ith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof 2_ Payment of such additional sums with interest thereon as. (a) may be 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 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 mechanics 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 Pagc 2 of 15 4\s%G 4.9Gigtcc:�'ailacc.Lil<iU tC I41 S 96-523 712Gt9G (a) to complete the sanie in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to alloxv 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 xvith 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 sliall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by "frustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest- Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss- In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination "Exhibit C" to Loan Agreement Page 3 of 15 44kG-4-963pr ee Wallace Gxhibi[C KCS 9G-523 7/�G'7G 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 att 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 genera! and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished. at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law_ Should Trustor fait 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 4W1G 4.96agjcc W;11acc[xhibilC KI s 96.521 7/26M, expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest 5_ To appear in and defend any action or proceeding purporting to affect the security hereof or the property «which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and ~whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust 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 mariner 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 a�-�-ard, 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 snaking any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10_ That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and ~without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or ,,Exhibit C" to Loan Agreement Page 5 of 15 4\&%G:4.963grcc:Wallace CxhibilC xis 96-szz 7126196 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 lied 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 shalt reconv ey, 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 Dote and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a) ''mortgages in possession" for any purpose-, (b) responsible for performing any of the obligations of the lessor under any lease, or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of the property affected by this Trust Deed Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents,- issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver "Exhibit C" to Loan Agreement Page G of 15 4VIGA-%(,agree Wallace L-%hibllC R[S 96.571 7R6+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 ]a«:s 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 4'41-G14-963prce Wallace['AhibilC (US 9G-323 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 ternis 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 sucli time as then may be required by lave, following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof- Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale)- After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby IT 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�`-G:4.96sgrCC-W3ll3ce Lxh-lbac ats 96•Sz3 71Z6f9G 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, %vho 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 Is- 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 terns "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 an}, 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 orrrust or of-any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to "Exhibit C" to Loan Agreement Page 9 of 15 41S�G-4.96agrcc-%vatlacc_Exhfbdc RLS 96.323 7/26/96 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 l``ote or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and dernand 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 .[ BARBARA JO LACE By: By-. APPROVED AS TO FORM: Agency Counsel Ar,14 "Exhibit C' to Loan Agreement Page 10 of 15 4\s\G_4-96a&Tcc-Wallacc: xhibitC RL,S 96-523 7a2GnlG RIDER TO DEED OF TRUST FIRST TIME HOME-BUYER DOWN PAYMENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5TH 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($3 5,000.00) (the "Loan Amount") All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount_" The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: l 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%) "Exhibit C" to Loan Agreement Page 11 of 15 4s-G.4.96a&rcc-Wah3cc CxhfUi[C RCS 96-523 W2676 10_ After thirteenth anniversary but prior to fourteenth anniversary: thirt}'-two percent (32%) I 1_ 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 (I4%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 2 I_ After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary- eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary six percent (6%) 24_ After twenty-seventh anniversary but prior to twenty-eighth anniversary- four percent (4%) "Exhibit C" to Loan Agreement Page 12 of 15 4\st(F_4.96a&rcc_WalI ace.l'xhillitC kts 96-523 7126t96 25. After t%%enty-eighth anniversary but prior to o enty-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, exclusi,--e of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following. No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (1) an itemized list of the improvements, (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 Ioan 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 I3 of 15 4X&XG:4.9Gagrcc Wallacc:L'x.!+ibiiC RLS 9G-523 7176MG Property as of the time of such transfer or refinancing Dated: AUGUST 13, 1996 TRUSTOR BARB m j6 WALLACE APPROVED AS TO FORM Agency Attorney r j:y If "Exhibit C" to Loan Agreement Page 14 of 15 4�s\Ci-4-9La�cc.Wall�tc l:xhiyilt: Rt S 96-523 7120196 RIDER TO DEED OF 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 AUGUST 5 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan Amount") All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement_ Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events- 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender 2) Title is acquired by the First Lender or another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated= AUGUST 13, 1996 TRUSTOR- APPROVED AS TO FORM.- BMMM JOi&LACE Agency Attorney "Exhibit C" to Loan Agreement Page 15 of 15 4'S%G 4.96agrcc:wallacc.E:x ilbitC RIS 96-523 7126/96 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFCMIA COUNTY OF OPANGE: - SS_ On AUGUST 13, 1996 _ - berore rite, the undersigned, persoltally agpf)_ared BARBARA JO WALLACE — __--- -�— - --- - personally known to rite for proved to Otte on file basis of satisfactory evidence) to be flte persolj(s) whose name(s) islare subscribed to the within irlstrutttent and acknowledged to file that fie/slie/they exect_Ited (fie same in Iris/helllheir authorized c,,pacity(ies), arld that by his/herllheir sigrtature(s) or] the instrument the person(s) or the eI ltily upon bet talr of w!ticf t the leer sot t(s) acted, exer;ul,d the instrument. WITNESS my hand arid official seal. (fills area for olllolal nolailal seal) T- LINDA J.CAM BELL_ z Si riatUr� �!L"f-1 -C — m '; e -- COMM. # 104534a p� NOTARY PUBLIC•CALIFORNIA ORAhG[COUt4TY LMDA J_ CAMPBLL .: y Lly Corr:m Era;:e!CcC 20.10'B8 fffffffffffrf(fffftffffffffflflffffffrf OPTION L ffffffffffffffftlflfffrlfffflflf[riff! Though (fie data below are no( required by law, they may prove valuable to persons telyirrg ort the cfucutrlent acid could prevent the fraudulent reallachment of (his form. Capacity Claimed By Signer Desctilltiott Uf Attached DOUL11110nt Windividual t] Corporate Orlicer .t Itlns(s) 1 rtla or r ype of Docrimptit U Partner(s) U Limited El.General U Attorney-in-Fact u rrus(ee(s) Humber of Pages U Guardian/Conservator Other: _ Dale of Uocurrrerrt Signer Is Representing: Marne or Person(s) or Enllty(les) Signers) Other l trait Named Above e EXHIBIT A TO AGENCY DEED OF TRUST LEGAL DESCRIPTION PARCEL 1 : An undivided one twenty second ( 1/22) fee simple interest as a tenant in common in and to all of the Corrmon Area defined in Declaration referred to below and described in the Condominium Plan ("Plan") for Lot I of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of official Records of orange County, over Lot 1 of 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 Flaps, in the office of the county Record©r of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded Fugust 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 i above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records . Parcel 4 : Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas-defined, depicted and assigned on the Plan. "Exhibit A" to Agency Deed of Trust Page I of I 41s?G:A&rcc&izrgolis:Ex)iC1Dccd'07/25„6 Rl S 96.127 • • EXHIBIT I) DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDrNG REQUESTED BY } AND WF EN RECORDED MAIL TO- ) } } (Space above for Recorder's use.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration") is made by and between BARBARA JO WALLACE (the "Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency" or "Covenantee") as of the date set forth below. RECITALS A- Covenantor and the Agency have entered into a certain Loan Agreement dated AUGUST S , 19 96 , (the "Agreement," a copy of which is on file with the Agency at its offices and is a public record) pursuant to which the Covenantor has agreed to subject certain real property (referred to in the Agreement and referred to herein as the "Property") described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditions and restrictions. B_ The Community Redevelopment Law (California Health and Safety Code § 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW, THEREFORE, the parties hereto agree and covenant as follows: "Exhibit D" to Loan Agreement Page 1 of 9 MsKk4.9GAgrce-Waltact Exhibill) RLS 96-523 7129196 I. Affordability Covenants Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for thirty (30) years from 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 (1 10%) 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 (l 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 I shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2 Transfer of Pro pert . No transfer of the Property sliall 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 Cs1G:4-96AacrWallace Eahibi[U ILLS 96.523 7129196 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 CAIN BE MADE ONTLY AT THE TI.M_E OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION; INTEREST RATES, THE TERMS OF SALE OFFERED TO AND TIM ECONOMIC CLRCUMSTANCES OF THE PROPOSED PURCHASER Ah`D OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED I-IEREUNTDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE rN THE SAME IMAN ER 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-PFJMARY OBJECTIVE OF THE AGENCY AND TMS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT ANT AFFORDABLE HOUSING COST_ � v) Covenantor Initials The covenant contained in this Section 2 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date, 3 Non-Discrimination Covenants_ Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. Covenantor and its successors and assigns, shall refrain from restricting the rental or Iease (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 MaNG 4-96A&rcc W allaCr.Exluhill) RLS 96-323 7129/96 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 %vith 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 Iimitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. S. 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\s'.Q_4-9Grtgccc:W:liscc C�chibitD RLS 96-523 7129/96 breach to which it or any other beneficiaries of these covenants may be emitted 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. W WITNESS WI-IFREOF, the Covenantee and Covenantor have caused this instrument fbeAUGUexeecw d on their behalf by9theirrespective officers hereunto duly authorized, this 13 day COVENANTOR BARBARA JO WALLACE APPROVED AS TO FOR IMR Agency Counsel�� !jCe-e "Exhibit D" to Loan Agreement Page 5 of 9 4'3:GA-96A&ree-Wallace EuhibitU RLS 96-523 7129/96 STATE OF CALIFORINIA ) ss COUNTY OF ORANGE On AUGUST 13, 1996 before me, LINDA J. CAMPBELL (name, title, e.g-, "Jane Doe, Notary Public"), personally appeared BARBARA JO WALLACE (name(s) of signer(s)), personally kno%%n to be -- OR-- XX proved to me on the basis of satisfactory evidence to be the person(s) whose namc(s) is/are subscribed to the within instrument and acknowledged to me that hdshe/they executed the same in his/her/their authorized eapaeity(ies), and that by liis/her/their 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 my hand and official seal. LINDA J.CAMPBELL L NOTARY PUBLIC•CALIFORNW 6 ziA •�J ORANGE COUNTY k+r �+- =a�ee DEc.2o,t998 (S ignat c of I`otan) LINDA J- cAmPB_ ELL CAPACITY CLAIMED BY SIGNER: XX Individual Corporate Officer(s): Title(s) Partncr(s)- Limited General Attorney-in-Fact Trustce(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Persons)or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document DEMARATION OF CIONDITIONS, OOVR%WrS MUST BE ATTACHED AND RESFRICF10t iS FOR PROPERTY TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AUGUST 5, 1996 AT RIGHT. Signer(s) Other Than Named Above: "Exhibit W to Loan Agreement Page 6 of 9 4Ls%G:4.96Agree_Wspice=Exhihi:D RLS 96.523 7129/96 STATE OF CALIFORNIA } ss COUNTY OF On , before me, (name, title, a-g., "Jane Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally kno%wi to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) -whose rlamc(s) is/are subscribed to the within instrument and acknowledged to me that helslieldiey executed the same in his/her/their 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 tl1c instrument. Witness my hand and official seal_ (Signature of Notary) CAPACITY CLAIMED BY SIGNER Individual Corporate Oflicer(s): Title(s) Partner(s)= Limited General Attorney-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE A ITACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s) Other Than Named Above: "Exhibit D" to Loan Agreement Page 7 of 9 4\s%G 4.96Agrce_Wallace'ExhibitD R1.S 96-323 W29196 STATE OF CALIFORNIA ) ss COUNTY OF ) Oil before me, (name, title, a g., "Jane Doc, Notary Public"), personally appeared (nanie(s) of signer(s)), personally kno«m to be -- OR-- proved to me on the basis of satisfactory evidence to be the person(s) whose namc(s) is/are subscribed to the within instrument and acknowledged to me that hc/shc/they executed the same in hislhcrltlicir authorized capacity(ics), and that by histher/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 sea[. (Signature of Notary) CAPACITY CLAIMED I3Y SIGNER: Individual Corporate Officcr(s): Title(s) Partner(s): Limited General Attorney-in-Fact Trustec(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ics) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signcr(s) Other Than Named Above- "Exhibit D" to Loan Agreement Page 8 of 9 4\s%G-4-96Agree:Wallace:Exhlbhl) RtS 96-523 7/29196 EXHIBIT A LFGAL DESCRIPTION OF PROPERTY [To Be Inserted] LEGAT 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. 14828, in the city of Huntington Beach, County of orange, State of California, as per map filed in Hook 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the county Recorder of said county. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2 : Unit tlo. 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 areas defined, depicted and assigned on the Plan. l I "Exhibit D" to-Loan Agreement Page 9 or9 4'stG.4.96Agree•Wallace-GxhibitU RLS 96.323 7129190 List of Down Payment Assistance Borrowers at Pacific Park Villas RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Transferability of Pacific Park Villas Down Payment Assistance Loans COUNCIL MEETING DATE: May 17, 1999 RCA ATTACHMENTS STATUS Ordinance wlexhibits & legislative draft if applicable) Not Applicable Resolution (wlexhibits & 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 City Attomeyj Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by Cify Atfome Not Applicable Certificates of Insurance (Approved by the Cif Attome Not Applicable Financial Impact Statement Unbud et, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findin s/Conditions for Approval and/or Denial Not A licable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORW4RDED Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: Only)(Below Space For City Clerk's Use RCA Author_ Duran at extension1529 Recordiri?Requested by Recorded in the County of Orange,California Order No. % ` Gary L. Granville,Clerk/Recorder EScrow,Ncfldelity National Tit)e Insurattce tea. 0111I1IIIB 11 d1111110110111 H 18.00 Loan No: WHEN,RECORDED MAIL To: 19980155701 04:30PM 03/18/98 005 20014673 20 33 The Redevelopment Agency of Huntington Beach S13 5 6.00 12.00 O.DO 0.00 0.00 0.00 2000 Main Street Huntington Beach,CA 92648 SPACE ABOVE THIS WNE FOR RECORDER'S USE SUBORDINATION AGREEMENT 7` NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER Q SECURITY INSTRUMENT. f Lam? THIS AGREEMENT made this llth day of March . 19 98 by CD Robert G. Osterhoudt and Kathy A. Osterhoudt, husband and wife as joint tenants J d owner of the land hereinafter described and hereinafter referred to as Owner,'end CS' The Redevelopment Agency of The City of Huntington Beach present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as'"Beneficiary', WITNESSETH THAT WHEREAS, Robert G. Osterhoudt and Kathy A. Osterhoudt, did execute a deed of trust, dated April 21,1997 to The City of Huntington Beach , as trustee, covering: COMPLETE LEGAL DESCRIPTION ATTACHED HERETO AND BY REFERENCE MADE A PART HEREOF EXHIBIT "1" . . to secure a note in the sum of$35,000 .00 dated April 21 , 1997 , in favor of The Redevelopment Agency of The City of Huntington Beach , which deed of trust was recorded May 6, 1997 , as instrument No.97-0210381, ivcZvakKxxxxxxxxFhgmxxxxxxx, Official Records of said county; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of 5 14 9,5 0 0 .0 0 , dated March 12, 1998 , in favor of New America Financial . hereinafter referred to as "Lender,' payable with interest and upon the terms and conditions described therein, which deed of trust is to t>e recorded concurrently herewith; and WHEREAS,it is a condition precedent to obtaining saio loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned: and (continued on reverse side) 1286:11xa, Pape I of 2 Recording Requested bx• 'Order No. • ., Escrow NoFidelity National Title Insurance ft Loan No. . _ _ THIS ORISINAt DOCUfAlIff WAS SCANt"m RDED-MAILJ0e, CID �TRONICAUY RECORDED ON WHEN RECO The Rec�eve,�5 "rtteyr 'Agency of BAR 18 im Huntinrton":Beach J 2000 twin, Str ,et / Huntingtoii'rBeaChCA .92648 Document 140.j i � -? — Fi4elity National T+rs}e Insurance CO, ' SPACE ABOVE THIS LINE FOR RECORDER'S USE SUBORDINATION AGREEMENT T` NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY u1 BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT 1 THIS AGREEMENT, made this l lth day of March . 19 98 by _i_1 Robert G. Osterhoudt and Kathy A. Osterhoudt, husband and wife as joint tenants cV -� owner of the land hereinafter described and hereinafter referred to as "Owner," and �j The Redevelopment Agency of The City of Huntington Beach present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as"Beneficiary WITNESSETH THAT WHEREAS, Robert G. Osterhoudt and Kathy A. Osterhoudt, did execute a deed of trust, dated April 21 , 1997 , to The City of Huntington Beach' , as trustee, covering: COMPLETE LEGAL DESCRIPTION ATTACHED HERETO AND BY REFERENCE MADE A PART HEREOF EXHIBIT "1" . . to secure a note in the sum of $3 5 , 0 0 0. 0 0 dated April 21 , 1997 in favor of The Redevelopment Agency of The City of Huntington Beach , which deed of trust was recorded May 6 , 1997 , as Instrument No.97-0210381, ia8aakKxxxxxxxxFagrxxxxxxx, Official Records of said county; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $ 149 , 500 . 00 dated March 12 , 1998 , in favor of New America Financial , hereinafter referred to as "Lender," payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and (continued on reverse side) 1266 t1r9ai Page t of 2 WHE REAS;lende►is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall,when recorded,constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust first above mentioned. (2) That Lender would not make its loan above described without this subordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described,any prior agreement as to such subordination including, but not limited to,those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will,see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) He intentionally and unconditionally waives,relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be made and,as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination-, and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR HEAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. The Redd-ve��ap:nent Agency of The City of Hunting Qhr Beach'� BY: 74 3j jr Beneftei - Kathy W. OsterhoudMwner (ALL SIGNATURES MUST BE ACKNOWLEDGED) IT-7S RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. (CLTA SUBORDINATION FORM A) P�2'a`) ,0 • EXHIBIT "ONE" 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 the 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_ 94-0525335of Official Records of Orange County, over Lot 1 of Tract No. 14828, in the City of Huntington Beach, County of Orange, State of California, as per map recorded in Book 706. Page(s) 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of said County EXCEPT THEREFROM all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record. PARCEL 2: Unit No. 13 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. PARCEL 3: Nan-exclusive easements for access, ingress, egress, encroachment, drainage, repair, maintenance, support and for other purposes, all as described in that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PARCEL 4: Exclusive Easements appurtenant to Parcels 1 and 2 above, for balconies or patio purposes, over the areas defined, depicted and assigned on the Plan. 2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT STATE.OF CALIFORNIA }SS I COUNTY l OF__09-On 3-rrl- C v{cxg befoTe me. 4kL U,Y1Ltt/1/J� personally appeare =Q O Q p r prove to me on the asts o satisfactory evidence)to be the pemon(s)w au names)Warysubscnbed to the w ithin Instrument and acknowledged to me that he44ieithey executed the same in hiWboithCir authonzcd capacityocs)and that by hgiherithelr signature(s) on the Instrument the person(s)or the entity upon behalf of which the person(s)acted.executed the instrument. 10 WITNESS my hand and official scal_ U CAB ml De0833039Reg Signature_ (/ _ lAR()fl/1NG(:COUt�TYORNIAh e �'' rt� Cpmm Era Jan t5-2^OD 1�+ 1 CAPACITY CLAIMED BY SIGNER Though statute does not require the Notary to (ill in the data below, doing so may prove invaluable to persons relying on the document. [ INDIVIDUAL t ] CORPORATE OFFICER(S) TrrLE(S) [ ] PARTNER(S) - [ I t.imrrED I I GENERAL I [ ] ATTORNEY-IN-FACT [ ] TRUSTEE(S) i [ ] GUARDIAN/CONSERVATOR t [ [ OTIIER t SIGNER IS REPRESENTING: Name n erson or Entity Name of Person ur Enmy Though the date requested here is not required by law, it could prevent fraudulent reattachment of this form. THIS CERTIFICATE MUST BE ATTACHED TO TIC DOCUMENT DESCRIBED BELOW TITLE OR TYPE OF DOCUMENT: �,SU60V'11 A05A 1�10 e-N (.�G,�-e e r-VI 1--1.j NUMBER OF PAGES 13 DATE OF DOCUMENT i e SIGNER(S) OTHER THAN NAMED ABOVE 4 1 CAL19ORNIA ALL-PURPOSE ACKNOWLEDGMENT - , ' State of 6'"r t't ca- r�5 County of _ On before me, a /✓ _it/Bfd✓y�ic bCc oat Nam"aW Tab or ouK,ef le g.'Jar Dot.N Puw-) } personally appeared ecRIAI1 E hh Heme�Sl n,saner{S; r: personally known to me- - to be the person6ti whose name(!re subscribed to the within instrument f and acknowledged to me that �fi ey executed the ' same in hiecE04t►eir authorized capacity(ies),and that by }, hair signature(-.) on the instrument the person(, S u+URAA.NS" or the entity upon behalf of which the persort(!}acted, �1 c(M.N." 0 wMaw executed the instrument. Notory Plea—Cl a<d" Omnoe c W coffm Ewrr 2L two r WITNESS my hand and official seal- y C Srgnaturc o,No:ary Pubic O OPTIONAL Though the information below is not required by law. it may prove valuable to persons retying on the document and could prevent fraudulent removal and reattachment of this form to another document Description of Attached Document Title or Type of Document- SU,- )0rd(_A .WW dily_Pdman"? / Document Date- 3111 ! 9 7 Number of Pages- Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: C'owA11E Ck CdA4 Signer's Name; Individual = Individual _ Corporate Officer _ Corporate Officer Title(s): Title(s): G Partner—❑ Limited General ❑ Partner—❑ Limited ❑! General * Attorney-in-Fact ❑ Attorney-in-Fact ❑ Trustee ❑ Trustee ❑ Guardian or Con rvator ❑ Guardian or Conservator Other Top of thl nb gere El Other_ Tip of thu b sere Signer Is Representing: Signer Is Representing: „ O 19cYi National No:ary ASSoaalron-82J8 Ftemmet Avrr-Po Box 7184-Gunoga Part,GA g1sC9.7184 Prod No 5W7 Ftma!Lr Call Tol.-Free 14M.1376-6827 SPRING NTAIN Orange Branch T ESCROW 1100 Town & Country Road. Suite 120 • Orange. CA 92668 (714) 972-0800 • FAX (714) 972-0805 [ 0AF0RATION LOAN ESCROW INSTRUCTIONS TO: Spring Mountain Escrow Corporation Escrow Number : 1809-SK Escrow Officer : Steven M. Keeton Date : February 9, 1998 SPRING MOUNTAIN ESCROW CORPORATION, HAS BEEN ISSUED AN ESCROW AGENT'S LICENSE BY THE DEPARTMENT OF CORPORATIONS, STATE OF CALIFORNIA. The undersigned Borrower(s) is obtaining a EMERALD PACIFIC loan on the property described below and will cause Lender to hand you the proceeds of a new First Trust Deed in the amount of $149,500.00, less normal costs and charges, which you are authorized to use on or before March 9, 1998, providing upon Borrower(s)execution of the Note and Deed of Trust referred to in item 4 and recordation of said Deed of Trust, you obtain an ALTA Lender's Policy of title insurance, per Lender's requirements covering real property in the County of Orange, State of California, as follows- For Complete Legal Description See Exhibit "A" attached hereto and made a part hereof by this reference. PROPERTY ADDRESS: (not verified) 18061 JOYFUL LANE, #102. HUNTINGTON BEACH, CA 92648 Showing title vested in: E. A TRUE AND CORREC"t. � CtirRT f1E.D YO=�r21r�1P'•"•1 . r ZATIOm ROBERT G. OSTER OUDT and KATHY A. OSTE OUDT,(husband and wife as Joint•Tenants The policy is to be free of encumbrances except as follows: sty 1) Any General and Special Taxes and Special District Levies not due or delinquent; this will include the lien of supplemental taxes, if any, assessed pursuant to Chapter 498, 1983 Statutes of the State of California. 2) All Taxes, Bonds and Assessments levied or assessed subsequent to the date of these instructions. 3) Covenants, conditions, reservations (including exceptions of oil, gas, minerals, hydrocarbons, and/or lease without right of surface entry), restrictions, rights of way, and easements for public utilities, districts, water companies, alleys, and streets. 4) First Deed of trust to record in favor of EMERALD PACIFIC, securing a note in the amount of 149,500.00. First Trust Deed, to file securing a note in the principal amount of$149,500.00 in favor of EMERALD PACIFIC at the best prevailing rate and terms per lenders instructions to be deposited into escrow. Borrower's signatures on loan documents and/or other lenders instructions shall be deemed their full approval of the terms and conditions contained therein. FIRE INSURAINCE Borrower shall provide and pay for fire(and flood, if required) insurance coverage as required by lender prior to close of escrow. Escrow holder is authorized to deduct cost for premium(s) from proceeds, unless the insured deposits paid receipt into escrow. OBTAIN DEMAND: Escrow holder is hereby authorised and instructed to obtain demand from ]ender(s)of record and to pay for same from Borrower's proceeds at the close of escrow, including prepayment penalties, interest and such other costs, if applicable_ CLOSING COSTS:: All conditions and demands above are hereby approved and I will hand you the necessary documents called for on my pan to cause title to be shown as above, which you are authorized to deliver upon payment to you for my account the sum of the proceeds of above loan within the time period as above provided. Pay escrow charges, recording fees, charges for evidence of title called for above (whether or not this escrow is consummated). You are authorized to pay any bonds, assessments and/or taxes, also any encumbrances of record, plus accrued interest, charges, if any, to show title as called for above and/or necessary to comply with same. Instruct the title company to begin search of title at once. CANCELLATION OF ESCROW IF LOAN IS DENIED AND/OR FUNDS HAVE. BEEN DEPOSITED: If Lender notifies Escrow Holder that the loan application has been cancelled or denied, cancel the above numbered escrow without further authorization. In the event funds have been deposited into escrow, borrower shall hand Escrow Holder written instructions regarding disbursement of same. Escrow Holder is instrucgied to disburse funds pursuant to those written instructions and cancel the above numbered escrow. Additional Instructions Attached Hereto And Made A Part Hereof By initialling below, I/We agree that 11'We have read, understand and acknowledge the text contained herein. Borrower Initials:._Wy0, Page 1 r, i • S rim Mountain Escrow1orporation Date : February 9, 1998 Escrow No. : 1809-SK HOLD OPEN FEE: In addition to any other fee, the principals jointly and severally agree that if Escrow Holder is required to hold funds on deposit for more than 90 days after the scheduled closing date or after the date funds and documents are deposited whichever is later whether or not the escrow file is closed, cancelled or pending, then the principals irrevocably assign without further instructions to Escrow Holder on the first of each subsequent month, a "hold open' fee of $75.00 per month from funds on deposit in the escrow. The principals irrevocably instruct Escrow Molder to cancel and close the escrow file when all funds on deposit have been disbursed. FACSIMILE SIGNATURES: In the event Borrower utilizes 'facsimile` transmission of signatures on any instructions or documentation required for the close of this escrow, Borrower authorizes Escrow Holder to accept same and to rely upon such documents as if they bore original signatures, Borrower states that he will provide Escrow Holder with original signatures on any such documents within 72 hours from the date of facsimile transmission to Escrow Holder. NOTE: Borrower is aware that non-original ("facsimile") signatures will not be accepted by the County Recorder on any documents to be recorded through this escrow. Borrower is aware and understands that he must deliver original signatures on any such documents to Escrow Holder prior to closing in order to avoid a possible delay in the close of escrow. GENERAL PROVISIONS All funds received in escrow shall be deposited with other escrow funds in a non-interest bearing escrow trust account of Spring Mountain Escrow unless otherwise instructed in writing- Escrow Holder has no obligation to disburse funds until the deposit has been honored by the hank aril funds have been credited to the account,consequently, the funds required from the Buyer and any Lender to be deposited immediately prior to the close of escrow must be in the form of a wire transfer or cashier's check- All disbursements shall be trade by check of this escrow company In the event it may be necessary in order to comply with these instructions, Escrow Holder is authorized to deposit or have deposited documents andlor funds with any duly authorized sub-escrow agent. bank, tide company. or licensed escrow, prior to the close of escrow and subject to Escrow Holder's order. Our signatures on any documents and/or instructtons pertaining to this escrow indicates our unconditional approval of same. You are authorized to furnish copies of instructions,amendments,closing statements and/or any other documents deposited in this escrow to the lendcrts) and/or any real estate broker involved in this transaction upon request- 'Close of escrow' is defined as the date documents aft filed lot rcct.rd with the Countv Itecordef- Escrow Fielder is instructed to destroy these instructions and records in this escrow at anytime after five(5)years from dale of(i)close of escrow;(ii)date of cancellation;or(iii)date of last activity, whichever is laicr- tt is understood that the fees agreed to be paid for your services are for ordinary and usual services only,and should there be any extraoidinary or unusual services rendered by you,the parties agree to pay reasonable compensation to you for same. if requested or if Escrow Holder determines, a[ its sole discretion, that it is necessary to utilize special services the principal receiving the benefit authorizes debits as follows- special messenger.overnight courier, or express mail a minimum amount of$25.00 or as billed for each delivery and a fee of$50-00 for each transmission of funds via Federal Wire or issuance of cashiers check. Order hazard insurance in form and amount as required by any Lender and pay premium(s)for same through escrow. If!"the`Upenr`t�.Lts'�altached housing where there is a Master Insurance Policy in effect,obtain Certificate of Insurance acceptable to lender. r \'TRUE IF)1K In the event that conditions of this escrow have not been complied with at the expiration ceilie time p vided for herein,you arcfinstiucicd,�nevertheless, to complete the same at any time thereafter as soon as the conditions(except as to rime)tave been complied wi unless any of the parties hereto have made written demand for cancellation and/or return of money or documents- Escrow Holder shall not be liable for the sufficiency or correctness as to form,manner of execution or val of any instruments deposited in [his escrow, or as to idemity,authority or rights of any person executing the same or for failure to comply with any of the provisions of any agreements or other instruments filed herein and referred to herein_ Escrow Holder's duties shall he limited to the safekeeping of such money, instruments, or other documents received by Escrow Holder and for the disposition or return of same solely in accordance with these escrow instructions- Escrow holder is hereby authorized, in its exclusive discretion, to obey and comply with all writs, orders, judgments or decree issued by any coup or administrative agency affecting any money,documents or other items held by Escrow Holder. Escrow Holder shall not be liable to any of the parties hereto, their successors,heirs or pe"mal represenra lives by reason of Escrow Holder's compliance with such writs,orders.judgments or decrees, notwithstanding such writ,order,judgment or decree is later reversed, modified,set aside or vacated - 'The principals to this escrow,jointly and severally, promise to indemnify anal hold FsCrow fielder harmless from.all fees,expenses. obligations and liahilmcs which Escrow Holder may incur or suffer directly or indirectly,either before or after the close or cancellation of the escrow file- The principals to the escrow,jointly and severally,promise to pay an demand all fees arid costs incurred or suffered by Escrow Holder directly or indirectly,either before or after flit dose or cancellamon of ilic cwtow file ulduding. but not limited [it.administrative and governmental costs,daolagcs, ;iwards,judgmculs,;audit and legal fees,litigation costs,arbitration charges,including but not limited to attorney's fees and costs before trial,at trial,on appeal or for collection Escrow Holder shall not be liable for any error of judgment or for any act done or step taken or omitted by it in good faith or for any mistake of fact or law or for anything which Escrow Holder may do or refrain from doing in connection herewith,except its own gross negligence or willful misconduct- Additional Instructions Attached Hereto And Made A Part Hereof By initialling below, I/We agree that I/We have read, understand and acknowledge the text contained herein. Borrower Initials: Page 2 Spr'nuMountain Escrow Corporation Date : February 9, 1998 ' Escrow No. : 1809-SK In the event conflicting written derttand or notices are made Or served upon Escrow Holder or any controversy arises between the panics or with any third parry growing out of or relating to this escrow, Escrow Holder shall have the absolute right to withhold all further proceedings in this escrow until receipt Of %atisfactory written notice of the~riflemen[of t1+c cuntmvcrsy by apreemenr of the parties- or by final judgment of ;in artiarausr or CPUrt of Cnmpctcni luriufiction andlor Lurow Holder may interple.rd the panic,in any court of contperem jurisdiction. All parties to Ihm escrow)Rattly and severally promise and agree to pay promptly on demand.as well as io indemnify Escrow Holder and hold same harmless from and against, all litigation and interpleader costs. damages.judgments,attorney's fees,expenses, obligations and liabilities of every kind which,in good faith. Escrow Holder may incur or suffer in connection with or ansing out of this escrow,whether said litigation, interpleader,obligations, liabilities or expenses anse during the performance of this escrow or subsequent thereto,directly or indirectly, except for its own willful or grossly negligent misconduct- Escrow Holder is hereby given a lien upon all the rights, title and interest of each of the parties hereto in all document.%and funds deposited in escrow for any and all expenses. including cancellation costs,attorney's fees, losses and other liabilities caused you in this escrow- No action shall lie against Escrow Holder for any claim, loss, liability or alleged cause of action of any kind or nature whatsoever.however caused or occurred.under this escrow or in connection with the handling or processing of this escrow unless brought within twelve(12)months after the Close of Escrow- LENDER NAME AND ADDRESS: EMERALD PACIFIC 1801 PARKCOURT PLACE#F200 SANTA ANA, CA 92701 ATTN: FRED EACH OF THE UNDERSIGNED STATES THAT THE FOREGOING INSTRUCTIONS HAVE BEEN READ AND UNDERSTANDS AND AGREES TO T13EM. 1�14' ,4 4-4 - --- ta a, , TT )y ROBERT G. OSTERHOUDT KATHYA. OSTERHOUDT Mail check and all documents to: 18061 JOYFUL LANE#102, HUNTINGTON BEACH, CA. 92648 `•4n Additional Instructions Attached Hereto And Made A fart Hereof By Initialling below, 1/We agree that IlWe have read, understand and acknowledge the text contained herein. Borrower Initials:MKA Page 3 RESOLUTION NO. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AUTHORIZING EXECUTION BY THE DIRECTOR OF ECONOMIC DEVELOPMENT OF LOAN AGREEMENTS FOR LOANS FUNDED BY HOUSING SET ASIDE MONIES WHEREAS, the City Council of the City of Huntington Beach has approved an Affordable Housing Program, and The City Council has authorized the Director of Economic Development to administer the program; and The preparation of certain documentation is necessary in order to implement the program and comply with regulations which govern the use of housing set aside funds in order to implement the redevelopment plan and subsidize low and moderate income households to the extent those households cannot obtain housing at affordable costs on the open market; NOW, THEREFORE, BE`IT RESOLVED by the Redevelopment Agency of the City of Huntington Beach as follows: SECTION 1. The Director of Economic Development, or his/her designated representative is hereby authorized to sign all documents necessary and appropriate to carry out and implement the Affordable Housing Program and execute loan agreements using housing set aside funds for first-time homebuyers who qualify as persons of low or moderate income. SECTION 2. A loan agreement prepared by the City Attorney is attached hereto and incorporated into this resolution by this reference. Said agreement is hereby approved for use in the administration of loans using housing set aside money for downpayment or other assistance to low and moderate income households. SECTION 3. The Director of Economic Development is directed to submit to the Redevelopment Agency for approval the names of the loan 71sei Lsde/10/i 119303 26 PM Y applicant, the location of the housing, the amount of the loan, and any unique features of the loan or the housing which might be required, prior to execution of loan agreement or other documents in compliance with Huntington Beach City Charter Section 613, "Execution of Contracts." SECTION 4. The Agency finds that the Agreement is categorically exempt under CEQA, pursuant to Section 15326 of the Guidelines to the California Environmental Quality Act. SECTION 5. The Agency finds and determines that expenditures from the Housing Fund as contemplated by the Agreement will directly and specifically benefit, improve, and preserve the community's supply of lower income housing within the meaning of Section 33334.2 of the California Health and Safety Code. SECTION 6. The Agency finds and determines that expenditures from the housing fund as contemplated by the loan agreement are of benefit to the Redevelopment Project Areas. PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the day of , 1993. Chairman ATTEST: APPROVE AS TO FORM: Agency Clerk f�D $ti3 y CPynsel R IEWED AND APPROVED: INITIATED AND APPROVED: Executive Dire r Deputy City Administrator/ Director of Economic Development z ,a 715etaSide/1011119303 28 PM proposed sale pursuant to the Loan Agreement, the identity of the proposed Buyer and adequate information evidencing the income of the proposed Buyer. Said income information shall include original or true copies of pay stubs, income tax records or other financial documents in order that the Beneficiary may determine and verify the household income of the proposed Buyer to determine Eligible Person or Family status and whether the Property is available to such Buyer at affordable housing cost. If the Beneficiary is unable to verify the Buyer's income as provided herein, then the Buyer's income shall be deemed to exceed the maximum allowable income limit for Eligible Persons and Families and the Equity Share Amount shall be due and payable concurrent with the repayment of the Note Amount plus interest. In the event that sale or transfer is made to an Eligible Person or Family, interest which has accrued at the time of the sale (upon close of escrow) shall be due and payable, unless the Property has appreciated in value in an amount which would be equal to or less than the value of the Property if the appreciation rate had been five per cent (5%) per year over the original price paid by the Trustor. If the pr4ce of the Property upon sale to ajt Eligible Buyer reflects less than 5% appreciation per year over the price paid by the Trustor at the time of original purchase, then no interest will be due upon such sale. Interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the then unpaid principal amount. 6. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or investor (the "Lender") shall be prior and superior to the Declaration and this Deed of Trust. Thus, in the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the .7 ModndoC/JG C yrhdr10711 219,' Trustor's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Trustor or a related entity of the Trustor), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Prdperty free and clear from such restrictions. 7. Obligation to Refrain from Discrimination. There shalt be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or any portion thereof. Trustor agrees it shall instruct the escrow holder for the acquisijion of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; and 3) the Agency Deed of Trust. 8 JAoa ndoclagcynd,iO 1 2f94 - Fidelity National Title Company PRELIMINARY REPORT In response to the application for a policy of title insurance referenced herein, Fidelity National Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in Exhibit A attached. Copies of the Policy forms should be read. They are available from the office which issued this report. This report land any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby_ If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The Policy(s) of title insurance to be issued hereunder will be policy(s) of Fidelity National Title Insurance Company, a California corporation. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land. Ffdsllty Notional Tlda Company "Y r a SEAL Pam. ArTEsr _ Countersigned V�;•_ � Q1t�—� Fidelity National Title Company 17592 East 17th Street. Suite 200 • Tustin. CA 92780 (714) 838-0300 • FAX (714) 669-0374 PRELIMINARY REPORT ESCROW OFFICER: Steven ORDER NO.: 9824815 TITLE OFFICER: David Smith T0: Spring Mountain Escrow 1 100 Town & Country Road, Suite 120 Orange, CA ATTN- Steven YOUR REFERENCE.: 1809-SK SHORT TERM RATE- yes PROPERTY ADDRESS: 18061 Joyful Lane ##102, Huntington Beach, California EFFECTIVE DATE: February 4, 1998, 07:30 A.M. The form of Policy or Policies of title insurance contemplated by this report is: American Land Title Association Loan Policy (10-17-92) with A.L.T.A. Form 1 Coverage 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A CONDOMINIUM, as defined in Sections 783 & 1351(f) of the California Civil Code, in fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: Robert G_ Osterhoudt and Kathy A_ Osterhoudt, husband and wife, as joint tenants 3 THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE CITY OF HUNTINGTON BEACH, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF SP1sp 02/13/98 t Urder No. 9s24815 EXHIBIT "ONE" PARCEL 1 An undivided one twenty second (1122) fee simple interest as a tenant in common in and to all of the Common Area defined in the 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. 94-0525335of Official Records of Orange County, over Lot 1 of Tract No. 14828, in the City of Huntington Beach, County of Orange, State of California, as per map recorded in Book 706, Page(s) 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of said County. EXCEPT THEREFROM all oil, gas, minerals and hydrocarbons, below a depth of 500 feet, without the right of surface entry, as reserved in instruments of record_ PARCEL 2: Unit No. 13 consisting of certain airspace and surface elements, as shown and described in The Condominium Plan referred to in Parcel 1 above. PARCEL 3. Non-exclusive easements for access, ingress, egress, encroachment, drainage, repair, maintenance, support and for other purposes, all as described in that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PARCEL 4: Exclusive Easements appurtenant to Parcels 1 and 2 above, for balconies or patio purposes, over the areas defined, depicted and assigned on the Plan. 2 Order No_ 9824815 AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 1998-1999. 2. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 1997-t 998, Assessor's Parcel Number 933-87-268. Code Area Number: 04-033 1st Installment- $1,1 t 1-19 paid 2nd Installment- $1,1 1 1-19 open Land: $47, 102.00 Improvements: $161,898.00 Exemption: $none Personal Property: $ 3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 4. The fact that the ownership of said land does not include rights of access to or from the street, highway, or freeway abutting said land, such rights having been relinquished by the map of said Tract - Affects: Talbert Avenue, Joyful Lane and Happy Drive Except at locations approved by the planning commission. 5. The matters set forth in the document shown below which, among other things, contains or provides for: certain easements, (fens and the subordination thereof; provisions relating to partition; restrictions on severability of component parts; and covenants, conditions and restrictions (deleting therefrom any restrictions indicating any preference, limitation or discrimination based on race, color, religion, sex, handicap, famit;at status at national origin). Entitled. Declaration of Covenants, Conditions and Restrictions Recorded: August 25, 1994, Instrument/File No. 94-0525336, of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. Said instrument also provides for the levy of assessments, the lien of which are stated to be subordinate to the lien of certain mortgages or deeds of trust made in good faith and for value. 6. Non-exclusive easements over and through the common area for ingress, egress, public utility, enjoyment, support and repair of the common area and each unit, as provided in the above mentioned declaration and as disclosed by mesne deeds of record. Affects' Common Area 3 ITEMS (Continued) Order No. 9824815 7. Matters contained in that certain document entitled "Common Facilities Use and Maintenance Agreement for Pacific Park Villas" dated July 12, 1994, executed by and between Sassounian Capital Ventures, Inc., a California Corporation and Pacific Park Villas, a California nonprofit Mutual benefit Corporation, recorded August 25, 1994, Instrument/File No. 94-0525337, of Official Records, which document, among other things, contains or provides for: "Maintenance of facilities". Reference is hereby made to said document for full particulars - 8. A deed of trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: $150,550.00 Dated: April 25, 1997 Trustor: Robert G. Osterhoudt and Kathy A. Osterhoudt, husband and wife, as joint tenants Trustee: Commonwealth Land Title Company, a California Corporation Beneficiary: New America Financial, Inc. Loan No : Recorded: May 6, 1997, instrument/File No. 97-0210380, of Official Records An assignment of the beneficial interest under said deed of trust which names: Assignee- Harbor Financial Mortgage Corp. Loan No.: Recorded: February 5, 1998, InstrumentlFile No. 98-0064959, of Official Records 9. A deed of trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: 535,000 00 Dated: April 21, 1997 Trustor: Robert G. Osterhoudt and Kathy A. Osterhoudt Trustee: The City of Huntington Beach Beneficiary: The Redevelopment Agency of The City of Huntington Beach Loan No.: Recorded: May 6, 1997, Instrument/File No. 95-0173370, of Official Records The right of the City of Huntington Beach to regulate and control the sale and occupancy of said land as a part of said authority's low and moderate income housing program pursuant to Regulation No. of said City, as disclosed by recitals in the Deed of Trust, recorded May 6, 1997, Instrument/File No. 9 7-02 1 038 1, of Official Records. 10. In order to complete this report, this Company requires a Statement of information to be completed by the following party, Party: Robert G. Osterhoudt and Kathy A. Osterhoudt The Company reserves the right to add additional items or make further requirements after review of the requested Statement(s) of Information. 4 ITEMS: (Continued) Order No. 9824815 11. Your application for title insurance was placed by reference to a street address only. Based on our records, we believe that the description in this report covers the parcel that you requested. To prevent errors and to be certain that the proper parcel of land will appear on the documents and on the policy of title insurance, we require written approval of the legal description in this report be sent to this Company, signed by the parties to the transaction. END OF ITEMS Note 1. None of the items shown in this report will cause the Company to decline to attach CLTA Endorsement Form 100 to an Extended Coverage Loan Policy, when issued. Note 2. There is located on said land a Condominium unit known as 18061 Joyful Lane, #102, Huntington Beach, CA. Note 3. There are NO conveyances affecting said land, recorded within six (6) months of the date of the report. Note 4. The charge for a policy of title insurance, when issued through this title order, will be based on the Short Term Rate. Note 5. Wiring Instructions for Fidelity National Title Company, Orange County, California are as follows: Receiving Bank: IMPERIAL BANK 9777 WILSHIRE BLVD., 4TH FLR. BEVERLY HILLS, CA 90212 ABA ROUTING NO.: 122201444 CREDIT ACCOUNT NO.: 31-005-043 CREDIT ACCOUNT NAME: FIDELITY NATIONAL TITLE COMPANY - TRUST Order Numbers must be referenced on all wiring. These wiring instructions are for this specific transaction involving the Title Department of the Orange County office of Fidelity National Title. These instructions therefore should not be used in other transactions without first verifying the information with our accounting department. It is imperative that the wire text be exactly as indicated_ Any extraneous information may cause unnecessary delays in confirming the receipt of funds. Note 6. -Section 12413.1, California Insurance Code became effective January 1, 1990. This legislation deals with the disbursement of funds deposited with any title entity acting in an escrow or subescrow capacity. The law requires that all funds be deposited and collected by the title entity's escrow and/or subescrow account prior to disbursement of any funds. Some methods of funding may subject funds to a holding period which must expire before any funds may be disbursed. In order to avoid any such delays, all fundings should be done through wire transfer, certified check or checks drawn on California financial institutions. 5 • ITEMS. (Continued) Urder No. 9624815 Note 7. The charge where an order is cancelled after the -issuance of the report of title, will be that amount which in the opinion of the Company is proper compensation for the services rendered or the purpose for which the report is used, but in no event shall said charge be less than the minimum amount required Under Section 12404. 1 of the Insurance Code of the State of California. If the report cannot be cancelled "no fee" pursuant to the provisions of said Insurance Code, then the minimum cancellation fee shall be $360.00_ Note 8. California Revenue and Taxation Code 18668, effective January 1, 1991, requires that the buyer in ail sales of California Real Estate, wherein the Seller shows an out of State Address, withhold 3-113% of the total sales price as California State Income Tax, subject to the various provisions of the law as therein contained- 6 EXHIBIT A AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS E.-k,.arss- sees.r.:of'dyed a;era kcs. .c.n lees —0 Tto•.Dra.i 3 T,io R..ke 1-g h,m. •T..! are_NIW,-1--d.Or Kra—'1.We rOu ' one Ignn tits e.n n cures of err.e r........i•r1 1. and not ar C...n by a..OUC K sae Cfd. •4..t r.kips`-to'0 Dur net!o is.or•'_'la�]'r.r Oat. n—t n.e.DDer._r._..P..:.r..—Is • Ian,]vta •c.l —1..rr nO".rJ'0 • r,Dr Ohrn.bn>n T.Lens •rec '..I af•-I ycV ta'..l..e'be Polre 0.1. Vb.-n•a—1.rvt n.ka.u.an_ -'a1r ai r..n era]• • Ian]C'4f n Nam 9 Of Cased Tell.rgka —W or]:e=!.On i F.A.rs Io Pa.,..ak,. .. •.yc.r hf:a •'.'{ ckz CC.1 n_:._DY 1,•�eW—s :r 7 o W.'aeCS t it n"•ms!1.1'nh.h AODar n rile 5 Lac.Cf a r ght DdbkC rezor_.at:c• f dais s IC wY land OYn{e T•.roe.PsclfKally C.{_!OW&-4 Warred to n nrn 3 if i-rwal.A 'hq ,a'on e._k coa{ m'nc'I1 Or.rybng co..*, .{aq.C _rLW II,— 12 n1 13 of Co...W Pe T.a. rak. 2 Th.'.x'Ic,aka Vlo. d b,�ondrrvbnj-1->.,bl"e • n streets.deaf.Of wa!r'w.Ya that IW-h yciy Ilv.a a nctr.of esrcgnt rile I�r aCDesr.n^s Dub'C Wadi,an rs.on dre PckCV Cate ''b.e.ck aces nct 6—no access Co..rage n 1!er.1 5 of_c..rw T't.Nnk. • tie lad nq hacpenod Drq !O Te Fold f Da-s and.bndn;on vas'f'eC eoa r.r 11.lr4 w'drra. .nowlsdbs of Vie takn-. SCHEDULE B EXCEPTIONS .i Wmlm 1C the E•crams. 'robs..rut r;,,/ad ag.—t in...coati..Mpneve''....and 3 An,face.tol,t rile end.' -:ln.CpWf Weer/—Wid d"...rid+d h are tic[.,Oren D f Y..r..nl•r r ewe 0 Iron'. 1—da Thq Yoga not Wl t Vie fie col'anw..ai ccy.aj.er'r.rr 12 of Cc..a: 0 f +r..•. c•:'•-1 ]f:mile.n C.. es.I ;'Ta lu.=^...-.o•-r t':7.:.'b!IS seess w . -I'r"rile.x -.errs v "e=]wa=r n V v,:r .a .v n.rr% -.t fn.•.r '1r der';n!aJ sees••-..r sn,:—be T• -C .7_.l 1. _u1=o.red T.ta Its., CALIFORNIA LAND TiTLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE The r-1at.. ..re—W d t—in..—..go or ihu Do'.,rut y.Zvlonv w'I no' - a.a[.d..v Yrsd.eras-.a 1 Or prow']O-e ra niJ.1=laa,,anl. o.e kaa Jr dar•uj. corn•J tlpnry'1 fsat a..Dort".• h r'a.by,..p of 'Ol nCt knee."!o ma Cornp.ny.ncf roe Draw n C'•DVbk forced■at Data Of PoK I -u1.r•Onn[.a'. I i.1 kn-,..x. p.fnrti.v<q.n rrviynla�rab7l.la.xbn I0,k.dnj ties snr Vr-era.):O bu.k:ng nd,—"la'y. ..1.Wr.r.t and not d.ekos.0 n—Inq 11 1,.C—V-1,D,Cb ./dear{ss p ra�.rli!'fn.:r•.tr C1f`q.DrprOnnz ur r.4rrJ to irl^1.n O&nc, is. Jr en NY'T'r1t JI 1`.n.J.a CLb—ant DK eras r1 0—.d—d.On.Dakc, the lanj.I.I tr+e:I'W dCior.crr`K•la:^•.p ICCaf,pb CI any rMfo,en,r:[now Or haeaal!..aclw W 1%. r.wang n nO lbs.o,seen".-.v".nsv ed clalrWlt. lanj.—1 •saOrst4 n ownrlhQ Cr a Chri:e n Cie dr-'.ne w r.s of V`e land d<ny Drew of Io,art.—hero Or awed suoesti snt 10 Date cf Pokcy,. rdrrch Cie lon]n or was a Del' ✓w;on rcnm.l:al pctec' .cr Vie 64acr Of any yr lat,on of''ass lei rovultrg n loss w drrisq.-,bob-o ld•rlCt hays been 1V{=aaied •' .r'-,ad c4rnnt h.1 C a•d law., ntotCrn.nr C•rsof v a—!c. Mnm et.C.frt. n p eIti"J11CraP.c.r.wl[n,'� Pr a vgJt!en o, 'e W nr "rued.fd the..ten or taa! by y D 1g oke/ ab.;ae—latwr sf'-wq tree;nd has baser fseYd.1 an the mkke eaepds at 7ms of POkre a Jnenfofeeab,rTy of ns ken Of the n"ed fnorrgsgs berm.&Of''b.—bArj r f.&/a Cf no es-"at ,W any;,—rnmental Doke Cowr nor..Ck.tied b,is'above...e.Dt to Vla e.tne ylar..0tK.Of T.. O.I.of POaC1I.or Vla nob-hr.o,f.&,r.Of any.i.b.sprrrt d+...nr of the ndabt.dn"a.no e•'d- e..c'{. nraot p a notice Of a C.leet, ken Or rbC%#ibeaeC*feayhng horn a y*Wl aY aheged 11te Wpilcable don'buerre"Ifree of tf s star.n.vhreh the Ind q aeua!e_ vgl.[gn effeCl/ig The land h"been—doc?r in it- ,,b:q r"Ords at Data of PDlcv Inv44'tr w-/sn1wcasba.re cf the'.n of rice nrXsd mp!jage.Or C-am T'rsof,.n-.:h rq"hoc ct 2 Ft .D[of emrsnt Cbma.Ml"e nobca of 7•a*.WC"CrrsOf has bsan rgcq dad n Via Dubuc'ecorde the trr1.aCDgn v-4onced by the raxea n ortgage rid.based VPon YR/y r—Y cpluwrlr UeC'1 .1 Car.of Poste,but not a.ewarp Prom ewrap.any t.knq----inch.^.as oteunad pa to Dais.1 Dfoteexn ar Vuai Cr I.ndng Is— Pokre which would be bndng On rile,ytbts of a purchaser far vakee wrVreyt knpr•1.Cg. 6 Any clam.whCh r4 Or,t of the trn{aetq vmtng n the nw,ed tie"rate or ntrnl nw,w be 3 Defects-4ns..n Orne".—N...Cis—.or odbr manes nq poky Of T'•.4ri.sd! crasing the interest of n.nand lr1Cr-by'sue cr t.JOwsloin el fwral brrkruptry.slate n. P o cy.ce■erAr ce/dddfe-rights 1.+1.. SCHEDULE B EXCEPTIONS FROM COVERAGE sn4 dues no.nawa ag—sl 1,.{w]rnege IemMd C:.C' cnY wa not G.y CO{C-a'1pn.y-{f...ne e.D.ueel whr}b Woo be r..{On cl PART 1 1 7•a.a Or un.in &<h we not enox.n"skelmig Ion.by the'scorda of any!ring.ir7+p t,11141 3 E a.r•b w ksha Or.nc—brrrc".ar cl.rns tl'.eof..vfr'ch re no!shown be r.Cu=ti' I.v.a ta.ee or all— S p fast WOC.Ty o•by ribs DJbkc--da Pfcceodnji b,a 0,b1.0 agsnCv ; DgCr.On ors,canfkcta n boindary Iree .hwfag.er raa.en-o"hnbrbn.O,an,p11r fhn I..Ch which rn,r—.!n la."p►asss,nann,p.0-c—ul—111 0,Ocs.dnq._wh.Vr.Or not shown t'r a eoefwt.0 .v wos U ri ckc..,and b c•1 we not andwn by"Dubuc leCpds ri'a,.cads of we h.gwey a be?.a DubW record 5 WJraatented ennng clas+r a1- ibl reewabons or e.C.Dba n rb D.tn p r den a •ry•_d znq I,* 2 An,facts.rynn. n!r"n oe claim wncr1 r.nor sl%o-n by ribo pubkc reco,da but wbmm could be gwncs alrwf.lei wale rlghm.C!.n.a etas to-at..wfr.1h.a no!tree matted•.-N-e]S dr .sttaned by w napeCtg Of Cie land or,An h n ay be ass.eW by p.aons n Dceaeesgn TreO• W.lbl.ot lei we r`a by Vr.Do..reeoed. -a. EXHIBIT A iCONTINUEOi AMERICAN LAND TITLE ASSOCIATION LOAN POLICY ''10-17-92; WITH A_L-T A_ ENDORSEMENT-FORM 1 COVERAGE AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10-17-92) WITH A.L-T A_ ENDORSEMENT-FORM 1 COVERAGE SCHEDULE OF EXCLUSIONS FROM COVERAGE the" ..nJ.,,,--re me..S.,oc•...rLa-3'c•,.th."v 2.of a`a O.kC-,r.-—r mean,r,.",,. .•�.w-.a.!.- ..�-cal reran D,v..D.,1'c. oh,u JamaJ..:Otq a•lu,,.,a ..s v..;.rlea".hch a...by of a. -h*'M of 0..n..raC r•yrgp.50Cw.11 the nab-11 •4 w•It the ner.J. •.- .7n •safe,.•_v y+enrn*ryI•p„La!u:nark,:I b.,t ncl k*wl ro bawrq ant roe nq Laws_ Ova cf Pcnc._s th.r..0 irf y'a.w.of r,f avc.w....n1.ere of ne ,vrraf,C*1 c.-pv41sv,a�•*+v ctnq p:,::t ur.�rr re atny 1.., -.a C-_Jreno V u;r„ent of •VPbC.b:..k—g bvines.'• .of n.a'a[e.l M,a:f•S.W-C .'..at" +:..a,: 't the Chow,'.'_J.nw,a.v,a O,.Xa'v If ar'r anp,0 rrhe`L-:.,no,Noah*—Clad urn-. a Y,.ak,1•tr n unr:f,, i•! J/�,•Ira rf he n.Xod n,crlgaq* •w_L.rn nve if nh.:,,me o. + 'a' 4•h d. _rahan n. msho u a c,r:q.n T.dn-er:..un. ],r.a of We La^•o w r-,Parr of S•e Vaf,sa.l.n.-.re,[*d[-,the rs,-tad rt,ry rgye.ant n L...d..gym ante✓:..,a-, .r earn. -._I •. rn WeeLo J a_+Kos a Prt J,I'•-:e,-rynme•'al D10t4C'c1 w-,e*1•*C,of W-1-13L. n of theta D'CIac!"a`Vth n'andny to. awl :'3threes or ;"vn1n*nl• , .sort_ ..Coot IC the..ter,t t,bt•nL•c.Cf d,*-'f :W' Wnt 'i err,ttaeLto];ken for.eryoes_ [ACV fl mate an iC,t!%e Clara dr Y,r Sro-_-xe Ion IC. _'o, s n_:.C.o'a J.`._t_ I M vp M'Ca,4rr•c.'.s.,cng `Om a.OLah:n of •aped ­W— fe•,C*..Ilea'o,—tr'alo Ove th.ken of d•.16a.d•*,v,qp..r W.- am r.r.,r.r:..-.yes[o,-:-,. at'.c tar.;T.*Lan]-.n_o—r4:x J._n th.p,c sac'aced{al Date o'h rr m m o': r.'a!sl to We Land w -_ •{ctract.d fce and Co nCod w_..7ur,'to Dai*:1 i_'-, r`d 4nc• :bl Aar.-.gvenmen!a'c"w.pc_w net a.ck,deC w " the sooy*...-erea a o.rent thal•than!.-.et the lnanc.d r.r,x:.v n owl Dr or c rfs 11 the n9 w.b! n...let,'"o r the-r.-.r e q.q._1. h e.afcne thesnl tv a nox.cI.d*t*c•_ bar, a, e,ru 0eanc•rawlrn� ft h a vuVt _ o, Aeg.d .1 Data of Pckc the n1w d has ao`.an-.d y a c['pa•.1 td sr 4* vr4tbr.•h.ctnq r.e Iand hr Deaf+rocvo"r.n•pubbc rocc,d.at Let.at Po%r 7 Any ram war, m"s a:t at th.vr,sacl,m a•arng-.e nteesr or n.n•o,t;pu rs�l.c c,On R.gnla car e•w,er,t dvn.n✓.ws noes-•of the s.ec,sS thewfhea Can•*cwd•d n T.._hank-taco,Ca Ddkcv_ �,t.nm Of the,gea:r�,OI Fader.!Daf,k ryp tC-,-{tat*neck.e+c,.a armor _tag"v{ .1 Oat.of Pc6C,.bvt ncl e.ck,Crq fro,.,co..raga w,y teens v.h.h has o 11.d Ir tv Oat.of Pokey tea .7'.at s based on wh.ch rOuld D.bn:ng o.1...r.ght,of a D oChese la.ak)a+„'7,uu1 knowledge Iy the vw04C!,on."Ing the ntrest cf W.­­1 n of-:.q..t�.rq--a•ye.:a;.,leaf.,Cr':e,af'C. 3 Ceracn I..r.._ dv sa_Lama.o,37,e nws w Ir*Udulent van{fer.a let C'es!ed.wlfrad.a{r✓'",ad c,pre"to by the rsh,.e:La r.K:' C the wbvarable of th.nearest pf th.ark+.0 n"Or'Z.QM as a,M_'of th.aAoL.: .)' the I_I not kno—to the COr,owv_^At inewded n Tee Dubhe r._o,J.at Date or�Oliv. but knO n to _owns of**,..able ntnvdnowe. o, d•*r.s uteJ_L.—t afhd nLt tl. LJ..d n nntnq to 1..%211n r,r bar th*nw,.J rl.nn.nt P,nr to 7%. l.Z -•.Vrnsact.v,cttAMU the oterest Of n*n*,Yed m fg4CN b*nj date,'*0 a_t.'er::,r'1.:4Ie date the n.r.r.d-'smart C•er an. "vd4l..,hdw n.n Pc Lc',. •.cant rhr«.th*peofere,wl eaf,s'af rewln hom the 18{f* ., 1„Prq n•a'w..0 ) .t�nhe u .d=La. '.. t.l 11,t.naa,:*:ad- _--ant ct- :, . rr4S, r .a ^Fri ,'..:.- -- :a'. .f.'_ ,. .D'-- SV *Cu ua'y.'L'11V. I^t.[.•Rla:.V-[Baer'r ..k,1-, ,N��Nr .'I'.,, ':a_••-• :w14;,v:h.F,..cola+fit ra.*been l_al.r"'1 T.*nt.wwl=L.--,na._.a' AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY H0.17-921 AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY H0-17.92; SCHEDULE OF EXCLUSIONS FROM COVERAGE Thi fp]'svnq rsnrt re%pr.stfv*.ck,J.1 rwr,no co„rpe of na Dckcv red'he Ccrnoanv wn not ibl not known to n*Ccr-,pr:r.no!r*cet=w n Ti.o.e..c roods at]a•• rcic:_b-t.C—a v-* Da lot.v dmaga_eean,aetornrr's tees or a•pans"whch a,"Dr'oeson of c.WeC tLe—uht and not 2160s"n—rnq to thS CW Vmp v L,me n{.,.w 1—­1>„m to n.d-11 1 i.1 a.nr La«_osdr.ru.w gtse.-m.r•.t.Lt.guLat.nn t.-Itrp bh,t nee kfn,ted tgbuWnq ena tonnq ter.'.{ h.read_L..ne.t bec.m.r warp undo Ina VCkcr d,:rr`ces_or'agulelO dl re{vctnq_DronOdnq v r44109 to iJ the o:a,Dwcv_Vs-.a ehloT�f of IU resh:rnq r no Ions N damp*to a.nwrad^lamrht -,..red •-': v,.cnr-'s, 't+n.n.on.or lvc.r of wect.d on a'• :a)a:+ecnnq w yMt.y%-,b'a,,uan"J D.!.of Po.r r.v :and t'd a tapa,al. n Ow^es.^.0 of b chrnda n the:r 6nfi nA Of r.s Ct the end or any:r C*I Ct i*1 roa,itnq n lost o':.,r.s1e y h"wwkd not rave Cart suslath*d •the nee:rLarraf•t has Dao M..'�.the Lan!a 1 w a raft_Ot;,I w'v co n*nlal prnl"trr . the sfloot of any.*i. ..f v`ate .al-.1Y the estate d,nWied bar the pOkCy .en{.ordne,cst c,gs...­•n.ntal r....-.o"{ ..-gC!to na e.te,1 that a n.wq aft the W..fDtd W- ! < An,c'am...hch rues out of T�s vwsecl.on vostnq n me'nw od T%q.lar*a r.te•1L rw J theepf 4• a nowe o'a d*lac!. keno, MC:/`,bCMce Iewl!n; Pr r-a v0'atW, v ale?.d vq'a1,On S•a DokC-,. Dv'.M of n.oow,t n of fader tnnk,VpKy-State Msl;Nan_, a,_ > tm• C-od—l' ar 'a^trq the L. hag been'ecom*d at a-..-,,bic acads at)&to of Pcikcv '%Tree Lev%.that a ballad On (b)Ar; O~nr an!sl 7d:ce:owe not..*Wad by fa)abo.*,6.c.P1 to v,.*.!aft that a note of tlh. % the vanssctnn aeatng no•State cr oleest nauled by 0 Pa'cv berg darer]a 1 e dtr e,l ..eC... thereof w a no1.C* Jt a d.faC-_ ken en e C er&ance,en,Hng far R a valet.on a rig.d [w..Ywco Of•w*r.n,vr,{Ir_or v'CLatO a"W,.g th.ar.d has boon record"if, c,!v,.palls racvda at Dow of Pck (.i th. ,Wsa,td neat g We estate a e,1e 1 ntu,ed by the DD'.c m ren bang dae *d a pf., lal j f!gny of•rnnr:t dwrvn vM.61 not,C.of T.a.eca.thafeof has been I—Cad n the DuLkc 1a 1% ventile,..-act where the par Naree..t Lel tra hlier results frdrn the f.A„a .10.1.of Po',bh.t not e.ck,dnq hen cove Ks any tab rq whet+has occ,. *d PIS to Date of Polcf let to rmelf'aced the nsvumr,t Or vr,.fo_a yvn,cn vwl'be ond"w ns'ants of a rutcheser o for�ea,s wdhwl kt 41:9a Ibl of when raeo'dahm oo rnDwt nonce to a purcf:.{e fa,vske v a tA;e~!•r'.e•c,"-ly 3 Defects_bans.anarnc'rhea."verse clam•"&other n,sttes 1.1 c...t"_w'fe.d.aaw.nad a aq,"d to by%h.nw"v..ment. The abo..a AL'A colcv fvmo may be ae,od to offv:aithr Standard Cwerags v E.tand.d Cove.q. to.dd.av,to ths agav♦E.c4lgrhl Rom aweerg..She E.C*pt.prA teem core aka r.•Standard Co-wp.o l_C wA alson ktdo thefa'lwr Ganwal E.captV . SCHEDULE 8 EXCEPTIONS FROM COVERAGE Inn pwc,d-n*t no'.nsu•e pant knt a Crhw.a 1wd the Comps by w.l not Dar,awn.atforn•r-s fees a.-DeAseal whch afn.by'arm of PART 1 I Ta.as or assesenvnn when re-'hot shown as*.atnq kens by the records of r,v taanq e,thw.r,vat 3 fawn*,%.I—a e,cwM,en[es.v"tnnt theaol,rncch ra not shown b,7s r_LIt,acvdS Wad-saes v a{sessnhoh-s on ..I prooet,v W.We d..bkc records P,Wa"nq1 by s Du_ke a;r+cr a D4Cr*pr,Cya. emekea n btuhdry nM_sfuvragS n m",aho, Ch,r , a an,-the leas..h._•, .hn h msy!*war.n toes a—,"gmo+d.v ndtc..of. h Drt C**Cngf.wMthr or not anown by a eorreet a .r ww.t d.0— -1-.hKh we no,oho—bar th.o, s,« C. the r.Cw Cs of ar.Ch aqn ,or by the Der be Iactxd. S t.) Lnp.!r.,.d mn n;, cL.4. !bl rasrvsucn*or.•C.Dc,ans n P.1e,1{of o Ac" e,thy,tnq the Z Anv lac"_ oft. -Wass Y-Lams whir,ar.not shown b,th.pubbe raced.but whsh ewLd be •...race the•ul.(c)..-.tw tphn_cams"t--. to water_wt.sthe w not the^urlrt•.-sated u"Je .*-en la " an nsc"t.m of the Land a whch n,sy t*saaeted by pecan.n po.6046 n ther.Of is).:bl.w,cl are gh4—D-,th.p.abbe.aco,d. t CONDOMINIUM PLANS FOR SHEET Ii OF 32 LOT 1 OF TRACT 14828. IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANCE. STATE U} CALIFORNIA. AS SHOWN ON A NAP RECOROEO IN MAP BOOK 706. PACES 27 THROUGH 29. INCLUSIVE, OF MISCELLANEOUS NAPS, IN THE OFFICE OF THE RECORDER OF SAID COUNTY. j PHASE ONE OF PACIFIC PARK VILLAS I I n 17 u 21 20T91 16 j 1.00' (TYPCAL) KTKEN UMTS 8 63.19' N S 09 40'27' E S 11 12 13 14 10 15 0 4 � 3 6 tiw 1 7 2 ^ 8 60.41' 25.00' 57.64' SCALE: 1 40' L0401 14JUKR -01CATLS LMA LEvn UMW. )GGKM Kw9E0t r.OrGTtS uwu Ltv% unT. ASSOCIATION PROPERTY, 060'"KWEN TS W"GUS" "t UNITNUMBERS & TIES ASSODAT10r°"°PER" E=GtuOES urrS 9-ow JOB NO. 4285 HALL & FOREMAN. INC. I I I i r 33 CouncillAgency Meeting Held: Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied City Clerk's §r9nature Council Meeting Date: April 21. 1997 Department ID Number. ED 97-13 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: MICHAEL T_ UBERUAGA, Executive Director '�' PREPARED BY:fib., DAVID C. BIGGS, Director of Economic Development SUBJECT: DOWN PAYMENT ASSISTANCE PROGRAM PARTICIPANT APPROVAL FOR PACIFIC PARK VILLAS PROJECT (Talbert-Beach Project Area) FSt11 tnxnt of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Enviroornental Status,Attaclw»ent(sl 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-E D-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, and authorize payment to be made to Tiempo Escrow in the amount of $35,000 on behalf of attached participants_ Altemative Action(s1: Do not approve the participant_ e 0 REQUEST FO NC R REDEVELOPMENT AGEY ACTION MEETING DATE: April 21, 1997 DEPARTMENT ID NUMBER: ED 97A3 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 Pack Park Villas Condominium project. The last Down Payment Assistance loan was approved on January 21, 1997 and at that time it was the understanding of City staff that would be the last Down Payment Assistance loan for Pacific Park Villas. However, City staff has since learned that information was incorrect. All production units at Pacific Park Villas have been sold, but not all of the model units. This is one of the model units and, as such, is eligible for the Down Payment Assistance Program. To date, the Redevelopment Agency has assisted 12 moderate-income buyers in the Pacific Park Villas project at a subsidy of $35,000 per unit. If approved by Council, this 13th loan will bring the total to $455,000, with a balance of $295,000 remaining from the $750,000 set- aside within the DDA. EnAronme.ntaL$tatus: NIA Attach ment(s)/Exhibits: City Clerk's Page Number Attachment 1. Prospective Borrower Exhibits A. Loan Agreement ' B. Promissory Note ✓ C_ Deed of Trust with Assignment of Rents,/ D. Declaration of Covenants J E. Disclosure Statement / F. Notice of Right of Recission G_ Lending Instructions H_ Certificate of Proposed Transferee RCAOSTER.DOC -2- 04/11/97 1:18 PM Attachment No. 1 Down Payment Assistance Program Location of Property Loan Nance Amount Subject to Trust Deed r 97-02 Robert G. & Kathy A. $35,000 18061 Joyful Lane, ##102 Osterhoudt 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. rcaoster 1.doc LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 2 1 s Way of April , 199 7 by and between ROBERT G. and KATHY A. OSTERHOUDT ("Participant") and the REDEVELOPMENT AGENCY OF THIS CITY OF HUNI INGTONr REACH, 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, P102 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 I iuntington 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: . Agency-Ijoan. 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 , INC., A CALIFORNIA OMPMATION (the "Escrow Agent") (Escrow No. 99091-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, Loan Agreement Page 1 of 8 •7ls%G.4-97-Abrec.(htcrhou.loanagrec KI S 97-235 4/10A97 and/or document fees. At such time, Participant shall execute and deliver to the Agency a promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note (the "Agency Deed of'Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance of Prop. Participant shall maintain the improvements on the property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of'debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any 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 Refinan6"_ 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 (1) such sale or transfer, (ii) the refinancing of the First Mortgage for a lean amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or (ill) Participant is 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 terns of the Agency Loan. 4. Equity Sharing. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of'Trust: fifty percent (50%) 2. After fifth anniversary but prior to sixth anniversary: forty-eight percent (48%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) Loan Agreement Page 2 of 8 Ms1GA-97-Arrec-Oslerhou Ioanagrcc RlS 9;-235 4110197 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forte 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%) Loan Agreement Page 3 of'8 4'siG.Lq i-�grec.ihtcrhuu loanagrcc RI S 97-235 4!l0/97 1- y • 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 prier 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%) 21 After twenty-sixth anniversan 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 (l%) 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 Loan Agreement Page 4of8 CA;A-97-Agree 0%terfiou loanagree RI S 97-235 411 U197 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. A. Equity Share Upon Sale or Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer") whose income exceeds 120%of the current annual median income: for the Orange County area. If the Buyer does not submit an income verification statement to the Agency. the Buyer shall be deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the Equity Share Amount shall not become payable. B. Equity- Share Upon Refinancing or failure to Occu2y. 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 ofdetermining; the Equity Share Amount shall he 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. Fspiration Qf_Lquity 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,. a. Occupancy Standards.The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and %will he 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. Loan Agreement Page 5 of 8 4W,GA-97-Agree Chterhou.loanagree KLS 97-235 3110197 7. Loan ServicinL,, The Agency may contract with a private lender to originate and service the Agency Loan. 8. Participant Financine. Participant shall obtain financing for the purchase of the Property from the Southern California I tome Financing Authority or a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall he paid in cash from Participant's own resources and not from the proceeds of a loan. 9. Covenants. Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions. Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low:or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Non—Waiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of'I-luntington Reach 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) clay 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. Loan Agreement Page 6 of 8 4\-s'G 4-97-Agree-(kterthou toanagree RI S 97-235 4/111197 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: (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. Goveminv •w. 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 elf California. 16. Amendment of ALrecment. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. Agency May Assign. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Parti&.inant 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. Loan Agreement Page 7 of 8 41s1(;.4-97-Agree Osterhou loanagrcc RP;97-235 4'1(IN 7 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 agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. IN WITNESS WH1=R1=OF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" Date: APRIL 30 , 19 97 By: 94�z_ 6U�4x Printed Name: ROBEW G. CSTE 2HOUDT Date: APRIL 30 . 19 97 By: Z Printed Name: KATHY A. OSTEPIK DT Date: ' 19 By. _--- Printed Name: THE REDEVELOPMENT AGENCY OF "HIE CITY OF I1UNITINGTON BEACH, a public body corporate and politic Date: 1)3 , 19 By: _9q�K Aliz Chairman ATTEST: APPROVED AS TO FORM: Agency Clerk Agency Couns RF:VII-WED AND APPROVED: IN I TED AND APPROVED: f Executive Director .or Dir ctor of Economic Development Loan Agreement Page 8 of 8 41s".(i 44-97-Agruc-0kterhim loanagree RLS 97-2i? 4'10!97 LEGAL DU;C'ItI P'I'T014 1•:X111131T "A" PAUCKW 1 : An undivided one twenty necond ( 1/22) fee simple interest as a tenant in common in and to all of the Common Aron doflnod in Declaration rof.erved to below and deacribed in tho r ,-Undominiutn VIHII ( "Plan" ) for Lot 1 of Tract Mo. 1402n, which Plan won recordud on AutluuL 25, 1994 us Inntrument Ito. 94-0525335 of official necordu of orange County, nvel I.oL I of 1 Tract no. 14028, in tho City of Huntington Beach, County of orange, state of calitornia, as leer inah filed in hook 706, Pages 27 to 29 of Miocolianeous Mapa, in the office of the CounLy Recorder of raid county. 4 Cxceptinq therefrom all oil, petroleum, asphaltum, gas, mineraie and other hydrocarbon nnhetanrrH, a!r renurvod in need recorded August: 16, 1921 in hook 401 , Pago 156 of "cod", on,i its variunu othei: deodrr of record. PARCEN l : Unit 140. 13 consisting of certain airspace and surface elemento, an shown and described in t.Fte C0IId0it1ittlttitt Plait referred to in Yat:cel 1 above. Par ul f : k 1 l ""-exL'ltltllvu unnomulrtu for accoun, ingraua, aUruuu, tole, uiijoymunL, dr"ul ijago, encroachmenL, uOpport, maintenance, repairs and for surer purponan, all no dencribad in that c:erLain Declaration of covenants, conditions and Restrictionn and Aseorvatintt nf EasrementH for Pacific Park villas, recorded August 25, 1994 an Instruinent No. 94-0525336 of official Records . Parcel 4 : Lxclooivs eat3etnonts appal tenant to Parcels 1 and 2 refer cod to above, for balcony or pants lrttrpoo,34,. over tho arean1defi_ned, depicted and asoignod on the PI an . f ExH1IBll'r B PROMISSORY NOT $ 35.000.00 Huntington Beach, California APRIL 21 , 19 97 FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The Redevelopment Agency of the City of I iuntington Beach ("Molder") at 2000 Main Street, P.U. Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in wTiting, "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 hate Simple interest shall accrue on the Note Amount at a rate of five percent(5.00%) per annum. If the fair market value of the Property does not increase at least five percent (5.00%) per annum, the accrued interest on the Note Amount shall be forgiven by the Holder. 2. Maturity Date The balance of all unpaid principal and accrued interest shall be due and payable on mAY 1 , 20__27 (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\s14-97grcc Ustrhuu[.ExhfhrtB RI.S 97-235 4/10197 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 I[older as Trustee. 5. Prepayment of-NoteAmount Maker may prepay to Holder the full Note Amount, together with simple interest thereon at a rate of five percent(5.00%) per annum, at any time prior to the due date of the Note Amount. 6. Loan Agreement This Promissory Note is made and delivered pursuant to and in implementation of Loan Agreement cantered by and between the IIolder and the Maker dated ^AIL 21<, , 19 97 (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. sign Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining, the consent of the Maker. 8. Maker Assignment Prohibited In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder, which consent may be given or withheld in the I Iolder'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. "Exhibit B" to Loan Agreement Page 2 of") 4WA-97grec Ostrhoul-Exhihiffl RLS 97-235 V10;97 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. 11. Successors Bound This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "MAKER" Bv: Printed Name: PERT G. OSTERFIOUDT By: " Printed Name: KATHY A. CSTERFKXJDT By: Printed Name: "Exhibit B" to Loan Agreement Page 3 of 3 4!s14-97grcc-ostrfiout-F.zhihitB KLS 97-235 a/I U{97 R � NOTE Loan No. : 2815017 April 25, 1997 Huntington Beach California [Dint] Icily] Islatel 18061 Joyful Lane #102, Huntington Beach, CA 92648 [QTUtTeiT� AtSStT[S5l 1. BORRONVEICS PROMISE TO PAY In return for a loan that I have received, I promise to pay U-S.S 150,550.00 (this amount is called 'principal-). plus interest, to the order of the Lender. The Lender is New America Financial, Inc. 1 understand that the Lender may transfer this Note_ The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is tailed the "We Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of principal has been paid- I will pay interest at a yearly rate of 8.250 %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 601) of this Note. 3. PAYMENTS (A) Time and Place of Payments 1 will pay principal and interest by making payments every month. I will make my monthly payments on the 1st day of each month beginning on June 1, 1997 1 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, 2027 ' 1 still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date.' I will make my monthly payments at New America FirTarlcial. Inc./Harbor Financial mortgage Corp., 340 N- Sam HousLon Nkwy. E 4100. Houston. Tx 77060 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U-S.S 1, 131.03 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are 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. I may make a full prepayment or partial prepayments without paying any prepayment charge. The Note Holder 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. 5. LOAN CHAWES If a law,which applies to this loan and which sets maximum loan charges,is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits,then: (i) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) any sums already collected from me which exceeded permitted 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 direct payment to me. If a refund reduces principal, the reduction will be treated as a partial prepayment. 6. BORROWERS FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the 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 5.000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. -(B) Default _ _ If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice or Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the owrdue amount by a cenain date, the Note Holder may require me to pay immediately the 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 Bolder Even if,at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note HolderN Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will[law the right to be paid back 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. p � INITIAIS�V• INiTIAIS f INITIALS INiTSAi..S__ FIXED RATE NOTE-Single Family -tNAtAMILIM Uniform Instrument Multistate - For= 3200 10/91 gage I or 2 tt32NIUt 05196 PE ?1G p�lIES[ED� • it ERS TITLE C.A. Recorclea in the county of orange. California RECORDING REQUESTED BV rGlIal!rylIlL. +Granville. C lerk/Recorder AND WIIEN RECORDED RETURN TO: II����+iiilllli��i�iiflll����ilfl�������iill�l����lil�������ill�l No Fee REDEVELOPMENT Agencv of the City of 006 11003489 11 1619970210381 2:54pm 05i06i97 Huntington Beach oil A36 28 0 14.00 0.00 81 _00 0.00 0.00 0.00 2000 Main Street 0.00 0.00 0.00 Huntington Beach, California 92648 ) Attn: Agency Clerk ) — [Spao:Abovc Ibis LITIC POT Rc,;ordcr's t:sc-I This document is exempt from recording tees pursuant to Government Code Section 6103. � DEED OFTR(IST WITH ASSIGNMENTS OF RENTS Q THIS DEED OF TRUST is made this 21 clay ofAPRrL, 19 97_ by and among 1 ROBERT G. and KATIIY A. OSTI.RHOUDT, whose address is 180YI�Jovful Lane, 4102, ` — Huntington Beach. California (the "Trustor") and TI IF,CITY OF HUNTINGTON 13FACH, a municipal corporation (the "Trustee") and TIIE RCDEVELOPMFNT AGENCY OF THE CITY OF HUN`['INGTON BEACI1, a public body corporate and politic (the "BENEFICIARY"). whose address is 2000 Main Street. I luntington Beach. California 92648. WITNE.SSFTI is That "I rustor Irrevocablv Grants, Transfers and Assigns, to Trustee, in"trust, with Po«°er of Sate, 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 WITI1: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of properiv 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, I IOWFVI':R, 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 proper.y secured by a lien thereon or payable under any agreement. Tax•Exempt-Government Agency CITY JOF Ht1NTINGTON BEACH *THIS DEED OF 7T&ZT IS S1JCt M AND SUBJEM M A FIRST DEED OF REMRDING CONCURRENMY HM�L Br.— ' .................................... "Exhibit C" to Loan Agrcenient -Deputy City ClerK Page 1 of 15 This doctwent "is solely for the 4ts:-64.97agrec:Ostrhout:ExhibitC official blcJnesa of the City RLS97-235 of Huntin;.-ton ;each, no contem- 4`101197 plated undor Government Code 1C�`.✓�c.r✓ CI, Sec. 6103 and should be recorded free of charge. A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of"I'hirty-five Thousand Dollars ($i5,000.00) with interest thereon according to the terms of a Promissory Note of even elate 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 -;-hen evidenced by another Promissory Note or Notes, or(b) as may he 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 2.1_ , 19 97 , 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, wfiether otherwise secured or not, or whether existing at the time of the execution of the Iced of' Trust, or arising, thereafter. B. TO PROTECT"I HE SECURITY OF THIS DEED OF "TRUST, TRUSTOR AGREES: 1. To keep said proNrty 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 "Exhibit C" to Loan Agreement Page 2 of 15 4'1-S`.G 4-97agce_0strhoul-ExhNIC NI S 97-235 4110;97 said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of'such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed. Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of'Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or "Exhibit C" to Loan Agreement Page 3of15 41s1(;4-97agrtt-051rhoul_GxhibilC RLS 97-235 4/10/97 destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the "frustor 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 Countv taxes, and all assessments on appurtenant eater 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, (c) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of "Exhibit C" to Loan Agreement Page 4 of 15 4WG 4-97agree(hlrhout ExhihilC RLS 97-235 4110197 Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. -Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Benefician, to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in anv suit brought by Beneficiary to foreclose this Deed of Trust. 5. To pay immediately and without demand, all sums expended under the terms of this Deed of 7Frust 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 acid 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. "Exhibit C" to Doan Agreement Page 5 of 15 41s`.G.4-97agrmOslrhou1.F.xhibAC RLS 97-235 all0197 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 cif the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c)join in granting; any casement thereon. (d)join in any agreement subordinating the lien or charge hereof 11. `lliat the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, 'Frustee may destroy said Note and this Deed of Tmst (unless directed in such request to retain them). 13. That as additional security,Trustor irrevoeably assigns to Beneficiary the rents, issues, and profits of the property affeewd by this Trust Deed for the purposes and upon the terms and conditions set forth bclow. 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 properly 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. '['his 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 pan of the property affected by this Trust Deed. If Trustor shall default as aforesaid, "Exhibit C" to Loan Agreement Page b of 15 4ls1(;4-97agrce Qstrhout Lxhib;W RL5 97-235 4110197 Trustor's right to collect any such money shall cease and Beneficiary shall have the right,with or without taking possession of the property affected hereby,to collect all rents, issues,royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy,possess and enjoy the said property,make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby,the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right,power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues,royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto,but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys'fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under,nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate,the Trustor agrees that: (a)the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c)Trustor will promptly advise Beneficiary regarding any notice,request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice,request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid,unless the Beneficiary shall otherwise consent thereto in writing,the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e)Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements,terms, conditions and provisions under any lease affecting the premises and to neither 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 "Exhibit C" to Loan Agreement Page 7 of 15 4\s\G:4-97agree:Ostrhout:ExhibitC RLS 97-235 4/10/97 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 Dcud of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of"Rust. 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 car waiver of one: of said violations shall not be deemed to be a consent to or waiver or anv other violation. if the security for this Deed of-Trust is a leasehold estate. the term "property" as used in this Deed of"i'rust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Truster in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Nate, il'applicable, hereunder, and upon default by Truster 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«-ritten declaration of default and demand for sale of wa'itten 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 depo-sit 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 Truster, shall sell said property at the time and place fixed by it in such notice of sale, whether as a ,rvholc or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of'sale. 'trustee may postpone sale of all or any portion of'said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Dced conveying the property so sold, but without any covenant or warranty. express or implied. The recital in such Deed of and- matters of fact shall be conclusive of the truthfulness thereof. Any person, including Truster, 'rustee, 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 Truster waives demand and notice of such sale. (13cneficiary 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, tees 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. "Exhibit C" to Loan Agreement Page 8 of 15 4W-:G.4-47ap1ct 0MMl oul-VxhibK R!S 97-235 411 W97 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 "Crust. Such instrument must contain the name of the original "rrustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of; and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, 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. "Exhibit C" to Loan Agreement Page 9 of 15 As\G-4-97agrce Ostrhout Fxh[hftC RLS 97.235 4/10197 22. That should this Deed of"Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of*said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of'Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of' Trust secures, and in the event that'Trustor has made anv material misrepresentation or failed to disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by "Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in Nwiting. 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 UNDERSIGNEID 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 FORM: Agency Counsel +t I "Exhibit C" to Loan Agreement Page 10 of 15 4,s.G:4-97agree Ostrhaut FxhihitC kLS 97-235 all ON 7 R]DI-:R "CO DEED OF TRUST FIRST TIME HOMEBUYLR DOWN PAYMENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated Apirl 21� , 19 97 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan `I'rustor the sum olf 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, trans#er or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor(the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary of the :agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but) prior to sixth anniversary: forty-eight percent (48%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. After twelfth anniversary but prior to thirteenth anniversary- thirty-four percent (34%) "Exhibit C" to Loan Agreement Page 1 1 of 15 4\SIG-4-97 agree.()Strhout IiONIC R S 97-235 4/10197 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%) 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%) "Exhibit C" to Loan Agreement Page 12 of 15 a',%%G 4.973grec U%Irhout.FxhibaC R1 ti 97-235 a!10 97 24. After twenty-seventh anniversary but prior to Mrcnty-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 tees, title insurance costs, broker's commissions, loan tees 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 Lean. 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 (1) 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 s`•G_7-97agrcc-Ostrhout Fxhibit(" RI.S 97-23� 411 W97 Property as of the time of such transfer or refinancing. Dated: J —".Io `9 7 TRUSTOR APPROVED AS TO FORM Agency Attorney 1; "Exhibit C" to Loan Agreement Page 14 of 15 S\-%'%G 4-973,rer-0-whout FxhibitC RI S 97-235 4110197 RIDER TO DEED Of- "TRUST SUPERIORITY OF EIRS_T_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 21 , 19 97 (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--rust 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: I) Fitle 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: 4 06 - y 7 TRUSTOR: APPROVED AS TO FORM: Agency Attorney "Exhibit C" to Loan Agreement Page 15 of 15 4`s,.G 4-97agrcc-0slrh0ul:ExhNIC RLS 97-Z35 411 M 7 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIKMIA SS. COUNTY OF Axc�� On APM 30' 1997 before me, the undersigned, personally appeared RAT G. OSrFRHOUDP AND KATHY A. O&VEPJI= personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislherltheir authorized capacity(ies), and that by his/herltheir 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 official notarial seal) ;''• 1_IMDA J.CAMPBELL _ a: COMM.COMM.# 1045344 Q7 Signalur 2 'F_131< NOTARY PUBLIC-CALIFORNIA�J \K`s � ORANGE COUNTY LINDA J. CAdPBELL I My Comm_Expires Dr-C_zo.1tiA1s Ifffffflilfffffffflflfflffffffffllfflff OPTIONAL [if 11111iffffflfffflflfffffffllflfflfI Though the data below are not required by law, they may prove valuable to persons relying on the document and could prevent the fraudulent reattachment of this form. Capacity Claimed By Signer Description of Attached Document Individual ❑ Corporate Officer RUM- Titles(s) Title or Type of Document ❑ Partner(s) ❑ Limited ❑ General ❑ Attorney-in-Fact ❑ Trustee(s) Number of Pages ❑ Guardian/Conservator ❑ Other: Date of Document Signer Is Representing: PJame of Person(s)or Entity(ies) Signer(s)otlier Than Named Above Loan No.: 2815017 Ontcrhoudt EXHIBIT "A" - LEGAL DESCRIPTION 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. 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, ASPAHLTUM, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES, AS RESERVED IN DEED ARECORDED AUGUST 16 , 1921 IN BOOK 401, PAGE 356 OF DEEDS, AND IN VARIOUS OTHER DEEDS OF RECORD. PARCEL 2 : UNIT NO. 13 CONSISTING Off' CERTAIN AIRSPACE AND SURFACE ELEMENTS, AS SHOWN AND DESCRIBED IN THE CONDOMINIUM PLAN REFERRED TO IN PARCEL I ABOVE. PARCEL 3 : NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS AND FOR OTHER PURPOSES, ALL AS DESCRIBED IN THAT CERTAIN DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND RESERVATION OF EASEMENTS FOR PACIFIC PARK VILLAS, RECORDED AUGUST 25 , 1994 AS INSTRUMENT NO. 94-0525336 OF OFFICIAL RECORDS . PARCEL 4 : EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS 1 AND 2 REFERRED TO ABOVE, FOR BALCONY OR PATIO PURPOSES, OVER THE AREAS DEFINED, DEPICTED AND ASSIGNED ON THE PLAN. Initials: /]Iy. EXHIBIT D DECLARATION 017 CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPEK Y RECORDING REQUFSTFD BY ) AND WHEN RECORDED MAIL TO: ) (Space above for Recorders use.) THIS DECLARATION OI` CONDITIONS, COVENANTS AND RESTRICTIONS I`OR PROPERTY (the "Declaration") is made by and between ROBERT G. and KATHY A. OSTERIIOUDT (the "Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACI1, 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 Anri1 21, , 19 97 , (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(Caltfnrnia 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: 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 "Exhibit D" to Loan Agreement Page 1 of 9 4s'G.4-97Agrcc Oslrhout Fxh[hftl) Rl S 97-235 4/10i97 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 "Exhibit D" to Loan Agreement Page 2 of 9 4\s\G:4-97Agree:Ostrhout:ExhibitD RLS 97-235 4/10/97 that 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 BF h4AI)1' 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 OTI IER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND TI IAT THE TRANSFER PRICE. PERMITTED HEREUNDER MAY BE LESS "THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE' SAMI: MANNER AS OTHER SIMILAR REAL PROPI",RTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR ANI) EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN Sl I-I'ING THE TRANSFER PRICE THE PRIMARY OBJ EC-TIVI. OF THE AGENCY AND "THIS DECLARATION IS TO PROVIDE IIOUSING TO ELIGIBLE' PERSONS OR FAMILIES AT AN AFFORDABLE I IOUSING COST. xZ1 /1f 6, 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 itsell'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, subiessecs, 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 "Exhibit W to Loan Agreement Page 3 of 9 4VAG 4-97A&r[e(Al7houl-GxhibilL) RI S 97-235 4110/9 7 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. 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 Citv and AuencX- 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 "Exhibit D" to Loan Agreement Page 4 of 9 4Ls1G-4-97Agrcc-Ostrbout lixhihitU RLI.'97-235 4110197 maintain anv actions at law or suits in equity or other proper legal proceedings to enforce and to cure such 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 ex{ cuted on their behalf by their respective officers hereunto duly authorized, this 30 clay of , 19 COVENANTOR APPROVED AS TO FORM. Agency Counsel "Exhibit D" to Loan Agreement Page 5 of 9 4 5%G-•1-97Ar-ree-Cktrhswt-E:xhihitl) RI S 97-235 4110197 STATE OF CALIFORNIA } } ss COUNTY OF _ CRANGE _} On APRIL 30, 1997 , before me, LINDA J. CAMPBELL (name, title, e_g-, "Jane Doe, Notary Public"), personally appeared RpBgRT G. L341'H2MXjpT AND KAT®C A. ob'1'FltHCXM (namc(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 name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ticial seal- T • LINDA J. CAMPBELL = ' I COMM.* 1045344 _ ri NOTARY PUBLIC-CALIFORNIA ORANGE C JNTY (Sign tore of Nota ,) W Comm-EV'res DFC_20.1M LINDA J_ CAMPBELL CAPACI"IY CLAIMED 13Y SIGNER- Individual Corporate Officer(s): .1.itle(s) Partner(s): Limited General Attorney-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies)T __ A"1 FFNTION NOTARY- Although the information requested below is OPTIONAL, IT COULD PRF.VF,NT FRAUDULENT ATTACHMENT OF TI IIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBEI Date of Document AT RIGHT: Signer(s)Other Than Named Above: "Exhibit D" to Loan Agreement Page G of 9 4\51G 4-97Agrcc 0arhout-Fxhtbal) Rl S 97-235 4110.197 9402213-A GOVERNMHNT CODE 27361.7 I certify under penalty of perjury that the portion of the attached document which is illegible, covered or obliterated reads as follows: Witness my hand and official seal. Place of Execution: Irvine, California Dated: May 6, 1997 Lawyers Title Company By: Heidi Mihelich STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, (name, title, a-g-, "Jane Doe, Notary Public"). personally appeared (name(s)of signer(s)). personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the persort(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacitv(ics), and that by his/her/their signature(s) on the instrument the person(s),or the entity upon behalf of which the person(s) acted, executed the instrument- Witness my [land and official seal. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Officer(s)- _ Titie(s) I'artner(s): Limited General Attorney-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING- Name of Person(s) or E;ntity(ies) _ ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT A,rrACHMENT OF THIS CER"1'II'ICA'1'1- TO ANOTHER DOCUMENT. THIS CERTIFICATE 'title or Type of Document MUST BE AIIACHED TO THE DOCUMENT Number of Pages_ DESCRIBED Date of Document AT RIGHT. Signer(s) Other Than Named Above: "Exhibit D" to Loan Agreement Page 7 of 9 4\s\G 4-97Agree OWhout-Exhfbid) Rr-S 97-235 411 OP97 STATE OF CALIFORNIA ) ss COUNTY Of ) On , before me. _ (name, title, e.g., "Jane Doe, Notary Public"), _ personally appeared (name(s)of signer(s)). _ personally known to he--OR -- proved to me on the basis ot'satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and-that by-his/leer/their- signature(s)on the instrument the person(s), or the entity upon behalf of%vhich the person(s)acted, executed the instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAUNIED BY SIGNER: Individual Corporate Officer(s): Title(s) Partner(s): Limited General Attorncy-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s)or F.ntity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE. TO ANOTI IER DOCUMENT_ THIS CERILI ICATE Title or"Type of Document __._._-. _ MUST B AlCTACHED TO THE DOCUMENT Number of Pages llLSCRIBIA Date of Document AT RIGHT: Signer(s)Other Than Named Above: "Exhibit D" to Loan Agreement Page 8 of 9 4',s'(i-4-97Arrcc-(htrhuut-F.xhihilD RI S 97-235 4 [t1/97 Loan No.: 2815017 osterhoudt EXHIBIT RAO - LEGAL DESCRIPTION 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. 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, ASPAHLTUM, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES, AS RESERVED IN DEED ARECORDED AUGUST 16 , 1921 IN BOOK 401, PAGE 356 OF DEEDS, AND IN VARIOUS OTHER DEEDS OF RECORD. PARCEL 2 : UNIT NO . 13 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 AREAS DEFINED, DEPICTED AND ASSIGNED ON THE PLAN. Initials: CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CRY CLERK - DEED-CERTIFICATION --- - --- - - - - -This is to certify that the interest in real property conveyed by the Deed dated April 21, 1997 from Robert G. and Kathy A. Osterhoudt, to the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic, is hereby accepted by the undersigned officer or agent on behalf of the Agency pursuant to the authority conferred by Resolution No_ 76 of the Agency and the grantee consents to the recordation thereof by its duly authorized officer. Dated- April 28, 1997 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH CONNIE BROCKWAY. CMC CLERK By- puty'Clerk [;Uollouup'deKfrcrt 4/28/972dccdc4cnt0sfcrhoudt jc (Telephone- 714-53"227) .f Please Peturn To U: ,- Amr.C:rG 5'an,�n::d_. :^C. c/o 5{.�ma:L:..�❑ F:ndilt ca: 905 West 27th Street-_ Scottsbluff, NE 69361 {Space Above 'Mn Line For Recording Natal [cart No. : 281SO17 DEED 4F TRUST THIS DEED OF TRUST ("Security Instrument") is made on April. 25 1997 The; trustor is Robert G. Osterhoudt and Kathy A. Osterhoudt, Husband And Wite As Joint Tenants ("Borrower"). The trustee is Cammnwealth Land Title Ccnipany 44 Montgomery, Suite 3450, San Francisco, CA 94104 ("Trustee"). The beneficiary is New Arnerica Financial, Inc. which is organized and existing under the laws of the State of Texas and whose address is 3131. Mantle Creek Boulevard, Suite 41300, Dallas, TX 75219 (-Lender") Borrower owes Lender the principal sum of one hundred f ifty thousand f ive hundred f ifty and h'O/100ths Dollars (U-S. $ 150,550.00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note-),which provides for monthly payments, with the full debt, if not paid earlier, due and payable on May 1, 2027 . This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the !Mote, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the 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- SEE EXHIBIT 'A' ATTAC= HER= AND MADE A PART HFEOF which has lite address of 18061 Joyful ;arse ##102, Huntington Beach [Street, Cite]. California 92648 Ijh{ CLrdel ("Property Address"), TOGETHER WITH all the improvements now or heareafter erected on the property, and all easemems, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Progeny-" BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record- Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. r'1IL tJ'.+ t.. CALIFORNIA-Single Family - FNIMAIRFUNIC Page I of 6 SICACI 3195 UNIFORM JNS1'RUNJENT- Form 3005 9190 Amended 8191 THIS SECURITY INSTRUMENr 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 and Interest; Prepayment and Late Charge. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the 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 the day monthly payment are due under the Note, until the Note is paid in full,a sum ("Funds")for: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (h) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (c) yearly mortgage insurance premiums, if any;and (f) any sums payable by Borrower to Lender, in accordance with the provisions of paragraph $, in lieu of the payment of mortgage insurance premiums. These 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.§2601 et seq. ("RESPA"),unless another law that applies to the Funds sets a lesser amount - It so, Lander may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow ltetns- Lender may not charge Borrower for holding and applying (he Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Ixnder 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 applicable law provides otherwise. Unless an agreement is made 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 debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument_ If the Funds held by Lender exceed the amounts permitted to be held by applicable law,Lender shall account ro Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of[he Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing,and, in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion. Upon 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 Properly, 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. Applicationof Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs and 2 shall he 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 leasehold 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 payment. Borrower shall promptly fumish to Lender all 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 the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien: or (c) secures from the holder of the lien an agreement satisfactory to Lender 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 [he lien. Borrower shall satisfy [he lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard or Property Insurance. Borrower shall keep 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 flooiding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for [he periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Fender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above. Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. All insurance policies and renewals shall be acceptable to Fender and shall include a standard mortgage clause_ Lender shall have the nigh( to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender- Lender may make proof of loss if not made promptly by Borrower. Unless lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is no( 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 lnll ldl5: A� AO. CALIFORNIA- Single Family -MMAIFIILMC Page 2 of 6 SICAC2 3195 UNIFORM INSTRUMENT-Form 3t105 9190 Amended 9191 Property, or does 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. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security instrument, whether 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 postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments- If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Properly prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6, Occupancy, Preservation, Maintenance and Protection of Property; Borrower's Loan Application; Leaseholds. Borrower 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 least one year after the date of occupancy, unless Lender otherwise 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 Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property 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 loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) 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 Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold 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 this 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 pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts 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 payment. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If,for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelftli of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer he 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 taking of any pan of the Properly, or for conveyance in lieu of condemnation, are 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 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 be 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 the 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. initials: _. CALIFORNIA-Single Family - FNMA/fITU IC Page 3 of 6 SICAC3 3195 UNIFORM[NSTRlJ1fFNT- Form 3005 9190 Amended 8191 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 bender Not a waiver. Extension of the time for payment or modification of amorlization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operare to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required w commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization 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 Insinimew 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 Charge. If the loan secured by this Security Instrument is subject to a Iaw which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to he collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall he 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 this 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 Borrower 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 the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law,such conflict shall not affect other provisions of this Security Instrument or the Note which can he given effect without the conflicting provision_ To this end the provisions of this Security Instrument and the Note are declared to be severable. lb. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument- 17. "Transfer of the Property or a Beneficial Interest in Borrower. If all or any pan 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 sums secured by this Security Insiniment. if Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 18. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument 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 the Property pursuant to any power of sale contained in (his Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are 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, reasonable attorneys' fees; and (d) takes such action as Lender may reasonably require to assure that the lien of [his Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Ins[rtmteni shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred_ however, this right to reinstate shall not apply in the case of acceleration under paragraph 17. l9, Sale of Note; Change of 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 as the "Loan Servicer") that collects monthly payments due under the Note and this Security Instrument. There; also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will he given written notice of the change in accordance with paragraph 14 above and applicable law_ The notice will state the name and address of the new Loan Servicer and the address to which payments should be made_ The notice will also contain any other information required by applicable law. TnItiaIs: , C, CALIFORNIA-Single family - MMAlfIfLN1C Page 4 of 6 SICAC4 3195 UNIFORM INSTRUMENT- Form 3005 9190 Amended 8191 1, • • 20. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Ilazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential 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 governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge- If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediauon 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" are those substances defined as toxic or hazardous substances by Environmental 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 relate to health, safety or environmental 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 of any covenant or agreement in this Security Instrument (but not prior to acceleration under paragraph 17 unless applicable law provides otherwise). The notice shall specify: (a) the default;(b) the action required to cure the default;(c) a date, not lekc than 30 days from the dale the notice is given to Borrower,by which the default must be cured;and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower 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 power of sale 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' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of 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 of the Property is located. Lender or Trustee shall mail copies of the notice as prescribed by applicab[e law to Borrower and to the other persons prescribed by applicable law. Trustee shall give public notice of sale to the persons and in the manner prescribed by applicable law. After the time required by applicable law,Trustee, without demand on 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 parcels and in any order Trustee determines. Trustee may 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. Trustee shall deliver to the purchaser Trustee's deed conveying the Property without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made [herein. Trustee shall apply the proceeds of the sale in the followingorder: (a) to all expenses of 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 excess to the person or persons legally entitled to it. 22. Reconvevance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security Instrument to Trustee. Trustee shall reconvey the Property without warranty to the person or persons legally entitled to it_ Such person or persons shall pay any recordation costs. Lender may charge such person or persons a fee for reconveying the Property, but only If the fee is paid to a third party (such as the Trustee) for services rendered and the charging of the fee is permitted under applicable law_ 23. Lender in Possession. Upon acceleration under paragraph 21 or abandonment of the Property, Lender (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Properly and to collect the rents of the Property including those past due. Any rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Properly and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Security Instrument. 24. 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 the office of the Recorder of the county in which the 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 trustee shall succeed to all the title,power and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 25. 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. 26. Statement of Obligation Fee. Lender may collect a fee not to exceed the maximum amount permitted by law for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California. Initials- &29,(,;f T CALIFORNIA-Single Family - FNMAIRIL11C Page 5 or 6 SICAC5 3195 UNIFORM 11491RUMENT- Form 3005 9190 Amended 9191 27. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and 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 rider(s) were a part of this Security Instrument. ICheck applicable hox(es)j ❑ Adjustable Rate Rider ® Condominium Rider ❑ 1-4 Family Rider ❑ Graduated Payment Rider ❑ Planned Unit Development Rider ❑ Bt-Weekly Pa}ment Ritter ❑ 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 in any rider(s) executed by Borrower and recorded with it. Witnesses, (Seal) Robert G. Osterhoudt -Borrower (Seal) Kathy A terhoudt -Borrower (Seal) -Borrower (Seal) -Borrower STATF 01= CALIFORNIA. County of Ore ss. On APRIL 30, 1.997 before me, LINDA J. C-AMpBELL personally appeared Robert G. Osterhoudt and Kathy A. Osterhoudt personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. W jq d f c' I scaL ' LINDAJ. CAMP$ELL = iC/ l�� (Seal) - I ~`• COMM. # 1045344 Cu NOTAPY PUOLIC•CAI IFORNW J3 LINDA J_ CAMPBELL ORANGE COUNTY REQUEST FOR RECONVEYANCE My Comm Expve�DEC.20,ttila8 TO TRUST .E:: Tltc undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes, together with all other indebtedness secured by this Deed of Trust, have been paid in full. You are hereby directed to cancel said note or notes and this Deed of Trust, which are delivered hereby, and to reconvey,without warranty, all the estate now held by you under this Deed of Trust to the person or persons legally entitled thereto. Dated: ISpce Bela-Thu].m For Acknn.ln,temca] CALIFORNIA-Single Family - FWAIMLNIC Page 6 of 6 SICAC6 3/95 UNIFORM IV5rRURIENT- Forth 3005 9190 Amended 8/91 Iran No.: 281SO17 Onterhnudt EXHIBIT "A" - LEGAL DESCRIPTION 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. 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, ASPAHLTUM, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES, AS RESERVED IN DEED ARECORDED AUGUST 16 , 1921 IN BOOK 401, PAGE 356 OF DEEDS, AND IN VARIOUS OTHER DEEDS OF RECORD. PARCEL 2 : UNIT NO. 13 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 AREAS DEFINED, DEPICTED AND ASSIGNED ON THE PLAN. Initials: r7COr i TO BE ATTACHED TO THE SECURITY INSI'RL�-= CONDOMINIUM RIDER man No. : 2815017 THIS CONDOMINIUM RIDER is made this 25th day of April .1997 , 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 Borrower's Note to New America Financial, Inc. (the "Lender') of the same date and covering the Property described in the Security Instrument and located at: 18061 Joyful Lane #102, Huntington Beach, CA 92648 [Property Addressl The Property includes a unit in, together with an undivided interest in the common elements of, a condominium project known as: Pacific Park Villas (Name of Condominium Proiectl (the "Condominium Project-). If the owners association or other entity which acts for the Condominium Project (the 'Owners Association') holds title to property for the benefit or use of its members or shareholders, the Property also includes Borrower's interest in the Owners Association and the uses, proceeds and benefits of Borrower's interest. CONDOMINIUM COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender 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" are the: (i) Declaration or any other document which creates the Condominium Project; (n) by-laws;(m) code of regulations; and (iv)other equivalent documents. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B.Hazard 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 amounts, for the periods, and against the hazards Lender requires, including fire and hazards 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 installments for hazard insurance on the Property, and (ii) Borrower'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 Lender prompt notice of any Iapse 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 Property, whether to the unit or to common elements, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by the Security Instrument, 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. D. Condemnation.The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any pan 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 the sums secured by the Security Instrument as provided in the appropriate Uniform Covenant. E. 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) the abandonment or termination of the Condominium Project, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; MULT[STATECONDOMINIUM RIDER-SINGLE FAMILY Page I of 2 FORM 3I40 FNMAIFULhIC UNIFORM INSTRUMENT LD00050A 041% TO BE ATTACHED TO THE SECURITY INSTRLZENT (ii) any amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender, (iii) termination of professional management and assumption of self-management of the Owners Association; or (v) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F.Remedies.If Borrower does not pay condominium dues and assessments when due, then Lender may pay them. 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 the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Condominium Rider- (Seal) �G � (Seal) Robert G. Csterhoudt 4kWWVAa Kathy A. terhoudt 4kmma (Seal) (Seal) acx wa MULTISTATECONDOMINIUMRIDER-SINC,LF.FA161ILY Page 2 of 2 FORM 3140 LODC050B 12183 F&N%1A1FtHLMC UNIFORM INSTRUMENT Loan No. : 2815017 EXHIBIT "A" - LEGAL DESCRIPTION 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. 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, ASPAHLTUM, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES, AS RESERVED IN DEED ARECORDED AUGUST 16 , 1921 IN BOOK 401 , PAGE 356 OF DEEDS, AND IN VARIOUS OTHER DEEDS OF RECORD . PARCEL 2 : UNIT NO . 13 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 AREAS DEFINED, DEPICTED AND ASSIGNED ON THE PLAN . INITTALS/9 :NITIAIS/J±_C/l INITIALS - INITIALS - EXHIBIT E DISCLOSURE_STATEME N'i' BWe ROBERT G. and KATHY A. OSTERHOUDT ("Applicant") understands and agrees that the provision of financial assistance from The Redevelopment Agency of the Cite of Huntington Beach ("Agency") is conditional on a number of factors, including, but not limited to: • IIWe must qualify far a home loan from an institutional lender acceptable to the Agency. • UWe must pay at least % of the home purchase price from our own funds. • I/We 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 I/Wc rent the unit to others, IIWe will be in default of the Loan Agreement. I;We further understand and agree that: • IIWe will be responsible for repaying the loan with five percent (5%) simple interest per year at the time I/we sell, translbr, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. The Annual Percentage Rate for this loan is five percent (5%). The simple interest shall accrue each year, but is not required to be paid except as described in the loan Agreement. • If within thirty (30) years from the date Ilwe receive the Agency financial assistance, Uwe sell or transfer the home I'we purchased under this Program to persons who are not persons of low or moderate income or refinance the lien of the deed of trust held by my/our lender, IOwe will be obligated to pay the Agency a percentage share of the difference between the price lAve 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 I luntington Beach, California 92648 "Exhibit E" to Loan Agreement Page 1 of 2 -Ts'.G 4-07Agrcc.OsErhou[.t:xhlhrt1-` RI,S 97-235 4110197 l. s • The Agency will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable when the term of the loan expires. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escrow fees, late payment charges or ether 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 lAve 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. l/we assume all responsibility for determining whether I/we 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 I/we receive under this Program may be considered to be income for purposes of federal or state income taxes and the Agency shall not be held responsible for the payment of any taxes which I/we may incur by virtue of the receipt of' such financial assistance. Dated: 19_�_z 4t ! i�gnnaatture of appliccaa�nt "Exhibit E" to Loan Agreement Page 2 of 2 4Ls!G 4-47Agrec OStrhoul-lixhfhiti. R1.S 97-235 4/10197 r 1 EXHIBIT F NOTICE OF RIGILL OF RESCISSION Participant(s) RO13FWI' G. and KN. TI-IY A. OSTERHOUDT Loan Amount: $35.000.00 Address of Residence: 18061 Joyful Lane, 4102, 1-1untington Reach, California Notice to Participant Required by Federal Law: You have entered into a transaction on 04/21/97 [I)atel 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. I hereby cancel this transaction. (Date) {Participant's Signature) "Exhibit F" to Loan Agreement Page 1 of 2 4Ls1G 4-97Agrcc.05lrhuul.EYhihaT- RLS 9 7-235 4n 0l97 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 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. zi�— a Participant's Signature bate Participant'.A.1.7ignature Date Participant's Signature Date Participant's Signature Date "Exhibit F" to Loan Agreement Page 2 of 2 4V\(i 4.97Agree-ostrhout ExhihitF RL;97-2?5 4/10/9; REDEVELOPMENT AGENCY OF THE CITY OF I IUNTINGTON BEACH LENDING INSTRUCTIONS TO: Tiempo Escrow 19093 Beach Blvd. I Iuntington Beach, CA 92648 RE: Your Escrow No. 9909-C I'reliminary Recitals 1. Robert G. and Kathy A. Osterhoudt (hereinafter sometimes referred to as "Buyer") have 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 Lanc, #102, 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 $35,000 plus accrued interest on the unpaid balance thereof at the rate of 5 percent (5%) 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 Citv of I-Iuntington 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 opined by Buyer or other 1 4'u G-4-97Agrer-Ustenconi Lendinst RLS 97-235 4/1 1 r97 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 509 i 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; (f) 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 he 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 cif 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 $ 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; 2 4l5 G 4-97Agrcc.Ch1crhou:Lcndins1 Rl S 97-235 4/10I97 i • (c) The policy shall naive Buyer as an insured and shall contain a lender's loss payable endorsement naming Lender as the second loss payee; (d) The policy shall not have a deductible that exceeds $500. Requirement of Cash Downpayment 5. We require, as a condition ofmaking 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 oven 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 1=ederal "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 ofthe 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 16urth 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: 3 4'ts(;.4-97AgrccOgterhou I cndin%[ R1.S 97-235 4/10197 (a) Buyer has properly executed the enclosed loan agreement promissory note without modification or deletion and you have delivered the original of the executed loanagreement to us; (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; (1) 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 Law-yers 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; (1) 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 complying with the requirements set forth in 14; (k) Buyer has deposited in escrow, to be applied toward payment of the purchase price for the Subject Real Property, the sum of and has otherwise complied with the downpayment requirements set forth in 15. $��'00 4 � 4Ls:G.4-97Agrec.Os[ertwu_1-cnd iris[ RI S 97-235 4/1010 z s (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 [teal 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 16, 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 8. 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[.oan Proceeds 10. You are authorized to disburse the loan proceeds that we deposit with you when, and only when: 5 4\sfii-4-97Agrce Osterhou Lendinst KIS 97-235 -1/10197 • (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 firm American Land Title Association lender's title insurance policy that complies with the title insurance requirements set from in 17(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 Main 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 Main 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. Non responsibility for Escrow 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. 6 4\s:G.4-97A6rcc&.1crhou Lcndfnsl RLS 97-235 4tlO/97 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 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 without prior notice and without the agreement or consent of any other party or parties. However, these instructions may onl} 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 of 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 18. 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 4V.6.4.97Agrec osrerhou Undinst RLS 97-235 4/10/97 Request for Acknowledgment of Acceptance 19. 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 Fender. Dated: LENDER David Biggs Economic Development Director Redevelopment Agency of the City of I Iuntington Beach Acknowledgment and Acceptance by Escrow [folder 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 I iuntington Beach shall be held and disposed of in accordance with 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 o Escrow By signature] LIWA J_ CAMBEL [typed name] ESCROW OFFICER [title] 4V 6:4-97Abrcc(Xterhou-Lendin$L RLS 97-235 4110197 c EXHIBIT lI TRANSFEREECERTIFICATE OF PRQPOSED THIS FORM MUST BE DELIVERED TO THE.•. DF.VEI.OPFR RFFORF PROCEEDING WITH ANY TRANSFER OF TIME PROPERTY. APRIL 21st 19 97 1. The Proposed Transferee is Names: ROENWC G. OSTPRHOUID►P KATHY A. OSTERHOUDT Current Address: 18061 JOYFUL LANE #102 HUNTRO iCN BEACH, Telephone Number. lee, . 2. The addresf&fthe property which the proposed transferee desires to purchase is 1895-1— 18061 Joyful Lane, -YNY, Huntington Beach, California(the "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 $ 47,868-00 (I-his 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 (I 8 or over) - [name of eachl: ROBERT G. OSTERHOUM AND KATHY A. OSTE HOUDr "Exhibit H" to Loan Agreement Page 1 of b 4\s1G 4-97Agrccosrrhour-Cxhhidl RLS 97-235 ail On97 Minors (under 18) - [name of each]: S. The proposed transferee must submit to the Developer, on a form available from the Developer, 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$_ l200_M I'his sales price is based on the less of' XX 0) Fair market value; or 00 The maximum price at which the Purchase I lousing Cost of the Proposed Transferee would not exceed Affordable Housing Cost. The calculation of the Sales Price under this subsection (11) is illustrated in Attachment No. 10 to the Disposition and Development Agreement. 1N ORDI-R TO ANSWER QUESTION 2(a) YOU MUST CALCULATE THE PROPOSED SALES PRICE BASED ON AFFORDABI.F, HOUSING COST, TAKING INTO CONSIDERA`I"ION 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) 1"he 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 anv, concerning the Property or any other matter to be paid by the proposed transferee to the Owner: $" (If none, so state.) "Exhibit JT' to Loan Agreement Page 2 of 6 41s1G_4-91Agrcc:os1rhoul Exhha11 R1 S 97-235 4110/97 • 0 (e) Sources of payment of sales price: Sales price $ 206,200.00 Cash down payment $ 20,650.00 1 st loan $ 150,550.00 2ndloan $ 35,000.00 Other (describe) S 206,200.00 Total (f) The financing obtained by the proposed transferee to purchase the Property is as follows: I st Loan: Loan amount: $ 150,550.00 Monthly payments: $ 1,345.82 Interest rate 8.25% % if variable interest, describe adjustment mechanism: Due date: MAY 1, 2027 Balloon payment amount: ICE Points and fees: $3,269.31 Lender: NEW AMFRICA PIIIANCIAL, INC. Lender's address: 4590 MACARTSUR BLVD., SUITE 370 NEVAKRT BEACH, CA. 92660 "Exhibit IT' to Loan Agreement Page 3 of 6 4W.G_4-97Agree ostrhout Exhhitll RLS 97-235 a!1 U197 2nd Loan Loan amount: $ 35,000.00 Monthly payments: $ Interest rate 5.00% ACCRUED if variable interest, describe adjustment mechanism: Due date. MAY 1, 2027 Balloon payment amount: PRINCIPAL & INTEREST Points and fees: -a Lender: CITY OF HUNTING TM BEACH 2000 MAIN STREET Lender's address: HU TPING CK BEACH, CA. 92648 Qther Loans: (describe, if none, so state) NCM (g) The monthly Purchase Housing Cost to be paid by the proposed transferee: I st loan monthly payment: $ 1,131.03 2nd loan monthly payment: $ �- Other loans monthly payment: $_ Taxes and assessments (1/12 of yearly taxes and assessments): $ 214.79 I nsurance (1/12 o f yearl y $ -0- premium) Homeowner's dues: $ 175.69 Total: $ 1,521.51 "Exhibit IT' to loan Agreement Page 4 of 6 41s�G:4-97Agrce:ostrhuui.E:xhhill{ RI-S 97.235 4/1 Ur97 8. A true and correct copy of the purchase and sale or other agreement bet,.veen the owner and the proposed transferee is attached hereto. 1 declare under penalty of perjure• under the laws of the State of California that the foregoing is true and correct. PROPOSED TRANSPFRE.F: APRJIL 30 1997 Date Signature Signature ROBPRT S. OSTEPBO= _ FAIW A. OS1ERBOLJDT Print name Print name 18061 JOYFUL LANE #102, FXMDnTCN BFACH, CALIFORNIA 92648 Street Address "Telephone Cit}° State Lip Code "Exhibit H" to Loan Agreement Pate 5 of 6 4'-s,(i.4-97Acrcc warhuur1-Oball RI_S 47-235 4 10;,)7 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 I amily; and (2) The monthly Purchase Housing Cost to he paid by the Proposed 'Transferee shall not exceed the monthly Affordable I lousing Cost. [Capitalized terms used above are defined in the Disposition and Development Agreement to which this certificate is attached.] DEV By: BIJAN SAS90UNIAN Its: Date: MAY 1, 1997 "Exhibit IT' to Loan Agreement Page 6 ol'6 As1G:4-97Agrcc:osvhOU1:Bhbit} RI.S 97-235 4/10I97 EVIDENCE OF MURANCE Policy Number CONDOMINIUM/ Replaced Policy Number ASSOCIATION POLICY C��o,,v�Ierage afforded by this policy is provided'by the Company indicated below: LX; STATE FARM FIRE AND CASUAkTY COMPANY A Stock Company, Bloomington, Illinois [H, STATE FARM GENERAL INSURANCE COMPANY A Stock Company, Bloomington, Illinois STATE FARM LLOYDS COMPA Y A Lloyds Company, Dallas, Texas This is to certify that the Company indicated above has the following insurance in force- Unitowner's Name and Mailing Address Robert G . Osterhoudt and Kathy A. Osterhoudt, Husband and wife, As Joint Tenants 18061 Joyful Lane # 102 Huntington Beach, California 92648 Insured's Name and Mailing Address Automatic Renewal - If the Policy Period is shown as 12 Months, this policy will be renewed PACIFIC PARK VILLAS automatically subject to the premiums, rules and HOMEOWNERS ASSOCIATION forms in effect for each succeeding policy period. If C/O KEYSTONE PACIFIC PROPERTY this policy is terminated, we will give you and the 4100 N EWPORT PLACE DR STE 350 Mortgagee written notice in compliance with the NEWPORT BEACH CA 92660-2437 policy provisions or as required by law The Policy Period begins and 01-13-97 Effective Date ends at 12:01 a-m_ Standard _12 Months _ Policy Period Time at the building locations Q1�,3=38 Expiration of unless otherwise stated. PLEASE NOTE — THIS EVIDENCE OF Policy Period u Noon Standard Time INSURANCE IS ISSUED DIRECTLY Policy Type OUT O. THE AGENTS OFFICE_ SEC AGENT S NAME AND ADDRESS RFLOW Basic Form 1 S CONTACT AGENT DIRECTLY FOR Special Form 3 ANY MORTGAGEE CHANGES OR Limits of Liability Coverage ADDITIONS. THANK YOU $_ 2,446,200 A Buildings JOHN K TOLLISON $ 2,000,000 L Business Liability 15650 DEVONSHIRE ST STE 101 GRANADA HILLS CA 91344--7141 Deductible 10Z EQ In case of a toss we cover only that part $_ 1,000 BASIC _ of the loss over the deductible stated. AGENT CODE: 1762 Forms, Options 8 Endorsements FP-6109 SPECIAL FORM 3 IFE-6303 SAFEGUARDS END FE-6506_1 POLICY END IOPT DO DIR E OFFICERS FE-6466 POLICY END IOPT ED EMPLOYE DISHON FE-6205 AMENDATORY END IFE-6494 ADDITIONAL INSD I FE-6451 DEBRIS REMOVAL IFE-6307_1 EARTHQUAKE END I Unitowner Mortgagee _2 15 Q_L7_ Loan Num st : New America Financial , Incorporated and/or Harbor Financial Mortgage Corporation, A nt'5 gnature/Counter§igpature Their Assigns and or Successors 340 N . Sam Houston Park , East Agent's Code Houston , Texas 77060 Attn : Insurance Dept . )IC ZILd_. City of Huntington Beach, 2000 Main Stree Telephgn Num r Huntington Beach, CA 92648 Date S5a 91,5 At,- 08 95 1 S.F. FORM Form 43RRFL' \S (Res. May I. 042) x LENDER'S LOSS PAYABLE ENDORSEMENT I- Loss or damage. if any, under this policy, shall be paid to the PayMnamed on the first page of this policy, its successors and assigns. hereinafter referred to as 'the Lender-', in whatever form or capacity its interests may appear and whether said interest be vested in said Lender in its individual or to its disclosed or undisclosed fiduciary or representati%c capacity, or otherwise, or vested in a nominee or trustee of said Lender- 2 The insurance under this policy. or any rider or endorsement attached thereto, as to the interest only of the Lender. its succes- sors and assigns, shall not be invalidated nor suspended- (a) by any error, omission, or change respecting the ownership. description. possession,or location of the subject of the insurance or the interest therein.or the title thereto. (h I by the commencement of foreclosure proceedings or the giving of notice of sale of any of the property covered by this policy by s irtue of any mortgage or trust deed. (c) by any breach of warranty.act,omission. neglect. or non-compliance with any of the provisions of this policy. including any and all riders now or hereafter attached thereto. by the named insured. the borrower, mortgagor, trustor. vendee, owner. tenant. warehouseman, cus- todian.occupant,or by the agents of either 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 prevent. whether occurring before or after the attachment of this endorsement, or whether before ur after a loss, which under the provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate or sus- pend the insurance as to the tamed insured. excluding herefrom, however, any acts or omissions of the Lender while exercising active control and management of the property. 3- in the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of this policy or on account of any change to occupancy or increase in hazard not permitted by this policy. this Company agrees to give written notice to the Lender of such non-payment of premium after sixty (60) days from and within one hundred and twenty (120) days after due date of such premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when so notified to writing by this Company of the failure of the insured to pay- such premium shall pay nr cause to be paid the premium due within ten (10) days following receipt of the Company's demand in writing therefor if the Lender shall decline to pay said premium or additional premium. the rights of the Lender under this Lenders Loss Payable Endorsement shall not be terminated before ten (10) days after receipt of said written notice by the Lender. 4- Whenever this Company shall pay to, the Lender any sum for loss or damage under this policy and shall claim that as to the insured no liability therefor exists, this Company, at its option. may pay to the Lender the whole principal sum and interest and other indebtedness due or to become due from the insured, whether secured or unsecured. (with refund of all interest not accrued). and this Company. to the extent of such payment. shalt thereupon receive a full assignment and transfer. without recourse. of the debt and all rights and securities held as collateral thereto. S If there be any other insurance upon the within described property,this Company shall be liable under this policy as to the•Lender for the proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similar character on said property under policies held by, payable to and expressly consented to by the Lender. Any Contribution Clause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified. and also any Contribu- tion Clause in any other endorsement or rider attached to this contract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has received reduction in the rate charged or has received extension of the coverage to include hazards other than fire and compliance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the payment to it of the full amount of its claim, will subrogate this Company (pro rata with all other insurers con- tributing to said payment) to all of the Lender's rights of contribution under said other insurance - 6. This Company reserves the right to cancel this policy at any time. as provided by its terms. but in such case this policy shall continue in force for the benefit of the Lender for ten (10) days after written notice of such cancellation is received by the Lender and shall then cease 7. This policy shall remain in full force and effect as to the interest of the Lender for a period of ten (10) days after its expiration unless an,acceptable policy in renewal thereof with loss thereunder payable 10 the Lender in accordance with the term• of this Lenders Loss Payable Endorsement, shall have been issued by some insurance company and accepted by the Lender_ 8. Should legal title to and beneficial ownership of any of the property covered under this policy become vested irr the Lender or its agents. insurance under this policy shall continue for the term thereof for the benefit of the Lender but. in such event. any privileges granted by this Lender's Loss Payable Endorsement which are riot also granted the insured under the terms and conditions of this policy and/or under other riders or endorsements attached thereto shall not apply to the insurance hereunder as respects such property. 9. All notices herein provided to be given by the Company to the Lender in connection with this policy and this Lender's Loss Payable Endorsement shall be mailed to or delivered to the Lender at its office or branch described on the first page of the policy. Approved Board of Fire Underwriters of the Pacific. California Bankers' Association. Committee on Insurance. 111111131111111111111111111111111111111111111111111111161111111111111111111111111111111I1111111116111111111111111111111111111111F1f111111 H f11111II N 19093 Beach Boulevard • Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714) 843-9949 City of Huntington Beach Date: May 7, 2997 Dan Bruening Escrow No. : 9909-C 2000 Main Street Huntington Beach CA Property Address: 18061 Joyful Lane #IO2, Huntington Beach, Ca 92648 In connection with the above-numbered escrow, we are enclosing herewith the following: Lending Instructions 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. Sincerely, Linda J. Campbell Escrow Officer A. B. TYPE OF LaL \ d�rryy �c yyyy� y� �� y�r 1.nFBA 2.[:]MM 3.2CONV. UNITES. il.ii. �� �dw7M MM I...IN�i aM71FlI+F 4.E]VA 5.❑CUNV. INS. Maw 6. FILE A om= 7. LOAN NMUM 9909-C 2815017 B. MORTGAGE ZANURANCE CASE N[DRM C. NOTE: This form is furnished to give you a statement of actual settlement costa. Amounts paid to and by the settlement agent are abowm. Items marked (p.o.c.) were paid outside of closing, they are ahom here for informational purposes and are not included in the totals. D. NAME OF BORROWER: E. NAME OF SELLER: Robert G. Osterhoudt Sassounian Capital Ventures Kathy A. Osterhoudt 746 N. Zeyn Street 16373 Bolsa Mica Street Anaheim, California 92805 Huntington Beach, Ca. 92649 F NAME OF LEMOER: I G. PROPERTY LOCATION: New America Financial, Inc. 18061 -Toyful Lane #102 Siniva Ala Fhultlngtcn Beach, Ca 92648 4590 MacArthur Blvd, #370 Newport Beach, Ca. 92660 H. SEMMEME T AGENT PLACE OF SER'77MENT I. SEMEMENP DATE TXEMM ESCROW, nc. 19093 BEAQI BLVD. BEAM, CA 92648 05106197 .7. SUMURY OF BORROWER•0 rBANSACrXON S. SUMURY OF SELLER'S rRASSACrZOX 100. GROSS AMOUNT DUE FEW BORROWER: 400. GRASS AMOUNT DM To SELLER: 101. Contract sales price $206,200.00 401. Contract sales price 206i 200.00 102. Personal property 402. Personal property 103. Settlement charges to borzrnver (Line 1400) 3,959.06 403. 7btal for all Seller Deposits 104 404. 0.00 105. 405. Adjustments for items paid by seller in advance Adjustments for items paid by seller in advance 106. City/town/taxes to 406. City/tam/taxea to 107. County taxes 05106197 to 07 01 97 $339.35 407. County taxes 05106197 to 07101197 339.35 108 Assessments 05106197 to 06101197 $146.50 4os. Assessments 05106197 to 06101197 146.50 109 409. 110. 410. Ill. 411. 112. 412. 120. GROSS AMOUNT DUE FROM BORROWER $210,644.91 42o. mass Amur Dos To snim $206,685.85 200. AMOMS PAID BY OR IN BEHALF OF BORROWER: 500. REDULR•IONS AV AMOUNT DUE TO BELI.ER: 201. Deposit of earnest money 1,000.00 501. Excesa depoait (see Instructions) 202. Principal amount of new loaa(s) 150,550.00 502. Settlement charges to seller (Line 1400) 3,603.98 203. Mdating loan(s) taken aubject to 503. Exiating loans taken subject to 204. 504. Payoff of first mortgage loan 205. All Other Buyer Deposits 59,859.00 5o5. Payoff of second mortgage loan 206. 506. 207. 507. 208. 508. 209. 509. Adjustment for items unpaid by seller Adjuatment for items unpaid by seller 210 City/tam taxes to 510. City/town taxes to 211. County taxes to 511. County taxes to 212. Assessments to 512. Assessments to 2I3. 513. 214. 514. 215. 515. 216. 516. 217. 1517. 218. S18. 219.__... _ 519. - 220. TOTAL PAID Br/FOR Bcmwpm 211,409.00 52o. TGTAL REmmanr AMDwr DOE ssLrsR 3,603.98 300. CASH AT SE34ZEMMT FROM/TO BORROWER 600. CASH AT SETTLEr T TO/PROF!Qom LM 301 Gross amount due from borrower (Line 120) $210,644.91 60.1. Gross amount due to Boller (Line 420) 206,685.85 302. Less amount paid by/for borrower (Line 220) 211,409.00 602. Less reductions in amount due seller (Line 5 ) 3,603.98 303. CASH ( FROM) ( X TO) BORROWER $764,09 r6o3. CASH (X TO) ( FROM) szum $203,081.87 uEKr1F;:.D TO r A TRUE AND EXACT` COPY OF T,:E .:C NAL HEREOF. TIEMFO ESC INC 1 1 1 1 1$��M 1�j j�j�1 i 1��1-�11 1 1 1 1 I 1 1 1 1 1 1 1 1 I���s I liDl17f17f7�11 IDO�fi 1 N 1 i/uf 1 RM i•f f 1 1 e 1.....f......1fe*�o...AA Jh o.�cn...::: 19093 Beach Boulevard • Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714) 841--.--- 5assounian Capital Ventures Escrow Officer: Linda J. Campbell Property Address: 18061 Joyful Lane #102 Huntington Beach, Ca 92648 REF. NO. AMOUNT 1305 2nd Halt 1996197 Taxes Continental Lawye 1,232.44 CO y ;3F t! HEREOF. TIE?.:: Escrow Numiber: 9909-C 700. 7WAL SALES/BROXERIS CCr4WSSXCK based on price e PAID FACK PAID FROM Division of Commission (line 700) as follows: BORROWER'S SELLER'S 701. FEMW AT FDNDS AT 702. 3E7TLE 3WT SEl7ZIINENT 703 Camdssion paid at settlement 704. 800 ITENS PAYABLE IN CUiNECTICW WITH LOAN 801 Loan Origination Fee 802. Loan Discount 803. AppraiHal Fee to finer-e d Pacific $150.00 804 Credit Report to sos. Max Service Fee New America Financial, $75.00 806. Administration Fee New America Financial, $375.00 807. Processing and Funding Fee Ehierald Pacific $690.00 Boa. Administration Fee Ehner'ald Pacific $250.00 8o9. Wire Fee New America Financial, $37.00 810 Broker Loan Origination Fee Emerald Pacific $1,317.31 811. Yield Premium from New America Emerald Pacific (poc) $1,505.50 900. ITETd3 REQUIRE)BY LENDER 710 BE PAID IN ADVANCE 9o1 Interest from 05101197 to 05106197 ® 8 34.0200 /day -$170.10 902. Mortgage Insurance Premium for 1 months to 903. Hazard Insurance Premium for years to 904 years to 905. 1000 RESERVES DEPQSITED WITH LENDER 1001 Hazard insurance Months ® per month 1002. Mortgage insurance Months ® per month 1003. City property taxes Montha 0 per month 1004. County property taxes 4 Months ® 214.79 per month $859.16 1005 Annual assessments Months ® per month 1006. Montha 0 per month 1007 Months ® per month 1008 Months ® par month 1100 TITLE CHARGES 1101 Settlement or closing fee to T mqm ESCRW, I', $552.00 not. Loan Tie In Fee TXENF0 ESCROW, INC. $125.00 1103. Messenger Fees TI WO ESCROW, I1VC. $45.00 1104. 1105. Document preparation to 1106 Notary fees to TIEiM ESCROW, 1M. $60.00 1107. 1108 Title insurance to Continental Lawyers Title $419.70 Includes above items numbers 1109. Lender's coverage $150,550.00 1110. owner's coverage $206,200.00 1111. Sub Title Fee Continental Lawyers Tit $95.00 1112. ALTA Title and Loan Pol Continental Lawyers Tit $545.00 1113 Lender Elodorsements Continental Lawyers Tit $25.00 1200. GOVERNMENT RECORDIM AM TRANSFER CHARGE 1201 Recording fees. Deed Mortgage ; Release $47.00 $47.00 1202. City/County tax/stamps: Deed $227.15 ; Mortgage $227.15 1203. State tax/atamps: Deed 1204. Wire Fee Continental Lawyers Tit $25.00 1205. 1300 ADDITIONAL SEITLEMEW CHARGES 1301. 05101197 RM Dues Pacific Park Villas $205.69 1302 Peat inspection to 13o3. 06101197 RM Dues Pacific Park Villas $175.69 1304 Association Transfer Fee Golden West Pxcperty Ma 1305. See Attached -rn nc a �' _ 1400. MU MWZ&WW� (OntaV as Z 103, a wn 7=d 50,1,, #OOtta'X) ,9597tQ $3,603.06 The items indicated by 'FW1 have been included at the direction f the lender for disclosure purposes only. The escrow holder/settlement agent herein has no knowledge of these expenditures, except as provided by the lender. They have not been and cannot be verified as to the amount, the payee, nor actual payment and no liability is assumed by the closing agent as to the validity and/or the sufficiency thereof. TIEMPO ESCROW, INC. 19093 Beach Blvd. ESCROW TRUST RECEIPT N a 11755 Huntington Beach. CA 92648 ESCROW NO DATE _ 9909-C 5/1/97 MECEIVEi,OF CITY OF HUBTPINGICN BEACH THIRTY F"E TPOUSAND AND NQ/100 — — — — — — — — — — — — — — — — — — — — DOLLARS S 35,000.00 BANK CHECKu ant? BRANCH SANM BANK OF CALIFORNIA 401087 CASH CASHIERS CHECK CHECK 1 $35,0D0.00 RECEIVED AFTER HOURS ABA ■ 16-351 CHECKING ACCOUNT NO 2094 002W J g �� r� Loan Maintenance & Accounting Right Side • Approval & Documentation Worksheet (exhibit.8, copy) • Title Policy (copy) • Escrow communication at closing • Escrow settlement statement • Escrow Instruction Letter (exhibit 11, copy) • Loan Agreement (copy) • Promissory Note (copy) • Deed of Trust (copy) • Declarations of CCR's (copy, if applicable) • Disclosure (copy) • Recission (copy, if applicable) • Primary Lender loan documents(copy note, deed of trust, disclosure) 6.22 Safekeeping File Each safekeeping loan file is maintained by the City Clerk's office and housed in the vault. The file is organized with all documents (originals) stacked on top of each other on the right side, with the top document listed first. Right Side • Loan Agreement -- .E)(h4l,617- 4 . Disclosure Statement— i Promissory Note—EX1,1'161T-9 Deed of Trust and Rider r Xll/d iT C l' L) • Affordable Housing Agreement, if applicable i✓�,# • Notice of Right of Recission, if applicable EX1v161r F • Title Insurance Policy • Escrow Closing Statement • RCA containing approval of loans (copy, original RCA remains with City Clerk) City of Huntington Beach IDown Payment Assistance Loan Program Polices and Procedures Page 6-3 41myers itle I "hoof nsurance o oration NATIONAL HFADQUAItTER.S H I(�FIti7Vh'U.VIII(i]r�lA 1992 ALTA Loan Policy Number Loan Policy 135-01- 6 4 7-6 5 6 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE A AND THE CONDITIONS AND STIPULATIONS. LAWYERS TITLE INSURANCE CORPORATION, a Virginia corporation, herein called the Company, insures, as of Date of NhLy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A. sustained nr incurred by the insured try reason of: I Title io 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; 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- Unmarketability of the title, is contracted for or commenced subsequent to Date of Policy and 4_ Lack of a right of access to and from the land-. which is financed in whole or in part by proceeds of the 5_ The invalidity or unenforceability of the lien of the insured mortgage Indebtedness secured by the insured mortgage which at Date of upon the title; Policy the insured has advanced or is obligated to advance; 6- The priority of any lien or encumbrance over the lien of the insured $. 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 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 FRONI COVERAGE The following matters are expressly excluded from [he 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 governmental regulation(including but no[ (e) resulting in loss or damage which would not have been sustained limited to building and zoning laws, ordinances or regulations) if the insured claimant had paid value for the insured mortgage. restricting, regulating.prohibiting or relating to(i)the occupancy, 4 Unenforceahility of the lien of the insured mortgage because of the use or enjoyment of the land; (ii) the character. dimensions or location of any improvement now or hereafter erected on the land- inability or failure of the insured a[ Date of Pohcy, or the inability (iii)a separation in ownership or a change in the dimensions or or failure of any subsequent owner of the indebtedness,to comply with area of the land or any parcel of which the land is or was a part; applicable doing business laws of the state in which the land is situated_ or(iv)environmental protection,or the effect of any violation of 5- Invalidity or unenforceabilay of the Gen of the insured mortgage, or these laws,ordinances or governmental regulations,except to[he claim thereof, which arises out of(he transaction evidenced by the extent that a notice of the enforcement thereof or a notice of a insured mortgage and is based upon usury or any consumer credit defect, lien or encumbrance resulting from a violation or alleged protection or truth in lending law violation affecting the land has been recorded in the public records at Date of Policy- 6_ Any statutory lien for services, labor or materials (or the claim of (b) Any governmental police power not excluded by(a)above,except priority of any statutory lien for services. labor or materials over the to the extent that a notice of[he exercise thereof or a notice of lien of[he insured mortgage) arising from an improvement or work a defect,lien or encumbrance resulting from a violation or alleged related to the land which is contracted for and commenced subsequent violation affecting the land has been recorded in the public records to Date of Policy and is not financed in whole or in part by proceeds at Date of Policy- of the indebtedness secured by the insurd mortgage which at Date 2- Rights of eminent domain unless novice of the exercise thereof has been of Policy the insured has advanced or is obligated to advance. recorded in the public records at Date of Policy,but not excluding from 7. Any claim, which arises out of the transaction creating the interest coverage any taking which has occurred prior to Date of Policy which of the mortgagee insured by this policy, by reason of the operation would be binding on the rights of a purchaser for value without of federal bankruptcy.state insolvency or similar creditors'rights laws, knowledge. that is based on: 3 Defects. liens, encumbrances, adverse claims or other matters- (a) the transaction creating the interest of the insured mongagee being (a) created,Suffered,assumed or agreed to by the insured claimant; deemed a fraudulent conveyance or fraudulent transfer; or (b) not known to the Company. not recorded in the public records (b) the subordination of the interest of the insured mortgagee as a insult at Date of Policy, but known to the insured claimant and not of the application of the doctrine of equitable subordination; or disclosed in writing In the Company by the insured claimant prior to the date the insured claimant became an insured under this (c) the transaction creating the interest of the Insured mortgagee being policy; deemed a preferential transfer except when the preferential transfer (c) resulting in no loss or damage to the insured claimant; results from the failure- (d) attaching or created subsequent to Date of Policy (except to the (i) to timely record the instrument of Transfer: or extent that this policy insures the priority of the Gen of the insured pr) of such recordation to impart notice 10 a purchaser for value mortgage over arr statutory lien for services, labor or material):or or a judgment or lien creditor- Rd KN Ii5 • I.,IN,,n U S A O(I-O-]15.r1QU6 CixVr Shecl AITT Itun R,lu, (0.0.47) CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The following terms when used in this policy mean: The insured shall notify the Company promptly in writing(i)in case of (a) "insured'': the insured named in Schedule A.The term"insured" any litigation as set forth in Section 4(a)below,(ii)in case knowledge shall also includes come to an insured hereunder of any claim of title or interest which is adverse (i) the owner of the indebtedness secured by the insured mortgage to the title to the estate or interest or the lien of the insured mortgage,as in- and each successor in ownership of the indebtedness except a successor sured,and which might cause loss or damage for which the Company may who is an obligor under the provisions of Section 12(c)of these Conditions be liable by virtue of this policy,or(iii)if title to the estate or interest or the and Stipulations(reserving,however,all rights and defenses as to any suc- lien of the insured mortgage,as insured,is rejected as unmarketable.If prompt cessor that the Company would have had against any predecessor insured, notice shall not be given to the Company,then as to the insured all liability unless the successor acquired the indebtedness as a purchaser for value of the Company shall terminate with regard to the matter or matters for which without knowledge of the asserted defect,lien,encumbrance,adverse claim prompt notice is required;provided,however,that failure to notify the Com- or other matter insured against by this policy as affecting title to the estate pany shall in no case prejudice the rights of any insured under this policy or interest in the land); unless the Company shall be prejudiced by the failure and then only to the (ii) any governmental agency or governmental instrumentality which extent of the prejudice. is an insurer or guarantor under an insurance contract or guaranty insuring 4. DEFENSE AND PROSECUTION OF ACTIONS;DUTY OF INSURED or guaranteeing the indebtedness secured by the insured mortgage,or any CLAIMANT TO COOPERATE. part thereof,whether named as an insured herein or not; (a) Upon written request by the insured and subject to the options (iii) the parties designated in Section 2(a)of these Conditions and contained in Section 6 of these Conditions and Stipulations,the Company, Stipulations. at its own costand without unreasonable delay,shall provide for the defense (b) "insured claimant": an insured claiming loss or damage. of an insured in litigation in which any third party asserts a claim adverse to (c) "knowledge" or "known": actual knowledge, not constructive the title or interest as insured, but only as to those stated causes of action knowledge or notice which may be imputed to an insured by reason of the alleging a defect,lien or encumbrance or other matter insured against by public records as defined in this policy or any other records which impart this policy.The Company shall have the right to select counsel of its choice constructive notice of matters affecting the land. (subject to the right of the insured to object for reasonable cause)to repre- (d) "land": the land described or referred to in Schedule A, and sent the insured as to those stated causes of action and shall not be liable improvements affixed thereto which by law constitute real property.The term for and will not pay the fees of any other counsel.The Company will not pay "land"does not include any property beyond the lines of the area described any fees,costs or expenses incurred by the insured in the defense of those or referred to in Schedule A,nor any right,title,interest,estate or easement causes of action which allege matters not insured against by this policy. in abutting streets,roads,avenues,alleys,lanes,ways or waterways,but nothing (b) The Company shall have the right,at its own cost,to institute and herein shall modify or limit the extent to which a right of access to and from prosecute any action or proceeding or to do any other act which in its opinion the land is insured by this policy. may be necessary or desirable to establish the title to the estate or interest (e) "mortgage": mortgage,deed of trust,trust deed,or other security or the lien of the insured mortgage,as insured,or to prevent or reduce loss instrument. or damage to the insured.The Company may take any appropriate action (I) "public records": records established understate statutes at Date of under the terms of this policy,whether or not it shall be liable hereunder,and Policy for the purpose of imparting constructive notice of matters relating to shall not thereby concede liability or waive any provision of this policy.If the real property to purchasers for value and without knowledge.With respect Company shall exercise its rights under this paragraph,it shall do so diligently. to Section 1(a)(iv)of the Exclusions From Coverage, "public records"shall (c) Whenever the Company shall have brought an action or interposed also include environmental protection liens filed in the records of the clerk defense as required or permitted by the provisions of this policy,the Com- of the United States district court for the district in which the land is located. pany may pursue any litigation to final determination by a court of competent (g) "unmarketability of the title": an alleged or apparent matter jurisdiction and expressly reserves the right,in its sole discretion,to appeal affecting the title to the land,not excluded or excepted from coverage,which from any adverse judgment or order would entitle a purchaser of the estate or interest described in Schedule A (d) In all cases where this policy permits or requires the Company to pro- or the insured mortgage to be released from the obligation to purchase by secute or provide for the defense of any action or proceeding,the insured virtue of a contractual condition requiring the delivery of marketable title. shall secure to the Company the right to so prosecute or provide defense 2. CONTINUATION OF INSURANCE. in the action or proceeding,and all appeals therein,and permit the Com- (a) After Acquisition of Title. The coverage of this policy shall continue pany to use,at its option,the name of the insured for this purpose.Whenever in force as of Date of Policy in favor of(i)an insured who acquires all or any requested by the Company,the insured,at the Company's expense,shall part of the estate or interest in the land by foreclosure,trustee's sale,con- givethe Company all reasonable aid(i)in any action or proceeding,securing veyance in lieu of foreclosure,or other legal manner which discharges the evidence,obtaining witnesses,prosecuting or defending the action or pro- lien of the insured mortgage;(ii)a transferee of the estateor interest so acquired ceeding,or effecting settlement,and(ii)in any other lawful act which in the from an insured corporation,provided the transferee is the parent or wholly- opinion of the Company may be necessary or desirable to establish the title owned subsidiary of the insured corporation,and their corporate successors to the estate or interest or the lien of the insured mortgage,as insured.If the by operation of law and not by purchase,subject to any rights or defenses Company is prejudiced by the failure of the insured to furnish the required the Company may have against any predecessor'insureds;and(iii)any govern- cooperation,the Company's obligations to the insured under the policy shall mental agency or governmental instrumentality which acquires all or any part terminate,including any liability or obligation to defend,prosecute,or con- of the estate or interest pursuant to a contract of insurance or guaranty insur- tinue any litigation, with regard to the matter or matters requiring such ing or guaranteeing the indebtedness secured by the insured mortgage. cooperation. (b) After Conveyance of Title. The coverage of this policy shall continue 5. PROOF OF LOSS OR DAMAGE. in force as of Date of Policy in favor of an insured only so long as the insured In addition to and after the notices required under Section 3 of these Con- retains an estate or interest in the land,or holds an indebtedness secured ditions and Stipulations have been provided the Company,a proof of loss by a purchase money mortgage given by a purchaser from the insured,or or damage signed and sworn to by the insured claimant shall be furnished only so long as the insured shall have liability by reason of covenants of war- to the Company within 90 days after the insured claimant shall ascertain the ranty made by the insured in any transfer or conveyance of the estate or in- facts giving rise to the loss or damage.The proof of loss or damage shall terest This policy shall not continue in force in favor of any purchaser from describe the defect in,or lien or encumbrance on the title,or other matter the insured of either(i)an estate or interest in the land,or(ii)an indebtedness insured against by this policy which constitutes the basis of loss or damage secured by a purchase money mortgage given to the insured. and shall state,to the extent possible,the basis of calculating the amount (c) Amount of Insurance.The amount of insurance after the acquisition of the loss or damage.If the Company is prejudiced by the failure of the in- or after the conveyance shall in neither event exceed the least of: sured claimant to provide the required proof of loss or damage,the Com- (i) the Amount of Insurance stated in Schedule A; pany's obligations to the insured under the policy shall terminate,including (ii) the amount of the principal of the indebtedness secured by the any liability or obligation to defend,prosecute,or continue any litigation,with insured mortgage as of Date of Policy,interest thereon,expenses of foreclosure, regard to the matter or matters requiring such proof of loss or damage. amounts advanced pursuant to the insured mortgage to assure compliance In addition,the insured claimant may reasonably be required to submit with laws or to protect the lien of the insured mortgage prior to the time of to examination under oath by any authorized representative of the Company acquisition of the estate or interest in the land and secured thereby and and shall produce for examination,inspection and copying,at such reasonable reasonable amounts expended to prevent deterioration of improvements,but times and places as may be designated by any authorized representative reduced by the amount of all payments made;or of the Company,all records,books,ledgers,checks,correspondence and (iii) the amount paid by any governmental agency or governmental memoranda,whether bearing a date before or after Date of Policy,which instrumentality,if the agency or instrumentality is the insured claimant,in'the reasonably pertain to the loss or damage.Further,if requested by any author- acquisition of the estate or interest in satisfactif its insurance contract or ized representative of+1,p Company,the insured claimant shall grant its per- guaranty. •mission, in writing, iv authorized representative of the Company to continued on next page or comr sheet t7;-- _T CONDITIONS AND STIPULATIONS—CONTI D examine- inspect and copy all records. s. ledgers. checks. cor. 8. LIMITATION ABILITY respondence and memoranda in the custody0onirol of a third party,which (a) If the Comp i iy estabk$hes;fie title.or removes the alleged de'uci reasonably per lain to the loss or damage All information designated as con. lien or encumbrance.or cures the lack of a right of access to Or from the laid fioentia'by the insured claimant provided to the Company pursuant 10 this or cures the claim of unmarkelabildy of title.or otherwrS(`vslab;ishes the lies Sect on shall-lot be disclosed to others unless.in the reasonable judgment of the insured mortgage.at;as insured.in a reasonably ciligenl manner by of the Company it is necessary in the administration of the claim Failure of any method.including litigatio^and Ire completion of anyaopeals ine'ef em. the ns;.red claimant to submit for examination under oath. produce other it shall have fully performed its obligations with respell :o that matter a.d reasonably requested information or grant permission to secure reasonably shall not be Fable for any loss or damage caused thereby necessary information from thud parliesas required in[his paragraph.unless (b) In the event of any I ligation.including litigation by Ine Company prohibited by law or governrnenlai regulation,shall terminate any liability of or with the Company's consent,the Company shall have no liability for loss the Company under this policy as to that claim. or damage until there has been a final determination by a court of compelenl 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS, jurisdiction,and disposition of all appeals therefrom.adverse to the title or TERMINATION OF LIABILITY- to the lien of the insured morgage. as insured In case of a claim under this policy,the Company shall have the follow (c) The Company shall not be liable for loss or damage to any insured ing add:t+onal options- for liability voluntarily assumed by the insured in setiling any cla m or s it w-1iKju: (a) To Pay or Tender Payment of the Amount of Insurance or to the prior written consent of the Company Purchase the Indebtedness- (d) The Company shall not be liable for.(i)any indebtedness created (i) to pay or tender payment of the amount of insurance under subsequent to Date of Policy except for advances made to protect me lien this policy together with any costs, attorneys' fees and expenses incurred of the insured mortgage and secured thereby and reasonable amounts ex by the insured claimant,which were authorized by the Company-up to the pended to present deterioration of improvements, or (ii)construction loan time of payment or tender of payment and which the Company is obligated advances made subsequent to Date or POIicy,except construction loan all to pay, or together vances made subsequent to Date of Policy for the purpose of financing in for ;he amount owing thereon together( 1 to purchase the in whole or in part the constr uclion of an improvement to the land which at Date r with any costs. attorneys' fees and secured by the insured mortgage expenses incurred by the insured claimant which were authorized by the Com- of Policy were secured by the insured mortgage and wnicn the insured was pany up to the time of purchase and which the Company is obligated to pay. and continued to be obligated to advance at and after Date of Policy It the Company offers to purchase the indebtedness as herein provided. 9- REDUCTION OF INSURANCE; REDUCTION OR TERMINATION the owner of the indebtedness shall transfer, assign, and Convey the in. OF LIABILITY_ debledness and the insured mortgage,together with any collateral security. (a) All payments under this policy.except payments made for costs. to the Company upon payment therefor. attorneys'fees and expenses,shall reduce the amount of the insurance pro Upon the exercise by the Company of either of the options provided tanlo.How[,ever.arty payments made prior to the acquisitionof title totheestate for in paragraphs a(i)or(ii),all liability and obligations to the insured under or interest as provided in Section 2(a)of these Conditions and Stipulations this policy.other than to make the payment required in those paragraphs, shalt not reduce pro tango the amount of the insurance afforded under this shall terminate. including any liability or obligation to defend prosecute.or policy except to the extent that the payments reduce the amount of the in. continue any litigation,and the policy shall be surrendered to the Company debledness secured by the insured mortgage for cancellation (b) Payment in part by any person of the principal of the indebtedness. (b) To Pay or Otherwise Settle With Parties Other than the Insured or any other obligation secured by the insured mortgage,or any voluntary or With the Insured Claimant- partial satisfaction or release of the insured mortgage, to the extent of the (i) to pay or otherwise settle with other parties for or in the name payment,satisfaction or release.shall reduce the amount of insurance pro of an insured claimant any claim insured against under this policy,together Canto The amount of insurance may thereafter be increased by accruing in- with any costs.attorneys' fees and expenses incurred by the insured clai. teresl and advances made to protect the lien of the insured mortgage and mant which were authorized by the Company up to the time of payment and secured thereby.with interest thereon.provided in no event Shall the amount which the Company is obligated to pay. or of insurance be greater than the Amount of Insurance stated in Schedule A (it) 10 pay or otherwise settle with the insured claimant the loss or (c) Payment in full by any person or the voluntary satisfaction or release damage provided for under this policy,together with any costs.attorneys' of the insured mortgage shall terminate all liability of the Company except fees and expenses incurred by the insured claimant which were authorized as Provided in Section 2(a)of these Conditions and Stipulations. by the Company up tothetimeof payment and which the Company isobligated 10- LIABILITY NONCUMULATIVE- to pay. If the insured acquires title to the estate or interest in satisfaction of the Upon the exercise by the Company of either of the options provided indebtedness secured by the insured mortgage, or any part thereof, it is for in paragraphs b(i)or(ii),the Company's obligations to the insured under expressly understood that the amount of insurance under this policy shall this policy for the claimed loss or damage,other than the payments required be reduced by any amount the Company may pay under any policy insuring to be made, shall terminate. including any liability or obligation to defend, a mortgage to which exception is taken in Schedule B or to which the insured prosecute or continue arty litigation has agreed.assumed,or taken subject, or which is hereafter executed by 7. DETERMINATION AND EXTENT OF LIABILITY_ an insured and which is a charge or lien on the estate or interest described This policy is a contract of indemnity against actual monetary loss or or referred t0 in Schedule A,and the amount so paid shall be deemed a pay. damage sustained or incurred by the insured claimant who has suffered loss ment udder this policy or damage by reason of matters insured against by this policy and only to 11 PAYMENT OF LOSS- the extent herein described (a) No payment shall be made without producing this policy for endorse- (a) The liability of the Company under this policy shall not exceed the ment of the payment unless the policy has been lost or destroyed.in which least of case proof of loss or destruction shall be furnished to The satisfaction of the (i) the Amount of Insurance staled in Schedule A.or,if applicable. Company the amount of insurance as defined in Section 2(c)of these Conditions and (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations,the loss or damage Stipulations, shall be payable within 30 days thereafter (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Condi 12- SUBROGATION UPON PAYMENT OR SETTLEMENT_ tions and Stipulations or as reduced under Section 9 of these Conditions and (a) The Company's Right of Subrogation_ Stipulations,at the time the loss or damage insured against by this policy Whenever the Company shall have settled and paid a claim under This occurs, together with interest thereon. or policy,all right of subrogation shall vest in the Company unaffected by any act of the insured claimant (m) the difference between the value of the insured estate or The Company shall be subrogated to and be entitled to all rights and interest as insured and the value of the insured estate or interest subject to remedies which the insured claimant would have had against any person the defect. lien or encumbrance insured against by this policy or property in respect to the claim had this policy not been issued if requested (b) In the event the insured has acquired the estate or interest in the bytheCompany.theinsured claimant shall transfer to the Company all fights manner described in Section 2(a)of these Conditions and.Stipulations or has and remedies against any person or property necessary in order to perfect conveyed the title.then The liability of the Company shall continue as Set forth this right of subrogation The insured claimant Shall permit the Company to in Section 7(a)of these Conditions and Stipulations sue. compromise or settle in the name of the insured claimant and to use (c) The Company will pay only those Cosis.attorneys'fees and expenses the name of the insured claimant in any transaction or 10igation involving these incurred in accordance with Section 4 of these Conditions and Stipulations rights or remedies If a payment on account of a claim does not fully cover the loss of the ODririnuCd On remaincfee or cover Sheer CONDITIONS AND STIPULATIONS—CONTINUED insured claimant.the Company shall be subrogatod to all rights and remedies or less shall be arbitrated al the option of either the Company or the,nsurcKt 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 S1.000000 opal. interest. and costs of collection shall be arbitrated only when agreed to by both the Company and lne,n. (b) The Insured's Rights and Limitations. sured Arbitration pursuant JOINS 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 it the laws of the state in which the land-s sonal liability of any debtor or guarantor,or extend or otherwise modify the located permit a court to award attorneys' tees to a prevailing party Judg. terms of payment.or release a portion of the estate or interest from the lien men[upon the award rendered by the Arbilrator(s)may be entered in any titheinsuredmortgage,orreleaseanyCollateralsecurityforlheindebtedness. court having jurisdiction thereof. When the permitted aCIS of the insured claimant occur and the insured The law of the situs of the land shall apply to an arbilration under the has knowledge of any claim of title or interest adverse to[he 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 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 indern- and which arises out of the status of the lien of the insured mortgage or of naies.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 10 this policy can be made ex. The Company's rightof subrogation shall not be avoided byacquisition cept by a writing endorsed hereon or attached hereto signed by either the of the insured mortgage by an obligor(except an obligor described in Sec- President.a vice President,the Secretary,an Assistant Secretary or validating Lion 1(a)(ii)of these Conditions and Stipulations)who acquires the insured officer or authorized signatory of the Company, mortgage as a result of an indemnity,guarantee,other policy of insurance. 15. SEVERABILITY. or bond and the obligor will not be an insured under this policy,notwithslan- In the event any provision of this policy is held invalid or unenforceable ding Section l(a)(i)of these Conditions and Stipulations. under applicable law,the policy shall be deemed not to include that provi• 13. ARBITRATION Sion and all other provisions shall remain in lull force and effect. Unless prohibited byapplrcable law,either iheCompanyortheinsured 16. NOTICES,WHERE SENT. may demand arbitration pursuant to the Tale Insurance Arbitration Rules of All no(YrBs required to be graven the Company and any statement in wrying the American Arbitration Association Arbitrable matters may include.but are required to be furnished the Company Shall include[he number of this pdicy not limited to.arty controversy or claim between the Company and the in. and shall be addressed to the Company at its Cotporate 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 lion All arbitrable matters when the Amount of Insurance is $1.000.000 Offrce, 10 Universal City Plaza. 23rd Floor, Universal City. CA 91608. IN WITNESS WHEREOF, the Company has caused this policy to be signed and sealed, to be valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By-Laws. -,, Lawyers` ideinsuranceCorporation Attest S$A t' By �, iris .'� •�;i Secretary President C ntersigned I]&- + 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 Jawyers`Iide Insurance Co poration PO Box 27567 Richmond, Virginia 23261 LAWYERS & ITLE XNSJURANCE ORPORATIONN Natic real Headquarbers Richmond, Virginia AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 1 9 9 2 Issued At: Lawyers Title Camparry 18551 Von Karman, Suite 100, Irvine, California 92612 ACE A ------------------------------------------------------------------------------------------------ CFOER POLICY ANDCM OF PF04IUM DATE OF POLICY NUMBER NUMBER INSURANCE ------------------------------------------------------------------------------------------------ 94O2213-B 135-01-647-656 535,000.00 $150.00 05/06/97 at 2:54 p.m. 1. NAME OF INSURED: The Redevelopment Agency of the City of Huntington, Beach, a public body corporate and politic 2. THE ESTATE OR IM EREST IN THE LAM WHICH IS COVERED E3Y THE INSURED MRTGAGE IS: A CONDOMINIUM, as defined in Section 783 of the California Civil Code, in fee 3. TITLE TO THE ESTATE OR ITT IN THE LAND IS VESTED IN: Robert G. Ostezboudt and Kathy A. Osterhoudt, husband and wife as joint tenants 4. THE INSUM MO M-.NZ APED ASSIQ*ETIPS THk MF, IF ANY, ARE DESCRIBED AS FOLLOWS: A Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: $35,000.00 Dated: April 21, 1997 Trustor: Robert G. and Kathy A. OSterhoudt Trustee: The City of Huntington Beach, a municipal Corporation Beneficiary: The Redevelopment Agency of the City of Huntington Beach, a public body corporate and politic Faded: May 6, 1997 as Irztrumert No. 19970210381 of Official Records AL * LOAN : POLICY - 194P Policy No. :135-01-647-656 Order No.: 9402213-H SCHEDULE A CONTINUED 5. THE LAM REFERRED TO IN ZIPS POLICY IS DESCRIBED AS FOLIDM: In the County of State of California, A Condominium aaTprised of: PARCEL 1: An turUvided one twenty second (1/22) fee simple interest as a tenant in aasmcn in and to all of the Common Area defined in De laratim referred to below and described in the Condcminium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was reocrded 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, Casty of Orange, State of California, as per snap filed in Hods 706, Pages 27 to 29 of Miscel Lc Maps, in the office of the County Recorder of said County. Excepting therefrom all oil, petroletun, asphaltum, gars, minerals and other I ydrocariion substances, as reserved in deed recorded August 16, 1921 in Hook 401, Page 356 of Deals, and in various other deeds of record. PARCEL 2: Unit No. 13 consisting of certain airspace and surface elements, as shown and described in the Corxiaminiun Plan referred to in Parcel 1 above. PARCEL 3: Non-e-,=lusive 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, Condition; and Restrictions and Reservation of Easm—ents for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PARCEL, 4: Exclusive easements appcu tenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. ALS LOAN : POLICY - 19* POLICY ND. :135-01-647-656 ORDER ND. : 9402213-B SCHEDULE B PART I PIONS FROM COVERAGE THIS POLICY DOES NOT IIS[= AGAINST LOSS OR DAB (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FIE ES OR EXPENSES) WHICH ARISE BY REASON OF: A. Property taxes, including general and special taxes, Personal property ems, if any, and any assessments collected with taxes, to be levied for the fiscal year 1997-1998 which are a lien not yet payable. B. Supplemental or escaped assessments of property taxes, if any, assessed puiguant to the Revenue and Taxation Code, of the State of California. 1. The matters contained in a document entitled "Vtmrandum of Disposition and Development Agreement" recorded January 3, 1994 as Instrument No. 94-OD01007 of Official Records. Referenoe is made to said document for full 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 rplirqu i shed by the map of said Tract. Affects: Talbert Avenue; Joyful Lane and Happy Drive Emx pt at street intersections and approved driveway locations. 3. Covenants, conditions and restrictions (deleting therefrom any restrictions based on raoe, color or creed) as set forth in the document Recorded: February 24, 1994 Instrument No. 94-0137068 of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 4. A Declaration of Covenants, Conditions and Restrictions which, among other things, may contain or provide for: easements; liens and the subordination thereof; and restrictions on partition and severability of component interests. Reoorded: August 24, 1994 as Instrument No. 94-0525336 of Official Reoords Said covenants, conditions and restrictions provide that a violation thereof shall mat defeat the lien of any mortgage or deed of trust made in good faith and for value. ORDER NO.: 9402213-B SCHEDULE B (FART I GWMUM) N0TE: This exoepticn units any covenant, condition or zestricticn based on race, color, religion, sex, handicap, familial status or national origin, unless and only to the extent that the covenant, condition or xestriction (a) is not in violation of state or federal law, (b) is eaaen pt under 42 U.S.C. Section 3607 or (c) relates to a handicap but does not discriminate against handicapped people. 5. The matters contained in a document entitled "Cc mron Facilities Use and Maintenance Agreement For Pacific Park Villas" recorded August 25, 1994 as Instrument No. 94-0525337 of Official Records. Reference is made to said document for full particulars. 6. An easement for the purpose shown below and rights incidental thereto as set forth in a document Granted to: Southern California Edison Company Purpose: Public utilities Recorded: October 27, 1994 Instrument No. 94-OG32840 of Official Records Affects: the Southerly 50 feet of the Easterly 4 feet of Lot 1 7. A Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: $150,550.00 Dated: April 25, 1997 Trustor: Robert G. Oster�t and Kathy A. Osb oudt, hADand and wife as joint tenants Trustee: C mmornaealth Land Title Comparry Beneficiary: New America Financial, Inc., which is organized and existing under the laws of the State of Texas Recorded: May 6, 1997 Instrument No. 19970210380 of Official Records 0FaXR NO.: 9402213-H YnF g (PART I DON`rDA ED) ENDORSEMENTS Tte following endorsements are attached to and made a part of this policy: 100, 100.24, 110.9, 115.1, 116.2 dr Dube typed: 05/20/97 Plats enc]zised ALTA LOAN POLICY - 1 9 9 2 POLICY NO. : 135-01-647-656 CEMER NO. : 9402213-B SC ED= B PART II IN ADDITION TO THE MATTERS SET FCRTi IN PART I OF THIS SCM®ULE, THE TITLE TO THE ESTATE OR IN 13ZM'T IN THE LAND DESCRIBED OR RYE RRFD TO IN SCHEDULE A IS SLEJECT TO THE FOL.LOHTIW MATTERS, IF ANY BE %CJW, BUT THE OC PANY IDb" US THAT THESE MATTERS ARE SUBC RDINATE TO THE LIEN CAR CHARGE OF THE INSURED MlCl L E UPON THE ESTATE CffR INTEREST: NONE 0 ENDORSEMENT 0 IAWYEEtS TITLE mSURANCE CC03CRATICK CLTA F 10D order No.: 94=3-B Attached to Policy No. : 135-01-647-656 The Company hereby insures against loss which said Insured shall sustain by reason of any of the following matters: 1. Any incorrectness in the assurance which the Company hereby gives: a. That there are no covenants, corxiitions, or restrictions under which the lien of the mortgage referred to in Schedule A can be cut off, subordinated, or otherwise impaired; b. That there are no present violations on the land of any enforoeable covenants, conditions, or restz ictian; C. That, except as shown in Schedule B, there are no enClOaCIALCSIis of buildings, ems, or improvements located on the land onto adjoining lands, nor arty el i nents onto the land of buildings, yes, or imprryv+em nts located on adjoining lands. 2. a. Any future violations on the land of any covenants, conditions, or re- stricticns occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the Insured, provided such violations result in inpa.ir x3nt or loss of the lien of the mortgage referred to in Schedule A. or result in impairment or loss of the title to the estate or interest referred to in Schedule A if the Insured shall acquire such title in satisfaction of the indebtedness secured by the insured mortgage; b. Unmaricetability of the title to the estate or interest referred to in Schedule A by reason of any violations an the land, occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the insured, of any covenants, ccn ditions or restrictions. 3. Damage to existing improvements, including lawns, shrubbery or trees a. which are located or end upon that portion of the land subject to any easement shown in Schedule B, which damage results from the P�srise 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 the land for the extraction or development of the minerals exerted from the description of the lard or shown as a reservation in Schedule B. 4. Any final court order or Judgment requiring the removal from any land adjoining the land of any exx=uachTent stun in Schedule B. W erever in this endorsement any or all the words "covenants, conditions, or restrictions" appear, they shall not be deemed to refer to or include the terms, co%Aenants conditions or zestrictions contained in any lease. Page 1 of 2 • - i CLTA FD%i 100 (vont'd) Order No. : 9402213-B Attached to Policy No.: 135-01-647-656 For purposes of this endorsement, the words "covenants", "conditions" or "restriction" shall not be deemed to refer to or include any covenants, canditicins or restrictions relating to envirnrimental 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 Date of Policy and is not excepted in Schedule B. This ermdormeonent is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Eroept to the extent expressly stated, it neither modifies any of the terms and provision of the policy and any prior er1 sm ents, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. IN WITNESS WHERBDF, the ompany has caused this Endorsement to be signed and sealed, as of the date set forth below, to be valid when oountersigned by an authorized officer or agent of the Cerny, all in accordance with its By-Laws. Lxate: May 6, 1997 Issued at: Irvine, California LAWYERS TITLE INSURANCE CORPORATION Cbuntersi 5Janet A. Alpert - President Si4..0. E A".Ulo Authorized Officer or Agent John M. Carter - Secretary Page 2 of 2 ENDORSEMENT LAWYERS TITLE INSURANCE )RATION CLTA FtM 100.24 Order No.: 9402213-B Attached to Policy No. : 135-01-647-656 The C mpany assures the cwreI' of the indebtedness secured by the Morbcgage referred to in Schedule A: that the lessee under the lease referred to in Paragraph 2&6 of Schedule B, does not, under the terms of said lease, have any right to enter upon or use the surface of the land. The any hereby insures the insured against loss which the insured shall sustain in the event that the assurance herein shall prove to be incorrect. This endorsement is made a part of the poky and is subject to all of the tee and provisions thereof and of any prior er -- thereto. R=ept to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior its, nor does it extend the effecticve date of the policy and any prior tents, nor does it increase the face amount thereof. IN WITNESS MMREOF, the Company has caused this exbrammt to be sighed and sealed as of the date set forth below, to be valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By-laws. Date: 05/06/97 LAWYERS TITLE INSURANCE CORPORATION Issued at: Irvine, California Janet A. Alpert - President Countersigned: Ah&AAP John M. Carter - Secretary Authorized Officer or Agent ENDORSEMENT LAWYERS TITLE INSURANCE POffiATION CLTA FCS 110.9 Order No. : 9402213-B Attached to Policy No. : 135-01-647-656 The ins ranoe afforded by this er]dormertlPlht is only effective if the land is used or is to be used primarily for residential purposes. The Company insures the irmu-ed against loss or damage sustained by reason of lack of priority of the lien of the insured mortgage over: (a) any enviruhmental protection lien which, at Date of Policy is recorded in those records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to pears for value and without knowledge, or filed in the records of the clerk of the United States District Court for the district in which the land is located, except as met forth in Schedule B; or (b) any environmental protection lien provided for by any state statute in effect at Date of Policy, except envirorm3ntal protection liens provided for in the following state statutes: NONE This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof, and of any prior endorsements thereto. Emoept to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any endorsements, nor does it extend the effective date of the policy and any prior endorsements, Thor does it increase the face amount thereof. IN WITNESS WdWF, the Ompany has caused this Endorsement to be sighed and sealed as of the date set forth below, to be valid when countersigned by an authorized officer or agent of the Ocapany, all in aeaordanoe with its By-Yaws. Date: 05/06/97 Issued at: Irvine, California LAWYERS TITIE INSURANCE OOR1'O�tATION Countersigned by: (� Janet A. Alpert - President John M. C`.arber - Secretary Authorized Officer or Agent SENDORSEMENT • LAWYERS TITLE INSURANCE CORPORATION CLTA FXM 115.1 Ckxler No. : 9402213--B Attached to Policy No. : 135-01-647-656 The Company insured the insured against the lass or damage sustained by reason of: 1. The failure of the unit identified in Schedule A and its common elements to be part of a condominium with in the meaning of the condominium statutes of the jurisdiction in which the unit and its eonima elements are located. 2. The failure of the documents required by the condominium statutes to eanply with the requirements of the statutes to the extent that such failure affects the title to the unit and its common n elements. 3. Present violations of any restrictive covenants which restrict the use of the unit and its cannon elements and which are contained in the condominium docments, except violations relating to environmental protection unless a notice of a violation thereof has been recorded or filed in the public records and is not excepted in Schhedule B. The restrictive covenants do rot contain any provisions which will cause a forfeiture or reversion of title. 4. The priority of any lien for charges and assessments at Date of Policy provided for in the condominium statutes and condominium documents over the lien of any insured mortgage identified in Schedule A. 5. The failure of the unit and its common elements to be entitled by law to be assessed for real property taxes as a separate parcel. 6. Any obligation to remove any improvements which exist at Date of Policy because of any present encroachments or because of any future unintentional encrcachment of the common elements upon any unit or of any taut UPM the commoon elements or another unit. 7. The failure of title by reason of a right of first refusal to purchase the unit and its common elements which was uxercised or could have been exercised at Date of Policy. This endorsement is made a part of the policy and is subject to all of the terms and provisions 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 endorsements, nor does it extend the effective date of the policy and any prior its, nor does it increase the face amount thereof. IN WITNESS WHEREOF, the Company 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 cr agent of the Clompany all in accordance with its By-laws. Date: 05/06/97 LAWYERS ntAMANCE CORPORATION Countersigned by: r, r Janet A. Alpert - President John M. Carter - Secretary Issued at: Irvine, California ENDORSEMENT IAWYFRS TITLE INSURANCE CGFdCRATION CLTA FORM 116.2 Order No. : 9402213-B Attached to Policy No. : 135-01-647-656 The Caripany assures the insured that at the date of this Policy the dimensions of the exterior boundary of the Common Area referred to in Schedule A of this Policy which is also the exterior boundary of the project, are correctly shown on that map recorded Boaic 706, Pages 27 to 29 of Maps in the office of the Comity Recorder of County. The Company further assures the Insured that the estate oar interest referred to in Schedule A includes a residence within the project boundaries, which residence is designated as Unit 13, as shown on the map recorded August 25, 1994 as Instrument No. 94-0525335, Official Records in the office of the County Recorder of County, and }shown as: 18061 Joyful Lane #102 Huntington Beach, California The Cbnpany hereby insures the Insured against loss which the insured shall sustain in the event that the assurance herein shall prove to be incorrect. This a xbrsemtent is made a part of the policy and is subject to all of the terms and provisions 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 endorsements, nor does it extend the effective date of the policy and any prior erxiorsements, nor does it i xmease the face amount thereof. IN WITNESS WHEREOF, the Carpany has caused this endorse[pnt 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 Company all in accordanoe with its By-Laws. Date: 05/06/97 LAWYERS TITLE INSURANCE OOPZPC tATICN Issued at: Irvine, California Countersigned by: Janet A. Alpert - President QljrjAQ Ah&AAPI John M. Carter - Secretary Authorized Officer or Agent SHEET 19 OF 32 t- CONDOMINIUM PLANS FOR LOT + OF TRACT 14828. IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, , STATE OF CALIFORNIA. AS SHOWN ON A MAP RECORDED IN MAP BOOK 708. PAGES 27 THROUGH 29. INCLUSIVE, OF MISCELLANEOUS MAPS, IN THE OMCE OF THE RECORDER OF SAID COUNTY. PHASE ONE OF PACIFIC PARK VILLAS 1ST LEVEL UNIT 11 UNIT 13,-. a- }• ^2 0 PATIO d Ir cSa' w o r•== II I [. I I 1 �.7 II �r 0.4• — I I �,I •. 20.n• I�-- z_0• PATIO 1 ALL UNES NTERSCCT AT 90. 45. OR ,35'. WDtr-6 s_,• 1 vAJDA`T Oars in SECTIONS�L S' SCALE 1"=10' I I II JOB N0. 4285 SEE SHEETS 16-31 FORSECTIONS AND EIEvAnoms HALL k FOREMAN INC.