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HomeMy WebLinkAboutMICHELLE SCHMADERER - FIRST-TIME HOME BUYERS PROGRAM - FULL f CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department DATE June 7, 1999 TO: Connie Broakway, City Clerk FROM: David C. Biggs,Director of Economic Development ow SUBJECT: Full Reconveyance of Note and Deed of Trust from Michelle Schmaderer to the Redevelopment Agency of the City of Huntington Beach Enclosed please find a letter sent to Transantional Escrow indicating that the City Attorney's Office had ruled that Michelle Schmaderer's loan is forgiveable. Correspondingly, we have issued a Full Reconveyance and have sent the original Note and Deed of Trust back to the borrower, as required by law. Your files on this loan can now be closed. If you have any questions,please feel free to contact Gus Duran of our office at Ext. 1529. XC: Paul D'Alesandro, Deputy City Attorney 11/15/93: The City Council was 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: Michelle Schmaderer, Carol Kanarski, and Nicholas Kormeluk. The amounts of their loans are not listed.' (RCA attached hereto as Attachment 3.) 12/20/93, Item E-17: The City Council approved an additional participant in the program, David Dixson, for the amount of 510,000, and increased the amount for participant Nicholas Kormeluk from $8,600 to S10,600. (RCA attached hereto as Attachment 4.) 12/20/93, Item F-2: The City Council approved an additional S100,000 for the program, but changed the program to require repayment of these additional funds. There are two important attachments to this RCA. The first is entitled "Approved Participants," and lists the following six participants: Culiaciati, Taban, Sutherland, Schmaderer, Kanarski, and Kormeluk, in the total amount of$61,952.2 The second important document attached to this RCA is the list of"Pending Participants." It shows eight more participants in the total amount of$59,100. It is not determinable from this RCA whether these persons were intended to be in the grant program or the loan program, and we do not know when, if ever, these participants were actually approved. 1/3/94. The City Council approved three more participants in the original, non-repayment program: Judy Young, Treva Love, and Ellen Ommondson, in the total amount of$31,000. When added to the previously committed amount of$73,952, the total amount of funds committed is $104,952. This exceeds the original $100,000 appropriated for the original, non- repayment program. The analysis portion of this RCA states that "the approvals herein will be the first funded with the new appropriation,"which implies that at least a portion of the funds used for these participants were part of the funds that were conditioned for repayment, as opposed to the original, non-repayment funds. However, the total numbers listed are roughly consistent with the original $100,000 set aside for the grant program. The total amount of loan funds used is less than $5,000. (RCA attached hereto as attachment 5). Our review of the above documents and chronology of events indicates that the Council did not intend to require repayment of the original $100,000 appropriation. Clearly, then, the loans made to Culiaciati, Taban, Sutherland, Schmaderer, Kanarski, Dixson and Kormeluk are forgivable, because they were funded using $73,952 of the first $100,000 appropriation. The problem is presented by the transactions with Young, Love, and Ommondson. We believe that the Council's intent was to not require repayment from these participants. Unfortunately, there was only$26,048 of the original, non-repayment funds available to these participants, and collectively, they received 531,000. Thus, a small portion of the funds used for these Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council meeting of 12/6/93,we believe that this list has been erroneously added to the 12/6/93 RCA. Z Please note that earlier during the same meeting,the Council had also approved David Dixson for$10,000,and an additional S2000 for Kormeluk. Thus the amount committed from the original$100,000 was actually$73,952. 2 41s,4-99Memos:DLra.627 participants must have come from the second 5100,000, which the Council appropriated with the condition that the loans be repaid, not forgiven. CONCLUSION There are two conflicting Council actions. The Council's intent was to include participants Young, Love and Ommondson in the original, forgivable loan program. However, it appears that a portion of the funds actually used for the loans to Young, Love and Ommondson were from the second appropriation of funds,which included a repayment condition. Therefore, we recommend that the Council clarify this conflict by approval of an RCA that forgives the loans made to Young, Love and Ommondson. Gail Hutton City Attorney 3 4/s:4-99M emus:Duran527 14 6 GtITY OF HUNTINGTON BEAMa t_ 14 MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: 96-001 Council/Agency Meeting Held: -1 7 Deferred/Continued to: pproved ❑ Conditionally Approved ❑ Denied City Cler 'S ignature Council Meeting Date: April 15, 1996 Department ID Number: 96-001 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL/REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL ?PS -7�,9� _�,q SUBMITTED BY: CONNIE BROCKWAY, CITY CLERKICLERK /�PS 21 ; DAVID BIGGS, ECONOMIC DEVELOPMENT DIRECTOR/REDEVELOPMENT DIRECTOR PREPARED BY: CONNIE BROCKWAY, CITY CLERKICLERK L� SUBJECT: RESOLUTIONS ADOPTING THE POLICIES AND PROCEDURES MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM AND ACCEPTANCE OF LOAN AGREEMENTS FOR OFFICIAL FILING Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Envi n ental Status,Attachment(s) Statement of Issue: The City Council/Redevelopment Agency is requested to accept and authorize the City Clerk/Clerk to officially file on behalf of the City, 18 Down Payment Assistance Loan Program Agreements which pursuant to previous direction of the City Council, have been repaired to protect the interests of the city. The City Council/Redevelopment Agency is also requested to approve the Policies and Procedures Manual for the City of Huntington BeachlRedevelopment Agency Down Payment Assistance Loan Program for staff use in future assistance programs. Funding Source: None required. Recommended Action: 1. Authorize the City Clerk/Clerk. to file on' behalf of the City Council/Redevelopment Agency the 18 Down Payment Assistance Loan Program Agreements, as repaired to protect the city's interests pursuant to the previous direction of the City Council. E-- ) "�) CK96001 M.DOC -2- 04101196 5:04 PM REQUEST FOR AY COUNCILIREDEVELOPMAT AGENCY ACTION MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: 96-001 AND 2. Adopt Council Resolution No. 96-29 and Agency Resolution No. 273 adopting the Down Payment Assistance Loan Program Policies and Procedures Manual prepared by Kristine Price, Auditor, and direct that any substantial revisions to the manual be approved by the City Council/Redevelopment Agency. Alternative Action(s): Council/Agency- may approve the manual with any revisions deemed necessary by Council. Analysis: At the request of the City Clerk's Office and pursuant to City Council/Redevelopment Agency direction on March 20, 1995, repair work has been completed on 18 Down Payment Assistance Loan Program Agreements consisting of 27 notes with an aggregate outstanding balance of.$400,826. Kristine Price, outside auditor, has reviewed the repair work and has provided the city with a Letter of Satisfaction stating the city has taken the necessary steps to protect its interests through the appropriate correction of document errors and the creation of a Policies and Procedures Manual. The City Attorney's Office has confirmed by letter that the loan agreement files have been sufficiently repaired to protect the city. During the audit and following the audit, Kristine Price, Auditor held productive meetings with staff prior to preparing a Policies and Procedure Manual that meets our city's needs. With revisions from time to time, this manual will serve our city well. [It should be noted that the manual provides that any substantial revision to this manual shall be approved by the City Council/Redevelopment Agency.] The audit agreement that the City Council approved between the City and Kristine Price included the auditor conducting a training session with city staff. This session was not held due to Economic Development Department personnel turnover. The auditor deducted this from the agreement's final billing cost. However, the training session is available at such time as the city may require. Attachments: City Clerk's Page Number 1. Two communications from Kristine D. Price, Auditor, dated 9/10/95 & 12/26/95 2. Communication from the City Attorney dated 11/30/95 3. City Council Resolution No. 96-29 "A Resolution Of The City Council Of The City Of Huntington Beach Adopting The Policies And Procedure Manual For Down Payment Assistance Loan Program." )Q 4. Redevelopment Agency Resolution No. 273 "A Resolution Of The Redevelopment Agency Of The City Of Huntington Beach Adopting The Policies And Procedures Manual For Down Payment Assistance Loan Program." 1 5. Policies and Procedures Manual CK96001M.DOC -3- 04/05/96 1:19 PM • RESOLUTION NO. 96--29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING THE POLICIES AND PROCEDURE MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM WHEREAS, the City Council of the City of Huntington Beach desires the preparation of uniform policies and procedures for administrating of the City's Down Payment Assistance Loan Program; and The City contracted the professional services of Kristine D. Price for the purpose of auditing the loan program and creating a manual for staff to utilize when processing loan documentation; and Said manual containing uniform standards, procedures and policies for implementation of the loan program has been prepared; NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council of the City of Huntington Beach adopts the Polices and Procedure Manual for Down Payment Assistance Loan Program dated September 1, 1995, for use by City staff in implementing the program. BE IT FURTHER RESOLVED that any material revision to the manual be approved by the City Council. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at an adjourned regular meeting thereof held on the 22nd day of April ATTEST: Mayor City Clerk APPROVED AS TO FORM: R AND APPR VZ foe City Attorney g INITIATED AND APPROVED: y Administrator Director of Economic Development 4X-V� 4&4�� CITY CLERK /AGEN7 CLERK 7/k/downpay/3/19/96 t City. of Huntington Beach 2000 MAIN STREET CALIFORNIA 82"0 DEPARTMENT OF ECONOMIC DEVELOPMENT Director 714/536-5582 Redevelopment 7141536-5582 FAX 7141375-5087 Housing 714/536-S542 June 7, 1999 Judy Frayley Escrow Assistant Transnational Escrow 12802 Valley View Street, Suite 5 Garden Grove, CA 92845 RE: Trustor: Michelle Schmaderer Property: 6600 Warner Ave., #199 Huntington Beach, CA 92647 Dear Ms. Frayley: Enclosed please find the original the Rfull Reconveyance, as well as the Note and Deed of Trust executed by Michelle Schmaderer to the City of Huntington Beach. The loan owed by Ms. Schmaderer has been deemed forgiveabie by the City's Attorney. Therefore, Ms. Schmaderer+s obligation can be considered paid in full and the City's hereby releases Ms. Schmaderer from any financial obligation to the City. The City is now reconveying any interest the City has on Ms. Schmaderer's property. Please record the reconveyance and send us a copy of such document. If you have any questions or need any additional documentation please call me at (714) 374-1629. Sin fely, Gustavo A. Durbn Housing and Redevelopment Manager RECORDING REQUESTED BY . AND WHEN RECORDED MAIL TO . SPACE ABOVE THIS LINE FOR RECORDER'S USE FULL RECONVEYANCE A.P.N. 937-15-752 TIM REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH as duly appointed Trustee under Deed of Trust hereinafter referred to, having received from holder of the obligations thereunder a written request to reconvey, reciting that all sums secured by said Deed of Trust have been fully paid, and said Deed of Trust and the note or notes secured thereby having been surrendered to said Trustee for cancellation, does hereby RECONVEY. without warranty,to the person or persons legally entitled thereto, the estate now held by it thereunder. Said Deed of Trust was executed by NIICHELLE SCHMADERER Trustor, And recorded in the official records of Orange County, California, as follows: MC. 12/23/93 AS INSTR. NO. 93-0993112 DESC. UNIT NO. 199 CONSISTING OF CERTAIN AIR-SPACE AND SURFACE, AS SHOWN AND DESCRIED IN THE CONDOMINIUM PLAN("PLAN") FOR VILLA WARNER, WHICH PLAN WAS RECORDED ON OCTOBER 31, 1988 AS INSTRUMENT NO. 88-558669 IN OFFICIAL RECORDS OF ORANGE COUNTY CALIFORNIA("O>F'FICIAL RECORDS.") Dated: June 7, 1999 aa;:us� _ Trustee - Ray Silver Executive Director Of The Redevelopment Agency Of The City Of Huntington Beach STATE OF CALIFORNIA } COUNTY OF ORANGE } On before me, �� 'V Notary Public, personally appeared ` personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. tAURA A,NE" Cammletlon 0 1060 WITNESS my hand and official seal. Nolmy pubk_caarorria Orwoe county My Comm.EppIres Jul 23,1999 (This area for official notarial seal) I Guattemplateatreconvey.doe i FWPM%� CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department 3 DATE: May 4, 2000 TO: Gail Hutton, City Attorney ,( tr FROI11: David Biggs,Director Economic Development SUBJECT: Research on Loan Forgiveness, 1st Time Home-Buyers Program 111$100,000 We have reviewed our records regarding funding of 1"Time Home-Buyers Program to determine the names and amount of assistance which benefited the applicants from the 1st $100,000 in CDBG funds approved by the City Council at their 10/25/1993 meeting. At that meeting, four applicants (Culaciati, Tullock,Taban and Sutherland) were approved to participate in the 1"Time Home-Buyers Program, totaling$40,475. However, one applicant (Tullock) withdrew, thereby lowering the total amount of assistance to $34,825. At their 12/6/1993,meeting, City Council approved three more applicants (Schmaderer, Kanarski and Kormeluk), totaling$27,100. However, one applicant.(Kanarski) withdrew, thereby lowering the total amount of assistance to $23,000. At their 12/20/1993, meeting, City Council approved one more applicant(Dixon), totaling $10,000 and made motion to increase the amount of assistance previously approved for Kormeluk by $2,000, for a total amount of assistance of$12,000. At their 1/3/1994, meeting, City Council approved three more applicants (Young,Love and Ommondson), totaling$31,000. GJjoyce/Intermemo Reconvey.doc The total amount of actual funded loans for the original V'Time-Buyer Program ($100,000)is $100,825. All but two loans needing a Full Reconveyance have been approved and processed for Full Reconveyance. The two outstanding loans are Ommundson and Taban. Cc: Paul D'Alessandro,Deputy City Attorney Joyce de Kreek,Economic Development 4 ti 040ycellntermemo Reconvey.doe a CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department DATE: June 7, 1999 TO: Connie Broakway, City Clerk FROM: David C. Biggs, Director of Economic Development ow SUBJECT: Full Reconveyance of Note and Deed of Trust from Michelle Schmaderer to the Redevelopment Agency of the City of Huntington Beach Enclosed please find a letter sent to Transantional Escrow indicating that the City Attorney's Office had ruled that Michelle Schmaderer's loan is forgiveable. Correspondingly, we have issued a Full Reconveyance and have sent the original Note and Deed of Trust back to the borrower, as required by law. Your files on this loan can now be closed. If you have any questions, please feel free to contact Gus Duran of our office at Ext. 1529. XC: Paul D'Alesandro, Deputy City Attorney '0 's ' City of Huntington Beach li�6 q 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Director 714/536-5582 Redevelopment 7141536-5582 FAX 714/375-5087 Housing 714/536-5542 June 7, 1999 Judy Frayley Escrow Assistant Transnational Escrow 12802 Valley View Street, Suite 5 Garden Grove, CA 92845 RE: Trustor: Michelle Schmaderer Property: 6600 Warner Ave., #199 Huntington Beach, CA 92647 Dear Ms. Frayley: Enclosed please find the original the Rfull Reconveyance, as well as the Note and Deed of Trust executed by Michelle Schmaderer to the City of Huntington Beach. The loan owed by Ms. Schmaderer has been deemed forgiveable by the City's Attorney. Therefore, Ms. Schmaderer's obligation can be considered paid in full and the City's hereby releases Ms. Schmaderer from any financial obligation to the City. The City is now reconveying any interest the City has on Ms. Schmaderer's property. Please record the reconveyance and send us a copy of such document. If you have any questions or need any additional documentation please call me at (714) 374-1529. Sin a y, c Gustavo A. Duran Housing and Redevelopment Manager RECORDING REQUESTED BY i • AND WHEN RECORDED MAIL TO SPACE ABOVE THIS LINE FOR RECORDER'S USE FULL RECONVEYANCE A.P.N. 937-15-752 THE REDEVELOPMENT AGENCY OF THE CITY OF HU1\TI'\GTON BEACH, as duly appointed Trustee under Deed of Trust hereinafter referred to, having received from holder of the obligations thereunder a written request to reconvey, reciting that all sums secured by said Deed of Trust have been fully paid, and said Deed of Trust and the note or notes secured thereby having been surrendered to said Trustee for cancellation, does hereby RECON V EY. withnul warranty,to the person or persons legally entitled thereto, the estate now held by it thereunder. Said Deed of Trust was executed by MICHELLE SCHMADERER Trustor. And recorded in the official records of Orange County, California. as follows: REC. I2/23/93 AS INSTR.NO. 93-0893 1 1 2 DESC. UNIT NO. 199 CONSISTING OF CERTAIN AIR-SPACE AND SURFACE, AS SHOWN AND DESCRIBED IN THE CONDOMINIUM PLAN ("PLAN") FOR VILLA WARNER, WHICH PLAN WAS RECORDED ON OCTOBER 31, 1988 AS INSTRUMENT NO. 88-558669 IN OFFICIAL RECORDS OF ORANGE COUNTY CALIFORNIA("OFFICIAL RECORDS.") Dated: dune 7, 1999 C = Cam' _ Trustee Ray Silver Executive Director Of The Redevelopment Agency Of The City Of Huntington Beach STATE OF CALIFORNIA } COUNTY OF ORANGE On before me, �� IV Notary Public, personally appeared personally known to me •evktc to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. tAURA a NELSON Commission 1 1OW63 WITNESS my hand and official seal. -4 Notary PubOc—Cautomla Orange County My Comm. Expires Jul 23. 1999 (This area for official notarial seal) :1GuMtemplatesveconvey.doc 1 J. CITY OF HUNTINGTON BEACH Inter-Department Communication TO: Gus Duran, Economic Development FROM: Gail Hutton, City Attorney DATE: June 19 1999 SUBJECT: Determination of Loan Forgiveness RLS 99-359 INDEX: BACKGROUND You have asked for a determination of whether several loans made by the City of Community Development Block Grant funds, for the first time home buyer down payment assistance program, are forgivable. ISSUE Are the nine loans forgivable? ANSWER Yes, if they were funded with the first S 100,000 appropriated for this program. ANALYSIS As part of the 1993-94 CDBG program the City Council approved S100,000 as a pilot program to provide down payment assistance to moderate income households. We have reviewed several RCAs submitted by your department to the City Council for implementation of this program. The RCAs we reviewed were the originals in the City Clerk's office. From our review of these documents, we have developed the following chronology: 10/25/93: The City Council approved sample loan documents and four participants: Diane Culaciati, Michele Tullock, Osman Taban, and Caroline Sutherland in the total amount of S40,475. (RCA attached hereto as Attachment 1). 1 a,s:a-Memos:Duran527 Res. No. 96-29 STATE OF CALIFORNIA } . COUNTY OF ORANGE } ss: CITY OF HUNTINGTON BEACH ) I, CONNLE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said f City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 22nd of February, 1996 by the following vote: AYES: Councilmembers: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo NOES: Councilmembers: None ABSENT: Councilmembers: None City Clerk and ex-offlcio Clerk of the City Council of the City'of Huntington Beach, California G/reaolutilresbkpg r RESOLUTION NO. 273 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH ADOPTING THE POLICIES AND PROCEDURE MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM WHEREAS, the Redevelopment Agency of the City of Huntington Beach desires the preparation of uniform policies and procedures for administrating of the Agency's Down Payment Assistance Loan Program; and The City contracted the professional services of Kristine D. Price for the purpose of auditing the loan program and creating a manual for staff to utilize when processing loan documentation; and Said manual containing uniform standards, procedures and policies for implementation of the loan program has been prepared; NOW, THEREFORE, IT IS HEREBY RESOLVED that the Redevelopment Agency of the City of Huntington Beach adopts the Polices and Procedure Manual for Down Payment Assistance Loan Program dated September 1, 1995, for use by Agency staff in implementing the program. BE IT FURTHER RESOLVED that any material revision to the manual be approved by the Redevelopment Agency. PgSSE����AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at gu`•t F rrh ng thereof held on the 22nd day of Anrs 1 , 1995. — JC ATTESTG Chairman Agency Clerk APPROVED AS TO FORM: r RE AND APPROVED: ,fo/Agency Counsel y�l INITI ED AND APPROVED: J Executive erector awr-&�2 Director of Econom c Development CITY CLERK /AGENCY XLERK 7/Wdownpay/3/19/96 2 Res. No. 273 STATE OF CALIFORNIA ) COUNTY OF ORANGE. } CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, Clerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at an adjourned regular meeting of said Redevelopment Agency held on the 22nd day of April, 1996 and that it was so adopted by the following vote: AYES: Members: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo NOES: Members: None ABSENT: Members: None Clerk of the Redevelopment Agency of the City of Huntington Beach, Ca. Ghesolutilresbkpg2 Recording Requested By And When Recorded Return To: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Housing Department LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement') is made this 17TH day of DECEMBER , 19 93 by and between ("Participant") and THE CITY OF HUNTINGTON BEACH, a municipal. corporation ("City"). RE!IIAba A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 660-0 Wa=F.-r AvP_ _ # i gc) 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 Healtb and Safely Code Section 50093. C. Participant has represented to City that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. City desires to utilize Community Development Block Grant funds in a manner consistent with federal guidelines to assist persons of low and moderate income to purchase residential property to increase, improve, and 7ltoank%830931B0A:25 PM �`319,9 preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach. E. The City wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: T. City Laaar City shall loan to Participant (the "Loan") the amount of F'ORTEE;N THOSUAND, FOUR HUNDRED DOLLARS Dollars ($ 14,4oa.aa ), subject to the conditions and restrictions set forth herein, in the Promissory Note, the Disclosure Statement for the Program, the Deed of Trust and all applicable State, local and federal law. The Loan shall be paid to the seller of the Property (the "Seller") by the City through deposit of the Loan proceeds into escrow with E,,-LImrk Fgr_r_ow (the "Escrow Agent") (Escrow No. 13433 . The City shall direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees, At such time, Participant shall execute and deliver to the City a promissory note in favor of the City as holder, in the amount of the Loan, due in the event that Participant fails to comply with the terms of this Agreement, substantially in the form of the "Promissory Note" attached hereto as Exhibit "B" and incorporated herein. Participant shall also execute and deliver to the City a deed of trust encumbering the Property which shall secure the Promissory Note (the "Deed of Trust"), in the form of Exhibit "C" attached hereto and incorporated herein. 2. Main_tenance 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. 2 7VaanM830933IB04:25 PM s • 3. Acceleration/Due-on Sale. The Loan and all interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (R) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any authorization period longer than the loan secured by the First Mortgage, or (iv) is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the property, or (v) Participant violates any condition of the deed of trust or promissory note, or (vi) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). At the request of Participant, the City may, in its sole discretion, extend the term of the Loan. 4. Notice to M. Participant agrees to notify the City not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii).any refinancing of the lien of the Deed of Trust or any lien to which the lien of the Deed of Trust is subordinate (the "First Mortgage"). 5. Occupancy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information,. Participant has submitted an eligibility verification form to the City prior to execution of this Agreement. Participant represents and warrants to the City that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the City is. relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120% of the area median income. 7. First Time Homebuygr. Participant represents and warrants to the City that neither Participant nor any of Participant's immediate family residing in the Property has, or has had, a present ownership interest in a principal residence at any time during all or any part of the three (3) years immediately prior to the funding of the City Loan. 3 AoankX830931B04:25 PM 8. Loan Servicing. The City may contract with a private lender to originate and service the City Loan. 9. Participantfirmging. Participant shall obtain financing for the purchase of the Property from a reputable institutional lender approved by the City (the "Lender"). The lien secured by the 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 be paid in cash from Participant's own resources and not from the proceeds of a loan. 10. Covgnants. Recorded in the Official Records of Orange County, California, may be a declaration of conditions, covenants and restrictions for property, which is known as an Affordable Housing Agreement or covenants which may be attached as Exhibit "D" hereto and incorporated herein. if such a document is recorded on the property, Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in the Affordable Housing Agreement, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, stational origin or ancestry, all as set forth in the Affordable Housing Agreement. Such affordable housing covenant ❑ is ❑ is not (Borrower's initials _ _ ) applicable to this property. 11. Non-Waiver. Failure to exercise any right the City may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 12. Indemnificgition. The Participant shall defend, indemnify and hold harmless the City of Huntington Beach and its respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property of this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the City to make such payments, by virtue of the Loan. 4 T1 oa,*M093!804:25 PM 13. Insurance_. Participant shall maintain, during the term of the City Loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name the City as loss payee and shall contain a statement of obligation on behalf of the carrier to notify the City of any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Participant shall transmit a copy of the certificate of insurance and loss payee endorsement to City within thirty (30) days of the effective date of this Agreement, and Participant shall annually transmit to City a copy of the certificate of insurance and a loss payee endorsement, signed by an authorized agent of the insurance carrier setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to City as follows: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Housing Department Any certificate of insurance must be in a form approved by the City Attorney. 14. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may 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. 5 7Vcankk83093.'BC4:25 Ph4 15. Documents. Participant is aware that the City has prepared certain documents to implement the Program and secure repayment of the Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Loan: (a) Disclosure Statement (b) Promissory Note; (c) Deed of Trust, and (d) The Affordable Housing Agreement (Exhibit "D") (e) Notice of Right of Recission Participant agrees and acknowledges that the Deed of Trust, Loan Disclosure Statement and the Affordable Housing Agreement shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. Participant further agrees to all terms and conditions set forth in the Disclosure Statement which is hereby incorporated as if fully set forth herein. 16. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the City shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan. 17. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 18. Amendment of A reeme t. No modification, recission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and City. 19. City May Assign. City may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 6 7Xicar.kl8}0931804:25 PM 20. Participant A5signmont efohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the City, which consent may be given or withheld in the City's sole discretion_ No assumption of the Loan shall be permitted at any time. This section shall not prohibit the City's right to assign all or any portion of its rights to the loan proceeds hereunder. 21. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous agreements between the City and the Participant concerning all or any part of the subject matter of this Agreement. 22. Relationship of E!articipant and-City. The relationship of Participant and City pursuant to this Agreement is that of debtor and creditor and shall not be, or be construed to be a joint venture, equity venture, partnership, or other relationship. 23. Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: 7 7Voarn1683O93j8O4 25 PM To participant: To City: City of Huntington Beach Attention: Housing Department 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 24. Term-of Except as may be provided herein, the term of this Agreement is five (5) years commencing on the date of execution. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" Date: Z L!,, % �� - By: r ' Print Name: ��i� [_E�yn�Af��'�� Title: Date: By: Print Name: Title: CITY OF HUNTINGTON BEACH, a municipal corporation Date: _»./ Qi By: lcl �— (A' � - Print Name: kba saQ Its: _ EcCN-'U�r- Jew.� �eJmw. APPROVED AS TO FOR c By: << AlL HU ON, City Attorney 011 g1Q iZ 8 7%1oank%8309316G4:25 PM Recording Requested By And When Recorded Return To: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Housing Department Property Address: 6600 Kwmpr Aye. , A 7 99, HL,, + gtrin Ejear ca CITY OF HUNTINGTON BEACH LOAN ASSISTANCE DISCLOSURE STATEMENT INVe __M;nbe1 o Sr-h derer ("Applicant") understand and agree that the provision of financial assistance from The City of Huntington Beach ("City") is conditioned upon a number of factors, including, but not limited to: • I/We must qualify for a home loan from an institutional lender acceptable to the City. • INVe must pay at least_11_216 of the home purchase price from our own funds. • I/We must qualify for assistance under the guidelines of the City's Program. INVe further understand and agree that: • I/We will be responsible for repaying the loan at the time I/we sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. • I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to rescind or cancel the loan to: City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Attn: Housing Department 1 7Ndfsclsl0912$;93 • The City will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable if I/we do not comply with the terms of the agreement to which this statement is attached. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escow fees, late payment charges or other fees payable pursuant to this loan. An appraisal fee may be payable upon the refinancing of my/our house. • The City shall not be held responsible for any costs associated with the institutional loan for the home I/we purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The City cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The City shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether Uwe desire to be considered for the Program, and I/we will inform myselftourseIves as to the availability and terms of other public or private loans. • The City shall not be charged with knowledge of the contents of the documents of the primary lender. 2 ?%disciskagru/93 • The City financial assistance IMe receive under this Program may be considered to be income for purposes of federal or state income taxes and the City shall not be held responsible for the payment of any taxes which I/we may incur by virtue of the receipt of such financial assistance. Dated: LIZ Z2� __ ,c Signature of applicant Dated: Signature of applicant Dated: Signature of applicant APPROVED AS TO FORM: Cry ,Attorneys L.yo�Y3 3 7\disds\09128!93 PROMISSORY_NQT_E Property Address 6600 warner Ave. . # 199,_ _ _ Huntington Beach, California Huntington Beach, California 12 17/93 _, 1993 1. promise to P_ay. Mic ("Borrower") promises to pay THE CITY OF HUNTINGTON BEACH, a municipal corporation ("Holder,"also referred to as "City"), at the office of the City in Huntington Beach, California, or at such other place as the Holder may designate in writing, the principal sum of Fourteen Thousand Four Hundred Dollars Dollars ($14,400) (the "Note Amount"). The funds used by the City shall be exclusively Community Development Block Grant funds. 2. interest RatQ Simple interest shall be charged by the City on the portion of the Note Amount remaining unpaid from time to time, from the date of the disbursement of the Note Amount until the date which is five years from the date of the disbursements of the Note Amount, at the rate of zero percent (0%) per annum. 3. Affordable Housing Agreement This Promissory Note is made and delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference, and a Loan Agreement between Borrower and City dated 12/17/93 . This promissory note is attachment "B" to the Loan Agreement. 4. Acceleration The whole of the Note Amount, any interest accrued thereon, and all other payments due hereunder and under the Agreement shall, at the option of the Holder, become due and be immediately payable to the Holder by the Borrower upon the occurrence of any one of the following events: (a) Borrower sells or transfers the Property, including, without limitation, leases, exchanges or rents the Property or any interest therein, whether voluntary or involuntary; (b) Borrower refinances any lien or encumbrances to which the City Deed of Trust is subordinate for loan amount in excess of the then current loan balance secured by such lien or encumbrance; (c) Borrower fails to occupy the Property as Borrower's principal residence pursuant to the Loan Agreement or is in default of any other obligation under the Agreement or violates the terms of the Affordable Housing Agreement; (d) The close of a probate estate following the death of Borrower (unless Borrower is more than one person and one or more of the other people comprising Borrower survive); (e) Borrower defaults on this Promissory Note; page 1 of 3 pages 7lnotel10107193ia (f) Borrower defaults on the City Deed of Trust; 5. Application of Payments Any sums received hereunder may, at the options of Holder hereof, be applied in any order to the payment of costs, interest, or principal due hereunder. 6. Prepayment Privilege is reserved to make prepayments of principal on this Note without penalty or fee. 7. Non-Waiver Failure to exercise any right the Holder may have or be entitled to, in the event of any default hereunder, shall not constitute a waiver of such right or any other right in the event of subsequent default. $. Waiver of PresentMent. etc, The Borrower and all guarantors and endorsers hereof hereby severally waive presentment for payment, protest and demand, notice of protest, demand and of dishonor and nonpayment of this Note and consent that the Holder hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole of the debt evidenced by this Note, by agreement between the Holder and Borrower;and such consent shall not alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note binds itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, covenants, provisions, and conditions herein contained are made on behalf of, and shall apply to and bind, the undersigned and its successors and assigns, jointly and severally. If any attorney is engaged by the City to enforce or construe any provision of this Note or the Deed of Trust, or if the City incurs any other expense by virtue of collecting sums due to the City under this Note, as a consequence of any default or event of default hereunder, with or without the fling of any legal action or proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other costs incurred by the City, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 9. Security of Note This Note is secured by a Deed of Trust (The "Deed of Trust") of even date herewith executed by Borrower covering property located in Orange County, State of California, together with the buildings and improvements now or hereafter erected thereon. 10. Maximum Interest No provision of this Note or any instrument securing payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law. If any excess of interest in such respect is herein or in such other instrument provided for, or shall be adjudicated to be so provided for herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their page 2 of 3 pages 71nme1101071931B respective heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent it is in excess of the amount permitted by applicable law. 11. Business Purpose The undersigned warrants and represents that all funds advanced under this Note shall be applied and are intended solely for personal, family or household purposes as set forth in the Agreement and not for any business or commercial purposes. 12. Notice Any demand or notice to be made or given under the terms hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective when mailed or delivered in the manner specified in the Deed of Trust. 13. pefaylt In the event that there is a default in payment as scheduled herein or a default under the terms of the Deed of Trust securing this Note, or a default of the Agreement or in any other instrument executed by Borrower or any guarantor in favor of the City, may at its elections and without further notice, declare all amounts of the outstanding principal and accrued interest thereon immediately due and payable. IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. SIGNATORY s A DATE:---a 7 9 - By / "Borrower' DATE: By "Borrower" THE CITY OF HUNTINGTON BEACH By: Its: APPROVED AS TO FORM: 2L-1� ZL�, Attorney ft, I 73�3 1Q. 1 " page 3 of 3 pages 71note11 010 719 31B G Al IiAY T i i LE' C 0 M P.4 KY DOL go RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: rd-.- Redevelopment Agency of the City of L e Huntington Beach 2000 Main Street Huntington Beach, California 92648 Attn: Executive Director (Space Above This Line For RecGrder's Use.1 This document is exempt from 11 recording fees pursuant to Government Code Section 6103. DEED—OF TBUST DITH A5SIGNMENT5 OF RENT,9 THIS DEED OF TRUST is made this lath day ofDec. 1993, by and among MTrWT.F. Sr NAURFR whose address Is '66 0 j&'gqUer' Ave. , #-199, Huntington Beach (the "Trustor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON California BEACH, a public body corporate and politic (the "Trustee") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit"A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and all sums of money payable on the purchase price of said property secured by a lien thereon o G-3 r payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, pow&:, and authority hereinafter given to and conferred upon Beneficiary to collect and apply such C1 rents, issues and profits, and all sums of money payable on the purchase price of-said propq�y secured by a lien thereon or payable under any agreement. Ln A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of FORTEEN THOUSAND, FOUR HUNDRED AND NOwith interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when 71DEEDRENT109130193/B Page I of 9 /yq 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 12i17i9'� , 1993, and in that certain Affordable Housing Agreement currently recorded on the property, insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in.this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (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 7XDEEDREN-RO91301931B Page 2 of 9 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 destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. in all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting 70EEDRENnOC-1281931B Page 3 of 9 i 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 faw thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustot's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof,.may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property 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 MEEDREWR091281931B Page 4 of 9 alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c)join in granting any easement thereon, (d)join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Agency the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease, or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this 7XDEEDRENT10S-f28I931B Page 5 of 9 • i Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Agency confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Agency may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Agency or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Agency or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustoes right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession 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 shalt 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 71DEEDRENT10 912 819 31B Page 6 of 9 r promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. It the security for this Deed of Trust is a leasehold estate, the term "property"as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of 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. 71DEE1DRENTl0912819319 Page 7 of 9 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein {provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, at Beneficiary's request, monthly, on or before the 15th day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale Under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said 71DEED ENT1091301931B Page 8 of 9 iCALIFORNIA ALL-PURPOSE A NOWLEDGMENT No.5193 r ' ��OPTIONAL SECTION State of ir•' -' CAPACITY CLAIMED BY SIGNER /� County of Trougr statute does not regwre the Notary to fill in tre data below, doing so may prove invaluable to persons relying on the document. On d0 before me, ATE NAM TITL O FFICER-E.G.,-JANE DOE.N07AAY PUBL]C' ❑INDIVIDUAL �� ❑CORPORATE OFFICER(S) personally appeared ! NAMEtS)OF SIGNER(SS J� TITLE;S; ;S [ personalty known to me -OR - vide ❑ PARTNER(Sj ❑ LIMITED a to be the persons) whose name(* islao—e ❑ GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that Wshe/#hey executed ❑TRUSTEE(S) OFFICIAL SEAL the Same in his/her/ove'ir- authorized ❑ GUARDIAN/CONSERVATOR jupY MC HAMS capacityties , and that by 44&/her/t#e+F Notary PubIIc-C4Mffd0 signatureW on the instrument the person�sy, ❑ OTHER: ORANGE CO&M or the entity upon behalf of which the ' Naverrtw 3, 1995 person*acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and official seal. NAME OF PERSONS)OR ENTITY(IES) /i IGNATURE OF NOTARY OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT THE DOCUMENT DESCRIBED AT RIGHT: NUMBER OF PAGES DATE OF DOCUMENT Tinough the data requesled here is not requ:rea by law, it coula prevent fraudulent reattacrmen:of this form. SIGNER(S)OTHER THAN NAMED ABOVE C'993 NATIONAL NOTARY ASSOCIATION•8236 Remmat Ave..P.O.Box 7184•Canoga Park,CA 91309-7184 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.51B3 i / +■■�� OPTIONAL SECTION State of CAPACITY CLAIMED BY SIGNER 1 County of Though statute does rot require the Notary to I _ fill in the data below,doing so may prove invaluable to persons relying on the document. On �2o before me, ❑ INDIVIDUAL DAT NA _,T LE O OFFICER-E.G., JANE DOE,NO.T A PU _IC' ❑ CORPORATE OFFICER(S) personally appeared NAME(S)OfF SIGNER(S) TITLE(5} [personally known to me - OR - ❑PARTNER(S) ❑ LIMITED to be the person(sfi whose name(o safe- ❑ GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that#eoshe/t#e�Lexecuted ❑ TRUSTEE(S) OFFICIAL SEAL the Same in #rsl+herk#err authorized ❑GUARDIANrCONSERVATOR JUDY RICHARDS capacity0es);and that by h4+ her/th-e+f Notary PLIbtic-Caftfornla signature(&) on the instrument the person(s), ❑OTHER: ORANGE COUNTY MV C es or the entity upon behalf of which the November 3, 1995 persons--acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and official Seal. NAME OF PERSON(S)OA ENTITY(IES) IGNATURE OF NOTARY OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT THE DOCUMENT DESCRIBED AT RIGHT: NUMBER OF PAGES DATE O OCUMENT Gt / 71? Though'he data requested here i5 rot required by law. itcos:d prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE V.993 NATIONAL NOTARY ASSOCIATION•8236 R-mmar A— R n G^=7'0" indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other panty shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth. BENEFICIARY : TRUSTOR: THE CITY OF HUNTINGTON BEACH If Title: U. �'C'kw By: By: TRUSTEE : THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Title: APPROVED AS TO FORM: City Attorney CY IL-o-�3 70EEDRENT10 912 819 315 Page 9 of 9 L CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK DEF-D CERTIFICATION This is to certify that the interest in real property conveyed by the deed dated n December 17, 1993 from iNUCHELLE SCHMADERER to the City of Huntington Beach, a municipal corporation, is hereby accepted by the undersigned officer or agent on behalf of the City Council of the City of Huntington Beach, pursuant to the authority conferred by Resolution No. 3537 of the City Council of the City of Huntington Beach adopted on August 7, 1972, and the Jgrantee consents to the recordation thereof by its duly authorized officer. Dated: December 22, 1993 CITY OF HUNTINGTON BEACH CONNIE BROCKWAY. CIVIC CITY CLERK By: Deputy City Clerk 1 Telephone:714.536.5227) EXPIRATION OF RESCISSION PERIODS Direct Loans (Truth in Lending - Real Estate and Home Improvement Loans) Participant's Name _ Loan Amount_ Ad rP s9f Residence Michele Schmaderer 14 400.00 6600H.B, In connection with the Agreement of the City of Huntington Beach to make the loan described above, which will be secured by a deed of trust on the residence at the above address, each of the undersigned hereby represents as follows: 1. The undersigned understands the terms of this Agreement and its attachments. 2. The undersigned has been notified that it must inform the City of Huntington Beach by today's date should any of them desire to rescind or terminate this transaction. 3. The undersigned acknowledges that this loan has not been funded for at least three days from the date of execution, in order to provide them with an opportunity to rescind should they so desire. 4. The City of Huntington Beach agreed, subject only to the occurrence of certain conditions, to make the above described loan and delivered to each undersigned a Disclosure Statement setting forth terms of said loan and a Notice of right of Rescission advising each undersigned of their right to rescind and cancel said transaction in accordance with the Truth in Lending Act on or before the date the undersigned executed this document. 5. Prior to the date shown above, no proceeds of said loan have been'disbursed to or for the benefit of any of the undersigned. 6. None of the undersigned have canceled or rescinded the above described loan transaction nor have any of the undersigned notified said Agency of any intention to cancel or rescind said loan transaction. The undersigned request the City of Huntington Beach to proceed with the making of the above described loan in reliance upon the foregoing representations. J (Pa icipant's Signature) (Date) (Participant's Signature) (Date) 7lresciss2110l01I931B ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of the Notice of Right of Rescission. f � zz zz (Participant's Signature) (Date) (Participant's Signature) (Date) EFFECT OF RESCISSION. When a customer exercises his right to rescind he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within ten (10) days after receipt of a notice of rescission, the creditor shall return to the customer 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 the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, 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 ten (10) days after tender by the customer, ownership of the Property vests in the customer without obligation on his part to pay for it. 71res cis s211010119316 PARCEL NO. 1: UNIT NO. 199, ' CONSISTING OF CERTAIN AIR-SPACE AND SURFACE ELEMENTS, AS SHOWN AND DESCRIBED IN THE CONDOMINIUM PLAN ("PLAN") FOR VILLA WARNER, WHICH PLAN WAS RECORDED ON OCTOBER 31, 1988 AS INSTRUMENT NO. 88-558669 IN OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA ("OFFICIAL RECORDS") . PARCEL NO. 2: AN UNDIVIDED ONE TWO HUNDRED FIFTY-SIXTH (1/256) FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO ALL OF THE REAL PROPERTY, INCLUDING, WITHOUT LIMITATION, THE COMMON AREA DEFINED IN THE ' DECLARATION .TO BELOW, IN THE REAL PROPERTY ("PROJECT") LOCATED IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL 1, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP FILED IN BOOK 24 AT PAGE 11, OF PARCEL MAPS, IN THE OFFICE OF THE ORANGE COUNTY RECORDER, CALIFORNIA. EXCEPT THEREFROM, ALL OF THE UNITS AS SHOWN ON THE PLAN. ALSO EXCEPT THEREFROM, ALL MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND ALL UNDERGROUND WATER IN OR UNDER OR WHICH MAY BE PRODUCED FROM SAID LAND WHICH UNDERLIES A PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF SAID LAND FOR THE PURPOSE OF PROSPECTING FOR, THE EXPLORATION, DEVELOPMENT, PRODUCTION, EXTRACTION AND TAKING OF SAID MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND WATER FROM SAID LAND BY MEANS OF MINES, WELLS, DERRICKS OR OTHER EQUIPMENT FROM SURFACE LOCATIONS ON ADJOINING OR NEIGHBORING LAND OR LYING OUSIDE OF THE ABOVE-DESCRIBED LAND, IT BEING UNDERSTOOD THAT THE OWNER OF SUCH MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND WATER, AS SET FORTH ABOVE, SHALL HAVE NO RIGHT TO ENTER UPON THE SURFACE OF THE ABOVE-DESCRIBED LAND NOR TO USE ANY OF THE SAID LAND 0 ANY PORTION THEREOF ABOVE SAID PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF SAID LAND FOR ANY PURPOSE WHATSOEVER, AS RESERVED BY SEABORG, INC. , IN DEED RECORDED SEPTEMBER 19, 1979 IN BOOK 13315 PAGE 524 OF OFFICIAL RECORDS. PARCEL NO. 3: NONEXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS, AND FOR OTHER PURPOSES, ALL AS MAY BE SHOWN IN THE PLAN, AND AS ARE DESCRIBED IN THE DECLARATION. PARCEL NO. 4: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR BALCONY PURPOSES AS SHOWN AND ASSIGNED IN THE PLAN AND DESCRIBED AS AN EXCLUSIVE USE COMMON AREA IN THE DECLARATION. PARCEL NO. 5: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR PARKING PURPOSES OVER THE AREA DESIGNATED NO. P-205 AND 272 ON EXHIBIT "D" TO THE DECLARATION AND DESCRIBED AS AN EXCLUSIVE USE COMMON AREA IN THE DECLARATION. PARCEL NO. 6: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR FIREPLACE PURPOSES AS DESCRIBED IN THE DECLARATION AS AN EXCLUSIVE 1'SE COMMON AREA. ASSESSOR PARCEL NO. : 931-15-752 Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the trustor that the order of recording in the escrow for' the purchase of the Property by the Trustor shall occur as follows: 1) the first Lien; 2) The Declaration;and 3) the Deed of Trust. The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First Lien Deed of Trust or mortgage requesting a statutory notice of default as set forth in the California Civil Code. jl 2 2Geg� TR STOR-S SIGNATURE TRUSTOR'S SIGNATURE THE CITY OF HUNTINGTON BEACH Mayor APPROVED A5 TO FORM: 0� t Attorney�Rh3 I�REV EWED AND APPROVED: Director of Economic Development AFEQRDART-F HOUSING PROGRAM This City of Huntington Beach Deed of Trust is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated 12/17 1993 , to which this rider is attached as Exhibit "C" and incorporated by reference ("the Loan Agreement") , pursuant to which Beneficiary has agreed to loan Trustor the sum of FORTEEN THOUSAND Dollars ($14.40010({the "Loan Amount") with interest at 0%� yearly. All terms in this Rider to City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. 1. Acceleration/Due on sale. The Loan and all. interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any authorization period longer than the loan secured by the First Mortgage, or (iv) is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the property, or (v) Participant violates any condition of the deed of trust or promissory note, or (vi) the death of Participant (unless the Participant ' s household, occupying the property, contains more than one qualified participant and at least one qualified participant survives) . At the request of Participant, the City may, in its sole discretion, extend the term of the Loan. 2 . . ccuo Hcy 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. 3 . Protection of ReneficiaIZ4' s A. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations) , then beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary' s actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorneys ' fees and entering on the Property to make repairs. Although Beneficiary may take action under this Section II, Beneficiary does not have to do so. B. Any amount disbursed by Beneficiary under this Section II, shall become additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the highest rate permitted by law and shall be payable, with interest, upon notice from Beneficiary to trustor requesting payment . 4 . subordination. A. 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, any party, its successors and assigns receiving title to the Property through a trustee' s sale, judicial foreclosure sale, or deed in lieu of foreclosure, and any conveyance or transfer thereafter, shall receive title free and clear of this Deed of Trust and the Declaration. ALT Loan Poky - Form 1 . .�.. Policy of Title Insurance Issued By IIA TRW Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS,TRW TITLE INSURANCE COMPANY,a Kansas corporation,herein called the Company,insures,as of Date of Policy shown in Schedule A,against loss or damage,not exceeding the Amount of Insur- ance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land; 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage; 7. Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material: (a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date of Policy; or (b) arising from an improvement or work related to the land which is contracted for or commenced subsequent to Date of Policy and which is financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance; S. Any assessments for street improvements under construction or completed at Date of Policy which now have gained or hereafter may gain priority over the insured mortgage; or 9. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule A,or the failure of the assignment shown in Schedule A to vest title to the insured mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. TRW Title Insurance Company Prepared by IMMEM ' an t�`o,(� Gateway Title Company President agent for ATTEST TRW Title Insurance Company Scng this policy to your broker,escrow or loan officer if you —N�L�"t! / sell or obtain a loan on this properly within 5 years at the LLL policy date to receive a 20%discount on regular policy rates. Secretary Countersigned by: Authorized Officer or Agent 4008A Pto.10f92 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and statutory lien for services,labor or material or the extent insurance is afforded the Company will not pay loss or damage,costs,attorneys'fees or expenses which herein as to assessments for street improvements under construction or arise by reason of: completed at Date of Policy); or 1. (a) Any law,ordinance or governmental regulation(including but not limited to (e) resulting in loss or damage which would not have been sustained if the insured building and zoning laws,ordinances,or regulations)restricting,regulating, claimant had paid value for the insured mortgage. prohibiting or relating to(I)the occupancy, use,or enjoyment of the land; 4. Unenforceability of the lien of the insured mortgage because of the inability or (ii)the character.dimensions or location of any improvement now or hereafter failure of the insured at Date of Policy, or the inability or failure of any subse- erected on the land;(iii)a separation in ownership or a change in the dimen- quent owner of the indebtedness,to comply with the applicable doing business sions or area of the land or any parcel of which the land is or was a part; laws of the state in which the land is situated. or(iv)environmental protection,or the effect of any violation of these laws, 5. Invalidity or unenforceability of the lien of the insured mortgage,or claim thereof, ordinances or governmental regulations.except to the extent that a notice which arises out of the transaction evidenced by the insured mortgage and is of the enforcement thereof or a notice of a defect, lien or encumbrance based upon usury or any consumer credit protection or truth in lending law. resulting from a violation or alleged violation affecting the land has been 6. Any statutory lien for services,labor or materials(or the claim of priority of any recorded in the public records at Date of Policy. statutory lien for services,labor or materials over the lien of the insured mort- (b) Any governmental police power not excluded by(a)above.except to the extent gage)arising from an improvement or work related to the land which is con- that a notice of the exercise thereof or a notice of a defect, lien or encum- tracted for and commenced subsequent to Date of Policy and is not financed brance resulting from a violation or alleged violation affecting the land has in whole or in part by proceeds of the indebtedness secured by the insured mort- been recorded in the public records at Date of Policy. gage which at Date of Policy the insured has advanced or is obligated to advance. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded 7. Any claim,which arises out of the transaction creating the interest of the mort- in the public records at Date of Policy,but not excluding from coverage any taking gages insured by this policy,by reason of the operation of federal bankruptcy, which has occurred prior to Date of Policy which would be binding on the rights state insolvency, or similar creditors' rights laws. that is based on: of a purchaser for value without knowledge. (i) the transaction creating the interest of the insured mortgagee being deemed 3. Defects, liens, encumbrances. adverse claims or other matters: a fraudulent conveyance or fraudulent transfer; or (a) created, suffered, assumed or agreed to by the insured claimant; (d) the subordination of the interest of the insured mortgagee as a result of the (b) not known to the Company, not recorded in the public records at Date of application of the doctrine of equitable subordination; or Policy, but known to the insured claimant and not disclosed in writing to (iii)the transaction creating the interest of the insured mortgagee being deemed the Company by the insured claimant prior to the date the insured claimant a preferential transfer except where the preferential transfer results from the became an insured under this policy; failure: (c) resulting in no loss or damage to the insured claimant; (a) to timely record the instrument of transfer; or (d) attaching or created subsequent to Date of Policy(except to the extent that (b) of such recordation to impart notice to a purchaser for value or a this policy insures the priority of the lien of the insured mortgage over any judgement or lien creditor. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. 2. CONTINUATION OF INSURANCE. may be liable by virtue of this policy,or(iii)if title to the estate The following terms when used in this policy mean: (a) After Acquisition of Title.The coverage of this policy or interest or the lien of the insured mortgage.as insured,is (a) "insured":the insured named in Schedule A.The term shall continue in force as of Date of Policy in favor of(i)an insured rejected as unmarketable.If prompt notice shall not be given "insured" also includes who acquires all or any part of the estate or interest in the land to the Company,then as to the insured all liability of the Com- (i) the owner of the indebtedness secured by the insured by foreclosure.trustee's sale,conveyance in lieu of foreclosure, pany shall terminate with regard to the matter or matters for mortgage and each successor in ownership of the indebtedness or other legal manner which discharges the lien of the insured which prompt notice is required;provided,however,that failure except a successor who is an obligor under the provisions of mortgage;(ii)a transferee of the estate or interest so acquired to notify the Company shall in no case prejudice the rights of Section 12(c)of these Conditions and Stipulations(reserving, from an insured corporation, provided the transferee is the any insured under this policy unless the Company shall be pre- however,all rights and defenses as to any successor that the parent or wholly-owned subsidiary of the insured corporation, judiced by the failure and then only to the extent of the prejudice. Company would have had against any predecessor insured, and their corporate successors by operation of law and not by unless the successor acquired the indebtedness as a purchaser purchase,subject to any rights or defenses the Company may 4. DEFENSE AND PROSECUTION OF ACTIONS; for value without knowledge of the asserted defect. lien, have against any predecessor insureds;and(iii)any govern- DUTY OF INSURED CLAIMANT TO COOPERATE. encumbrance,adverse claim or other matter insured against mental agency or governmental instrumentality which acquires (a) Upon written request by the insured and subject to by this policy as affecting title to the estate or interest in the land); all or any part of the estate or interest pursuant to a contract the options contained in Section 6 of these Conditions and (ii) any governmental agency or governmental instru- of insurance or guaranty insuring or guaranteeing the in- Stipulations, the Company, at its own cost and without mentality which is an insurer or guarantor under an insurance debtedness secured by the insured mortgage. unreasonable delay,shall provide for the defense of an insured contract or guaranty insuring or guaranteeing the indebtedness (b) After Conveyance of title.The coverage of this policy in litigation in which any third party asserts a claim adverse secured by the insured mortgage,or any part thereof,whether shall continue in force as of Date of Policy in favor of an in- to the title or interest as insured,but only as to those stated named as an insured herein or not; sured only so long as the insured retains an estate or interest causes of action alleging a defect,lien or encumbrance or other (iii) the parties designated in Section 2(a) of these in the land,or holds an indebtedness secured by a purchase matter insured against by this policy.The Company shall have Conditions and Stipulations. money mortgage given by a purchaser from the insured,or the right to select counsel of its choice(subject to the right (b) "insured claimant": an insured claiming loss or only so long as the insured shall have liability by reason of of the insured to object for reasonable cause)to represent the damage. covenants of warranty made by the insured in any transfer or insured as to those stated causes of action and shall not be (c) "knowledge' or "known": actual knowledge, not conveyance of the estate or interest.This policy shall not con- liable for and will not pay the fees of any other counsel.The constructive knowledge or notice which may be imputed to an tinue in force in favor of any purchaser from the insured of either Company will not pay any fees,costs or expenses incurred by insured by reason of the public records as defined in this policy (i) an estate or interest in the land, or(ii) an indebtedness the insured in the defense of those causes of action which allege or any other records which impart constructive notice of matters secured by a purchase money mortgage given to the insured. matters not insured against by this policy. affecting the land. (c) Amount al Insurance:The amount o1 insurance after (b) The Company shall have the right.at its own cost,to (d) "land":the land described or referred to in Schedule the acquisition or after the conveyance shall in neither event institute and prosecute any action or proceeding or to do any (A),and improvements affixed thereto which by law constitute exceed the least of: other act which in its opinion may be necessary or desirable real property.The term'land"does not include any property (i) The amount of insurance stated in Schedule A; to establish the title to the estate or interest or the lien of the beyond the lines of the area described or referred to in Schedule (ii) The amount of the principal of the indebtedness insured mortgage,as insured,or to prevent or reduce loss or (A),nor any right,title,interest.estate or easement in abutting secured by the insured mortgage as of Date of Policy,interest damage to the insured.The Company may take arty appropriate streets,roads,avenues.alleys,lanes,ways or waterways,but thereon,expenses of foreclosure.amounts advanced pursuant action under the terms of this policy,whether or not it shall nothing herein shall modify or limit the extent to which a right to the insured mortgage to assure compliance with laws or to be liable hereunder,and shall not thereby concede liability or of access to and from the land is insured by this policy. protect the lien of the insured mortgage prior to the time of waive any provision of this policy.If the Company shall exer- (e) "mortgage":mortgage,deed of trust,trust deed.or acquisition of the estate or interest in the land and secured cise its rights under this paragraph,it shall do so diligently. other security instrument. thereby and reasonable amounts expended to prevent deterio- (c) Whenever the Company shall have brought an action (f) "public records': records established under state ration of improvements, but reduced by the amount of all or interposed a defense as required or permitted by the provi- statutes at Date of Policy for the purpose of imparting con- payments made; or sions of this policy,the Company may pursue any litigation to structive notice of matters relating to real property to purchasers (iii) The amount paid by any governmental agency or final determination by a court of competent jurisdiction and lor value and without knowledge.With respect to Section 1(a)(iv) governmental instrumentality.if the agency or instrumentality expressly reserves the right.in its sole discretion,to appeal of the Exclusions From Coverage,"public records"shall also is the insured claimant.in the acquisition of the estate or interest from any adverse judgment or order. include environmental protection liens filed in the records of in satisfaction of its insurance contract or guaranty. (d) In all cases where this policy permits or requires the the clerk of the United States district court for the district in Company to prosecute or provide for the defense of any ac- which the land is located. 3. NOTICE OF CLAIM TUBE GIVEN BY INSURED CLAIMANT. tion or proceeding,the insured shall secure to the Company (g) "unmarketability of the title':an alleged or apparent The insured shall notify the Company promptly in writing(i) the right to so prosecute or provide defense in the action or matter affecting the title to the land.not excluded or excepted in case of any litigation as set forth in Section 4(a)below,(ii) proceeding,and all appeals therein,and permit the Company from coverage,which would entitle a purchaser of the estate in case knowledge shall come to an insured hereunder o1 any to use.at its option.the name of the insured for this purpose. or interest described in Schedule A or the insured mortgage claim of title or interest which is adverse to the title to the estate to be released from the obligation to purchase by virtue of a or,interest or the lien of the insured mortgage,as insured.and (continued on inside back cover] contractual condition requiring the delivery of marketable title#which might cause loss or damage for which the Company 400aA CONDITIONS AND STIPULATIONS (Continued from—inside front cover) • Whenever requested by the Company,the insured,at the Com- (i) to pay or otherwise settle with other parties for or in Section 2(a)of these Conditions and Stipulations shall not pany's expense,shall give the Company all reasonable aid(i) in the name of an insured claimant any claim insured against reduce pro tanto the amount of insurance afforded under this in any action or proceeding, securing evidence, obtaining under this policy,together with any costs,attorneys'fees and policy except to the extent that the payments reduce the amount witnesses,prosecuting or defending the action or proceeding, expenses incurred by the insured claimant which were authoriz- of the indebtedness secured by the insured mortgage. or effecting settlement,and(ii)in any other lawful act which ed by the Company up to the time of payment and which the (b) Payment in part by any person of the principal of the in the opinion of the Company may be necessary or desirable Company is obligated to pay; or indebtedness,or any other obligation secured by the insured to establish the title to the estate or interest or the lien of the (ii) to pay or otherwise settle with the insured claimant mortgage.or any voluntary partial satisfaction or release of the insured mortgage,as insured. if the Company is prejudiced the loss or damage provided for under this policy,together with insured mortgage,to the extent of the payment,satisfaction by the failure of the insured to furnish the required coopera- any costs.attorneys'fees and expenses incurred by the insured or release,shall reduce the amount of insurance pro tanto.The tion,the Company's obligations to the insured under the policy claimant which were authorized by the Company up to the time amount of insurance may thereafter be increased by accruing shall terminate,including any liability or obligation to defend. of payment and which the Company is obligated to pay. interest and advances made to protect the lien of the insured prosecute,or continue any litigation,with regard to the mat- Upon the exercise by the Company of either of the options mortgage and secured thereby,with interest thereon.provided ter or matters requiring such cooperation. provided for in paragraphs b(i)or(ii),the Company's obligations in no event shall the amount of insurance be greater than the to the insured under this policy for the claimed loss or damage, amount of insurance stated in Schedule A. 5. PROOF OF LOSS OR DAMAGE. other than the payments required to be made,shall terminate (c) Payment in full by any person or the voluntary satisfac- In addition to and after the notices required under Section including any liability or obligation to defend, prosecute or tion or release of the insured mortgage shall terminate all liability 3 of these Conditions and Stipulations have been provided the continue any litigation. of the Company except as provided in Section 2(a)of these Company,a proof of loss or damage signed and sworn to by Conditions and Stipulations. the insured claimant shall be furnished to the Company within 7. DETERMINATION AND EXTENT OF LIABILITY. 90 days after the insured claimant shall ascertain the facts giving This policy is a contract of indemnity against actual monetary 10. LIABILITY NONCUMULATIVE. rise to the loss or damage.The proof of loss or damage shal: loss or damage sustained or incurred by the insured claimant If the;nsured acquires title to the estate or interest in satisfac- describe the defect in,or lien or encumbrance on the title,or who has suffered loss or damage by reason of matters:nsured tion of the indebtedness secured by the insured mortgage,or other matter insured against by this policy which constitutes against by this policy and only to the extent herein described. any part thereof,it is expressly understood that the amount the basis of loss or damage and shall state. to the extent (a) The liability of the Company under this policy shall not of insurance under this policy shall be reduced by any amount possible.the basis of calculating the amount of the loss or exceed the least of: the Company may pay under any policy insuring a mortgage damage.If the Company is prejudiced by the failure of the in- (i) the amount of insurance stated in Schedule A,or, to which exception is taken in Schedule B or to which the insured sured claimant to provide the required proof of loss or damage, if applicable,the amount of insurance as defined in Section has agreed.assumed,or taken subject.or which is hereafter the Company's obligations to the insured under the policy shall 2(c)of these Conditions and Stipulations; executed by an insured and which is a charge or lien on the terminate,including any liability or obligation to defend,pro- (ii) the amount of the unpaid principal indebtedness estate or interest described or referred to in Schedule A,and secute,or continue any litigation.with regard to the matter or secured by the insured mortgage as limited or provided under the amount so paid shall be deemed a payment under this policy. matters requiring such proof of loss or damage Section 8 of these Conditions and Stipulations or as reduced In addition,the insured claimant may reasonably be required under Section 9 of these Conditions and Stipulations,at the 11. PAYMENT OF LOSS. to submit to examination under oath by any authorized represen- time the loss or damage insured against by this policy occurs, (a) No payment shall be made without producing this tative of the Company and shall produce for examination, together with interest thereon; or policy for endorsement of the payment unless the policy has inspection and copying,at such reasonable times and places (iii) the difference between the value of the insured estate been lost or destroyed.in which case proof of loss or destruc- as may be designated by any authorized representative of the or interest as insured and the value of the insured estate or tion shall be furnished to the satisfaction of the Company. Company,all records,books.ledgers,checks,correspondence interest subject to the defect, lien or encumbrance insured (b) When liability and the extent of loss or damage has and memoranda.whether bearing a date before or after Date against by this policy. been definitely fixed in accordance with these Conditions and of Policy, which reasonably pertain to the loss or damage. (b) In the event the insured has acquired the estate or Stipulations,the loss or damage shall be payable within 30 days Further, if requested by any authorized representative of the interest in the manner described in Section 2(a) of these thereafter. Company,the insured claimant shall grant its permission,in Conditions and Stipulations or has conveyed the title,then the writing,for any authorized representative of the Company to liability of the Company shall continue as set forth in Section 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. examine,inspect and copy all records,books,ledgers.checks. 7(a)of these Conditions and Stipulations. (a) The Company's Right of Subrogation.Whenever the correspondence and memoranda in the custody or control of (c) The Company will pay only those costs,attomeys'tees Company shall have settled and paid a claim under this policy. a third party.which reasonably pertain to the loss or damage and expenses incurred in accordance with Section 4 of these all right of subrogation shall vest in the Company unaffected All information designated as confidential by the insured clai- Conditions and Stipulations. by any act of the insured claimant. mant provided to the Company pursuant to this Section shall The Company shall be subrogated to and be entitled to all not be disclosed to others unless,in the reasonable judgment B. LIMITATION OF LIABILITY. rights and remedies which the insured claimant would have had of the Company, it is necessary in the administration of the (a) It the Company establishes the title,or removes the against any person or property in respect to the claim had this claim.Failure of the insured claimant to submit for examina- alleged defect,lien or encumbrance,or Cures the lack of a right policy not been issued.If requested by the Company,the insured tion under oath,produce other reasonably requested information of access to or from the land,or cures the claim of unmarket- claimant shali transfer to the Company all rights and remedies or grant permission to secure reasonably necessary informa- ability of title,or otherwise establishes the lien of the insured against any person or property necessary in order to perfect tion from third parties as required in this paragraph,unless pro- mortgage.all as insured.in a reasonably diligent manner by this right of subrogation.The insured claimant shall permit the hibited by law or governmental regulation,shall terminate any any method, including litigation and the completion of any Company to sue,compromise or settle in the name of the insured liability of the Company under this policy as to that claim. appeals therefrom.it shall have fully performed its obligations claimant and to use the name of the insured claimant in any with respect to that matter and shall not be liable for any loss transaction or litigation involving these rights or remedies. S. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; or damage caused thereby. If a payment do account of a claim does not fully cover the TERMINATION OF LIABILITY. (b) In the event of any litigation.including litigation by the loss of the insured claimant.the Company shall be subrogated In case of a claim under this policy,the Company shall have Company or with the Company's consent,the Company shall to all rights and remedies of the insured claimant after the the following options: have no liability for loss or damage until there has been a final insured claimant shall have recovered its principal,interest,and (a) To Pay or Tender Payment of the Amount of Insurance determination by a Court of competent jurisdiction,and disposi- Costs of Collection. or to Purchase the Indebtedness. tion of all appeals therefrom,adverse to the title or to the lien (b) The Insured's Rights and Limitations. (i) to pay or tender payment of the amount of insurance of the insured mortgage,as insured. Notwithstanding the foregoing,the owner of the indebtedness under this policy together with any costs.attorneys'fees and (c) The Company shall not be liable for loss or damage secured by the insured mortgage,provided the priority of the expenses incurred by the insured claimant,Which were author- to any insured for liability voluntarily assumed by the insured lien of the insured mortgage or its enforceability Is not affected, ized by the Company,up to the time of payment or tender of in settling any claim or suit without the prior written consent may release or substitute the personal liability of any debtor payment and which the Company is obligated to pay; or of the Company. or guarantor,or extend or otherwise modify the terms of pay- (ii) to purchase the indebtedness secured by the insured (d) The Company shall not be liable for: ment,or release a portion of the estate or interest from the mortgage for the amount owing thereon together with any costs, (i) any indebtedness created subsequent to Date of lien of the insured mortgage.or release any collateral security attorneys'fees and expenses incurred by the insured claimant Policy except for advances made to protect the lien of the in- for the indebtedness. which were authorized by the Company up to the time of pur- sured mortgage and secured thereby and reasonable amounts When the permitted acts of the insured claimant occur and chase and which the Company is obligated to pay. expended to prevent deterioration of improvements:or the insured has knowledge of arty claim of title or interest adverse If the Company offers to purchase the indebtedness as herein (ii) construction loan advances made subsequent to to the title to the estate or interest or the priority or enforceability provided,the owner of the indebtedness shall transfer,assign. Date of Policy,except construction loan advances made subse- of the lien of the insured mortgage,as insured,the Company and convey the indebtedness and the insured mortgage. quent to Date of Policy for the purpose of financing in whole shall be required to pay only that part of any losses insured together with any collateral security,to the Company upon pay- or in part the construction of an improvement to the land which against by this policy which shall exceed the amount,if any, ment therefor. at Date of Policy were secured by the insured mortgage and lost to the Company by reason of the impairment by the in- Upon the exercise by the Company of either of the options which the insured was and Continued to be obligated to ad- sured claimant of the Company's right of subrogation. provided for in paragraphs a(i)or(ii),all liability and obliga- vance at and after Date of Policy. (c) The Company's Rights Against Non-Insured Obligors. tions to the insured under this policy.other than to make the The Company's right of subrogation against non-insured payment required in those paragraphs,shall terminate,including 9. REDUCTION OF INSURANCE; obligors shall exist and shall include,without limitation,the rights any liability or obligation to defend,prosecute,or continue any REDUCTION OR TERMINATION OF LIABILITY. of the insured to indemnities. guaranties. other policies of litigation,and the policy shall be surrendered to the Company (a) All payments under this policy.except payments made insurance or bonds, notwithstanding any terms or conditions for cancellation. for casts.attomeys'fees and expenses,shall reduce the amount contained in those instruments which provide for subrogation (b) To Pay or Otherwise Settle With Parties Other than the of the insurance pro Canto.However,any payments made prior rights by reason of this policy.The Company's right of sub- Insured or With the Insured Claimant. to the acquisition of title to the estate or interest as provided rogation shall not be avoided by acquisition of the insured (continued on back cover) 40oeA CONDITIONS AND STIPULATIONS (Continued from inside hack cover) mortgage by an obligor(except an obligor described in Sec- and under the Rules in effect on the date the demand for ar- of the insured mortgage or of the title to the estate or interest tion 1(a)(ii)of these Conditions and Stipulations)who acquires bitration is made or,at the option of the insured,the Rules in covered hereby or by any action asserting such claim,shall the insured mortgage as a result of an indemnity,guarantee, effect at Date of Policy shall be binding upon the parties.The be restricted to this policy. other policy of insurance,or bond and the obligor will not be award may include attorneys'fees only if the laws of the state (c) No amendment of or endorsement to this policy can an insured under this policy, notwithstanding Section 1(a)(1) in which the land is located permit a court to award attorneys' be made except by a writing endorsed hereon or attached hereto of these Conditions and Stipulations. fees to a prevailing party.Judgment upon the award rendered signed by either the President,a Vice President,the Secretary, by the Arbitrator(s)may be entered in any court having jurisdic- an Assistant Secretary, or validating officer or authorized 13. ARBITRATION. tion thereof. signatory of the Company. Unless prohibited by applicable law,either the Company or The law of the situs of the land shall apply to an arbitration the insured may demand arbitration pursuant to the Title under the Title Insurance Arbitration Rules. 15. SEVERABILITY. Insurance Arbitration Rules of the American Arbitration Asso- A copy of the Rules may be obtained from the Company upon In the event any provision of this policy is held invalid or unen- ciation.Arbitrable matters may include,but are not limited to, request. forceable under applicable law,the policy shall be deemed not any controversy or claim between the Company and the insured to include that provision and all other provisions shall remain arising out of or relating to this policy,any service of the Com- 14. LIABILITY LIMITED TO THIS POLICY; in full force and effect. pany in connection with its issuance or the breach of a policy POLICY ENTIRE CONTRACT. provision or other obligation.All arbitrable matters when the (a) This policy together with all endorsements, it any, 16. NOTICES,WHERE SENT. Amount of Insurance is S1.000.000 or less shall be arbitrated attached hereto by the Company is the entire policy and con- All notices,required to be given the Company and any state- at the option of either the Company or the insured.All arbitrable tract between the insured and the Company.In interpreting any ment in writing required to be furnished the Company shall matters when the Amount of Insurance is in excess of provision of this policy,this policy shall be construed as a whole. include the number of this policy and shall be addressed to $1,000,000 shall be arbitrated only when agreed to by both the (b) Any claim of loss or damage,whether or not based the Company at 6800 College Blvd.,Suite 700.Overland Park, Company and the insured.Arbitration pursuant to this policy on negligence.and which arises out of the status of the lien Kansas 66211. POLICY OF TITLE INSURANCE TRW Title Insurance Company 6800 College Blvd., Suite 7001 Overland Park, KS 66211 Area Code 913 491-5585 4aoeA ALTA Loan Policy (10-17-92) No. 310-3333669-33 with ALTA Endorsement - Form 1 Coverage TRW Control No. : M214-441730 SCHEDULE A Amount of Insurance: $14,400.00 Premium: $100.00 Date of Policy: DECEMBER 21, 1994 at 8:00 A.M. 1. Name of Insured: THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION 2. The estate or interest in the land which is encumbered by the insured mortgage is: A CONDOMINIUM, AS THE SAME IS DEF=NED IN SECTION 783 OF THE CIVIL CODE, IN FEE AS TO PARCELS 1 AND 2; AN EASEMENT AS TO PARCELS 3, 4, 5 AND 6 3. Title to the estate or interest in the land is vested in: MICHELE SCHMADERER, A SINGLE WOMAN 4. The insured mortgage and the assignments thereof, if any, are described as follows: A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE AMOUNT SHOWN BELOW, AND ANY OTHER OBLIGATIONS SECURED THEREBY. AMOUNT: $14,400.00 DATED: DECEMBER 17, 1993 TRUSTCR: MICHELE SCHMADERER TRUSTEE: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON REACH, A PUBLIC BODY CORPORATE AND POLITIC BENEFICIARY: THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION RECORDED: DECEMBER 23, 1993 AS INSTRUMENT NO. 93-0893112, OFFICIAL RECORDS This Policy valid only if Schedule B is attached. ALTA Loan Policy (10-17-92) No. 310-3333669-33 with AL:A =ndorsement - Form Coverage TRW Ccntrol No. : M214-441730 SCHEDULE B PART I This Policy does not insure aga=nst loss or damage by reason of the following: 1. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS CCLLECTED WITH TAXES, FOR THE FISCAL YEAR 1993-1994. SECOND INSTATLMENT: $855.21 2. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE PROVISIONS OF CHAPTER 3.5, REVENUE AND TAXATION CODE, SECTIONS 75 ET SEQ. OF THE STATE 0- CAL-=RNIA. 3. WATER RIGHTS, CLAIMS CR '_"ITLE -0 WATER ON OR UNDER THE LAND, WHETHER CR NCT SHOWN BY THE PUBL=C RECORD. 4. EASEMENTS AND RIGHTS OF WAY OVER, UNDER, ALONG AND ACROSS ALL OF THE COMMON AREA FOR OVERHEAD OR UNDERGRCUND FACILITIES CCNS:STING OF, BUT NOT LIMITED TO CABLES, WIRES, CONDUITS, ELECTRICAL DEVICES FOR POWER, TELEPHONE AND PURPOSES INCIDENTAL THERETO, PIPELINES FOR THE DISTRIBUTION OF WATER, STORM DRAINS, WATER SYSTEMS, SPRINKL=NG SYSTEMS, HEATING AND GAS PIPE LINES, AND FOR ANY PUBLIC OR QUASI-PUBLIC IMPROVEMENTS OR FACILITIES THERETO. 5. MATTERS IN AN INSTRUMENT THAT, AMONG OTHER THINGS, CONTAINS OR PROVIDE FOR CERTAIN EASEMENTS; ASSESSMENTS, LIENS AND THEIR SUBORDINATION, PROVISIONS RELATING TO PARTITION, RESTRICTIONS ON SEVERABILITY OF COMPONENT INTERESTS, COVENANTS, CONDITICNS AND RESTRICTIONS, PROVISIONS THAT NO VIOLATION THEREOF AND NO ENFORCEMENT OF ANY LIEN PROVIDED FOR THEREIN SHALL DEFEAT OR RENDER INVALID THE _,IEN OF A MORTGAGE OR DEED CF TRUST MADE =N GCOD FAITH AND FOR VALUE, 3UT THAT, HOWEVER, DO NOT CONTAIN RESTRIC^_IONS 3ASED ON RACE, COLOR, OR CREED. RECORDED: OCTOBER 31, 1988 AS INSTRUMENT NC. 88-558668, OFFICIAL RECORDS Page 1 ALTA Loan Policy (10-17-92) No. 310-3333669-33 with ALTA Endorsement - Form 1 Coverage TRW Control No. : M214-441730 SCHEDULE B PART :I In addition to the matters set forth in Part I of this Schedule, the title to the estate or interest in the land described or referred to in this policy is subject to the following matters, if any be shown, but the Company insures that such matters are subordinate to the lien or charge of the insured mortgage upon said estate or interest: 6. ` A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE AMOUNT SHOWN BELOW, AND ANY OTHER OBLIGATIONS SECURED THEREBY. AMOUNT: $99,200.00 DATED: DECEMBER 02, 1993 TRUSTOR: MICHELE SCHMADERER, A SINGLE WOMAN TRUSTEE: COUNTRYWIDE TITLE CORPORATION, A CALIFORNIA CORPORAT=ON BENEFICIARY: COUNTRYWIDE FUNDING CORPORATION RECORDED: DECEMBER 21, 1993 AS INSTRUMENT NO. 93-0893111, OFFICIAL RECORDS Page 2 ALTA Loan Policy (lC-17-92) No. 310-3333669-33 With AL:A Endorsement - Form 1 Coverage TRW Control No. : M214-441730 SCHEDULE C The land referred to in this Policy is situated in the County of Orange, State of California and is described as follows: PARCEL NO. 1: UNIT NO. 199, CONSISTING OF CERTAIN AIR-SPACE AND SURFACE ELEMENTS, AS SHOWN AND DESCRIBED =N THE CONDOMINIUM PLAN ("PLAN") FOR VILLA WARNER, WHICH PLAN WAS RECORDED ON OCTOBER 31, 1988 AS INSTRUMENT NO. 88-558669 IN OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA ("OFFICIAL RECORDS") . PARCEL NO. 2: AN UNDIVIDED ONE TWO HUNDRED FIFTY-SIXTH (1/256) FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO ALL OF THE REAL PROPERTY, INCLUDING, WITHOUT LIMITATION, THE COMMON AREA DEFINED IN. THE 'DECLARATION TO BELOW, IN ;HE REAL PROPERTY ("PROJECT") LCCATED IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL 1, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP FILED IN BOOK 24 AT PAGE 11, OF PARCEL MAPS, IN THE OFFICE OF THE ORANGE COUNTY RECORDER, CALIFORNIA. EXCEPT THEREFROM, ALL OF THE UNITS AS SHOWN ON THE PLAN. ALSO EXCEPT THEREFROM, ALL MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND ALL UNDERGROUND WATER IN OR UNDER OR WHICH MAY BE PRODUCED FROM SAID LAND WHICH UNDERLIES A PLANE PARALLEL TO AND '5O0 FEET BELOW THE PRESENT SURFACE OF SAID LAND FOR THE PURPOSE OF PROSPECTING FOR, THE EXPLORATION, DEVELOPMENT, PRODUCTION, EXTRACTION AND TAKING OF SAID MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND WATER FROM SAID LAND BY MEANS OF MINES, WELLS, ❑ERRICKS OR OTHER EQUIPMENT FROM SURFACE LCCATIONS ON ADJOINING OR NEIGHBCRING LAND OR LYING OUSIDE OF THE ABOVE-DESCRIBED LAND, IT BEING UNDERSTOOD THAT THE OWNER OF SUCH MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND WATER, AS SET FORTH ABOVE, SHALL HAVE NO RIGHT TO ENTER UPON THE SURFACE OF THE ABCVE-DESCRIBED LAND NCR TO USE ANY CF THE SAID LAND 0 ANY PORTION THERECF ABOVE SAID PLANE PARALLEL O AND 500 FEET BELOW THE PRESENT SURFACE OF SAID LAND FOR ANY PURPOSE WHATSOEVER, AS RESERVED BY SEABCRG, INC. , IN DEED RECORDED SEPTEMBER 19, 1979 IN BOOK 13315 PAGE 524 OF OFFICIAL RECORDS. PARCEL NO. 3: NONEXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS, AND FOR OTHER PURPOSES, ALL AS MAY BE SHOWN IN THE PLAN, AND AS ARE DESCRIBED IN THE DECLARATION. PARCEL NO. 4: A Policy Issuing Agent ALTA Loan Policy (10-17-92) No. 310-3333669-33 with ALTA Endorsement - Form 1 Coverage TRW Control No. : M214-441_730 SCHEDULE C EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR BALCONY PURPOSES AS SHOWN AND ASSIGNE❑ IN THE PLAN AND DESCRIBED AS AN EXCLUSIVE USE COMMON AREA IN THE DECLARATION. PARCEL NO. 5: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR PARKING PURPCSES OVER THE AREA DESIGNATED NO. P-205 AND 272 ON EXHIBIT "D" TO THE DECLARATION AND DESCRIBED AS AN EXCLUSIVE USE COMMON AREA IN THE DECLARATION. PARCEL NO. 6: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR FIREPLACE PURPOSES AS DESCRIBED IN THE DECLARATION AS AN EXCLUSIVE USE COMMON AREA. ASSESSOR PARCEL NO: 937-15-752 A Policy Issuing Agent T.R.W. TITLE INSURANCE COMPANY• ------------------------------ ------------------------------ ISSUES THIS ENDORSEMENT ATTACHED TO AND MADE A PART OF :"'S POLICY OF TITLE INSURANCE SERIAL NUMBER M214-441730 POLICY NUMBER: 310-3333669-33 THE COMPANY ASSURES THE INSURED: THAT THE ESTATE OR INTEREST DESCRIBED IN SCHEDULE A IS A CONDOMINIUM AS DEFINED IN SECTICN 1351 OF THE CALIFORNIA CIVIL CODE, IN FEE, AND AS SUCH IS ENTITLED TO BE ASSESSED AND TAXED AS A SEPARATE PARCEL. THE COMPANY HEREBY INSURES SAID ASSURED AGAINST LOSS WHICH SAID ASSURED SHALL SUSTAIN IN THE EVENT THAT THE ASSURANCES HEREIN SHALL PROVE TO BE lNCCRRECT. THE TOTAL LIABILITY OF THE COMPANY UNDER SA:❑ POLICY AND ANY ENDORSEMENTS THEREIN SHALL NOT EXCEED, IN THE AGGREGATE, THE FACE AMOUNT OF SAID POLICY AND COSTS WHICH THE COMPANY IS OBLIGATED UNDER THE CONDITIONS AND STIPULATIONS THEREOF TO PAY. THIS ENDORSEMENT IS MADE A PART OF SAI❑ POLICY AND IS SUBJECT TO THE SCHEDULES, CONDITIONS AND STIPULATIONS THEREIN, EXCEPT AS MODIFIED BY THE PRCVIS:ONS HEREOF. DATED: DECEMBER 21, 1994 GATEWAY TITLE CO. 210C West Orangewood Ave TRW TITLE INSURANCE COMPANY Orange, CA 92668 Authorized Countersignature Suite lCO 714-978-9800 ENDORSEMENT 115 T.R.W. TITLE INSURANCE COMPANY• ------------------------------ ------------------------------ ISSUES THIS ENDORSEMENT ATTACHED TO AND MADE A PART OF ITS ?OLICY OF TITLE INSURANCE SERIAL NUMBER M214-441730 POLICY NUMBER: 310-3333669-33 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, CONDITIONS, OR RESTRICTIONS UNDER WHICH THE LIEN 0- THE MORTGAGE REFERRED TO IN SCHEDULE A CAN BE CUT OFF, SUBORDINATED; CR OTHERWISE IMPAIRED; (B) THAT THERE ARE NO PRESENT VIOLATIONS ON SAID LAND OF ANY ENFORCEABLE CCVENANTS, CONDITIONS, OR RESTRICTIONS; (C) THAT, EXCEPT AS SHOWN IN SCHEDULE B, THERE ARE NO ENCROACHMENTS OF BUILDINGS, STRUCTURES, OR IMPROVEMENTS LOCATED ON SAID LAND ONTO ADJOINING LANDS, NOR ANY ENCROACHMENTS ONTO SAI❑ LAND OF BUILDINGS, STRUCTURES, OR IMPROVEMENTS LOCATED ON ADJOINING LANDS. 2. (A) ANY FUTURE VIOLATIONS ON SAID LAND OF ANY COVENANTS, CONDITIONS, OR RESTRICT=CNS OCCURING PRIOR TO ACQUISITION OF TITLE TO SAID ESTATE OR INTEREST BY THE INSURED, PROVIDED SUCH VICLATIONS RESULT IN IMPAIRMENT OR LOSS OF THE LIEN OF THE MORTGAGE REFERRED TO IN SCHEDULE A, OR RESULT IN IMPAIRMENT OR LOSS OF THE TITLE TO SAID ESTATE OR INTEREST IF THE INSURED SHALL ACQUIRE SUCH TITLE IN SATISFACTION OF THE ;NDEBTEDNESS SECURED BY SUCH MCRTGAGE; (B) UNMARKETABILITY OF TITLE TO SAID ESTATE OR INTEREST BY REASON OF ANY VIOLATIONS ON SAID LAND, OCCURRING PRIOR TO ACQUISITION OF TITLE TO SAID ESTATE OR INTEREST BY THE INSURED, OF ANY COVENANTS, CONDITIONS, OR RESTRICTIONS. 3. DAMAGE TO EXISTING IMPROVEMENTS, INCLUDING LAWNS, SHRUBBERY OR TREES (A) WHICH ARE LOCATED OR ENCROACH UPON THE PORTION OF THE LAND SUBJECT TO ANY EASEMENT SHOWN IN SCHEDULE B, WHICH DAMAGE RESULTS FROM THE EXERCISE OF THE RIGHTS TO USE OR MAINTAIN SUCH EASEMENTS FOR THE PURPOSE FOR WHICH THE SAME WAS GRANTED OR RESERVED; (B) RESULTING FROM THE EXERCISE OF ANY RIGHT TO USE THE SURFACE OF SAID LAND FOR THE EXTRACTION OR DEVELOPMENT OF THE MINERALS EXCEPTED FROM THE DESCRIPTION CF SAID LAND OR SHOWN AS A RESERVATION _N SCHEDULE B. 4. ANY FINAL COURT ORDER OR JUDGEMENT REQUIRING REMOVAL FROM ANY LAND ENDORSEMENT 100 • T.R.W. TITLE INSURANCE COMPANY• ------------------------------ ISSUES THIS ENDORSEMENT ATTACHED TO AND MADE A PART OF ITS POLICY OF TITLE INSURANCE SERIAL NUMBER M214-441730 ADJOINING SAID ;AND CF ANY ENCROACHMENT SHOWN IN SCHEDULE 3. WHEREVER 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 COVENANTS AND CONDITIONS CONTAINED IN ANY LEASE REFERRED TO IN SCHEDULE A. NO COVERAGE IS PROVIDED UNDER THIS ENDORSEMENT AS TO ANY COVENANT, CONDITION, RESTRICTION OR OTHER PROVISION RELATING TO ENVIRONMENTAL PROTECTION. THE TOTAL LIABILITY OF THE COMPANY UNDER SAID POLICY AND ANY ENDORSEMENTS THEREIN SHALL NOT EXCEED, IN THE AGGREGATE, THE FACE AMOUNT OF SAID POLICY AND COSTS WHICH THE COMPANY IS OBLIGATED UNDER THE CONDITIONS AND STIPULATIONS THEREOF TO PAY. THIS ENDORSEMENT IS MADE A PART OF SAID POLICY AND IS SUBJECT TO THE SCHEDULES, CONDITIONS AND STIPULATIONS THEREIN, EXCEPT AS MODIFIED BY THE PROVISIONS HEREOF. SIGNED UNDER SEAL FOR THE COMPANY, BUT _HIS ENDORSEMENT IS TO BE VALID ONLY WHEN IT BEARS AN AUTHOR=ZED CCUNTERSIGNATURE. DATED: DECEMBER 21, 1994 GATEWAY TITLE CO. 2100 West Orangewood Ave TRW TITLE =NSURANCE COMPANY Orange, CA 92668 Authorized Countersignature Suite 100 714-978-9800 ENDORSEMENT 100 T.R.W. TITLE INSURANCE COMPANY• ------------------------------ ISSUES THIS ENDORSEMENT ATTACHED TO AND MADE A PART OF ITS POLICY OF TITLE INSURANCE SERIAL NUMBER M214-441730 POLICY NUMBER: 3!C-3333669-33 THE INSURANCE AFFORDED BY THIS ENDORSEMENT S ONLY EFFECTIVE IF THE LAND IS USED CR IS TO BE USED PRIMARILY FOR RESIDENTIAL PURPOSES. THE COMPANY INSURES THE INSURED AGAINST LOSS OR DAMAGE SUSTAINED BY REASON OF LACK OF PRIORITY OF THE LIEN OF THE INSURED MORTGAGE OVER: (A) ANY ENVIRONMENTAL PROTECTION LIEN WHICH, AT DATE OF POLICY, IS RECORDED IN THOSE RECORDS ESTABLISHED UNDER STATE STATUTES AS DATE OF POLICY FOR THE PURPOSE OF IMPARTING CONSTRUCTIVE NOTICE OF MATTERS RELATING TO REAL PROPERTY TO PURCHASERS FOR VALUE AND WITHCUT KNCWLEDGE, OR FILED IN THE RECORDS OF THE CLERK OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT IN WHICH THE LAND IS LOCATE"" EXCEPT AS SET FORTH IN SCHEDULE B; OR (B) ANY ENVIRONMENTAL PROTECTION LIEN PROVIDED FOR BY ANY STATE STATUTE IN EFFECT AT DATE OF POLICY, EXCEPT ENVIRONMENTAL PROTECTION LIENS PROVIDED FOR BY THE FOLLOWING STATE STATUTES: N-O-N-E THIS ENDORSEMENT :S MADE A PART CF THE PCLICY 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 PROVISICNS OF THE POLICY AND PRIOR ENDORSEMENTS, NOR DOES IT EXTEND THE EFFECTIVE DATE OF THE POLICY AND ANY PRIOR ENDORSEMENTS, NOR DOES IT INCREASE THE FACE AMOUNT THEREOF. DATED: DECEMBER 21, 1-994 GATEWAY TITLE CO. 2100 West Orangewood Ave TRW TITLE INSURANCE COMPANY Orange, CA 92668 Authorized Countersignature Suite 100 714-978-9800 ENDORSEMENT 110.9 T.R.W. TITLE INSURANCE COMPANY ISSUES THIS ENDORSEMENT ATTACHED TO AND MADE A PART OF ITS POLICY OF TITLE INSURANCE SERIAL NUMBER M214-441730 POLICY NO. : 310-3333669-33 THE COMPANY ASSURES THE INSURED THAT AT THE DATE OF THIS POLICY, THE DIMENSIONS OF THE EXTERIOR BOUNDARY OF REFERRED TO IN SCHEDULE C OF 'THIS POLICY, WHICH IS ALSO THE EXTERIOR BOUNDARY OF THE PROJECT, ARE CORRECTLY SHOWN ON THAT MAP RECORDED IN BOOK 24 AT PAGE 11 OF PARCEL MAPS, IN =HE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. THE COMPANY FURTHER ASS::RES THE INSURED THAT THE ESTATE IN SAID LAND REFERRED TO IN SCHWULE A INCLUDES A RESIDENCE, WITHIN THE PROJECT BOUNDARIES, WHICH RESIDENCE IS DESIGNATED AS UNIT NO. 199, AS SHOWN ON THAT MAP RECORCED OCTOBER 31, 1988 AS INSTRUMENT NO. 88-558669 IN OFFICIAL RECORDS, IN THE OFFICE CF THE COUNTY RECORDER OF SAID CCUNTY, AND KNOWN AS 6600 WARNER AVENUE, #199, CITY OF HUNTINGTON BEACH, COUNTY CF ORANGE, CALIFORNIA. THE CCMPANY HEREBY INSURES HE INSURED AGAINST LOSS WHICH SAID INSURED SHALL SUSTAIN IN THE EVENT THAT THE ASSURANCE HEREIN SHALL PROVE TO BE INCORRECT. THE TOTAL QAB=L=TY OF 7HE COKFANY YNDEIR SAID POLICY AND ANY ENDORSEMENTS THEREIN SHALL NCT EXCEED, _N THE AGGREGATE, THE FACE AMOUNT OF SAID POLICY AND COSTS S.VHICH THE CC MPANY IS OBLIGATED UNDER THE CONDITIONS AND STIPUATICNS THEREOF TO PAY. THIS ENDORSEMENT IS MADE A PART OF SAID POLICY AND IS SUBJECT TO THE SCHEDULES, CONDITIONS ANC STIPULATIONS THEREIN CCNTA=NEE.. DATED: DECEMBER 21, 1994 GATEWAY mITLE CC. 21CO West OrargeWOod Ave TRW TITLE INSURANCE COMPANY Orange, CA 92668 Authorized Counmerslgnature Suite 100 714-978-9800 ENDORSEMENT 116.2 , •sic :�_f' w .: ?. . r. �, '} :. �� .;.: fa qt 'r+ � 'A '� ,.7": '.�'L.� 'w:' � :�� .ram•'. ^•J.,l�' ,L �� $1r � a n" �' �•, I tit 3 - A. �A. j 4 s= w ��� 3 � �'� � � �`► �.�� � •�-'+ gyp`�.' •�� a �; � �Y � � i �w .� :i `•� ,: � �'� '� t �� �� s �� • t t Lh • �� add � � � ��' i 3 ,�,. � ` � � � �,. ' :L -u' r i°!'•.,�,; .`�w..�. SFy.+i -3 �.-''� :;'�`1GtL'rr31.Sy Lf f1;1. '.:ts+:n!rws'!l. q •ij APWIWIr -rri3wir PROVED BY CITY COUNC;L .r- REQUEST FOR CITY COUNCIL AC c CLERK ED 93-46 Date: December 6, 1993 Submitted to: Honorable Mayor and City Council Members .1— Submitted by: Michael T. Uberuaga, City Administrat6r l �— Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Development Subject: APPROVAL OF PARTICIPANTS--DOWN PAYMENT ASSISTANCE PROGRAM Consistent with Council Policy? N Yes [ ]New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachmentsf ST�TE�VfEI�(,�F ISSUE: The City Attorney has determined that each borrower in the Community Development Block Grant funded Down Payment Assistance Program must be approved by the City Council. RECOMM"ED COUNCIL ACTION: 1. Approve and authorize execution of the appropriate documents and payment of the appropriate funds to the recommended Down Payment Assistance Program participants as attached. ANALYSIS• As part of the 1993-94 Community Development Block Grant Program the Citizen Advisory Board recommended and the Council approved $100,000 as a pilot program to"provide Down Payment Assistance to moderate income households and since that time the details of the program have been approved by the City Council. The City Attorney requires the City Council to approve each borrower in the Down Payment Assistance Program. The attached list of potential participants are those which are recommended by staff for approval at this time. Additional borrowers will be recommended until the funds are expended. i RCA ED 93-46 December 6, 1993 Page two ALTERNATIVES: Do not approve the participants. FUNDING SOURCE: Community Development BIock Grant--$100,000. ATTACHMENTS: 1. List of approved Participants MTUIBAK/SVK:jar 836j DOWN PAYMENT ASSISTANCE PROGRAM Household Monthly Name Income PPayment Percentage 1. Michelle Schmaderer $2,929.00 $ 985.00 34 2. Carol KanarsId $3,000.00 $ 1,010.00 34 3. Nicholas Kormeluk $3,255.00 $1 115.00 34 • �J '` City of Huntington Beach 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Office of the Director 536-5582 Housing 536-5542 Redevelopment 536-5582 Fax (714)375-5087 December 10, 1993 Michelle Schmaderer .15432 Salisbury Lane Huntington Beach, California 92647 Dear Ms Schmaderer: Subject: Down Payment Assistance Program Approval Based on the information you have submitted in your application of November 9, 1993 you are approved for a loan not to exceed $14,400 through the Community Development Block Grant Down Payment Assistance Program. This loan is based on the following information: 1. Your stated total household income of$35,151 per year and on the provision that you fund an additional $14,400 toward the down payment from your own funds. 2. Loan funds will be made available to the escrow holder for the purchase of 6600 Warner Avenue #199 in Huntington Beach, within ten days. 3. Total purchase price will be: $124,000. Congratulations for being selected as a participant in the Down Payment Assistance Program. If you should have any questions please call. Sincerely, St6phen V.JCohler Project-Manager SVK:jar _ DRUG USE a CITY OF H4 N.N TON BEACH P.O. BOX 190 HUNT:NGYDty B=ACH. CA 926aB DATE P.O.NUMBER GROSS AMOUNT DISCOUNT NET AMOUNT 12-15-93 $14,400.00 $14,400.00 TOTALS> $14,400.QO $14,400.00 16-351 CITY OF HUNTINCTON BEACH N P.O.BOX 190 r� HUNTINGTON BEACH.CALIFORNIA 2 60311 PAY TO THE ORDER OF PATE NUMBER NET AmcluNT HALU4ARK ESCROW 12-15-93 260311 $14,400.00*° CITY OF H.UNTINGTON BEACH VOID UNLESS PRESENTED FOR ENCASHMENT WITHIN 90 DAYS FROM DATEYOF ISSUE. SANWA BANK CALIFORNIA HUNTINGTON BEACH OFFICE 6HE1 'NARNER AVENUE i-.j!4Tltir---roN OEACH.CA 9264' - 119 260 3 1 L11` +: L 2 20❑ 3 5 LBO: 209411-00 2091I` City of Huntington Beach * ' 2000 MAIN STREET CAI-IFORNIA 92648 ' DEPARTMENT OF ECONOMIC DEVELOPMENT Office of the Director 536-5582 Housing 536-5542 Redevelopment 536-5582 Fax (714)375-5087 August 24, 1994 Hallmark Escrow Co., Inc. 10101 Slater Avenue Suite 134 Fountain Valley, CA 92708 SUBJECT: Escrow No. 13433 Michelle Schmaderer To Whom It May Concern: Enclosed is your check#85384 dated December 22, 1993, in the amount of$587.56 on behalf of the captioned borrower in the City's Down Payment Assistance Program. We are returning this check because it is apparently offered as a reduction in principal on this borrower's loan by the City of Huntington Beach. Our program has no provision to accept partial payments. The terms of her loan require the repayment of principal and accrued interest, in full, upon sale of the property. We appreciate your assistance in this matter and if you should have questions please call. Sincerely, Step V. I o'ect M ger SVK:jw Enclosure - Check #85384 85384 �LLMARK ESCROW CO., INr' NATIONAL BANK �' ! OF SOUTHERN CALIFORNIA I 10101 SLATER AVE..STE.134,(714)9B4 . . 3as SOUTH PLAZA DRIVE-5lWTA MBA CJ FOUNTAIN VALLEY,CA 92708 90-39BO/1222 ESCROWO., DITE AMOUNT PAY l f{�3nLirr:ci _011 y Sovt,n Dol 1,r:rq rind; F.61100--------------------- S********�-*,,�ti. ::� TO C i ty of Hunt.ington Beach THE Economi C Deve 1 opment Dept. ESCROW TRUST ACCOUNT 237-1 2pOG Main n St. VOID AFTER 90 DAYS ORDER OF Huntington Beacli, CA 92648 ? 111011 S 38411' 1: L 2 2 2 3980 0: 0 1-009", 20611' HALLMARK ESCROW CO.,INC. 85384 Escrow No. : 13433 • Funds due you S 587,5E 12/22/93 Reference: 6600 ;,Varner Ave. 199 Huntington Beach, CA 92647 Seller: Kristina Lee Arnold Buyer: Michele Sehmaderer To be applied towards principal reduction