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HomeMy WebLinkAboutD-1566 519 Brizzolara Street - 002-392-019 Recorded 01/02/2002Affordability Agreement/Deed of Trust Covenants Page 6 of 6 EXHIBIT A ASSESSOR'S PARCEL NUMBER: 002 - 392 -019 LEGAL DESCRIPTION That portion of Lot 14 of Map of B. Brizzolara's Addition to the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to map recorded November 1, 1879 in Book A, Page 45 of Maps, and as more commonly described as 519 Brizzolara. Street, .Units A -F, San . Luis Obispo, California 93401. Lot Area: Approximately 23,990 square feet Number of dwellings: Six (6) jh/U. 'DBG /womenshelterdeedofwst State of California } County of San Luis Obispo } On December 28, 2001, before me, Pamela K. King, Notary Public, personally appeared Elaine M. Gardiner and Marianne Kennedy, proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the, same in their capacity, and that by their signature on the instrument the persons or the entity upon behalf of which the persons acted, executed the instrument. my hand anti official seal._ Pamela K. King, Notary Public re,PAMELA K. KING Commission # 1727306 IL Notary Public - California San Luis Obism Courtly My Comm. Expires Jul 2 2003 Capacity claimed by signer(s): individuals(x) () corporation () partnership ( ) attorney -in -fact ( ) political agency () Affordable Housing Covenants FEND OF DOCUMENT q UESTA ITLE COMPANY January 30, 2002 1319 Marsh Street • San Luis Obispo, CA 93401 (805) 547 -3920 • FAX (805) 547 -3925 City of San Luis Obispo, a charter municipal corporation 990 Palm Street San Luis Obispo, CA 93401 -3249 Order No.: 201409 Loan No.: None Stated We appreciate the opportunity of being of service to you. Please refer any questions regarding this policy of title insurance to: Cuesta Title Company VLIM lIM1YUM1"IV VVYGfI/9VLr LIVIIJJV If you want information about coverage or need assistance to resolve complaints, please call our toll free number: 1- 800 - 729 -1902. If you make a claim underyour policy, you must funish writter) notice in accordance wMction 3 of the Conditions and Stipulations. • a - Visit oyr World-Wide Web site at: http: / /www.st com POLICY OF TITLE INSURANCE ISSUED BY STEWAUT TITLE GUARANTY COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, STEWART TITLE GUARANTY COMPANY, a Texas corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not.. exceeding the Amount of Insurance stated in Schedule`A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than`as stated therein; ;j 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;, and in addition, as to an insured lender only: i 5. The invalidity or unenforceability of the 'lien of the insu 'red mortgage upon the title; 6- The priority of any lien or encumbrance over the lien of the insured mortgage, said mortgage being shown in Schedule B in the order of its priority; 7. The invalidity or unenforceability of any assignment of the insured' mortgage, provided the assignment is shown in Schedule B, or the failure of the assignment shown in Schedule B 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. Signed under seal for the Company, but this Policy is to be valid only when it bears an authorized countersignature. anclay c!/ C'olloo, I STEWART TITLE GUARANTY COMPANY Chairman o the Boar Cou rsi ned � Afr�� Authorized Signatory C'.T TESTA TTTT E COMPANY Company 151 (Rev. 1- 19 -91) .R. •. LpttPOggT 0 1� 1908 jo Serial NOCNJP -1597- 6 61716 OF President EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulat- ing, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; () attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had value paid for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business lows of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based.upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured ": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distin- guished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary succes- sors. The term "insured" also includes (i) the owner of the indebtedness secured by the insured mortgage and eacr. successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipula- tions (reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor insured, unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect, lien, encumbrance, adverse claim or other matter insured against by this policy as affecting title to the estate or interest in the land); (ii) any governmental agency or governmental instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any part thereof, whether named as an insured herein or not; (iii) the parties designated in Section 2(a) of these Conditions and Stipulations. (b) "insured claimant ": an insured claiming loss or damage. (c) "insured lender ": the owner of an insured mortgage. () "insured mortgage ": a mortgage shown in Schedule B, the owner of which is named as an insured in Schedule A. (e) "knowledge" or "known ": actual knowledge, not constructive knowk edge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (f) "land ": the land described or referred to in Schedule A, and improve- ments affixed thereto which by law constitute real property. The term ' land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads,.avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (g) "mortgage ": mortgage, deed of trust, trust deed, or other security instrument. (hj "public records ": records established under state statutes at Date of Policy {or the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (i) "unmorketability of the title ": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage to be released from the obligation to Purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE. (a) After Acquisition of Title by Insured Lender. If this policy insures the owner of the indebtedness secured by the insured mortgage, the coverage of this policy shall continue in force as of Date of Policy in favor of (i) such insured lender who acquires all or any part of the AW or interest in the land by foreclosure, trustee's -sale, conveyance in lieW foreclosure, or other legal manner which discharges the lien of.the insured mortgage; (ii) a transferee of the estate or interest so acquired from an insured corporation, provided the transferee is the parent or wholly -owned subsidiary of the insured corporation; and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor insureds; and (iii) any governmental agency or governmental instrumentality which acquires of or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured by the insured mort gage. (b) After Conveyance of Title by an Insured. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from an insured of either (i) an estate or interest in the land, or (ii) an indebtedness ' secured by a purchase money mortgage given to an insured. (c) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance by an insured lender shall in neither event exceed the least of: (i) The amount of insurance stated in Schedule A; (ii) The amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, amounts advanced pursuant to the insured mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisi- tion of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements, but reduced by the amount of all payments made; or (iii) The amount paid by any governmental agency or governmental instrumentality, if the agency or the instrumentality is the insured claimant, in the acquisition of the estate or interest in satisfaction of its insurance contract or guaranty. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. An insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest or the lien of the insured mortgage, as insured, and which might cause loss or damage for which the Company may be liable by virtue of - this policy, or (iii) if title to the estate or interest or the lien of the insured mortgage, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to that insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by an insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and w' t unreasonable delay, shall provide for the defense of such insured in litigdWn which any third party asserts a claim gdverse to she title or interest as insured, but only as to those stated causes of action alleging a Order Number: 201409 • SCHEDULE A Policy No.: CNJP- 1597 - 661716 Amount of Insurance: 5 322,322.00 Premium: $ .100.00 Date of Policy: January 2, 2002 at 08:00 a.m. 1. Name of Insured: City of San Luis Obispo, a charter municipal corporation 2. The estate or interest in the land which is encumbered by the insured mortgage is: A Feb 3. Title to the estate or interest in the land is vested in: Glinda Services, a California Corporation 4. The insured mortgage and assignments thereof, if any, are described as follows. 5. The land referred to in this policy is situated in the City of San Luis Obispo, County of San Luis Obispo, State of California, and is described as follows: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 1 • CLTA Loan Policy (10- 17 -92) w /Form 1 Cov. EXHIBIT "ONE" Parcel 1: r: Order No. 201409 Policy No. CNJP- 1597 - 661'716 That portion of Lot 14 of Map of B. Brizzolara's Addition to the Town of San Luis Obispo, in the City of San Luis Obispo, County of. San Luis Obispo, State of California, according to map recorded November 1, 1879 in Book A, Page 45 of Maps, described as follows: Beginning at the Northwest corner of said Lot 14 on the Southeasterly line of Brizzolara Street; Thence Southwesterly along said line of Brizzolara Street and the Westerly line of said Lot 14, 50 feet; Thence at right angles Southeasterly and parallel with the Northeasterly line of said Lot 14 to the center of Stenner Creek, as shown on said Map; Thence following up the center of said Creek to the Northeasterly corner of said Lot 14; Thence Northwesterly along the Northeasterly line of said Lot 14 to the point of beginning. Parcel 2: That portion of Lot 14 of Map of B. Brizzolara's Addition to the Town of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to map recorded November 1, 1879 in Book A, Page 45 of Maps, . described as follows: Beginning at a point in the Westerly line of said Lot 14 and the Southeasterly line of Brizzolara Street, distant thereon 50 feet Southwesterly from the Northwest corner of said Lot, said point being the Southwesterly corner of the property conveyed to Joseph C. Hampl, an unmarried man, by deed dated June 29, 1949 and recorded July 13, 1949 in Book 528, Page 368 of Official Records; Thence Southwesterly along said Westerly line of said Lot and the Southeasterly line of Brizzolara Street, 15 feet; Thence at right angles Southeasterly and parallel with the Southwesterly line of the property conveyed to Joseph C. Hampl, as aforesaid to the center of Stenner Creek, as shown on said Map; Thence Northerly up the center of said Creek to the Southeasterly corner of said conveyed property; Thence Northwesterly along the Southwesterly line of the property so conveyed to the point of beginning.. Parcel 3: That portion of Lot 14 of B. Brizzolara's Addition to the Town of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to map recorded November 1, 1879 in Book A, Page 45 of Maps, described as follows: Beginning at a point on the Westerly line of said Lot 14, distant thereon 65 feet Southwesterly from the Northwesterly corner of said Lot, being the Southwesterly corner of the property conveyed to Joseph C. Hampl, an unmarried man, by deed dated July 26, 1951, and recorded August 13, 1951 in Book 622, Page 142 of Official Records; Thence Southwesterly along said Westerly line of said Lot, 9 feet; Thence Southeasterly and parallel with the Southwesterly line of the property conveyed to Joseph C. Hampl, as aforesaid, to the center of Stenner Creek, as shown on said Map; Thence Northerly along the center of said Stenner Creek to the Southeasterly corner of the property so conveyed; Thence Northwesterly along the Southwesterly line of the property so conveyed to the point of beginning. 2 CLTA Loan Policy (10- 17 -92) w /Form 1 Cov. Assessor's Parcel No: 002,392,019 3 ,..> Order No. 201409 Policy No. CNJP- 1597 - 661716 CLTA Loan Policy (10- 17 -92) w /Form 1 Cov. Order No. 201409 Policy No. CNJP- 1597 - 661716 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay cost attorneys' fees or expenses) which arise by reason of: 1. 2. 3. 4 PART I General and Special City and /or County taxes, including any personal property taxes and any assessments collected with taxes. Fiscal Year: 2001 -2002 1st Installment: $764.90 * Paid Penalty: $0.00 2nd Installment: $764.90 * Open Penalty: $0.00 Cost: $0.00 Land: $44,378.00 Improvements: $93,468.00 Personal Property: $0.00 Exemption: None Code Area: 003 -000 Assessment No.: 002,392,019 The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of-the revenue and taxation code of the State of California. Any adverse claim based upon the assertion that: (a) Some portion of said land has been created by artificial means, or has accreted to such portion so created. (b) Some portion of said land has been brought within the boundaries thereof by an avulsive movement of Stenner Creek, or has been formed by accretion to any such portion. . A deed of trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: $305,000.00 Dated: December 26, 2001 Trustor: Glinda Services, a California Corporation Trustee: Cuesta Title Company Beneficiary: Coast National Bank Recorded: January 2, 2002, Instrument No. 2002 - 000028, of Official Records. 4 C CLTA Loan Policy (10- 17 -92) w /Form 1 Cov.. Order No. 201409 Policy No. CNJP- 1597 - 661716 5. A deed of trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: $322,322100 Dated: December 28, 2001 Trustor: Glinda Services, a California Corporation Trustee: Cuesta Title Company Beneficiary: City of San Luis Obispo, a charter municipal. corporation Recorded: January 2 ) 2002, Instrument No. 2002 - 000029, of Official Records. 6. The matters contained in an instrument Entitled: Affordability Agreement /Deed of Trust Covenants Dated: December, 28,2001- By and Between: City of San Luis Obispo and Glinda.Services, a California Corporation upon the terms and conditions and covenants therein provided Recorded: January 2, 2002, Instrument No. 2002- 000030, of Official Records. 5 CLTA Loan Policy (10- 17 -92) w /Form 1 Cov. SCHEDULE B PART 11 Order No. 201409 Policy No. CNJP- 1597 - 661716 In addition to the matters set forth in.Part.l of this Schedule, the title to the estate or interest in the land described or referred to in Schedule A is subject to the following matters, if any be shown, but the Company insures that these matters are subordinate to the lien or charge of'the insured mortgage upon the estate or interest: NONE 0 A A .f � v Yu@ rbb ' O \ \ O \ n \ \ a y r O \. L \ N n z� c nay D T O Z A H r y C D O H n O y 2 O Order. 201409 CIO .y Description: 2.39 is 0 , I Page 1 of 1 Comment: CD O cD CD �. rr' Cn N• �_ CCD _? C7 "O C^ G] = O• Sy CD O = no r� p o < SD a p. CD to 0. = CO CD CCU O N c' = CD :+ N e .a 's n z N ; `4U Description: 2.39 is 0 , I Page 1 of 1 Comment: CD O cD CD �. rr' Cn N• �_ CCD _? C7 "O C^ G] = O• Sy CD O = no r� p o < SD a p. CD to 0. = CO CD CCU O N c' = CD :+ N e .a 's n z CONDITIONS AND STIPULATIONS Continued _ (continued from reverse side of Policy Foe* V defect, lien or encumbrance -or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of such insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The company will not pay any fees, costs or expenses incurred by an insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to an insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent juris- diction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prose- cute or provide for the defense of any action or proceeding, an insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of such insured for this purpose. Whenever requested by the Company, an insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting set- tlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured. If the Company is prejudiced by the failure of an insured to furnish the required cooperation, the Company s obligations to such insured under the policy shall terminate, including any liabil- ity or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. S. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Con- ditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by each insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of an insured claimant to provide the required proof of loss or damage, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage: In addition, an insured claimant may reasonably be required to submit an examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably per- tain to the loss or damage. Further, if requested by any authorized representa- tive of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the cus- tody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by an insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of an insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall termi- nate any liability of the Company under this policy as to that insured for that claim. b. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Pur- chase the Indebtedness. (i) to pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay; or (ii) in case loss or damage is claimed under this policy by the owner of the indebtedness secured by the insured mortgage, to purchase the indebted- ness secured by the insured mortgage for the amount owing thereon together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of purchase and which the Company is obligated to pay. If the Company offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer, assign., and convey the indebted- ness and the insured mortgage, together with any collateral security, to the Company upon payment therefor. Upon the exercise by the Company of the option provided for in para- graph a(i), all liability and obligations to the insured under this policy, other than to make the payment required in that paragraph, shall terminate, includ- ing any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. Upon the exercise by the Company of the option provided for in paragraph a(ii) the Company's obligation to an insured Lender under this policy for the claimed loss or damage, other than the payment required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys fees and expenses incurred by the insure which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs b(i) or b(ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. 7. DETERMINATION AND EXTENT OF LIABILITY. This policy is a contract of indemnity against actual monetary loss or dam- age sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy to on insured lender shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A, or, if applicable, the amount of insurance as defined in Section 2 (c) of these Conditions and Stipulations; (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipula- tions, at the time the loss or damage insured against by this policy occurs, together with interest thereon; or (iii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the insured lender has acquired the estate or interest in the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed the title, then the liability of the Company shall continue as set forth in Section 7(a) of these Conditions and Stipulations. (c) The liability of the Company under this policy to an insured owner of the estate or interest in the land described in Schedule A shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (d) The Company will pay only those costs; attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. LIMITATION OF LIABILITY. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketobility of title, or otherwise establishes the lien of the insured mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. coons and stipulations continued and concluded 9 (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, or, if applicable, to the lien of the insured mortgage, as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the.Company. (d) The Company shall not be liable to an insured lender for: (i) any indebtedness created subsequent to Date of Policy except for advances made to protect the lien of the'insured mortgage and secured thereby and reasonable amounts expended fo prevent deterioration of improvements; or (ii) construction loan advances made subsequent to Date of Policy, except construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the land which at Date of Policy were secured by the insured mortgage and which the insured was and continued to be obligated to advance at and after Date of Policy. 9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. (a) All payments under this policy, except payments made for costs, attor- neys' fees and expenses, shall reduce the amount of insurance pro tanto. How- ever, as to an insured lender, any payments made prior to the acquisition of title to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of insurance afforded under this policy as to any such insured, except to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage. (b) Payment in part by any person of the principal of the indebtedness, or any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or release of the insured mortgage, to the extent of the payment, satisfaction or release, shall reduce the amount of insurance pro tanto. The amount of insurance may thereafter be increased by accruing interest and advances made to protect the lien of the insured mortgage and secured there- by, with interest thereon, provided in no event shall the amount of insurance be greater than the Amount of Insurance stated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company to an insured lender except as provided in Section 2(a) of these Conditions and Stipulations. 10. LIABILITY NONCUMULATIVE. It is express] y understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insur- ing a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. The provisions of this Section shall not apply to an insured lender, unless such insured acquires title to said estate or interest in satisfaction of the indebtedness secured by an insured mortgage. 11. PAYMENT OF LOSS. (a) No payment shall be made without producing this policy for endorse- ment of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, com- promise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated (i) as to an insured owner, to all rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss; and (ii) as to an insured lender, to all rights and remedies of the insured claimant after the insured claimant shall have re- covered its principal, interest, and costs of collection. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to ay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impair- ment by the insured claimant of the Company's right of subrogation. (b) The Insured's Rights and Limitations. Notwithstanding the foregoing, the owner of the indebtedness secured by an insured mortgage, provided the priority of the lien of the insured mortgage or its enforceability is not affected, may release or substitute the personal lia- bility of any debtor or guarantor, or extend or otherwise modify the terms of payment, or release a portion of the estate or interest from the lien of the insured mortgage, or release any collateral security for the indebtedness. When the permitted acts of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of an insured mortgage, as insured, the Company shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (c) The Company's Rights Against Non - insured Obligors. The Company's right of subrogation against non - insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. The Company's right of subrogation shall not be avoided by acquisition of an insured mortgage by an obligor (except an obligor described in Section I (a) (ii) of these Conditions and Stipulations) who acquires the insured mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond and the obligor will not be an insured under this policy, notwithstanding Section 1(a)(i) of these Conditions and Stipulations. 13. ARBITRATION. Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured aris- ing out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision - other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbi- trated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage or of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 15. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 16. NOTICES, WHERE SENT. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at P.O. Box 2029, Houston, Texas 77252 -2029, and identify this policy by its printed policy serial number which appears on the bottom of the front of the first page of this policy. Ok RECORDING REQUESTED BY: Cuesta Title. Company 1319 Marsh Street San Luis Obispo, CA 93401 WHEN RECORDED, MAIL TO: JULIE RQDEWALD San Luis Obispo County— Clerk/Recorder Recorded at the request of Cuesta Title Company r.: 2002000030 III IAIIIIIIIIV!IIIIBIIIIIV LO 1/02/2002 8:00 AM Titles: 1 Pages: 7 Fees 25.00 Taxes 0.00 Lee Price, City Clerk I Others 0.00 City of San Luis Obispo PAID $25.00 990 Palm Street - San Luis Obispo, CA 93401 -3249 APN: 002= 392 -019 E�5< za t 404 - rn AFFORDABILITY AGREEMENT/DEED OF TRUST COVENANTS THIS, AGREEMENT is made and entered into on this 4 day of December, 2001, by and. between the City of San Luis Obispo ( "City" or "Lender ") and Glinda Services, a California Corporation ( "Owner "). RECITALS A. CITY has loaned to Owner Community Development Block Grant ( "CDBG ") 'funds to acquire certain property located at 519 Brizzolara Street, as further described in Exhibit A (attached hereto and incorporated herein), and hereinafter referred to as the "Property." B. OWNER intends to administer said property to provide rental housing affordable to very-low or low- income persons. C. CITY and OWNER desire to assure that the dwellings in this rental housing project remain affordable to very-low and low- income persons for a period of not less than 30 years from the date of close of escrow. NOW, THEREFORE, the parties acknowledge and agree as follows: ARTICLE 1. DEFINITIONS. 1.01 "Affordable to very-low and low- income" means residential rental costs which conform to standards issued by the Community Development Director of the City of San Luis Obispo and updated periodically to 'reflect state or federal housing cost indices. 1.02. "HUD" shall mean the U.S. Department of Housing and Urban Development and its staff. 1.03. "Eligible" shall mean persons or households whose incomes meet the standards for very- low or low income categories in the City's most current Affordable Housing Standards, as 176& Affordability Agreement/Deed of Trust Covenants Page 2 of 6 published annually by the City's Community Development Department. ARTICLE 2. USE RESTRICTIONS. . 2:01. These affordability requirements shall be covenants running with the land as defined in California Civil Code section 1460. Pursuant to Civil Code section 1468 which governs such covenants, the provisions of this Agreement shall be binding upon all parties having any, right, title, or interest in the Property, or any portion thereof and on their heirs, successors in interest and assigns for a period of 30 (thirty) years from the date of close of , escrow: The parties agree that all future deeds or transfers of interest regarding the Property shall show the restrictions of this Agreement for as long as the Agreement is in effect. 2.02. OWNER, by and for itself and any successors in interest, covenants and agrees that for the period of time specified in this Agreement there shall be no sale, lease, rental, or other transfer of the property except for the rental of individual apartments to very-low or low- income .persons and their immediate families and spouses. Any sale, lease rental, or other transfer of the Property in violation of this covenant shall be void. 2.03. If a transfer of title occurs as a result of foreclosure or deed -in -lieu of foreclosure of the first deed of trust, the affordability restrictions shall become permanently void. 2.04. The Property shall be used for affordable rental housing, and apartments shall be rented only to eligible households and at rent levels deemed "affordable ", consistent with the CITY'S Affordable. Housing Standards, on file-in the Community Development Department, for the. term of this agreement, unless an alternate use is approved for the Property by the CITY pursuant to HUD rule 24 CFR 570.505. ARTICLE 3. MAINTENANCE. 3.01. The Property, including buildings and grounds, shall at all times be maintained in a neat, clean ; safe and attractive condition, pursuant to the City's Property Maintenance Standards (San Luis Obispo Municipal Code Ch. 17.17), to the approval of the City's Community Development Director. ARTICLE 4. 'GENERAL. 4.01. Notices required to be sent to CITY shall be sent by certified mail, return receipt requested, to the following address: Community Development Director, c/o City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 -3249 Affordability Agreement/Deed of Trust Covenants Page 3 of 6 Notices required to be sent to OWNER shall be sent by certified mail, return receipt, requested, to the following address: Glinda Services Post Office Box 125 San Luis Obispo, CA 93406 Attn: Executive Director 4.02. OWNER hereby specifically acknowledges and agrees to be bound by the covenants regarding use, affordability, and maintenance on the Property contained herein. GLINDA SERVICES, A CALIFORNIA CORPORATION: Marianne Kennedy/Executive irector Elaine M. Gardiner, Boardbf Directors CITY OF SAN LUIS OBISPO: Wendy G rge, Assistant City Administrative Officer VED TO ORM AND LEGAL EFFECT: Gilbert A. Trujillo, Acting City Attorney STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) ss. On.- 1 �° 'before me, Pamela K. King, personally appeared Wendy George, Assistant City Administrative Officer, and Gilbert A. Trujillo, personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized. capacities, and that by their signatures on the instrument'the persons or the entities upon behalf of which the persons acted, executed the instrument. WITNESS my.hand and official seal. t. PAMELA K. KING, NOTARY PU LIC PAMELA K. KING # 1227306 Z Notary Public - Callfornia f. Z son Luis Obispo County My Comm. Expires Jul Z 2003 Title. of Document�����'��'��t//�/7'12 Date of Document No. of.Pages Other signatures not acknowledged: Affordability Agreement/Deed of Trust Covenants Page 5 of 6 CERTIFICATE This is to certify that the interest in the real property described in Exhibit A and conveyed by the Affordability Agreement/beed of Trust. Covenants dated from Glinda Services,-a California Corporation, to the City of San Luis Obispo, a Charter Municipal Corporation, is hereby accepted by the undersigned officer or agent on.behalf of the Council of the City of San Luis Obispo, pursuant to the authority granted by City Council Resolution No. 8190. (1993 Series); adopted July 6, 1993; and the grantee consents to recordation thereof by its duly authorized officer. CITY OF SAN LUIS OBISPO: Wendy Ge ge, Assistant City Administrative Officer Date STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) ss. On "'! Q+ X l before me, Pamela K. King, personally appeared Wendy George, Assistant City Administrative Officer, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. PAMELA K. DING Commission # 1227306 Z Notary Public - @MY San Luls Ct i,7.10 Co.'r�y PAMELA KING, NOTARY PUBLI c�, �;: es _112! ^D^v3 Title of Document yhy Date of Document No. of Pages / Other signatures not acknowledged: