HomeMy WebLinkAboutD-1529 Lot 38 Tract No. 2066 Recorded 12/22/200094
Ir.("ORDNW; REQUESTED BY
FIRST AMERICAN TITLE COMPANY
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City of San Luis Obispo
990 Palm Street
San Luis Obispo, Ca. 93401 -3249
Attn: Community Development Director
Recorded for the Benefit of the
City of San Luis Obispo at No Fee Under
Section 6103 of the Government Code
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San Luis Obispo Co.
,wile L. Rodewald
Recorder
Dec 22, 2000
Time: 08:00
L i j ;TOTAL 82.00
The undersigned declare that there is no documentary
transfer tax on this matter.
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PURCHASE MONEY DEED OF TRUST, DEED OF TRUST COVENANTS,
ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING
THIS PURCHASE MONEY DEED OF TRUST, DEED OF TRUST COVENANTS,
ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this "Deed
of Trust ") is made as of this 30 day of November 2000, byChristopher N. Lawson and
Jennifer L. Lawson , the owner of the
real property described hereinbelow, whose address is:
2862 Victoria Avenue San Luis Obispo, CA 93401
Christopher N. Lawson and
Jennifer L. Lawson ( "Trustor" to)
First American Title Insurance Company ( "Trustee ") in favor of the CITY
OF SAN LUIS OBISPO, a municipal corporation, whose address is 990 Palm Street, San Luis
Obispo, California 93401 -3249 ('Beneficiary").
WHEREAS, on February 17, 1999, Beneficiary and Villa Rosa LLC, A California corporation,
entered into an Affordable Housing Agreement to implement Ordinance No. 1318 (1997 Series),
amending the Affordable Housing Requirement for the Villa Rosa Planned Residential
Development; and .
WHEREAS, to implement said Affordable Housing Agreement, Beneficiary and Trustor entered
into that certain Promissory Note ( "Note ") dated NwPmhPr ;o, 2000 pursuant to which
Trustor agreed to certain restrictions on the sale or transfer of that certain real property located in
the County of San Luis Obispo, State of California, which is further described in Exhibit A (the
"Real Property "); and
WHEREAS, Beneficiary and Trustor desire to ensure that the Real Property remain affordable to
moderate - income persons for a period of not less than 30 years, pursuant to the Housing
Agreement.
NOW, THEREFORE, THIS DEED OF TRUST WITNESSETH:
j' I � r/
IVA
Vida Rosa Second Deed of Trust
Page 2
2 Trustor, in consideration of the indebtedness referred to below and the trust herein created,
3 irrevocably grants, conveys, transfers and assigns to Trustee, and its successors and assigns, in
4 trust, with power of sale and right of entry and possession, all of Trustor's estate, right, title and
5 interest in, to and under the Real Property;
7 TOGETHER WITH all structures and improvements now existing or hereafter erected on the
8 Real Property, all easements, rights and appurtenances thereto or used in connection therewith,
9 all rents, royalties, issues, profits, revenues, income and other benefits thereof or arising from the
10 use or enjoyment of all or any portion thereof (subject, however, to the right, power and authority
11 given herein to Trustor to collect and apply such rents, royalties, issues, profits, revenues, income
12 and other benefits prior to an Event of Default hereunder), all interests in and rights, royalties and
13 profits in connection with all minerals, oil and gas and other hydrocarbon substances thereon or
14 therein, development rights or credits, air rights, water, water rights (whether riparian,
15 appropriative or otherwise and whether or not appurtenant) and water stock, all intangible
16 property and rights relating to the Real Property or the operation thereof or used in connection
17 therewith, including, without limitation, trade names and trademarks and all furniture and
18 fixtures, now or hereafter located in, or on, or attached or affixed to, or used or intended to be
19 used in connection with, the Real Property, including, but without limitation, all heating,
20 lighting, laundry, incinerating, gas, electric and power equipment, pipes, plumbing, fire
21 prevention and fire extinguishing, refrigerating, ventilating and communication apparatus, air
22 cooling and air conditioning apparatus, shades, awnings, blinds, curtains, drapes, attached floor
23 coverings, including rugs and carpeting and other installed appliances, attached cabinets, trees,
24 plants and other items of landscaping, shall, to the fullest extent permitted by law and for the
25 purposes of this Deed of Trust, be deemed to be part and parcel of, and appropriated to the use
26 of, the Real Property and, whether or not affixed or annexed thereto, be deemed conclusively to
27 be real property and conveyed by this Deed of Trust, and Trustor agrees to execute and deliver,
28 from time to time, such further instruments and documents as may be required by Beneficiary to
29 confirm the lien of this Deed of Trust on any of the foregoing;
30
31 TOGETHER WITH all of the estate, interest, right, title, other claim or demand which Trustor
32 now has or may hereafter acquire in any and all awards made for the taking by eminent domain,
33 or by any proceeding or purchase in lieu thereof, of the whole or any part of the Property (as
34 hereinafter defined), including, without limitation, any awards resulting from a change of grade
35 of streets and awards for severance damages;
36
37 TOGETHER WITH all of the estate, interest, right, title and other claim or demand which
38 Trustor now has or may hereafter acquire with respect to the unearned premiums accrued,
39 accruing or to accrue and the proceeds of insurance in effect with respect to all or any part of the
40 foregoing. All of the foregoing property referred to in this Deed of Trust, together with the Real
41 Property, is herein referred to as the "Property."
42
43 ARTICLE 1. PURPOSE AND CONSIDERATION. This trust deed is established for the
44 purpose of securing, in such order of priority as Beneficiary may elect:
Villa Rosa Second Deed of Trust
Page 3
2 (a) The repayment of the indebtedness evidenced by Trustor's Promissory Note (the
3 "Note ") of even date herewith payable to the order of Beneficiary, in the principal sum of
4 Dollars ($ ) ( "Principal "), and any and all late charges, costs or fees
5 required thereunder and all extensions, renewals, modifications, amendments and
6 replacements thereof. The amount of the Note is the monetary difference between said
7 property's initial sales price, as allowed by the City's Affordable Housing Standards and
8 its initial market value, as determined by City's Community Development Director based
9 on sales information for comparable market rate units provided by Trustee.
10
11 (b) The payment of all other sums which may be advanced by or otherwise be due to
12 Trustee or Beneficiary under any provision of this Deed of Trust with interest (if any)
13 thereon at the rate provided herein or therein.
14
15 (c) Performance of all covenants of Trustor made in this Deed of Trust.
16 ~
17 (d) Performance of all obligations and conditions of the Housing Agreement.
18
19 ARTICLE 2. DEED COVENANTS. To protect the security of this Deed of Trust, Trustor and
20 Trustee hereby covenant and agree as follows:
21
22 SECTION 2.01. Restrictions on Use and Occupancy. The Real Property shall be used solely
23 for owner- occupied housing and occupied solely by low- or moderate income households, as
24 defined in the Housing Agreement.
25
26 SECTION 2.02. Restrictions on Sale. The Real Property shall be sold or otherwise transferred
27 only to eligible households, as defined herein, or to the City, its Housing Authority, or to a non-
28 profit housing agency designated by City. Sales prices shall be based on and consistent with the
29 Affordable Housing Standards published by the City's Community Development Department.
30
31 SECTION 2.03. Term of Use, Occupancy and Sale Restrictions. Trustor agrees that the
32 above restrictions to the use, occupancy and sale of the Real Property shall remain in effect for a
33 period of not less than thirty (30) years from the date of this executed deed of trust. Further,
34 Trustor agrees that all future grant deeds for or transfers of interest in the properties shall contain
35 a restriction providing that for the period of time specified in this deed of trust, there shall be no
36 sale, lease, rental, or other transfer of the properties except for the sale to and occupation by
37 eligible low or moderate income households. Any sale, lease, rental, or other transfer of the
38 property in violation of this covenant shall be void, as provided below.
39
40 SECTION 2.04. Determination of Eligibility. Trustor and Trustee agree to retain the Housing
41 Authority of the City of San Luis Obispo, or other qualified entity acceptable to the City, to
42 determine whether prospective buyers qualify as eligible households as defined in the Affordable
43 Housing Standards.
44
3
s
Villa Rosa Second Deed of Trust
Page 4
1 SECTION 2.05. Covenants Binding. These affordability requirements shall be covenants
2 running with the land as defined in California Civil Code Section 1460, and shall apply to the
3 Real Property as further described on Exhibit A. Pursuant to Civil Code Section 1468, which
4 governs such covenants, the provisions of this Agreement shall be binding upon all parties
5 having any right, title, or interest in any of the properties described herein, or any portion thereof
6 and on their heirs, successors in interest and assigns for a period of 30 years from the date of
7 occupancy of the property. The parties agree that all future deeds or transfers of interest
8 regarding the properties shall show the restrictions of this Agreement for as long as the
9 Agreement is in effect.
10
11 SECTION 2.06. First Right of Refusal. Upon resale, Trustor and Trustee agree that the City or
12 the Housing Authority of the City of San Luis Obispo shall have the first right of refusal to
13 purchase the property or properties at the then current appraised value, as further described in the
14 Note.
15
16 SECTION 2.07. Performance of Obligations Secured. Trustor shall promptly pay when due
17 the indebtedness evidenced by the Note and any late charges, costs and/or fees provided for in
18 the Note and shall further perform fully and in a timely manner all other obligations of Trustor
19 contained herein or in the Note.
20
21 ARTICLE 3 — INSURANCE REQUIREMENTS
22
23 SECTION 3.0 L. Trustor shall keep the Property and all improvements thereon insured against
24 loss or damage by fire with extended all -risk coverage clauses, including vandalism and
25 malicious mischief clauses, in an amount not less than one hundred percent (100 %) of the full
26 replacement cost of such improvements with a company or companies and in such form and with
27 such endorsements as may be approved or required by Beneficiary.
28
29 SECTION 3.02. Trustor shall also maintain in full force and effect a policy of homeowners'
30 general liability insurance insuring Trustor against liability for bodily injury, property damage
31 and personal injury arising out of the operation, use or occupancy of the Property. The initial
32 amount of such insurance shall be One Hundred Thousand Dollars ($100,000.00) per occurrence
33 and not in the aggregate and shall be subject to periodic increase based upon increased liability
34 awards or the reasonable recommendation of Trustor's professional insurance advisor. Trustor
35 shall name Beneficiary as an additional insured under such policy. Such insurance shall be
36 primary with respect to any insurance maintained by Beneficiary and shall not call on
37 Beneficiary's insurance for contributions.
38
39 SECTION 3.03. Trustor shall pay all premiums for the insurance policies required to be
40 maintained under this Deed of Trust within fifteen (15) days after Trustor's receipt of a copy of
41 the premium statement or other evidence of the amount due. At least thirty (30) days prior to the
42 expiration of such policy, Trustor shall deliver to Beneficiary a renewal of such policy.
43
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Villa Rosa Second Deed of Trust
Page 5
1 SECTION 3.04. Any insurance which Trustor is required to maintain under this Deed of Trust
2 shall include a provision requiring that the insurance carrier give Beneficiary not less than thirty
3 (30) days written notice prior to any cancellation or modification of such coverage. If Trustor (i)
4 fails to deliver any policy or renewal to Beneficiary required under this Deed of Trust within the
5 prescribed time period or (ii) if any such policy is canceled or modified to reduce the amount or
6 type of coverage without Beneficiary's consent and no substituted comparable coverage is
7 obtained by Trustor prior to such cancellation or modification, Beneficiary may obtain such.
8 insurance. In such case, Trustor shall reimburse Beneficiary for the cost of such insurance within
9 fifteen (15) days after receipt of a statement that indicates the cost of such insurance and upon
to proof that Beneficiary has paid said statement.
it
12 SECTION 3.05. Trustor shall maintain all insurance required under this Deed of Trust with
13 companies holding a "general policy rating" of A -8 or better, as set forth in the most current issue
14 of "Best Key Rating Guide." Trustor acknowledges that the insurance described in this Section is
15 for the primary benefit of Beneficiary. Beneficiary makes no representation as to the adequacy of
16 such insurance to protect Trustor's or Beneficiary's interests. Therefore, Trustor shall obtain any
17 additional property or liability insurance that Trustor deems necessary to protect Beneficiary and
18 Trustor, in the exercise of reasonable judgment.
19
20 SECTION 3.06. Notwithstanding anything to the contrary contained herein, Trustor's obligation
21 to carry the insurance provided for herein may be brought within the coverage of a so- called
22 blanket policy or policies of insurance carried and maintained by Trustor; provided, however,
23 that Beneficiary shall be named as an additional insured thereunder and that the coverage
24 afforded Beneficiary will not be reduced or diminished by reason of the use of such blanket
25 policy of insurance and provided further that the requirements set forth herein are otherwise
26 satisfied.
27
28 SECTION 3.07. All of the above - mentioned insurance policies or certificates of insurance must
29 be satisfactory to Beneficiary. Beneficiary shall not by the fact of approving, disapproving,
30 accepting, preventing, obtaining or failing to obtain any insurance, incur any liability for or with
31 respect to the amount of insurance carried, the form or legal sufficiency of insurance contracts,
32 insolvency of insurance companies or payment or defense of lawsuits and Trustor hereby
33 expressly assumes full responsibility therefor and all liability, if any, with respect thereto.
34
35 SECTION 3.08. Condemnation and Insurance Proceeds.
36
37 SUBSECTION 3.08(a). Any award of damages in connection with any taking or condemnation,
38 or for injury to the Property by reason of public use, or for damages for private trespass or entry
39 onto the Property is hereby assigned and shall be paid to Beneficiary as further security for all
40 obligations secured by this Deed of Trust. Upon receipt of such proceeds, Beneficiary may hold
41 the proceeds as further security or apply or release them in the same manner and with the same
42 effect as provided in this Deed of Trust for the disposition of proceeds of fire or other insurance.
43
Villa Rosa Second Deed of Trust
Page 6
1 SUBSECTION 3.08(b). Any insurance proceeds or awards in connection with any casualty or
2 damage or injury to the Property covered by insurance ( "Insurance Proceeds ") are hereby
3 assigned to Beneficiary to be held and applied by Beneficiary in the manner hereinafter provided.
4 Beneficiary may, at its option, and at its own expense, appear in and prosecute in its own name
5 any action or proceeding to enforce any cause of action for such Insurance Proceeds. All
6 Insurance Proceeds shall be applied by Beneficiary upon any indebtedness secured by this Deed
7 of Trust and in any order determined by Beneficiary or, at the option of Beneficiary, the entire
8 amount so collected or any part of that amount may be released to Trustor. This application or
9 release shall not cure or waive any default or notice of default under this Deed of Trust or
10 invalidate any act done pursuant to such notice.
11
12 SUBSECTION 3.08(c). Trustor, immediately upon obtaining knowledge of the institution of any
13 proceedings relating to condemnation or other taking of or damage or injury to the Property or
14 any portion thereof, or knowledge of any casualty damage to the Property or damage in any other
15 manner, shall immediately notify Beneficiary in writing. Beneficiary may participate, at its own
16 expense, in any such proceedings and may join Trustor in adjusting any loss covered by
17 insurance.
18
19 ARTICLE 4. TAXES, LIENS AND OTHER ITEMS. Trustor shall pay, when due, all taxes,
20 bonds, assessments, fees, liens (including prior trust deed liens), charges, fines, impositions and
21 any and all other items which are attributable to or affect the Property and which may attain a
22 priority over this Deed of Trust or the indebtedness or evidence of indebtedness secured hereby,
23 by making payment prior to delinquency directly to the payee thereof. Trustor may initiate
24 proceedings to contest any such taxes, bonds, assessments, fees, liens, charges, fines, impositions
25 or other items so long as Trustor takes steps to ensure that Beneficiary's security is not threatened
26 in any manner. Trustor shall pay all costs of the proceedings, including any costs or fees incurred
27 by Beneficiary. Upon the final determination of any proceeding or contest, Trustor shall
28 immediately pay the amounts due, together with all costs, charges, interest and penalties
29 incidental to the proceedings.
30
31 ARTICLE 5. RENTS AND PROFITS. Trustor acknowledges and agrees that the Property
32 shall at all times be occupied by the Trustor as the Trustor's primary residence and shall not be
33 leased or rented during the term of the Note and this Deed of Trust. Notwithstanding the
34 foregoing, any rents, royalties, issues, profits, revenue, income and other benefits of the Property
35 arising from the use and enjoyment of all or any portion thereof or from any lease or agreement
36 pertaining thereto (the "Rents and Profits "), whether now due, past due, or to become due, and
37 including all prepaid rents and security deposits, are hereby absolutely, presently and
38 unconditionally assigned, transferred, conveyed and set over to Beneficiary to be applied by
39 Beneficiary in the payment of the principal and all other sums payable on the Note and of all
40 other sums payable under this Deed of Trust. It is understood and agreed that neither the
41 foregoing assignment of Rents and Profits to Beneficiary nor the exercise by Beneficiary of any
42 of its rights or remedies under Article 5 hereof shall be deemed to defeat the owner - occupied
43 restriction set forth in the Agreement or to make Beneficiary a mortgagee -in- possession or
44 otherwise responsible or liable in any manner with respect to the Property or the use, occupancy,
0 0
Villa Rosa Second Deed of Trust
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I enjoyment or operation of all or any portion thereof, unless and until Beneficiary, in person or by
2 agent, assumes actual possession thereof. 'Further, the appointment of a receiver for the Property
3 by any court at the request of Beneficiary or by agreement with Trustor, or the entering into
4 possession of the Property or any part thereof by such receiver, shall not be deemed to make
5 Beneficiary a mortgagee -in- possession or otherwise responsible or liable in any manner with
6 respect to the Property or the use, occupancy, enjoyment or operation of all or any portion
7 thereof.
9 ARTICLE 6. PRESERVATION AND MAINTENANCE OF PROPERTY. Trustor shall
10 keep the Property and every part thereof in good condition and repair and shall not permit or
11 commit any waste, impairment or deterioration of the Property nor commit, suffer or permit any
12 act upon or use of the Property in violation of law or applicable order of any governmental
13 authority, whether now existing or hereafter enacted and whether foreseen or unforeseen,
14 including, without limitation, violation of any zoning, building or environmental protection
15 statutes, ordinances, regulations, orders and restrictions or in violation of any covenants,
16 conditions or restrictions affecting the Property or bring or keep any article upon any of the
17 Property or cause or permit any condition to exist thereon which would be prohibited by or could
18 invalidate any insurance coverage maintained or required hereunder to be maintained by Trustor
19 on or with respect to any part of the Property and further shall do all other acts which from the
20 character or use of the Property may be reasonably necessary to protect the security hereof, the
21 specific enumerations herein not excluding the general. Trustor shall complete and restore and
22 repair promptly and in a good and workmanlike manner any building, structure or improvement
23 thereon which may be damaged or destroyed and pay, when due, all claims for labor performed
24 and materials furnished therefor, whether or not insurance or other proceeds are available to
25 cover, in whole or in part, the costs of any such restoration or repair. Trustor shall notify
26 Beneficiary immediately in writing of any damage to the Property in excess of Ten Thousand
27 Dollars ($10,000.00).
28
29 ARTICLE 7. PROTECTION OF SECURITY: COSTS AND EXPENSES. Trustor shall
30 appear in and defend any action or proceeding purporting to affect the security hereof or the
31 rights or powers of Beneficiary or Trustee and shall pay all reasonable costs and expenses,
32 including, without limitation, costs of evidence of title and reasonable attorney's fees, in any such
33 action or proceeding in which Beneficiary or Trustee may appear and in any suit brought by
34 Beneficiary to foreclose this Deed of Trust or to enforce or establish any other rights or remedies
35 of Beneficiary hereunder. If Trustor fails to perform any of the covenants or agreements in this
36 Deed of Trust or if any action or proceeding is commenced which affects Beneficiary's interest in
37 the Property or any part thereof, including, but not limited to, eminent domain, code enforcement
38 or proceedings of any nature whatsoever under any federal or state law, whether now existing or
39 hereafter enacted or amended, relating to bankruptcy, insolvency, arrangement, reorganization or
40 other form of debtor relief, or to a decedent, then Beneficiary or Trustee may, but without
41 obligation to do so and upon ten (10) days' prior written notice to and demand upon Trustor
42 (unless a shorter notice period is necessary to protect Beneficiary's interest in the security hereof,
43 in which case only reasonable notice and demand under the circumstances shall be required) and
44 without releasing Trustor from any obligation hereunder, make such appearances, disburse such
Villa Rosa Second Deed of Trust
Page 8
1 sums and take such action as Beneficiary or Trustee deems necessary or appropriate to protect
2 Beneficiary's interest, including, but not limited to, disbursement of reasonable attorney's fees,
3 entry upon the Property to make repairs or otherwise protect the security hereof, and payment,
4 purchase, contest or compromise of any encumbrance, charge or lien which in the judgment of
5 either Beneficiary or Trustee appear to be prior or superior hereto. Trustor further agrees to pay
6 all reasonable expenses of Beneficiary (including fees and disbursements of counsel) reasonably
7 related to the protection of the rights of Beneficiary hereunder, and enforcement or collection of
8 payment of the Note, whether by judicial or non -judicial proceedings, or in connection with any
9 bankruptcy, insolvency, arrangement, reorganization or other debtor relief proceeding of Trustor,
10 or otherwise. Beneficiary shall give Trustor ten. (10) days' prior written notice before disbursing
11 any amounts pursuant to this Article. Any amounts disbursed by Beneficiary or Trustee pursuant
12 to this Section shall be additional indebtedness of Trustor secured by this Deed of Trust as of the
13 date of disbursement. All such amounts shall be payable by Trustor immediately without
14 demand. Nothing contained herein shall be construed to require Beneficiary or Trustee to incur
15 any expense, make any appearance or take any other action.
16
17 ARTICLE 8. ENFORCEMENT.
18
19 Section 8.01. Acknowledgement of Enforceability. Trustor represents, warrants, covenants
20 and agrees that it is the lawful owner of the Real Property and that it has good right and lawful
21 authority to encumber the same as provided herein; that the Real Property is free from any and
22 all liens and encumbrances excepting only such as have been approved by Beneficiary and that
23 Trustor warrants and will defend the title to the Property against all claims and demands
24 whatsoever not specifically excepted herein (and except for claims and demands arising from
25 acts or omissions of Beneficiary or any predecessor -in- interest to Beneficiary not previously
26 disclosed to Trustor), and Trustor will execute, acknowledge and deliver all and every such
27 further assurances unto Beneficiary of the title to the Property hereby conveyed and intended so
28 to be or that Trustor may be or shall become hereinafter bound so to do. Trustor covenants and
29 warrants that the Note and this Deed of Trust are valid and enforceable obligations of Trustor in
30 accordance with the terms thereof and hereof; and that this Deed of Trust does not, nor does the
31 Note, nor does the performance or observance by Trustor of any of the matters or things in the
32 Note or this Deed of Trust, contravene any covenant in any indenture or agreement affecting
33 Trustor.
34
35 Section 8.02. Due on Sale and Other Enforcement Provisions. Trustor's agreement to ensure
36 the continued owner occupancy of the Real Property is a substantial material consideration to
37 Beneficiary and Beneficiary's agreement to accept the Note and to accept this Deed of Trust. In
38 accordance with California Civil Code Section 711.5 and in order to induce Beneficiary to accept
39 this Deed of Trust and the Note, Trustor agrees that Trustor shall not Transfer all or any part of
40 the Property without the prior written consent of Beneficiary. Except for a Transfer to a Eligible
41 Household (as defined in the City of San Luis Obispo's Affordable Housing Standards),
42 Beneficiary may grant or deny such consent in its sole and absolute discretion and as a condition
43 to such consent may require any transferee to assume all obligations hereunder and to agree to be
44 bound by all provisions contained herein. In the event of any proposed Transfer, Trustor shall
Villa Rosa Second Deed of Trust
Page 9
1 provide Beneficiary with all financial and other information pertaining to the intended transferee
2 reasonably requested by Beneficiary. In the event of any Transfer without the prior written
3 consent of Beneficiary, Beneficiary shall have the absolute right, at its option, without demand or
4 . notice, to declare all outstanding Principal and all other sums due hereunder and under the Note
5 to be immediately due and payable. Further, Beneficiary may bring an action at law or in equity
6 to require Trustor and the proposed transferee to terminate and/or rescind any sales contract or
7 purchase and sale transaction between them and/or to declare the transfer void, notwithstanding
8 that the transfer may have closed and become final as between Trustor and the transferee.
9 Further, Beneficiary may pursue any other remedy available under this Deed of Trust or the Note
10 or at law or in equity or under any other agreement, instrument or document entered into by
11 Trustor and Beneficiary. Beneficiary's consent to one Transfer shall not be deemed to be a
12 waiver of the right to require consent to a future or successive Transfer. As used herein,
13 "Transfer" includes any sale, agreement to sell, assignment, exchange or other conveyance of the
14 Property or any portion thereof or any interest therein, whether voluntary or involuntary, by
15 operation of law or otherwise, except that a Transfer by gift, devise or inheritance to a spouse or
16 to a spouse as a part of a dissolution proceeding shall not be considered a Transfer for purposes
17 of this Section.
18
19 ARTICLE 9. EVENTS OF DEFAULT. Each of the following shall constitute an event of
20 default ( "Event of Default ") hereunder (including, if Trustor and Trustee consists of more than
21 one person or entity, the occurrence of any of such events with respect to any one or more of
22 such persons or entities):
23
24 SECTION 9.01. Breach of Covenants. Default by Trustor in the performance of any of the
25 covenants or agreements of Trustor contained herein, in the Note, in the Housing Agreement or
26 any other note or instrument, trust deed or other obligation of Trustor relating to the Property
27 secured by any part of or all of the Property, whether junior or senior to this Deed of Trust.
28
29 SECTION 9.02. Appointment of Trustee. The appointment pursuant to an order of a court of
30 competent jurisdiction, of a trustee, receiver or liquidator of the Property or any part thereof, or
31 of Trustor, or any termination or voluntary suspension of the transaction of business of Trustor,
32 or any attachment, execution or other judicial seizure of all or any substantial portion of Trustor's
33 assets; provided, however, that if such attachment, execution or seizure is involuntary, Trustor
34 shall not be deemed in default unless the same is not discharged within sixty (60) days.
35
36 SECTION 9.03. Bankruptcy Filing. The filing by or against Trustor of a petition in bankruptcy
37 or for an arrangement or for reorganization or for other form of debtor relief pursuant to the
38 federal Bankruptcy Act, as the same may be amended or replaced from time to time, or any other
39 law, federal or state, whether now existing or hereafter amended or enacted relating to insolvency
40 or debtor relief (except that in the case of a filing against Trustor, an Event of Default shall not
41 exist unless Trustor fails to have the proceeding discharged within sixty (60) days after such
42 filing), or the adjudication of Trustor as a bankrupt or an insolvent by a decree of a court of
43 competent jurisdiction, or the making of an assignment for the benefit of creditors, or the
44 admission by Trustor in writing of its inability to pay its debts generally as they become due, or
Viila Rosa Second Deed of Trust
Page 10
1 the giving of consent by Trustor to the appointment of a receiver or receivers of all or
2 substantially all of its property.
4 . SECTION 9.04. Misrepresentations. Any representation or disclosure made to Beneficiary by
5 Trustor as an inducement to the making of the loan evidenced by the Note that proves to be false
6 or misleading in any material respect as of the time the same was made, whether or not any such
7 representation or disclosure appears as part of this Deed of Trust.
9 SECTION 9.05. Other Events. Any other event which, under this Deed of Trust, or under the
10 Note or the Agreement, constitutes an Event of Default by Trustor hereunder or thereunder or
11 gives Beneficiary the right to accelerate the maturity of the indebtedness, or any part thereof,
12 secured hereby.
13
14 ARTICLE 10. REMEDIES. Upon the occurrence of any Event of Default and the expiration
15 of any applicable period within which to cure the same, Trustee and Beneficiary shall have the
16 following rights and remedies:
17
18 SECTION 10.01. Acceleration. Beneficiary may declare the entire outstanding Principal and all
19 other sums or payments required hereunder to be due and payable immediately and
20 notwithstanding the date such sums would otherwise be due in accordance with the Note and the
21 Agreement.
22
23 SECTION 10.02. Entry. Whether or not Beneficiary exercises the right provided in Section
24 10.01 above, Beneficiary, in person or by agent or court- appointed receiver, may enter upon, take
25 possession of, manage and operate the Property or any part thereof and do all things necessary or
26 appropriate in Beneficiary's sole discretion in connection therewith, including, without
27 limitation, making and enforcing, and if the same be subject to modification or cancellation,
28 modifying or canceling leases upon such terms or conditions as Beneficiary deems proper,
29 obtaining and evicting tenants, and fixing or modifying rents, contracting for and making repairs
3o and alterations, and doing any and all other acts which Beneficiary deems proper to protect the
31 security hereof; and either with or without so taking possession, in its own name, in the name of
32 Trustor or by court- appointed receiver (which may be appointed on notice or on ex parte
33 application without notice), suing for or otherwise collecting and receiving the rents and profits,
34 including those past due and unpaid, and applying the same less costs and expenses of operation
35 and collection, including reasonable attorney's fees, upon any indebtedness secured hereby and in
36 such order as Beneficiary may determine. Upon request of Beneficiary, Trustor shall assemble
37 and make available to Beneficiary at the site of the Real Property any of the Property which has
38 been removed therefrom. The entering upon and taking possession of the Property, or any part
39 thereof, the collection of any rents and profits and the application thereof as aforesaid shall not
40 cure or waive any Event of Default theretofore or thereafter occurring or affect any notice or
41 Event of Default or notice, and, notwithstanding continuance in possession of the Property or any
42 part thereof by Beneficiary, Trustor or a receiver, and the collection, receipt and application of
43 the rents and profits, Beneficiary shall be entitled to exercise every right provided for in this
44 Deed of Trust or by law or in equity upon or after the occurrence of an Event of Default,
10
Villa Rosa Second Deed of Trust
Page 11
1 including, without limitation, the right to exercise the power of sale. Any of the actions referred
2 to in this Section may be taken by Beneficiary irrespective of whether any notice of an Event of
3 Default or election to sell has been given hereunder and without regard to the adequacy of the
4. security for the indebtedness hereby secured.
5
6 SECTION 10.03. Judicial Action. Beneficiary may bring an action in any court of competent
7 jurisdiction to foreclose this Deed of Trust or to enforce any of the covenants and agreements of
8 this Deed of Trust, or the Note and the Housing Agreement.
io SECTION 10.04. Power of Sale.
11
12 SUBSECTION 10.04(a). Beneficiary may elect to cause the Property or any part thereof to be
13 sold under the power of sale herein granted in any manner permitted by applicable law. In
14 connection with any sale or sales hereunder, Beneficiary may elect to treat any of the Property
15 that consists of a right in action or that is property that can be severed from the Real Property or
16 any improvements thereon without causing structural damage thereto as if the same were
17 personal property and dispose of the same in accordance with applicable law, separate and apart
18 from the sale of the Real Property.
19
20 SUBSECTION 10.04(b). Trustee may, and upon request of Beneficiary shall, from time to -time,
21 postpone any sale hereunder by public announcement thereof at the time and place noticed
22 therefor. If the Property consists of several items of property, Beneficiary may designate the
23 order in which such items shall be offered for sale or sold. Any person, including Trustor,
24 Trustee or Beneficiary, may purchase at any sale hereunder, and Beneficiary shall have the right
25 to purchase at any sale hereunder by crediting upon the bid price the amount of all or any part of
26 the indebtedness hereby secured.
27
28 SUBSECTION 10.04(c). Should Beneficiary desire that more than one sale or other disposition
29 of the Property be conducted, Beneficiary may, at its option, cause the same to be conducted
30 simultaneously, or successively, on the same day, or at such different days or times and in such
31 order as Beneficiary may deem to be in its best interests, and no such sale shall terminate or
32 otherwise affect the lien of this Deed of Trust on any part of the Property not sold until all
33 indebtedness secured hereby has been fully paid.. Upon any sale hereunder, Trustee shall execute
34 and deliver to the purchaser or purchasers a deed or deeds conveying the Property so sold, but
35 without any covenant or warranty whatsoever, express or implied, whereupon such purchaser or
36 purchasers shall be let into immediate possession; and the recitals in any such deed or deeds of
37 facts, such as default, the giving of notice of default and notice of sale and other facts affecting
38 the regularity or validity of such sale or disposition, shall be conclusive proof of the truth of such
39 facts and any such deed or deeds shall be conclusive against all persons as to such facts recited
40 therein.
41
42 SUBSECTION 10.04(d). In case of any sale of the Property pursuant to any judgment or decree
43 of any court or at public auction or otherwise in connection with the enforcement of any of the
44 terms of this Deed of Trust, Beneficiary, its successors or assigns, may become the purchaser,
11
Villa Rosa Second Deed of Trust
Page 12
1 and for the purpose of making settlement for or payment of the purchase price, shall be entitled
2 to deliver over and use the Note, together with all other sums, with interest, advanced and unpaid
3 hereunder, in order that there may be credited as paid on the purchase price the sum then due
4. under the Note, including .principal thereon and all other sums, with interest, advanced and
5 unpaid hereunder.
7 SECTION 10.05. Proceeds of Sale. The proceeds of any sale made under or by virtue of this
8 Article, together with all other sums that then may be held by Trustee or Beneficiary under this
9 Deed of Trust, whether under the provisions of this Article or otherwise, shall be applied as
10 follows:
11
12 (a) First, to the payment of the costs and expenses of sale and of any judicial proceedings
13 wherein the same may be made, including reasonable compensation to Trustee and Beneficiary,
14 their agents and counsel, and to the payment of all expenses, liabilities and advances made or
15 incurred by Trustee under this Deed of Trust, together with interest on all advances made by
16 Trustee at the maximum rate permitted 6y law to be charged by Trustee.
17
18 (b) Second, to the payment of any and all sums expended by Beneficiary under the terms hereof
19 (including, but not limited to, sums paid by Beneficiary on the prior trust deed) not then repaid
20 and all other sums required to be paid by Trustor pursuant to any provisions of this Deed of Trust
21 or the Note, including, without limitation, all expenses, liabilities and advances made or incurred
22 by Beneficiary under this Deed of Trust or in connection with the enforcement hereof, together
23 with interest thereon as herein provided.
24
25 (c) Third, to the payment of the entire amount then due, owing or unpaid upon the Note,
26 including attorney's fees and costs.
27
28 (d) Fourth, all amounts otherwise due Beneficiary.
29
30 (e) The remainder, if any, to the person or persons legally entitled thereto.
31
32 SECTION 10.06. Waiver of Marshaling. Trustor, for itself and for all persons hereafter
33 claiming through or under it or who may at any time hereafter become holders of liens junior to
34 the lien of this Deed of Trust, hereby expressly waives and releases all rights to direct the order
35 in which any of the Property shall be sold in the event of any sale or sales pursuant hereto, and to
36 have any of the Property and/or other property now or hereafter constituted security for any of
37 the indebtedness secured hereby, marshaled upon any foreclosure of this Deed of Trust or for any
38 other security for any of said indebtedness.
39
40 SECTION 10.07. Remedies Cumulative. No remedy herein conferred upon or reserved to
41 Trustee or Beneficiary is intended to be exclusive of any other remedy herein or by law provided,
42 but each shall be cumulative and shall be in addition to every other remedy given hereunder or
43 now or hereafter existing at law or in equity or by statute. No delay or omission of Trustee or
44 Beneficiary to exercise any right or power accruing upon any Event of Default shall impair any
12
Villa Rosa Second Deed of Trust
Page 13
1 right or power or shall be construed to be a waiver of any Event of Default or any acquiescence
2 therein; and every power and remedy given by this Deed of Trust to Trustee or Beneficiary may
3 be exercised from time to time as often as may be deemed expedient by Trustee or Beneficiary. If
4. there exists additional security for the performance of the obligations secured hereby, the holder
5 of the Note, at its sole option, and without limiting or affecting any of its rights or remedies
6 hereunder, may exercise any of the rights and remedies to which it may be entitled hereunder
7 either concurrently with whatever rights and remedies it may have in connection with such other
8 security or in such order as it may determine. Any application of any amounts or any portion
9 thereof held by Beneficiary at any item as additional security hereunder, whether pursuant to this
10 deed of trust or otherwise, to any indebtedness secured hereby shall not extend or postpone the
11 due dates of any payments due from Trustor to Beneficiary hereunder or under the Note, or
12 change the amounts of any such payments or otherwise be construed to cure or waive any default
13 or notice of default hereunder or invalidate any act done pursuant to any such default or notice.
14 In the event that Beneficiary shall have proceeded to enforce any right under this Deed of Trust
15 by foreclosure, sale, entry or otherwise, and such proceedings shall have been discontinued or
16 abandoned for any reason or shall have been determined adversely, then, and in every such case,
17 Trustor and Beneficiary shall be restored to their former positions and rights hereunder with
18 respect to the Property subject to the lien hereof.
19
20 ARTICLE 11. MISCELLANEOUS
21
22 SECTION 11.01. Severability. In the event that any one or more of the provisions contained in
23 this Deed of Trust shall for any reason be held to be.invalid, illegal or unenforceable in any
24 respect, such invalidity, illegality or unenforceability shall not affect any other provision of this
25 Deed of Trust, and this Deed of Trust shall be construed as if such invalid, illegal or
26 unenforceable provision had never been contained herein.
27
28 SECTION 11.02. Certain Charges. Trustor agrees to pay the charges of Beneficiary for any
29 service rendered Trustor, or on its behalf, connected with this Deed of Trust or the indebtedness
30 secured hereby, including, without limitation, delivering to an escrow holder a request for full or
31 partial reconveyance of this Deed of Trust, transmitting to an escrow holder moneys secured
32 hereby, changing the records pertaining to this Deed of Trust and indebtedness secured hereby,
33 showing a new owner of the Property and replacing an existing policy of insurance held
34 hereunder with another such policy.
35
36 SECTION 12.03. Notices. All notices expressly provided hereunder to be given by Beneficiary
37 to Trustor and all notices and demands of any kind or nature whatsoever that Trustor may be
38 required or may desire to give to or serve on Beneficiary shall be in writing and shall be served
39 by first class or registered or certified mail, return receipt requested. Any such notice or demand
40. so served shall be deposited in the United States mail, with postage thereon fully prepaid and
41 addressed to the party so to be served at its address above stated or at such other address of which
42 said party shall have theretofore notified in writing; as provided above, the party giving such
43 notice. Service of any such notice or demand so made shall be deemed effective on the date of
44 actual delivery as shown by the addressee's return receipt or the expiration of forty-eight (48)
13
Villa Rosa Second Deed of Trust
Page 14
1 hours after the date of mailing, whichever is the earlier in time, except that service of any notice
2 of default or notice of sale provided or required by law shall, if mailed, be deemed effective on
3 the date of mailing.
5 SECTION 12.04. Trustor Not Released. Extension of the time for payment or modification of
6 the terms of payment of any sums secured by this Deed of Trust granted by Beneficiary to any
7 successor -in- interest of Trustor shall not operate to release, in any manner, the liability of the
8 original Trustor. Beneficiary shall not be required to commence proceedings against such
9 successor or refuse to extend time for payment or otherwise modify the terms of the payment of
10 the sums secured by this Deed of Trust by reason of any demand made by the original Trustor.
11 Without affecting the liability of any person, including Trustor, for the payment of any
12 indebtedness secured hereby, or the lien of this Deed of Trust on the remainder of the Property
13 for the full amount of any such indebtedness and liability unpaid, Beneficiary and Trustee are
14 respectively empowered as follows: Beneficiary may from time to time and without notice (a)
15 release any person liable for the payment of any of the indebtedness, (b) extend the time or
16 otherwise alter the terms of payment of any of the indebtedness, (c) accept additional real or
17 personal property of an kind as security therefor, whether evidenced by deeds of trust, mortgages,
18 security agreements or any other instruments of security, or (d) alter, substitute or release any
19 property securing the indebtedness; Trustee may, at any time and from time to time, upon the
20 written request of Beneficiary (a) consent to the making of any map or plat of the Property or any
21 part thereof, (b) join in granting any easement or creating any restriction thereon, (c) join in any
22 subordination agreement or other agreement affecting this Deed of Trust or the lien or charge
23 hereof, or (d) reconvey, without any warranty, all or part of the Property.
24
25 SECTION 12.05. Inspection. Beneficiary may at any reasonable time or times make or cause to
26 be made entry upon and inspections of the Property or any part thereof in person or by agent.
27
28 SECTION 1.2.06. Reconveyance. Upon the payment in full of all sums secured by this Deed of
29 Trust or upon forgiveness of such payment in accordance with the Note, Beneficiary shall request
30 that Trustee reconvey the Property and shall surrender this Deed of Trust and Note evidencing
31 indebtedness secured by this Deed of Trust to Trustee. Upon payment of its fees and any other
32 sums owing to it under this Deed of Trust, Trustee shall reconvey the Property without warranty
33 to the person or persons legally entitled thereto. Such person or persons shall pay all costs of
34 recordation, if any. The recitals in such reconveyance of any matters of facts shall be conclusive
35 proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the
36 person or persons legally entitled thereto." Five (5) years after issuance of such full
37 reconveyance, Trustee may destroy the Note and this Deed of Trust unless otherwise directed by
38 Beneficiary.
39
40 SECTION 12.07. Interpretation. Wherever used in this Deed of Trust, unless the context
41 indicates a contrary intent, or unless otherwise specifically provided herein, the word " Trustor"
42 shall mean and include both Trustor and any subsequent owner or owners of the Property, and
43 the word "Beneficiary" shall mean and include not only the original Beneficiary hereunder but
44 also any future owner and holder, including pledgees, of the Note secured hereby. In this Deed of
14
Villa Rosa Second Deed of Trust
Page 15
1 Trust wherever the context so requires, the masculine gender includes the feminine and/or neuter,
2 and the neuter includes the feminine and/or masculine, and the singular number includes the
3 plural and conversely. In this Deed of Trust, the use of the word "including" shall not be deemed
4 to limit the generality of the term or clause to which it has reference, whether or not non - limiting
5 language (such as "without limitation," or "but not limited to" or words of similar import) is used
6 with reference thereto. The captions and headings of the Articles and Sections of this Deed of
7 Trust are for convenience only and are not to be used to interpret, define or limit the provisions
8 hereof.
9
10 SECTION 12.08. Consent. The granting or withholding of consent by Beneficiary to any
11 transaction as required by the terms hereof shall not be deemed a waiver of the right to require
12 consent to future or successive transactions.
13
14 SECTION 12.09. Successors and Assigns. All of the grants, obligations, covenants,
15 agreements, terms, provisions and conditions herein shall run with the land and shall apply to,
16 bind, and inure to the benefit of the heirs, administrators, executors, legal representatives,
17 successors and assigns of Trustor and the successors -in -trust of Trustee and the endorsees,
18 transferees, successors and assigns of Beneficiary. In the event that Trustor is composed of more
19 than one party, the obligations, covenants, agreements and warranties contained herein as well as
20 the obligations arising therefrom are and shall be joint and several as to each such party.
21
22 SECTION 12.10. Governing Law. This Deed of Trust shall be governed by and construed under
23 the laws of the State of California.
24
25 SECTION 12.11. Trustor Waivers. Trustor waives the benefit of all laws now existing or that
26 hereafter may be enacted with respect to any statute of limitations for the filing of any action or
27 claims by Beneficiary.
28
29 SECTION 12.13. Superiority of First Lender Documents.
30
31 SUBSECTION 12.13(a). This Deed of Trust shall not diminish or affect the rights of the First
32 Lender under that certain deed of trust dated 1 % s 70r -' , , executed by the
33 Trustor in favor of the First Lender and recorded in the County of San Luis Obispo on
34 Go; z ^, (;,,� �f '� ���, ��? f! .'�; and assigned Instrument No. or any subsequent
35 First Lender deeds of trust hereafter recorded against the Security (the "First Deed of Trust "),
36 except as provided in Subsection 12.13(b) below. Beneficiary and Trustor acknowledge and
37 agree that this Deed of Trust is subject and subordinate in all respects to the liens, terms,
38 covenants and conditions of the First Deed of Trust and to all advances heretofore made or which
39 may hereafter be made pursuant to the First Deed of Trust including all sums advanced for the
40 purpose of (i) protecting or further securing the lien of the First Deed of Trust, curing defaults by
41 the Trustor under the First Deed of Trust or for any other purpose expressly permitted by the
42 First Deed of Trust or (ii) constructing, renovating, repairing, furnishing, fixturing or equipping
43 the Property. The terms and provisions of the First Deed of Trust are paramount and controlling,
44 and they supersede any other terms and provisions hereof in conflict therewith..
15
Villa Rosa Second Deed of Trust
Page 16
1 SUBSECTION 12.13(b). In the event of default, the First Lender may take the following actions
2 to cure the default, provided first that: (i) the Beneficiary has been given written notice of a
3 default under the First Deed of Trust, and (ii) the Beneficiary shall not have cured the default
4 under the First Deed of Trust, or diligently pursued curing the default as determined by the First
5 Lender, within the 60 -day period provided in such notice sent to the Beneficiary:
6
7 1) Foreclose on the subject property pursuant to the remedies permitted by law and written
8 in a recorded contract or deed of trust; or
9 ~
10 2) Accept a deed of trust or assignment to the extent of the value of the unpaid first
11 mortgage to the current market value in lieu of foreclosure in the event of default by a
12 trustor; or
13
14 3) Sell the property to any person at a fair market value price subsequent to exercising its
15 rights under the deed of trust. Any value in excess of the unpaid mortgage and costs of
16 sale administration shall be used-to satisfy the City loan. In no case may a first mortgage
17 lender, exercising foreclosure assignment in -lieu of foreclosure or sale, obtain value or
18 rights to value greater than the value of the outstanding indebtedness on the first
19 mortgage at the time of the debt clearing action.
20
21 The following types of transfers shall remain subject to the requirements of the City's loan and
22 right of first refusal: transfer by gift, devise, or inheritance to the owner's spouse; transfer to a
23 surviving joint tenant; transfer to a spouse as part of divorce or dissolution proceedings; or
24 acquisition in conjunction with a marriage.
25
26 SECTION 12.14. Request for Notices of Default and Sale.
27
28 SUBSECTION 12.14(a). Trustor hereby requests that a copy of any notice of default and notice
29 of sale as may be required by law or by this Deed of Trust be mailed to Trustor at its address
30 above stated.
31
32 SUBSECTION 12.14(b). In accordance with Section 2924b of the California Civil Code, request
33 is hereby made that a copy of any notice ^of default and a copy of any notice of sale under that
34 deed trustrecorded,en UOnc'Xr�Z il-�' 4 i'�",inBook page
35 records of San Luis Obispo County, Califo a, executed b as
36 trustor in whic is named Benefici and
37 , as T tee, be mailed to: Community D elopment Director, of San Luis Obispo,
38 990 Palm Street, Luis Obispo, California 93401- 49. NOTICE: A co y of any notice of
39 default and of any no i e of sale will be sent only to the a ess contained in this recorded
40 request. If your address c ges, a new request must be recor ed.
41
42 SECTION 12.15. No Transfer. Trustor shall not voluntarily or involuntarily (except for a
43 transfer in accordance with the Housing Agreement) assign or otherwise transfer any of its rights,
16
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Villa Rosa Second Deed of Trust
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duties, liabilities or obligations hereunder or under the Note without the prior written consent of
Beneficiary.
SECTION 12.16: Attorney's Fees. In any action to interpret or enforce any provision of this
Deed of Trust, the prevailing party shall be entitled to reasonable costs and attorney's fees.
IN WITNESS WHEREOF, the undersigned have executed this Deed of Trust as of the day and
year first above written.
"Trustor" Christopher N. Lawson
1�jAi - A -A
"Tr tor" VldbhilVr L. Lawson
17
AM. E RI
1 9
}
STATE OF CALIFORNIA }ss.
COUNTY OF q� Z,J.5 e<
On %2 -/o �.t'r; ,before me,
personally appeared S 6- , ---,h�-;�
personally known to me
(or proved to me on the.basis of satisfactory evidence) to be the person(s) whose name(s) is /are
subscribed to the within instrument and acknowledged to me that he /she /they executed the same
in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the
person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
KIM M. MAC D5NA! D
COMM. *11, 79 890
Notary Public- Califimia
County of San Luis Obispo N
(This area for official notarial seal)
Title of Document
Date of Document No. of Pages
Other signatures not acknowledged
3008 (1/94) (General)
First American Title Insurance Company
.�
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Villa Rosa Second Deed of Trust
Page 18
EXHIBIT "A'
DESCRIPTION OF REAL PROPERTY
Lot 38 of Tract No. 2066, in the City of San " .Luis Obispo,,.in the County of San
Luis Obispo, State of California, according to map recorded May 12, 1992 in Book
.16, Page 71 of Maps-and amended December 31, 1992 in Book 16, Page 85 of Maps,
in the office of the County,Recorder of:said County
EXCEPTING therefrom the interest in 5% of the value of all oil and minerals
removed from beneath the above described property through operations conducted
thereon, including oil or minerals taken therefrom by so- called slanting wells
which may be bottomed on or under the abovice the described premises, as reserved
by Pacific Coast Railway Company, a California Corporation.n deed recorded
June 8, 1942 in Book 335, page 78 of Official Records
j h/L: Vrdeedoftrustl 8.00
18
- END OF DOCUMENT
i
1
2 RETURN TO:
3
4 City Clerk
5 City of San Luis Obispo
6 990 Palm Street
'7 San Luis Obispo, CA 93401 -3249
8
9
10 VILLA ROSA PROMISSORY NOTE
11 SECURED BY DEED OF TRUST
12
13 $ 9,500.00 Date: November 30 2000
14
15 At San Luis Obispo; California
16
17 FOR VALUE RECEIVED, Christopher N. Lawson and ( "Maker ") promises to pay to
18 the order of the City of San Luis Obispo ( "City' at 990 Palm Street, San Luis Obispo, California
19 93401 -3249 or such other address as City may from time to time designate, the sum of Ni ne
20 Thousand Five Hundred no /oo Dollars ($ A , 500 -on ), according to the terms set forth
21 herein. This Note shall accrue interest, compounded annually, at an annual rate of 4.5 percentage
22 points added to the 116' District Cost of Funds, as published by the Federal Home Loan Bank
23 Board, amortized over 30 years. The Loan shall be amortized over thirty years, with monthly
24 payments of principal and interest due and payable to the City on the first day of each month
25 unless waived or forgiven, as set forth below.
26
27 1. Security for Note. This Note is secured by a deed of trust of even date herewith (the "Deed
28 of Trust ") executed by Maker, as Trustor, and naming City as Beneficiary, covering certain real
29 property ( "the Property") owned by Maker in the County of San Luis Obispo, State of California,
30 which Property is described in Exhibit A, attached hereto.
31
32 2. Incorporation of Affordable Housing Agreement. This Note and the Deed of Trust are
33 executed and delivered pursuant to that certain "Affordable Housing Agreement" ( "Housing
34 Agreement ") recorded in the County of San Luis Obispo on March 18, 1999 between City and
35 Villa Rosa LLC, A California Corporation, regarding affordable housing requirements applying
36 to the Villa Rosa Planned Residential Development, as amended by San Luis Obispo City
37 Council in Ordinance 1318.(1997 Series). Pursuant to the Housing Agreement, Maker is to live
38 at the Property. .Consequently, this Note is subject to section 711.5 of the California Civil Code,
39 which grants to City the authority to accelerate all amounts due under this Note if any subsequent
40 transfer of the Property at any time does not comply with the provisions of the Housing
41 Agreement or Deed of Trust. The Housing Agreement is incorporated herein by this reference as
42 though set-forth in its entirety and attached hereto as Exhibit B.
43
44 3. City's Right of First Refusal. Upon resale,. the City or the Housing Authority of the City of
45 San Luis Obispo shall have the first right of refusal to purchase the property at then current
Villa Rosa Affordable Housing Promissory Note
Page 2
1 appraised value. The consideration for the City's right of first refusal shall consist of 1 percent of
2 the remaining City loan balance. The balance of the City loan remaining after deducting this 1
3 percent of the loan balance shall be credited toward the purchase price if the City chooses to
4 exercise the purchase option. The provisions of this section shall not impair the rights of a first
5 mortgage lender secured by a recorded deed of trust. The purchase money lender shall have a
6 higher priority than the City's loan. The City's security shall be prioritized as a second mortgage.
7 This first priority applies to the purchase money lender's assignee or successor in interest, to:
8
9 i. Foreclose on the subject property pursuant to the remedies permitted by law and
10 written in a recorded contract or deed of trust; or
11
12 ii. Accept a deed of trust or assignment to the extent of the value of the unpaid first
13 mortgage to the current market value in lieu of foreclosure in the event of default by
14 a trustor; or
15
16 iii. Sell the property to any person at a fair market value price subsequent to
17 exercising its rights under the deed of trust. Any value in excess of the unpaid
18 mortgage and costs of sale administration shall be used to satisfy the City loan. In
19 no case may a first mortgage lender, exercising foreclosure assignment in -lieu of
20 foreclosure or sale, obtain value or rights to value greater than the value of the
21 outstanding indebtedness on the first mortgage at the time of the debt clearing
22 action.
23
2.4 The following types of transfers shall remain subject to the requirements of the City's loan
25 and right of first refusal: transfer by gift, devise, or inheritance to the owner's spouse;
26 transfer to a surviving joint tenant; transfer to a spouse as part of divorce or dissolution
27 proceedings; or acquisition in conjunction with a marriage.
28
29 4. Due on Transfer. In the event Maker sells, leases, rents or otherwise transfers the
30 Property to any person or entity other than an "eligible household" (as such term is defined in the
31 Housing Agreement), then the Principal of and accrued interest on the Loan shall be immediately
32 due and payable to the City as set forth in the Deed of Trust in favor of City recorded
33 simultaneously herewith as a second deed of trust subordinate to the deed of trust. of the first
34 mortgage lender on the Property.
35.
36 5. Waiver of Principal and Interest. City waives timely payment of the Principal of and
37 interest on the Loan for such time as Maker, or subsequent buyer determined by City or its
38 Housing Authority to be an eligible- household, remains as the owner and occupant of the
39 Property as Maker's principal residence until November 30 , 20 30 .
40
41
Villa Rosa Affordable Housing Promissory Note
Page 3
1 6. Forgiveness of Loan. City will forgive the repayment of the outstanding Principal of the
2 Loan and all interest thereon as long as Maker, or subsequent buyer determined by City or its
3 Housing Authority to be an. eligible household, remains as the owner and occupant of the
4 Property as Maker's principal residence until November 30 , 2030
5
6 7. Prepayment. This Note may be prepaid in whole or in part.
7
8 8. Payment. The amount due under this Note shall be paid without the necessity for notice
9 or demand by City.
10
11 9. Payment Amount. The amount due under this Note shall be paid from the net proceeds
12 as a result of any transfer. Net proceeds is the sales price minus any loans or liens that are senior
13 to this Note and minus closing costs.
14
15 10. Default Defined. In addition to other defaults referred to in this Note and the Deed of
16 Trust, it shall be a default under this Note if Maker fails to make any payment or perform any
17 obligation under or in connection with (a) this Note, (b) the Deed of Trust, or (c) any other note,
18 trust deed or other obligation of Maker relating to the Property, including but not limited to the
19 Housing Agreement, or secured by all or any part of the Property, whether junior or senior to this
20 Note, and if such failure is not cured within such time as may be permitted by the obligation or
21 the obligee.
22
23 11. Options of City upon Default. Upon the occurrence of a default, City shall have the
24 option, without further notice or demand:
25
26 (a) To declare the Note to be immediately due and payable;
27
28 (b) If the default relates to a transfer of the Property, to bring an action at law or in
29 equity to require Maker and the proposed transferee to terminate and/or rescind the sales
30 contract or lease and/or to declare the transfer void, notwithstanding that the transfer may
31 have closed and become final as between Maker and the transferee; or
3.2
33 (c) To pursue any other remedy available under this Note or the Deed of Trust, or
34 at law or in equity or under any other agreement, instrument or document entered. into by
35 Maker and City, including but not limited to the Housing Agreement.
36
37 12. Failure to Exercise Options. Failure to exercise any such option upon the occurrence of
38 one or more events of default shall not constitute a waiver of City's right to exercise any such
39 option at a later time.
40
Villa Rosa Affordable Housing Promissory Note
Page 4
1 13. Costs of Enforcement and Collection. If Maker defaults under this Note, Maker shall
2 pay all costs of enforcement and collection, including, but not limited to, costs and attorney's
3 fees, including reasonable attorney's fees, whether or not such enforcement or collection includes
4 filing a lawsuit or prosecution of a lawsuit, if filed.
5
6 14. City's Right to Transfer Interest in Note. City and any subsequent holder of this Note
7 may at any time, without consent of Maker, sell, assign, pledge, hypothecate, transfer and
8 negotiate or grant participation in any part of or any interest in City's rights and benefits under
9 this Note to another governmental body or nonprofit organization which is eligible to receive
10 such transfer under state and federal law.
11
12 15. Waiver of Notice and Statute of Limitations. Except for any notice expressly required
13 by this Note, Maker waives demand, notice of demand, presentation for payment, notice of non-
14 payment or dishonor, protest and notice of protest. To the fullest extent permitted by law, Maker
15 waives the defense of the statute of limitations in any action on this Note or to recover on the
16 security for this Note.
17
18 16. Liabili . City's acceptance of any payment under this Note which is less than payment
19 in full of all amounts then due and payable, or the granting of any extension of time for payment
2.0 of any amount due under this Note or for the performance of any covenant, condition or
21 agreement entered into by Maker and City, or City's grant of any other indulgence to Maker, or
22 City's taking or release of other or additional security for the indebtedness evidenced hereby, or
23 any other modification or amendment of this Note shall in no way release or discharge the
24 liability of Maker or any endorser, guarantor or other person secondarily liable for this Note.
2.5
26 17. Governing Law. This Note shall be governed by the laws of the State of California.
27 Maker agrees that the site of any hearing or action of whatever nature or kind regarding this Note
28 shall be conducted in the County of San Luis Obispo, State of California.
29
30 18. Severability.. If any provision of this Note or any application of such provision be
31 declared by a court to be invalid or unenforceable, such invalidity or unenforceability shall not
32 affect any other application of such rovision or the balance of the provisions hereof, which
33 shall, to the fullest extent possible, remain in full force and effect.
34
35
36 �-
37 "Maker" ..0 ris op er N. wson
38 a ,
39 j
41
"Maker" Jenni -
er . 'L wson
A.
A M E R I C' •
an
}
STATE OF CALIFORNIA }ss.
COUNTY OF-
0 n ZX - ��Cn , before me,
personally appeared
personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are
subscribed to the within instrument and acknowledged to me that he /she /they executed the same
in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the
person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
KIM M. MAC DONALD
a
COMM. #1179890
Notary Public Cali3omia
County of San Luis obispo
My Comm. ixp. M 11, 2002
(This area for official notarial seal)
Title of Document
Date of Document
Other signatures not acknowledged
No. of Pages
3008 (1/94) (General)
First American Title Insurance Company
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•
Villa Rosa Affordable Housing Promissory Note
Page 5
CITY:
John Dunn, Vity Administrative Officer
APPROVED AS TO FORM AND LEGAL EFFECT:
JIVE: Vrpromissorynote
•
CALIFORNIA ALL- PURPOSr- ACKNOWLEDGMENT
State of
County of
•
On efore me,
Date ' Name and Title o Officer (e.g., "Jane Doe, Notary Public's
personally appeared
\ Name(s) of Signer(s)
sonally known to me – OR – ❑ proved to me on the basis of satisfactory evidence to be the persor�*)
whose name(B� is /axe- subscribed to the within instrument
and acknowledged to me that he /shefthey executed the
same in his /hefi44eir authorized capacity(ie*and that by
his /heatheir signatureo on the instrument the person(4
LEE PRICE or the entity upon behalf of which the perso*) acted,
Comml�sion # IZID447 executed the instrument. /1
MyjWWary Pubic - Cardbrnia
Son Luis Obispo Cmm WITNESS
Ccmrm50wMay21, 2�i
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached QocVMe )ht
Title or Type of Document: I Ldl-�
Document Date: f v
Signer(s) Other Than Named Above:
E
Capacity(ies) Claimed by Si s)
�I
Signer's Name: �J /—Signer's Name:
❑ Individual �/�
rporate Officerc4 `�
Title(s):
Partner — ❑ Limited ❑ General
❑ Attorney -in -Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representi
Top of thumb here
d Gt'tE
Number of Pages:
❑ Individual
❑ Corporate Officer
Title(s):
❑ Partner — ❑ Limited 0 General .
❑ Attorney -in -Fact
❑ Trustee
❑ Guardian or Conservator ' -
❑ Other: Top of thumb here
Signer Is Representing
0 1994 National Notary Association • 8236 Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309 -7184 Prod. No. 5907 Reorder: Call Toll -Free 1- 800 - 876 -6827
Villa Rosa Affordable Housing Promissory Note
Page 6
EXHIBIT "A'
DESCRIPTION OF REAL PROPERTY
Lot 38 of Tract No. 2066, in the City of San Luis Obispo, in the County of
San Luis Obispo, State of California, according to map recorded may 12, 1992
in Book 16, Page 71 of daps and amended. December 31, 1992 in Book 16, Page 85
of maps, in the office of the County recorder of said County
EXCEPTING Therefrom the interest in 5% of the value of all oil and minerals
removed from beneath the above described property through operations conducted
thereon, including oil or minerals taken therefrom by so- called slanting wells
which may be bottomed on or under the above.the described premises, as reserved
by Pacific Coast Railway Company, A California Corporation in deed recorded
June 8m 9142 in Book 335, page 78 of Offic:i.41_Records