HomeMy WebLinkAboutD-1991-6971 1815 Osos Street, APN 03-655-10 Recorded 02/05/1991L
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DOC. NO. 6971
OFFICIAL RECORDS
SAN LUIS OWSPO CO., CA
FEB 0 5 1991 ` 7 2eoo RI
Recording Requested by: FRANCIS M. GOONEY 2/05/9.17441 3 7.00 PUT
County Clerk- Recorder
when recorded mail to: TIME 4 :15 PM'
City Engineer
955 Morro St.
San Luis Obispo, CA 93401
AGREEMENT AFFECTING REAL PROPERTY AND PERMIT FOR
TEMPORARY ENCROACHMENT WITHIN THE PUBLIC RIGHT -OF -WAY
FOR AND IN CONSIDERATION of the issuance of this revocable permit to allow an
encroachment temporarily within the public right -of -way, said encroachment consisting
of:
A concrete step, handrail, and a number of planter boxes, all of
which encroach a maximum of 11 inches into the right of way at
the back of the sidewalk.
The undersigned. owners of the real property hereinafter described, hereby covenant with
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the Cif of San Luis Obispo to remove said improvements without cost to said City upon
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thirty (30) days written notice, which may be given by the City at any time at its sole
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option and discretion.
If the owner of the property descibed below, does not remove the encroachment .
authorized herein when requested by the City, City may proceed to require removal under
the Municipal Code nuisance provisions and to assess the cost of said removal against
the real property described herein. Owners further acknowledge. that, in the event of
such removal by City, City is not liable for any damages to the encroachment or to any . -.
adjacent real or personal property.
Owner further agrees to hold harmless City from any claims, suits or losses of any
kind alleged to have arisen out of the maintenance or placement of said encroachment
and to indemnify City for any and all costs or judgments relating to said claims, suits
or losses, including attorney's fees.
Said property is located in the City of San Luis Obispo, County of San Luis Obispo,
State of California,�and is described as follows:
Parcel 1 of Parcel Map Number SLO -84 -192 in the City of San Luis Obispo,
County of San Luis Obispo, State of California, according to map recorded
June 21,1985 in Book 37, Page 59, of Parcel Maps, in the office of the
County Recorder of said County.
1815 Osos St, San Luis Obispo, Ca. 93401
APN 03- 655 -10
1% 3643PAGE166
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This covenant shall run with the land and shall be binding upon the undersigned owners,
their heirs, executors, administrators, and assigns.
Dated this 5th day of February, 1991.
4wner -�jA Lir t VA y Aw/� L �� T � -e V �
MW r M *R 1 gavN a Al TE
Community Dev' to went Director D` City of San Luis '-Obispo Owner �dgC�r �, LVA413 MPI
(Authorization - Resolution No. 3897, 1979 Series
wner
V 1 N C.CN T :5• 'FG N TE
CAT. NO. NNO0627
TO 1944 CA (9 -84)
Individual)
Wfell TICOR TITLE INSURANCE
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO SS'
On February 5, 1991 before me, the undersigned, a Notary. Public in and for
W said State, personally appeared ALAN J MCVAY, T)AT F Mr-VAV- VTT�T('FT1m S PONTF:,
W MARIANNE E. FONTE, and ROBERT D. LOMBARDI
Id
personally known to me or
d proved to me on the basis of satisfactory evidence to be
c
m the persons whose name S are subscribed to the
within instrument and acknowledged that they exe- OFFICIAL SEAL
PAMELA S. ELBERG
cuted the same. NOTARY PUBLIC .CALIFORNIA
-- --.._. -- - — cer� -nee no5o ..,., 21 —
------------ — -------- ___ ----------------------------------------------- _________ _____ _____I
( STATE OF CALIFORNIA
(
( COUNTY OF SAN LUIS OBISPO. ss.
(
( I
) I
On this 26tH day of February in the year 1991 , before me Diane R. Stuart-
Notary Public----- - - - - -- personally appeared Arnold B. Jonas known to me
( to be Community Development Director of the City of San Luis Obispo , and known to
me to be the person who executed the within instrument on behalf of said public
corporation, agency or political subdivision, and acknowledged to me that the City of
San Luis Obispo - - - - -- executed the same.
( MAN I
I C. I
OIANE R. STUART
Ell:)
I�IOfARY PUBLIC - CALIFORNIA j
(SEAL) SAN LUIS OBISPO COUNTY
ane R. Stua t, Notary PublicCO1"'^I29, t993
mac �c�ir� SZli+�11�1__��L�1_rQr� ------------------------
1CrL,41-1101-)j
RECORDING REQUESTED BY:
WHEN RECORDED MAIL TO:
A- 42 -90 —CA
i
SPACE ABOVE THIS LINE FOR RECORDER'S USE
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BE-
COMING SUBJECT TO AND OF I OWFR PRIORITY THAN THE I IFN OF Sr1MF 0THFn On I ATFR SFr'tinITY
INSTRUMENT.
THIS AGREEMENT, made this 21st day of February 119 90 , by
ROBERT D. LOMBARDI. A SINGLE MAN; ALAN J. MCVAY AND DALE MCVAY, HUSBAND AND WIFE; AND
VINCENT S. FONTE AND MARIANNE E. FONTE, HUSBAND AND WIFE
owner of the land hereinafter described and hereinafter referred to as "Owner," and
THE CITY OF SAN LUIS OBISPO
present owner and holder of the deed of trust and note first hereinafter describ hand hereinafter referred to as "Beneficiary ";
WITNESSETH
THAT WHEREAS, the owners
did execute a deed of trust, dated March 15, 1984 , to Equitable Deed Company
, as trustee, covering:.
PARCEL 1 OF PARCEL MAP N0. SLO -84 -192, IN THE CITY OF SAN LUIS OBISPO, COUNTY OF
SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED JUNE 21,1985
IN BOOK 37, PAGE 59, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF
SAID COUNTY.
to secure a note in the sum of $ 300,000.00 , dated March 15, 1984 , in favor of SECURITY
PACIFIC NATIONAL BANK, and subsequently assigned to* which deed of trust was
recorded June 7, 1984 , to book 2601 page 978 , Ottictal Records of said county; and
*TNE Cm OF SAN LUIS OBISPO
WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $ 490,000.00
dated , in favor of STANDARD INSURANCE COMPANY, An Oregon Corporation
hereinafter referred to as "Lender," payable with interest and upon the terms and conditions de-
scribed therein, which deed of trust is to be recorded concurrently herewith; and
WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and
remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust
first above mentioned; and
WHEREAS, lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described
property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifi-
cally and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of
trust in favor of Lender; and I .
WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the
deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and
superior to the lien or charge of the deed of trust first above mentioned.
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the re-
ceipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred
to, it is hereby declared, understood and agreed as follows:
(1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally
be and remain at all times a lien or charge on the property therein described, prior and superior to. the•lier) or charge of the
deed of trust first above mentioned.
(2) That Lender would not make its loan above described without this subordination agreement.
A- 42 -90 —CA
I&EED OF TRUST NOTE*
DO NOT DESTROY THIS NOTE: When paid, this Note, with the Deed of Trust securing it, must be surrendered
to Trustee for cancellation before reconveyance will be made.
$ 490,000.00 February 9 19 90
I. Payment; Interest Calculations. FOR VALUE RECEIVED, the undersigned ( "Maker "), jointly and
severally, promises to pay in lawful money of the United States, to the order of STANDARD INSURANCE
COMPANY, an Oregon corporation ( "Holder "), at its office in Portland, Oregon, or such other place as Holder
may designate, the principal of a loan of Four Hundred Ninety Thousand and No/ 100-----------
----------------------------- Dollars ($ 490, 000.00 ), obtained from Holder, and
interest thereon in one Hundred Twenty (120) equal monthly payments of Forty Three
Hundred Ninety -One, & No /100 -- Dollars ($ 4,391.00*
), payable on the first day of
each month, commencing with the first day of May ,19 90 , together with such other sums
as may become due hereunder or under any instrument securing this Note, until the entire indebtedness is fully
paid, except that any remaining indebtedness if not sooner paid shall be due and payable on the first day
of April , 2000 , which is the maturity date of this Note. The interest included in the
aforesaid payments, unless increased as otherwise provided in the Note, shall be calculated
at the rate of Ten and One- Fourth ( 10.25% * ) percent per
annum (the, "Note Rate ") upon the unpaid balance of principal. Maker, jointly and severally, also promises to
pay interest at the Note Rate from the date of disbursement of this. Note (the "Disbursement Date ") to the date
from which interest is included in the first payment previously described. Every payment received with respect
hereto shall be applied, in any order that may be determined by Holder in its sole discretion, to sums under this
Note, including, without limitation: (a) late charges; (b) expenses paid or funds advanced by Holder with
interest thereon at the Default Rate when applicable (as hereinafter defined); (c) any prepayment premiums due
with respect to any payment and any other premiums which may remain unpaid; (d) accrued interest on the
principal balance from time to time remaining unpaid; and (e) subject to the prepayment provisions herein, the
principal balance hereunder.
See page 3 for Rate Adjustment Language.
2. Waiver. To the extent permitted by law, each and every maker, surety, guarantor, endorser or
signator to this Note, in whatever capacity, hereby waives presentment, demand, protest, notice of dishonor and
all other notices, and agrees that Holder may exercise its rights hereunder in any order and at any time, and
may, without notice to or consent of any such person, and without in any way diminishing the obligations of any
such person: (a) deal with any such person with reference to this Note by way of forbearance, extension,
modification, compromise or otherwise, (b) extend, release, surrender, exchange, compromise, discharge or
modify any right or obligation secured by or provided by the Deed of Trust securing this Note (the "Deed of
Trust ") or any other instrument securing this Note, or (c) take any other action which Holder may deem
reasonably appropriate to protect its security interest in the property securing this Note (the "Trust Property ").
3. Default; Default Rate. Time is material and of the essence hereof. Each of the following shall be an
Event of Default under this Note: (a) failure to make any payment of principal and /or interest or any other
payment required by the provisions of this Note or of any instrument securing this Note on the date such
payment or payments are due; .(b) failure to perform any other provision of this Note or of any instrument
securing this Note; or (c) falsity in any: material respect of the warranties in the Deed of Trust or of any
representation, warranty or information furnished by Maker or its agents to Holder in connection with the loan
evidenced by this Note (the "Loan "). Upon the occurrence of any Event of Default, any sum not paid as provided
in this Note or in any instrument securing this Note, shall at the option of the Holder, without notice, bear
interest from such due date at a rate of interest (the "Default Rate ") equal to four (4) percentage points per
annum greater than the Note Rate, or the maximum rate of interest permitted by law, whichever is the lesser;
and, at the option of the Holder, the unpaid balance of principal, accrued interest, plus any other sums due under
this Note, or under any instrument securing this Note shall at once become due and payable, without notice, and
shall bear .interest at the Default Rate. If an Event of Default occurs during a period of time in which
prepayment is permitted only on payment of a prepayment charge, such charge shall be computed as if the sum
declared due on default were a prepayment and shall be added to the sums due and payable hereunder.
4. Late Charges. If any payment is not received by Holder (or by the correspondent if a correspondent
has been designated by Holder to receive payments) within fifteen (15) calendar days after its due date, Holder,
at its option, may assess a late charge equal to five cents for each $1.00 of each overdue payment or the
maximum late charge permitted by the laws of the state in which the Trust Property is located, whichever is
less. Such late charge shall be due and payable on demand, and Holder, at its .option, may (a) refuse any late
payment or any subsequent payment unless accompanied by such'late charge, (b) add such late charge to the
principal balance of this Note or (c) treat the failure to pay such late charge as demanded as an Event of Default
hereunder. If such late charge is added to the principal balance of this Note, it shall bear interest at the. Default
Rate.
5. Prepayment Restrictions, Charges. Additional charges for the privilege of prepaying sums owing
hereunder will be imposed in the following amounts, or in such amounts as permitted by law, whichever is less:
(a) During the first five (5) Loan Years, amounts paid during any one (1) Loan Year in excess of ten
percent (1070 of the original principal loan balance shall include an additional payment of one (1)
year's interest on such excess amount; and
(b) Thereafter, amounts paid during any one (1) Loan Year in excess of 10% of the original principal
loan balance shall include an additional payment ofsix (6) months' interest on such excess amount.
As used in this Note, "'Loan Year" means a period of time beginning on the Disbursement Date or on,any
anniversary of the Disbursement Date and ending one year thereafter.
SI -30 -3377 California (9/88)
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6. Acknowledgments Regarding Default Rate, Late Charges and Prepayment Charges.
(a) Maker acknowledges and agrees that (i) a default in making the payments herein agreed to be paid
when due will result in the Holder incurring additional expense in servicing the loan, loss to
Holder of the use of the money due, and in frustration to Holder in meeting its other commitments,
(ii) if for any reason it fails to pay any amounts due hereunder, Holder shall be entitled to damages
for the detriment caused thereby, but that it is extremely difficult and impractical to ascertain the
extent of such damages; and (iii) the Default Rate and the late charge described in this Note are a
reasonable estimate of such damages.
(b) Maker acknowledges and agrees that (i) prepayment prior to the maturity date may result in loss
to Holder, (ii) the amount of the loss will depend on the interest rates at the time of prepayment, the
amount of principal prepaid and the length of time remaining between the prepayment date and
the scheduled maturity date, (iii) prepayment is most likely to occur when interest rates have
dropped below the Note Rate, and (iv) because it is extremely difficult and impractical to ascertain
now the amount of loss Holder may suffer in the event of prepayment, (A) Holder shall be entitled
to damages for the loss caused by prepayment and (B) the prepayment charge described in this
Note is a reasonable measure of such damages. Maker agrees that the prepayment charge de-
scribed in this Note shall be imposed, to the extent permitted by law, whether the prepayment is
voluntary, involuntary or by operation of law, in connection with an Event of Default, or required
by Holder in connection with a transfer or contract to transfer the Trust Property, provided that
no prepayment charge shall be added to sums prepaid with casualty insurance proceeds or
condemnation awards.
(c) Maker expressly (i) waives any right to prepay the loan evidenced hereby without payment of the
prepayment charge described above in connection with a transfer or contract to transfer the Trust
Property by the undersigned, or a successor in interest of the undersigned, and (ii) agrees to pay
such prepayment charge as provided above: in connection with such a transfer or contract to
transfer.
(d) Maker represents that it is a knowledgeable real estate investor and fully understands the effect of
the charges, waiver and agreement contained above. Maker acknowledges and agrees that the
making of the loan by Holder at the interest rate and with the other terms described herein is
sufficient consideration for such charges, waiver and agreement, and that Holder would not make
this loan on these terms without such charges, waiver and agreement.
7. Expenses and Attorney Fees. If Holder refers this Note to an attorney for collection or seeks legal
advice following a default alleged in good faith under the Note; if Holder is the prevailing party in any litigation
instituted in connection with the Note; or if Holder or any other person initiates any judicial or nonjudicial
action, suit or proceeding in connection with the Note or the security therefor, and an attorney is employed by
Holder to (a) appear in any such action, suitor proceeding, or (b) reclaim, seek relief from a judicial or statutory
stay, sequester, protect, preserve or enforce Holder's interest in the Note, the Deed of Trust, or any other security
for the Note (including but not limited to proceedings under federal bankruptcy law, in eminent domain, under
probate proceedings, or in connection with any state or federal tax lien), then in any such event Maker shall pay
attorney's fees and costs and expenses incurred by Holder and /or its attorney in connection with the above -
mentioned events and any appeals related to such events, including but not limited to costs incurred in
searching records, the cost of title reports, the cost of appraisals, and the cost of surveyors' reports. If not paid
within ten days after such.fees, costs and expenses become due and and written demand for payment is made
upon Maker, such amount may, at Holder's option, be added to the principal of the Note and shall bear interest
at the Default Rate.
9. No Usury. In no event shall any payment of interest or any other sum payable hereunder both (a)
violate the usury laws of the state in which the Trust Property is located and (b) allow Maker to bring a claim for
usury or raise usury as a defense in any action on this Note. If it is established that both (a) and (b) have
occurred, and any payment exceeding lawful limits has been received, Holder shall refund such excess or, at its
option, credit the excess amount to principal, but such payments shall not affect the obligation to make periodic
payments required herein.
9. Security. The indebtedness evidenced by this Note is secured by the Deed of Trust of even date and
may be secured by other security instruments.
10. Due on Sale or Transfer. The Loan is personal to Maker and not assignable. In making it, Holder
has relied on Maker's credit, Maker's interest in the Trust Property, and the financial market conditions at the
time the Loan is made. In the event of a sale, conveyance, transfer or encumbrance of the title to or possession of
all or part of the Trust Property, directly or indirectly, either voluntarily, involuntarily or by operation of law,
without the prior written consent of Holder (which consent may be withheld at Holder's sole discretion), Holder
may declare the entire balance of this Loan immediately due and payable. In such event, and to the extent
permitted by law, a prepayment charge calculated.in accordance with the prepayment provisions of this Note
shall be added to the sum due and payable. Holder will:.waive its right under the foregoing provisions of this
paragraph if the following conditions are met: (a) the credit of the proposed transferee is satisfactory to Holder;
(b) the proposed transferee shall assume full personal liability for payment and performance of the Note, Deed of
Trust and other security instruments; (c) Holder's reasonable administrative costs, as determined by Holder,
are paid to Holder; (d) at Holder's sole option, either the Note Rate is increased to a, rate not in excess of the then
current market rates for comparable loans under comparable circumstances (the amount of the increase to be
determined solely by Holder), or Holder is paid a lump sum compensation not to exceed five percent (5%) of the
Loan balance; and (e) the provisions in the Note, the Deed of Trust and any other instrument securing the Note
regarding the maturity, amortization or prepayment of this Loan shall be modified,. at Holder's sole option, to
conform to provisions being offered by Holder in similar loans at the time Holder's waiver is sought, or in the
event Holder is not offering similar loans at such time, on such reasonable terms as Holder may determine.
Without limiting the generality or effect of the foregoing, waiver by Holder of its right to accelerate the Loan
upon any transfer or contract to transfer, or to require satisfaction of the conditions set forth in this paragraph,
shall not be deemed a waiver by Holder of its. right to accelerate the Loan upon any other transfer or contract to
transfer or of its right upon such transfer or contract to transfer to require satisfaction of the conditions set forth
above in this paragraph. For the purpose of, and without limiting the generality of the foregoing, the occurrence
at any time of any of the following events, without Holder's prior written consent, shall be deemed, to be a
transfer of title to the Trust Property:
(i) Any sale, conveyance, assignment or other transfer of, or the grant of a security interest in, all or
any part of the legal and /or equitable title to the Trust Property.
s1 -30 -3777 61ifomla (9/88)
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(ii) Any sale, conveyance, assignment or other transfer of, or the grant of a security interest in, any
share of stock of Maker;
(iii) Any sale, conveyance, assignment or other transfer. of, or the grant of a security interest in, any
general partnership interest in Maker; or
(iv) Any sale, conveyance, assignment or other transfer of, or the grant of a security interest in,
twenty -five percent (25 %) or more of all limited partnership interests in Maker.
Any changes in the provisions in this Note, the Deed of Trust, or any other instrument securing this Note
resulting from the satisfaction of the conditions set forth in this paragraph shall entitle Holder to increase the
amount of the monthly installment to an amount determined by Holder to be sufficient to amortize this Loan
within the remainder of the amortization period originally used by Holder to establish the original monthly
payment amount for this Loan. Assumption shall NOT release Maker or successor in interest from personal
liability for payment and performance of the terms and conditions of this Note.
11. Commercial Purpose. The obligation evidenced by this Note is 'exclusively for commercial or
business purposes.
12. Governing Law. The law of the State of California shall govern the validity, interpretation, con-
struction and performance of this Note.
13. Successors and Assigns. Whenever used herein, the words "undersigned ", "Maker" and "Holder"
shall be deemed to include their respective heirs, personal representatives, successors and assigns.
NOTICE TO THE BORROWER
DO NOT SIGN THIS NOTE BEFORE YOU READ IT. THIS NOTE PROVIDES FOR THE PAYMENT OF
A CHARGE IF THE NOTE IS REPAID PRIOR TO THE DATE PROVIDED FOR REPAYMENT IN THE NOTE
AND OTHER CHARGES IF PAYMENTS ARE LATE. IF YOU HAVE ANY QUESTIONS ABOUT THIS
NOTE, YOU SHOULD CONSULT YOUR ATTORNEY.
Vincent.S. Fonte
Marianne E. Fonte
Alan J. McVay
Dale Anne McVay
Robert D. Lombardi
IP�'(Tl,4i
HERE
*The rate of interest may be adjusted as
anniversary date (Adjustment Date.) of the first
to the weekly average of the five -year treasury
seventh week prior to the Adjustment Date plus
in no event less than the existing note rate,
maximum rate. allowed by law. The amount of the
of the fifth (5th)
installment due date,
bond yield for the
200 basis points, but
nor to exceed the
periodic installments
shall be adjusted to reflect the increased interest rate.
The five -year treasury bond yield shall be determined by Standard
from the published Federal Reserve Statistical Release H.15(519), or
from any other authoritative publication selected by Holder in the
event the Statistical Release is discontinued.
In the event there is an interest rate adjustment as of the
Adjustment Date, (a) Holder shall. give Maker at least 30 days written
notice (Adjustment Notice) of the increased interest rate and the new
installment amount.. prior to the Adjustment Date and.(b) Maker may
prepay the entire loan balance and all.'• sums due under the loan
documents, without a prepayment charge, ilf Maker (i) gives Holder at
least 30 days notice of Maker's intent to make such prepayment and
(ii) makes such prepayment within 120 days of the date of the
Adjustment Notice. If the interest rate is not adjusted, the
foregoing prepayment privilege shall not be available to Maker. The
new interest rate and monthly installment shall apply for the period
from And after the Adjustment Date, whether or not the loan is
prepaid in accordance with the foregoing prepayment privilege.
S1-304M California (9/88) 3 of 3
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WHEN RECORDED MAIL TO:
STANDARD INSURANCE COMPANY
P. O. Box 711
Portland, OR 97207
Attn: Susan Deters, V -31
DEED OF TRUST, ASSIGNMENT OF REFITS,
SECURITY AGREEMENT AND FIXTURE FILING
THIS DEED OF TRUST made this 9th day of February , 19 50 , is between
Robert D. Lombardi, a single man, as to an undivided one -third interest; Alan J. McVay
and.Dale McVay, Husband and Wife, as community property, as to an undivided one - third*
("Trustor "), and First American Title Insurance Company
a(n) California corporation, ('"trustee "), and STANDARD INSURANCE COMPANY, an
Oregon corporation, ( "Beneficiary').
Trustor irrevocably grants, bargains and sells to Trustee in trust, with power of sale, that property in the
City of San Luis Obispo , County of San Luis Obispo , State of
California, described as follows (the "Property "):
Parcel 1 of Parcel Map No. SLO -84 -192 in the City.of..San Luis Obispo, County of
San Luis Obispo, State of California, according to map recorded June 21, 1985
in Book 37, Page 59, of Parcel Maps, in the office of the County Recorder of said
County.
Together with (a) all rents, income. contract rights, issues and profits now due or which may become due under or by
virtue of any lease, rental agreement or other contract, whether written or oral, for the use or occupancy of the Property, or
any part thereof, together with all tenant security deposits, subject, however, to the right, power and authority hereinafter
given to and conferred upon Trustor to collect and apply such rents, issues, income, contract rights, security deposits and
profits prior to any default hereunder; (b) all buildings and improvements now or hereafter thereon, and all appurtenances,
easements. right in party walls, water and water rights, pumps and pumping plants and all shares of stock evidencing the
same; (c) all fixtures and property now or hereafter attached to or used in the operation of the Property, including but not
limited to machinery, equipment, appliances and fixtures for generating or distributing air, water, heat, electricity, light,
fuel or refrigeration, or for ventilating or sanitary purposes., or for the exclusion of vermin or insects, or for the removal of
dust, refuse or garbage, all wallbeds, wallsafes, built -in furniture and installations, shelving, lockers, partitions, door stops,
vaults, elevators, dumbwaiters, awnings, window shades, venetian blinds, light fixtures, fire hoses and brackets and boxes
for same, fire sprinklers, alarm systems, drapery rods and brackets, screens, linoleum: carpets, plumbing, laundry tubs and
trays, ice boxes, refrigerators. heating units, stoves. water heaters, incinerators, communication systems and all installa-
tions for which any such building is specifically designed; (d) all awards, compensation and settlements in lieu thereof made
as a result of the taking by power of eminent domain of the whole or any part of the Property; (e) all trade names by which all
or any part of the Property is known, any books and records relating to the use and operation of all or any portion of the
Property, all present and future plans and specifications and contracts relevant to the design, construction, management or
inspection of any construction on any improvements on the Property and all present and future licenses, permits, approvals
and agreements with or from any municipal corporation, county, state or other governmental or quasi- governmental entity
relevant to the development. improvement or use of all or any portion of the Property; (f) all rights of Trustor in and to any
escrow or withhold agreements, surety bonds, warranties, management contracts, leasing or sales agreements with any real
estate agents or brokers, and service contracts with any entity, which 'are in any way relevant to the development,
improvement, leasing, sale or use of the Property or any personal property located thereon; and
all of said items whether now or hereafter installed being hereby declared to be, for all purposes of this Deed of Trust, a part of.
the realty; and all the estate, interest or other claim or demand, including insurance, in law as well as in equity, which
Trustor now•has or may hereafter acquire, in and to the aforesaid property; the specific enumerations herein not excluding
the general:. .The Property and all of the foregoing shall constitute the "Trust Property ".
This Deed of Trust is made for the purpose of securing, in such order of priority as Beneficiary may elect: (a) payment of
the indebtedness in the sum of $ 490, 000.00 evidenced by that certain Promissory Note of even date
herewith (the "Note ") made by Trustor, delivered to Beneficiary and payable to its order, with final payment due on the
first day of April , 2000 , which is the maturity date of. this Deed of Trust, and any and all
modifications, extensions or renewals thereof, whether hereafter evidenced by the Note or otherwise; (b) payment of interest
on said indebtedness according to the terms of the Note; (c) payment of all other sums. with interest as herein provided,
becoming due and payable under the provisions hereof to Trustee or Beneficiary; (d) performance of each and every condition,
obligation, covenant, promise and agreement ofTrustor contained herein.'or in the Note, or in any loan agreement relative to
any indebtedness evidenced by the Note, or in any security. agreement or. deed of trust at any time given to secure any
indebtedness hereby secured or any part thereof; (e) payment of such additional sums with interest thereon as may be
hereafter advanced by or borrowed from the Beneficiary. its successors or assigns, by the then record owner or owners of the
Trust Property when evidenced by another promissory note or notes which.are by the terms thereof secured by this Deed of
Trust. To the extent permitted by law, any sums hereafter advanced by or borrowed from Beneficiary, its successors or
assigns, shall have the same priority as the original sums advanced b y Beneficiary and secured hereby.
• interest; and Vincent S. Fonte and Marianne E. Fonte, Husband and Wife, as community
property, as to an undivided one -third interest.
51.30.3376 Cautorma 110/88) - 1 of 8
Trustor's Covenants and Warranties. Trustor hereby warrants that: (a) Trustor is the owner in fee simple absolute of
the Property and every part thereof: (b► the Trust Property is free, and will be kept free, from all liens and encumbrances,
except those accepted by Beneficiary in writing. and Trustor will defend the title hereby granted to and in favor of Trustee
and Beneficiary as against all and eery person claiming or to claim the same; (c► the loan proceeds are not for use primarily
for personal, family or household purposes; (d) to the best of Trustor's knowledge after due inquiry into previous ownership
and use of the Trust Property, there are no Hazardous Substances (as defined below) located on the Trust Property and
Trustor will not place or permit to be placed on the Trust Property any Hazardous Substances (as defined below); (e) the
Property is zoned for the existing or contemplated use of the Property; (f► the Property is in compliance with all zoning,
subdivision, and environmental laws, regulations, and ordinances applicable thereto; all deed restrictions, subdivision and
building ordinances and other applicable governmental laws have been fully complied with; and Trustor has all licenses and
permits required by governmental authorities with respect to the Trust Property, its operation, improvement and use; (g) the
Property has indefeasible access to public rights of way as now improved and open to public passage, and is not encroached
upon by improvements or rights of others, nor do the improvements on the Property encroach upon the property of others; (h)
there are no actions, lawsuits, or other proceedings pending or threatened against or affecting the Trust Property or Trustor
which might adversely affect the ability of Trustor to perform its obligations under the Note or other loan documents, or
which might adversely affect the priority of Beneficiary's first lien on the Trust Property; (i) consummation of the loan
secured hereby and performance under the loan documents will not conflict with or result in a breach of any law, regulation
or court order applicable to Trustor or the Trust Property; G) no condemnation proceeding is pending, or to the knowledge of
Trustor, threatened with respect to the Trust Property; (k) there has been no material adverse change in the financial
condition of Trustor which might adversely affect the ability of Trustor to perform its obligations under the loan documents,
or which might adversely affect the priority of Beneficiary's first lien on the Trust Property; (1) all services and utilities, such
as water, electricity and sewer. are available to the Trust Property; and (m) with respect to each Trustor who is an individual,
no part of the Trust Property constitutes any part of Trustor's business homestead or residential homestead. As used in this
Deed of Trust, Hazardous Substances means: (a) any "hazardous waste" as defined in the Resource Conservation and
Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), as amended from time to time, and regulations promulgated thereunder; (b)
any "hazardous substance" as defined by the Comprehensive Environmental Response, Compensation and Liability Act of
1980 (42 U.S.C. § 9601 et seq.), as amended from time to time, and regulations promulgated thereunder; (c) radon, asbestos,
polychlorinated biphenyls (PCB's), explosives, radioactive substances, and material quantities of petroleum products; (d)
any substance the presence of which on the Property is regulated by any federal, state or local law relating to the protection of
the environment or public health; and (e) any other substance which by law requires special handling in its collection,
storage, treatment or disposal.
A. Trustor agrees as follows:
1. Payment of Indebtedness; Performance of Covenants. Trustor shall pay each and every installment of
principal and interest on the Note and all other indebtedness secured hereby, as and when the same shall become due, and
perform and observe all of the covenants, agreements and provisions contained herein, in the Note and any other instrument
given as security for the payment of the Note.
2. Maintenance; Compliance; Liens. Trustor shall: keep the Trust Property in good condition and repair; not permit
or suffer any extraordinary repairs or removal or demolition of, or a structural change in any building, fixture, equipment, or
other improvement on the Trust Property; comply with all laws, ordinances, regulations, covenants, conditions and
restrictions affecting the Trust Property or requiring any alteration or improvements to be made thereon; not commit or
permit waste thereon; not commit, suffer or permit any act upon the Trust Property in violation of law; cultivate, irrigate.
fertilize, prune and do all other acts which from the character or use of the Trust Property may be reasonably necessary, the
specific enumeration herein not excluding the general; and keep the Trust Property free from all encumbrances, except those
accepted by Beneficiary in writing.
3. Hazardous Waste and Substances; Environmental Requirements. Trustor shall comply with all laws, gov-
ernmental standards and regulations applicable to Trustor or to the Trust Property in connection with occupational health
and safety, hazardous waste and substances, and environmental matters. Trustor shall promptly notify Beneficiary of its
receipt of any notice of (a) a violation of any such law, standard or regulation; (b) all claims made or threatened by any third
party against Trustor or the Property relating to any loss or injury resulting from any Hazardous Substances; and (c)
Trustor's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could
cause the Property or any part thereof to be subject to any. restrictions on the ownership; occupancy, transferability or use of
the Property under any environmental law. The use, generation, storage, release, threatened release, discharge, disposal or
presence on, under or about the Trust Property Hazardous Substances by Trustor, Trustor.'s agents, or any tenant or
sublessee occupying part or all of the Trust Property shall be an event of default under this Deed of Trust, and Trustor shall
not engage in or permit such activities or events to occur upon the Trust Property. Trustor shall indemnify and hold
Beneficiary, its directors, officers, employees, agents, successors and assigns harmless from all loss, cost, damage, claim and
expense (including attorney fees and costs whether at trial, on appeal or otherwise) incurred by Beneficiary in connection
with the falsity in any material respect of the covenants contained herein or of Trustor's failure to perform the obligations of
this paragraph 3. This indemnity shall not survive the reconveyance of the lien of this Deed of Trust, or the extinguishment
of the lien by foreclosure or action in lieu thereof.
4. Casualty Loss/ Restoration; Construction. Trustor shall complete and restore promptly and in good and
workmanlike manner any buildings or improvements which may be constructed, damaged, or destroyed on the Trust
Property, and pay when due all costs incurred therefor. If the loan secured hereby or any part thereof is being obtained for the
purpose of financing construction of improvements on the Trust Property, Trustor further agrees: to complete same in
accordance with plans and specifications satisfactory to Beneficiary, to allow Beneficiary to inspect the Trust Property at all
times during construction and to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) days after
notice from Beneficiary of such fact. If said work upon the construction br restoration of the building or buildings shall be
discontinued for a period of fifteen (15) days, Beneficiary may. at its option, also enter.into and upon the Trust Property and
complete the construction or restoration of said building or buildings. Trustor hereby gives to Beneficiary full authority and
power to make such entry and to enter into such contracts or arrangements as may be necessary to complete or restore said
building or buildings and all monies expended by the Beneficiary in connection with such completion or restoration shall be
added to the principal theretofor advanced under the Note and secured by these presents and shall be payable by Trustor on
demand with interest as provided in the Note.
Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor
under this numbered paragraph or under any other provision of this Trust Deed, is authorized to accept as true and
conclusive all facts and statements therein, and to act thereon hereunder.
5. Insurance.
(a( Property and Other Insurance. Trustor shall obtain and maintain in full force and effect during the term of this
Deed of Trust all risk property insurance together with endorsements for replacement cost coverage. inflation
adjustment, and vandalism and malicious mischief coverage. all in amounts not less than the full replacement cost of
all improvements including the cost of debris removal. and comprehensive general liability insurance with limits,
coverages. risks insured and waiver of subrogation clauses acceptable to Beneficiary. Trustor shall obtain and
maintain such other insurance as Beneficiary from time to time shall reasonably require.•including without limitation
rent and rental interruption insurance +equal to twelve 1131 months annualized income, and flood insurance. if an%
portion of the fire and other risks insured as provided herein are,re►nsured. the policies shall contain a so- called
"cut- through" endorsement.
5(•30.3378 Cahtorn a (10 88) 2 of S
(b) Insurance Companies and Policies. All such insurance shall be written by a company or companies acceptable to
Beneficiary, shall contain a beneficiary clause in favor of Beneficiary with loss proceeds under any policy payable to
Beneficiary, shall be satisfactory to Beneficiary as to form, substance, and, except as specifically designated above,
amount, shall provide for thirty (30) days' prior written notice of cancellation to Beneficiary, shall contain endorse-
ments that no act or negligence of Trustor or any occupant, and no occupancy or use of the Trust Property for purposes
more hazardous than permitted by the terms of the policy will affect the validity or enforceability of such insurance as
against Beneficiary, shall be in full force and effect on the date of this Deed of Trust, shall contain such additional
provisions as Beneficiary deems necessary or desirable to protect its interest, and shall be accompanied by proof of
premiums paid for the current policy year. All such insurance shall be written in amounts sufficient to prevent Trustor
from becoming a co- insurer under the applicable policies.
(c) Blanket Policy. If a blanket policy is issued, a certified copy of said policy shall be furnished together with a
certificate indicating that Beneficiary is the insured under said policy in the proper designated amount.
(d) Notice of Loss. In the event of loss, Trustor shall immediately notify Beneficiary. Beneficiary may make proof of
loss if it is not made promptly by Trustor.
(e) Insurance Proceeds. All insurance proceeds maybe applied by Beneficiary upon any indebtedness secured hereby
and in such order as Beneficiary may determine, without regard to whether or not its security is impaired or, at the sole
and absolute option of Beneficiary, the entire amount so collected or any part thereof maybe released to Trustor, but in
any event Beneficiary may deduct and retain from the proceeds of such insurance the amount of all expenses incurred
by it in connection with the collection and /or payment of such proceeds. Such application or release shall not cure or
waive any default or notice of default hereunder or invalidate any act done pursuant to such notice.
6. Defense. Trustor shall appear in and defend any action or proceeding purporting to affect the security hereof or the
rights or powers of Beneficiary, or Trustee; and pay all costs and expenses, including cost of evidence of title and attorney's
fees in a reasonable sum, in any such action or proceeding, or appeal therefrom, in which Beneficiary or Trustee may appear.
7. Taxes and Assessments. Trustor shall pay, at least ten (10) days before the due date (and, in the case of annual
property taxes, before the first installment thereof becomes due), all taxes and assessments affecting the Trust Property or
upon this Deed of Trust or the debt secured thereby, or against Beneficiary by reason of the ownersh`..p of this Deed of Trust
and the Note. or either of them, including assessments on appurtenant water.stock. Trustor shall also pay, when due, all
encumbrances, charges and liens, with interest, on the Trust Property or any part thereof, which appear to be prior or
superior hereto and to deliver to the Beneficiary upon request the official receipt or receipts showing payment thereof; and all
costs, fees and expenses of this Deed of Trust.
S. Monthly Deposits. Unless this covenant is prohibited by law or waived in writing by Beneficiary, Trustor shall pay
each year to Beneficiary, together with and in addition to the monthly payments of principal and interest payable under the
terms of the Note, until the Note is fully paid, in equal monthly installments, the estimated amount of the annual property
taxes, assessments. insurance premiums and similar charges next payable, as estimated by Beneficiary. If at any time
Beneficiary determines that such payments will not be sufficient to account for each such charge on its due date (and in the
case of annual property taxes, on the due date of the first installment thereof), Trustor shall pay to Beneficiary, upon
demand, additional sums as necessary to account for such deficiency. Beneficiary may retain the sums received under this
paragraph 8 and apply them to such charges when they (and in the case of annual property taxes, the first installment
thereof) become due. Sums received shall not earn interest and may be commingled with other funds of Beneficiary. If
Beneficiary is required by law to pay interest on these sums Beneficiary may, to the extent permitted by law, impose a charge
for holding and disbursing such funds. In the event of a default under the Note, this Deed of Trust or any other instrument
securing the Note. Beneficiary may apply the sums required under this paragraph 8 (without prepayment charge and
without limiting the privilege, if any, to prepay any amounts secured hereby) first to accrued interest and then to the
principal balance secured hereby. As an additional covenant hereof, and in any event if the foregoing provision for
pre payment is at any time prohibited by law, or waived in writing by Beneficiary, or Trustor fails to make payments in the
full amount required under this paragraph 8, Trustor shall pay such charges when they (and in the case of annual property
taxes, the first installment thereof) are due and. upon demand. provide Beneficiary with satisfactory evidence of payment
and coverage.
9. Leases. Trustor shall fully perform all the terms and conditions on Trustor's part to be performed in any existing or
future lease with respect to which Trustor is lessor covering all or a portion of the Property. Trustor shall not, without the
prior consent of Beneficiary, terminate, cancel or accept the surrender of, or suffer or permit the termination, cancellation or
surrender of such lease, except upon the expiration of the term thereof, or materially modify or alter, or suffer or permit the
material modification or alteration of such lease. Trustor further covenants and agrees not to enter into any lease for a term
in excess of three (3) years of all or any portion of the Property without the prior written consent of Beneficiary.
10. Payment of Premiums. Trustor shall pay all premiums upon any life insurance policy which may be held by the
Beneficiary as additional security for the debt herein referred to.
11. Fees for Information. Trustor shall pay Beneficiary, to the extent permitted by law, a reasonable fee, as
determined by Beneficiary, for providing to Trustor or a third party a statement concerning the obligations secured by this
Deed of Trust or any other information requested by Trustor or the third party; provided, however, that Beneficiary truly
recover a fee of $50.00 for each and every beneficiary statement furnished pursuant to Section 2943 of the Civil Code of
California and all amendments thereto, the provisions of which are incorporated herein by reference and made a part hereof.
12. Security Agreement.
(a) Grant of Security Interest. With respect to any portion of the Trust Property which constitutes personal property
or fixtures governed by the Uniform Commercial Code of the State of California (the "Code "), this Deed of Trust shall
constitute a security agreement between Trustor as Debtor and Beneficiary as Secured Party, and Trustor hereby
grants to Beneficiary a security interest in such portion of the Trust Property. Cumulative of all other rights of
Beneficiary hereunder, Beneficiary shall have all of the rights eoaferred upon secured parties by the Code..Trustor
shall execute and deliver to Beneficiary all financing statements that may from time to time be required by Beneficiary
to establish and maintain the validity and priority of the security interest of Beneficiary, or any modification thereof.
and all costs and expenses of any searches reasonably required by Beneficiary.
(b) Rights of Beneficiary. Beneficiary may exercise: any or all of the remedies of a secured party available to it under
the.Code with respect to such property, and it is expressly agreed that if upon :default Beneficiary shall proceed to
dispose of such property in accordance with the provisions of the Code, ten (10) days' written notice by Beneficiary to
Trustor shall be deemed to be reasonable notice under any provision of the Code requiring such notice: provided.
however, that Beneficiary may at its option dispose of such property in accordance with Beneficiary's rights and
remedies with respect to the real property pursuant to the provisions of this Deed of Trust, in lieu of proceeding under
the Code.
(c) . Change in Trustor's Name. Trustor shall give advance notice in writing to Beneficiary of any proposed change in
Trustor's name, identity, 6i corporate structure and shall execute and deliver to Beneficiary, prior to or concurrently
with the occurrence of any such change, all additional financing statements that Beneficiary may require to establish
and maintain the validity and priority of Beneficiary's security interest with respect to anv Trust Property described or
referred to herein.
51- 30.3776 Galdorroa 110 %881 3 of 8
(d) Fixture Filing. With respect to those items of the Trust Property that are or will become fixtures upon the
Property and those items, if any, specifically described in attached Exhibit B. this Deed of Trust shall be effective as a
financing statement filed as a fixture filing from the date of its filing for record in the real estate records of the county in
which the Trust Property or Exhibit B property is situated. Information concerning the security interest created by
this instrument may be obtained from Beneficiary, as Secured Party, at the address of Beneficiary stated below.
Th e
mailing address of Trustor, as Debtor, is as stated below.
B. It is mutually agreed that:
1. Proceeds of Condemnation. Injury to Trust Property.The proceeds of any award or claim for damages, director
consequential, in connection with any condemnation or other taking of or damage or injury to the Trust Property, or any part
thereof, or for the convevance in lieu of condemnation thereof, are hereby assigned to and shall be paid to Beneficiary. In
addition, all causes of action, whether accrued before or after the date of this Deed of Trust, of all claims for damages or injury
to the Trust Property or any part thereof. including without limitation causes of action arising in tort or contract and causes
of action for fraud or concealment of a material fact, are hereby assigned to Beneficiary and the proceeds shall be paid to
Beneficiary. Beneficiary may elect, in its sole discretion, without regard to whether its security is impaired, to apply such
sums to the indebtedness secured by this Deed ofTrust, whether then matured or subsequently to mature, or to release such
sums or any part thereof.
2. Non - Waiver. No waiver of any default on the part of Trustor or breach of any of the provisions of this Deed of Trust
or of any other instrument executed in connection with the indebtedness secured hereby shall be considered a waiver of any
other or subsequent default or breach. and no delay or omission in exercising or enforcing the rights and powers herein
granted shall be construed as a waiver of such rights and powers, and likewise no exercise or enforcement of any rights or
powers hereunder shall be held to exhaust such rights and powers, and every such right and power may be exercised from
time to time.
3. Reconveyance. Upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon
surrender of this Deed of Trust and the Note to Trustee for cancellation and retention and upon payment of its fees, Trustee
shall reconvey, without warranty, the property then held hereunder. The recitals in such reeonveyance of any matter or facts
shall be conclusive proof of the truthfulness thereof. The grantee in such i'econveyance may be described as "the person or
persons legally entitled thereto."
4. Assignment of Rents. Trustor hereby assigns the rents, income, issues and profits of the Trust Property and hereby
gives to and confers upon Beneficiary the right, power and authority, during the continuance of this Deed ofTrust, to collect
the rents, income, issues and profits of the Trust Property, reserving unto Trustor the right, prior to any default by Trustor in
payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents,
income, issues and profits as they become due and payable.:Upon any such default, Beneficiary may at any time without
notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any
security for the indebtedness hereby secured, the solvency of Trustor, or the presence of waste or danger of loss or destruction
of the Trust Property, enter upon and take possession of the Trust Property or any part thereof, and any personal property in
which Beneficiary has a security interest as additional security for the indebtedness secured by this Deed ofTrust, and in its
own name sue for or otherwise collect such rents, income, issues and profits, including those past due and unpaid, and apply
the same, less costs and expenses of operation and collection, including reasonable attorney fees, upon any indebtedness
secured hereby, and in such order as Beneficiary may determine. In the exercise of any of the foregoing rights and powers,
Beneficiary shall not be liable to Trustor for any loss or damage thereby sustained unless due solely to the willful misconduct
of Beneficiary. The entering upon and taking possession of the Trust Property, the collection of such rents; income, issues and
profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or
invalidate any act done pursuant to such notice. To the extent the provisions of thi¶graph are inconsistent with the
terms of a separate Assignment of Lessor's Interest in Leases, if any, the terms of the Assignment of Lessor's Interest in
Leases shall control.
5. Beneficiary's Right to Cure and Defend. Should Trustor fail to make any payment or to do any act as provided in
this Deed of Trust, or in the Note or in any other instrument securing the Note, Beneficiary or Trustee, but without
obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof,
may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof,
Beneficiary or Trustee being authorized to enter upon the Trust Property for such purpose. Beneficiary and /or Trustee may
at any time, prior to full payment of all sums secured by this Deed of Trust, appear in and defend any action or proceeding
purporting to affect the security hereof or the rights or powers of Beneficiary or trustee; pay, purchase, contest or
compromise any encumbrance. charge or lien which in the judgment of either appears to be prior or superior hereto; and, in
exercising any power conferred by this Deed of Trust, pay necessary expenses, employ counsel and pay reasonable fees
therefor (including fees on appeal). Trustor agrees to repay immediately and without demand all sums so expended by
Beneficiary or Trustee with interest from date of expenditure at the Default Rate as herein provided.
6. Default; Acceleration; Default Rate. Time is material and of the essence hereof. Each of the following shall be an
Event of Default under this Deed of Trust: (a) failure of Trustor to pay the secured indebtedness as provided; (b) failure of
'Trustor to comply with the provisions of this Deed ofTrust; (c) a proceeding under any bankruptcy, receivership or insolvency
law instituted by or against Trustor; (d) if Trustor makes an assignment for the benefit of creditors; (e) if any laws impose
what Beneficiary may deem to be a substantial tax upon Beneficiary by reason of its interest in this Deed of Trust (unless
Trustor may lawfully pay such tax and does so); or (f) if any warranty contained in the fifth paragraph of this Deed ofTrust is
false in the material respect or any representation, warranty or information furnished by the Trustor or its agents to
Beneficiary in connection with the indebtedness secured hereby is false in any material respect. Any default under this Deed
of Trust shall constitute a default under the Note and under all other security instruments securing the Note. Any default
under such:other security instruments shall constitute a default under this Deed of Trust. Upon default, Beneficiary may
declare all sums secured hereby immediately due and payable. Any sum not paid as provided herein or in the Note or any
other security instrument securing the Note shall bear interest from such due date at a rate of interest four (4) percentage
points per annum greater than the. Note Rate or the maximum rate permitted by law, whichever is the lesser (the "Default
Rate "). If a default occurs during a period of time in which prepayment is permitted only on payment of a prepayment charge,
such charge shall be computed as if the sum declared due. on default were a prepayment.
7. Power of Sale. Beneficiary may direct Trustee. and Trustee shall be empowered,'to foreclose the Trust Property by
advertisement and exercise of sale under applicable law by delivering to Trustee a written declaration of default and demand
for sale and written notice of default and Beneficiary's election to cause the Trust Property to be sold, which notice Trustee
shall cause.to be recorded, filed for record. mailed, published and/ or posted as may be required by law. After the lapse of the
period required by law following the recordation of said notice of default, and notice of sale having been given as required by
lacy. Trustee. without demand on Trustor, shall sell the Trust Property at the time and place fixed by it in said notice of sale,
either as a whole or in separate parcels, and in such order as it may determine. or otherwise in the manner prescribed by law,
at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may
postpone sale of all or any portion of the Trust Property by public announcement at such time and place of sale. and from time
to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee
shall deliver to such purchaser its deed conveying the property so sold. but without any convenant or warranty. express or
implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person,
including Trustor. Trustee. or Beneficiary. may purchase at such sale. All unexpired hazard insurance on the property so
sold shall pass to and inure to the benefit of the purchaser of such propert.% at such sale and Beneficiary is hereby irrevocably
authorized to assign in Trustor's name to such purchaser of all such policie' which may be amended or rewritten to show the
interest of such purchaser.
SI- 30.3376 Caiitorroa 110 'BB) 4 of 5
8. Attorney Fees; Proceeds of Sale. if foreclosure be made by Trustee. reasonable attorney fees for service in the
supervision of foreclosure proceedings shall be allowed by Trustee as part of the costs of foreclosure. After deducting all costs,
fees and expenses of Trustee and of this Deed of Trust. including cost of evidence of title in connection with sale. Trustee shall
apply the proceeds of sale to payment of all sums expended under the terms hereof. not then repaid, with accrued interest at
the Default Rate as herein provided: all other sums then secured hereby; and the remainder. if any, to the person or persons
legally entitled thereto.
9. Expenses and Attorney Fees. It Beneficiary refers the Note to an attorney for collection or seeks legal advice
following a default alleged in good faith under the Note; if Beneficiary is the prevailing party in any litigation instituted in
connection with the Note; or if Beneficiary or any other person initiates any judicial or nonjudicial action, suit or proceeding
in connection with the Note, the indebtedness evidenced thereby or the security therefor ( including, but not limited to, an
action to recover possession of the Property after foreclosure), and an attorney is employed by Beneficiary to ( a► appear in any
such action, suit or proceeding, or (b) reclaim, seek relief from a judicial or statutory stay, sequester, protect. preserve or
enforce Beneficiary's interest in the Note, the Deed of Trust or any other security for the Note (including but not limited to
proceedings under federal bankruptcy law, in eminent domain, under probate proceedings, or in connection with any state or
federal tax lien). then in any such event, to the extent allowed by law, Trustor shall pay attorney fees and costs and expenses
incurred by Beneficiary and/ or its attorney in connection with the above - mentioned events and any appeals related to such
events, including but not limited to costs incurred in searching records, the cost of title reports, the cost of appraisals, the cost
of surveyors' reports and the cost of environmental surveys. If not paid within ten (10) days after such fees, costs and expenses
become due and written demand for payment is made upon Trustor, such amount may, at Beneficiary's option, be added to
the principal of the Note and shall bear interest at the Default Rate.
10. Binding Effect; Waiver. of Defenses; Interpretation. This Deed of Trust applies to, inures to the benefit of, and
binds all parties hereto, their heirs, legatees, devisees, admitiistrators, executors, successors and assigns. The right to plead
any Statute of Limitations in any suit brought upon the Note or the indebtedness thereby evidenced or to foreclose or enforce
this Deed of Trust or arising therefrom or by reason of any default of Trustor, is hereby waived to the full extent permissible
by law. The term Beneficiary shall mean the owner and holder, including pledges, of the Note secured hereby, whether or not
named as Beneficiary herein. In this Deed of Trust. whenever the context so requires, the masculine gender includes the
feminire and /or neuter, and the singular number includes the plural.
11. Due on Sale or Encumbrance.
(a) This loan is personal to Trustor and not assignable. In making it, Beneficiary has relied on Trustor's credit,
Trustor's interest in the Trust Property, and financial market conditions at the time this loan is made. In the event of a
sale, conveyance, transfer or encumbrance of the title to or possession of all or part of the Trust Property, directly or
indirectly, either voluntarily, involuntarily or by operation of law, without the prior written consent of Beneficiary
(which consent may be withheld at Beneficiary's sole discretion). Beneficiary'may declare the entire balance of this
loan immediately due and payable. In such event, and to the extent permitted by law, a prepayment charge as specified
in the Note shall be added to the sums due and payable in the Note and this Deed of Trust.
(b) Beneficiary will waive:its right under the foregoing provisions of this paragraph if the following conditions are
met: U) the credit of proposed transferee is satisfactory to Beneficiary; (ii) the proposed transferee shall assume full
personal liability for payment and performance of the Note, this Deed of Trust and any other security instruments
securing the Note; (iii) Beneficiary's.-reasonable administrative costs, as determined by Beneficiary, are paid to
Beneficiary; (iv) at Beneficiary's sole option, either the interest rate on the secured loan is increased to a rate not in
excess, of the then current market rate for comparable loans under comparable 'circumstances (the amount of the
increase to be determined solely by Beneficiary), or Beneficiary is paid a lump sum compensation not to exceed five
percent (5 %) of the loan balance; and (v) the provisions in the Note, this Deed of Trust and any other instrument
securing the Note regarding the maturity, amortization or prepayment of this loan shall be modified, at Beneficiary's
sole option, to conform to provisions being offered by Beneficiary in similar loans at the time Beneficiary's waiver is
sought, or in the event Beneficiary y is not offering similar loans at such time. on such reasonable terms as Beneficiary
may determine. Without limiting the generality or effect of the foregoing, waiver by Beneficiary of its right to
accelerate the loan upon any transferor contract to:transfer, or to require satisfaction of the conditions set forth in
subparagraph (b), shall not be deemed a waiver by Beneficiary of its right to accelerate the loan upon any other transfer
or contract to transfer or of its right upon such transfer to require satisfaction of the conditions set forth above in
subparagraph (b).
(c) Any changes in the provisions in the Note, this Deed of Trust, or any other instrument securing the Note resulting
from the satisfaction of the conditions set forth in paragraph 11(b) above shall. entitle Beneficiary to increase the
amount of the monthly installment to an amount determined by Beneficiary to'be sufficient to amortize this Loan
within the remainder of the amortization period originally used by the Beneficiary"to establish the original monthly
payment asnount for the Loan.
(d) For the purpose of, and without limiting the generality of the foregoing, the occurrence at anytime of any of the
following events, without Beneficiary's prior written consent, shall be deemed to be a transfer of title to the Trust
Property.
W Any sale, conveyance, assignment or other transfer of, or the grant of a security interest in, all or any part of
the legal and /or equitable title to the Trust Property;
(ii) Any sale, conveyance, assignment or other transfer of, or the grant of a security interest in, any share of stock
of the Trustor;
(iii) Any sale, conveyance, assignment or other transfer of, or the grant of a security interest in, any general
partnership interest in Trustor; or
(iv) Any sale, conveyance, assignment or other transfer of, or the grant of a security interest in, twenty -five
percent (25 %) or more of all limited partnership interests in Trustor. 1'
(e) Assumption shall NOT release Trustor or any successor in interest from personal liability for payment and
performance of the terms and conditions of this loan.
12. Late Charges. The Note provides that if any payment is not received by Beneficiary (or by the correspondent if a
correspondent has been designated by Beneficiary to receive payments) within fifteen (15) days after its due date,
Beneficiary, at its option, may assess a late charge equal to five cents for each $1.00 of each overdue payment or the
maximum late charge permitted by the laws of the State of California, whichever is less. Such late charge shall be due and
payable on demand, and Beneficiary at its option, may (a) refuse any late payment or any subsequent payment unless
accompanied by such late charge, (bi add such late charge to the principal balance of the Note, or (c) treat the failure to pay
such late charge as demanded as a default hereunder. If such late charge is added to the principal balance of the Note, it shall
bear interest at the Default Rate.
13. Deficiency. Trustor consents to a personal deficiency judgment for any part of the debt hereby secured which shall
not be paid by the sale of the Trust Property, unless such judgment is prohibited by law. Any Trustor who is a married person
hereby expressly agrees that recourse may be had against his or her other property, however owned, but without hereby
creating any lien or charge thereon, for anv deficiency due after sale of the Trust Property; eicept that this provision shall not
apply in the case of a Trustor who executes this Deed of Trust but not the Note secured hereby.
14. Waiver of Rights Regarding Property. To the extent permitted by law. Trustor hereby releases and waives i a i all
rights to any homestead exemption in the Trust Property: i bi all rights of dower and curtesy in the Trust Property: and (c) all
rights to possession of the Property during any period allowed by law for redemption.
Si- 30.3376 Caiftotma 110,88) -a of
0 0
15. Waiver of Right to Marshal. Trustor, for Trustor and for all persons hereafter claiming through or under Trustor
or who may at any time hereafter become holders of liens junior to the lien of this Deed of Trust, hereby expressly waives and
releases all rights to direct the order in which any of the Trust Property shall be sold in the event of any sale or sales pursuant
hereto and to have any of the Trust Propertv and/or any other property now or hereafter constituting security for any of the
indebtedness secured hereby marshaled upon any foreclosure of this Deed of Trust or of any other security for any of said
indebtedness.
16. Severability. In the event any provision contained in this Deed of Trust shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of
this Deed of Trust, but this Deed of Trust shall be construed as if such invalid, illegal or unenforceable provision had never
been contained herein.
. 17. Signature on Deed of Trust Only. Notwithstanding any other provision of this Deed of Trust, any person who
executes this Deed of Trust, but not the Note secured hereby, shall have no personal liability on the Note or for any deficiency
judgment which may be obtained upon foreclosure of this Deed of Trust. Such persons jointly and severally waive
presentment, demand, protest and all notices and agree that Beneficiary, without notice to them or their consent, and upon
such terms as Beneficiary may deem advisable, and without affecting in any way Beneficiary's rights hereunder as against
the Trust Property, may:
(a) Extend, release, surrender, exchange, compromise, discharge or modify any right or obligation secured by or
provided by this Deed of Trust or any other instrument securing this loan; or
(b) Take any other action which Beneficiary may deem reasonably appropriate to protect its security interest in the
Trust Property.
18. Waiver. Trustor hereby waives the provisions of Section 431.70 of the Code of Civil Procedure of the State of
California and all amendments thereto.
19. Governing Law. The law of the State of California shall govern the validity, interpretation, construction and
performance of this Deed of Trust.
20. Books and Records. Upon demand, Trustor will provide Beneficiary with operating statements and other
financial information relevant to the use, operation and income of the Trust Property, including reasonable access to the
books and records.
21. Prepayment Charges. Prepayment charges will be imposed, as specified in the Note, to the extent permitted by
law, whether the prepayment is (a) voluntary, involuntary, or by operation of law, (b) in connection with a default in
performance of the payment obligations or any other obligations under the Note or under any instrument securing the Note,
or (c) required by Beneficiary as provided herein in connection with a transfer or contract. to transfer the Trust Property,
provided that no prepayment charges shall be added to sums prepaid with casualty insurance proceeds or condemnation
awards.
22. Successor Trustee; Notice. Beneficiary at any time and from time to time, by instrument in writing, may
substitute and appoint a successor or successors (either corporate or individual) to any trustee named herein or previously
substituted hereunder, which instrument when executed, acknowledged, and recorded in the office of the Recorder of the
county or counties where the Trust Property is situated shall be conclusive proof of the proper substitution and appointment
of each such successor trustee or trustees, who shall then have all the title, powers, duties and rights of the predecessor
trustee, without the necessity of any conveyance from such predecessor. Trustee accepts this trust when this Deed of Trust,
duly executed and acknowledged, is made a public record as provided by law. The undersigned Trustor requests that a copy of
any notice of default and of any notice of sale hereunder be mailed to Trustor. Trustee. is not obligated to notify any party
hereto of pending sale under any other deed of trust or of any action or proceeding in which Trustor, Beneficiary or Trustee
shall be a party unless brought by Trustee. Except as otherwise provided in this Deed of Trust, all notices and consents
required or permitted under this Deed of Trust shall be in writing and may be telecopied, telexed, cabled. delivered by hand,
or mailed by first class registered or certified mail, return. receipt requested, postage;prepaid, and addressed as follows:
If to Trustor /Debtor. McVay, Fonte & Lombardi
890 Osos Street
San Luis Obispo, _CA 93401
If to Beneficiary/ Secured Party: Standard Insurance Company
P.O. Box 711
Portland, 011:97207
If to Trustee: Firs;. American Ti.tl_e Insurance Company
899 Pacific Street
San Luis Obispo, CA 93401
Changes in the respective addresses to which such notices may be directed may be made from time to time by any party by
notice to the other parties. Notices and consents given by mail in accordance with this paragraph shall be deemed to have
been given on the date of dispatch; notices and consents given by any other means shall be deemed to have been given when
received.
23. Entire Agreement. This Deed of Trust, the Note and any other security agreements securing the Note constitute
i I ! IAL the entire and complete agreement of the parties with respect to the subject matter: hereof, and supersede all prior or
;F contemporaneous understandings,. arrangements and commitments, all of which, whether oral or written, are merged
�-� herein. This Deed of Trust shall bind and inure to the benefit of the parties to this Deed of Trust and any successor or assignee
acquiring an interest hereunder consistent with paragraph B. 11 above..
24. See page seven (7) for paragraph -24.
Signature of Trustor
Vincent S. Fonte Alan J. McVay
Marianne E. Fonte Dale Anne McVay
Robert D. Lombardi
Affix acknowledgment for each Trustor.
SI.30.3376 Caidornia (10 '88) 6 of 8
f
24. The Note evidencing the obligation secured by this Deed of Trust provides that the
interest rate, payment terms or balance due on the loan may be indexed, adjusted, renewed
or renegotiated as follows: Rate of interest 10.25% may adjusted as of the fifth (5th)
anniversary date (Adjustment Date) of the' first installment due date, to the weekly
average of the five-year treasury bond yield for the seventh week prior to the Adjustment
Date plus 200 basis points, but in no event less than the existing note rate, nor to
exceed the maximum rate allowed by law. The amount of the periodic installments shall be
adjusted to reflect the increased interest rate.
The five year treasury bond yield shall be determined by Holder from the published Federal
Reserve Statistical Release. H.15(51.9), or from any other .authoritative publication
selected by Holder in the event the Statistical Release is discontinued.
In the event there is an interest rate adjustment as of the Adjustment Date, (a) Holder
shall give Maker at least 30 days written notice (Adjustment Notice) of the increased
interest rate and the new installment amount prior to the Adjustment Date and (b)'Maker
may prepay the entire loan balance and all sums due under the loan documents, without a
prepayment charge, if Maker (i) gives Holder at least 30 days notice of Maker's intent to
make such prepayment and (ii) makes such prepayment within 120 days of the date of the
Adjustment Notice. If the interest rate is. not adjusted, the foregoing prepayment
privilege shall not be available to Maker. The new interest rate and monthly installment
shall apply for the period from and after the Adjustment Date, whether or not the loan is
prepaid in accordance with the foregoing prepayment privilege.
INITIAL
i "R`
Li
Si -30 -3376 Caltornia (10 /881 f f)f,
REQUEST FOR FULL RECONVEYANCE
• Do not nn-ord. Tip he used only when note has txK•n paid.
To , Trustee:
The undersigned is the legal owner and holder of the note or notes, and of all. other indebtedness secured by
the foregoing Deed of Trust. Said note or notes, together with all other indebtedness secured by said Deed of
Trust, have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any
sums owing to you under the terms of said Deed of Trust, to cancel said note or notes above mentioned, and all
other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said
Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust,
all the estate now held by you under the same.
Dated 19
By
Vim-President
By
Assistant Secretary
Mail Reconveyance to
51.30 -3376 California 11010151 8 of 8
WHEN RECORDED MAIL TO:
STANDARD INSURANCE COMPANY
P. 0. Box 711
Portland, OR 97207
Attn: Susan Deters, V -31
ASSIGNMENT OF LESSOR'S INTEREST 'IN LEASES
THIS ASSIGNMENT made this 9th day of February , 19 90 , is between
Vincent S. Fonte, Marianne E. Fonte, Alan J. McVay, Dale Anne McVay, and Robert D.
Lombardi
( "Assignor') and STANDARD INSURANCE COMPANY, an Oregon corporation, ( "Assignee ").
Assignor, for good and valuable consideration, receipt ofwhich is acknowledged, grants, transfers and assigns to
Assignee all of Assignor's right, title and interest in 'and to the following described leases:
Date of Lease Lessor Lessee
09 -25 -87 Vincent S. Fonte, Marianne E. Fonte, Robert Harris Obrien
Alan J. McVay, Dale Anne McVay, and:.
Robert D. Lombardi*
06 -11 -86 " ° Jan Horn and Maryanne Naush
12 -01 -82 " ° Joseph & Marie Rizzo
05 -15 -86 " " ' Peter P. Kelley
* by previous assignment
together with (a) all rents, income, contract rights, issues, security deposits and profits arising from the leases
and renewals thereof, (b) all rents; income, contract rights, issues. security deposits and profits for the use and
occupation of the premises described in the leases or in the deed of trust (which term shall be construed to
include a mortgage, as the case may be) described below and from all leases upon the real property described
below, or any part thereof, which are now executed or which may hereafter during the term of this Assignment
be executed and (c) the guaranties.of tenants' performance under the leases, if any. The leases described above,
any extensions or renewals thereof and any lease subsequently executed during the terms of this Assignment
covering the real property described below are, hereinafter collectively referred to as the "Lease ".
This Assignment is made for the purpose of securing, in such order of priority as Assignee may elect:
(a) Payment of the indebtedness evidenced by a, certain Promissory Note (the "Note "), including any
extensions or renewals thereof. in the original principal sum, of Four Hundred Ninety Thousand and
No/100 ------------------------------- Dollars ($ 490, 000.00 ) made by
the assignors first referenced above
to Assignee, dated the 9th day of - February ,19 90 , and secured by a Deed of Trust ( the "Deed of
Trust ") on real .property situated -in the City of San Luis Obispo ,
County of San Luis Obispo, State of California , described as .follows (the "Real Prop-
erty "):
Parcel 1 or Parcel Map No SLO -84 -192 in the City of San Luis Obispo. County of
San Luis Obispo, State of California, according to map recorded June 21, 1985
in Book.37, Page 59, of Parcel Maps, in the office of the County Recorder of said
County.
The Note may also be secured by a security agreement or agreements covering personal property located on or related to the
Real Property and by other security instruments. The Deed of Trust. Security Agreements s► and other security instruments
are hereinafter collectively referred to as the "Security Instruments';
fb� Payment of all other sums with interest thereon becoming due and payable to Assignee under the provisions of this
'Assignment or of the Note or the Security Instruments; and
(c) Performance and discharge of each and every condition. obligation. covenant.. promise and agreement of Assignor
contained herein or in the Note or the Security Instruments.
sI.90-3378 (11/881 1 of 3
Assignor agrees as follows:
-1. As'signor's Warranties. Assignor warrants that: (a► Assignor has good title to the Lease hereby assigned and good
right to assign the same, and no other person, firm or corporation has any right, title or interest therein; (b) Assignor has duly
and punctually performed all the terms, covenants, conditions and warranties of the Lease on Assignor's part to be kept,
observed and performed: (c) Assignor has not previously sold, assigned, transferred, mortgaged or pledged the rents from the
Real Property, whether now. due or hereafter to become due; (d) the Lease is valid and enforceable and has not been altered,
modified or amended in any manner whatsoever save as herein set forth; (e) the Lessee named therein is not in default under
any of the terms, covenants, or conditions thereof; and (D no rent reserved in the Lease has been assigned or anticipated and
no rent for any period subsequent to the date of this Assignment has been collected in advance of the time when the same
became due under the terms of the Lease.
2. Assignor's Covenants of Performance. Assignor covenants with Assignee (a) to observe and perform all the
obligations imposed upon the Lessor under the Lease and not to do or permit to be done anything to impair the security
thereof; (b) not to collect any of the rent, income and profit arising or accruing under the Lease or from the Real Property in
advance of the time when the same shall become due; (c) not to execute any other assignment of lessor's interest in the Lease
or assignment of rents arising or accruing from the Lease or from the Real Property; (d) not to alter, modify or change the
terms of the Lease or cancel or terminate the same or accept a surrender thereof without the prior written consent of
Assignee; (e) at Assignee's request to assign and transfer to Assignee any and all subsequent leases upon all or any part of the
Real Property and to execute and deliver at the request of Assignee all such further assurances and assignments in the
premises as Assignee shall from time to time require; (f) to enforce or secure in the name of Assignee (upon notice to
Assignee) the performance of each and every obligation, term, covenant, promise, condition and agreement in the Lease by
any tenant to be performed, and to notify Assignee of the..occurrence of any default under the Lease; (g) to appear in and
defend any action or proceeding arising under, occurring, out of, or in any manner connected with the Lease or the
obligations, duties or liabilities of Assignor, and upon request by Assignee, to do so in the name and on behalf of Assignee, but
in all cases at the expense of Assignor, (h) to pay all costs and expenses of Assignee, including attorney's fees in a reasonable
sum, in any action or proceeding in which Assignee may appear in connection herewith or in any appeal therefrom; and (i)
neither to create nor permit any lien. charge or encumbrance upon its interest as lessor of the Lease except the lien of the
Security Instruments or as permitted in the Security Instruments.
3. License to Collect Rents. So long as there shall exist no default by Assignor in the payment of the principal sum,
interest and indebtedness secured hereby and by the Security,, Instruments or in the performance of any obligation, covenant
or agreement herein or contained in the Note and Security Instruments or in the Lease on the part of Assignor to be
performed. Assignor shall have the right under a license granted hereby (but limited as provided in the following paragraph)
to collect, but not prior to accrual, all of the rents arising from or out of the Lease,. or any renewals, extensions and
replacements thereof, or from orout of the Real Property or any part thereof; and Assignor shall receive such rents and shall
hold them, as well as the right and license to receive them, as a trust fund to be applied, Assignor hereby covenants to so apply
them as required by the Assignee, firstly to the payment of taxes and assessments upon the Real Property before penalty or
interest is due thereon; secondly to the cost of insurance, maintenance and repairs required by the terms of the Deed of
Trust; thirdly to the satisfaction of all obligations specifically set forth in the Lease; and fourthly to the payment of interest
and principal becoming due on the Note and Deed of Trust; before using any part of the same for any other purposes.
4. Performance and Termination of License. Upon the conveyance by Assignor and its successors and assigns of
the fee title of the Real Property, all right, title, interest and powers granted under the license aforesaid shall automatically
pass to and may be exercised by each such subsequent owner, and upon or at any time after default in the payment of any
indebtedness secured hereby or in the observance or performance of any obligation, terra, covenant, condition or warranty
herein, in the Note and Deed of Trust or in the Lease, Assignee, at its option and without notice, shall have the complete
right, power and authority hereunder to exercise and enforce any or all of the following rights and remedies at any time:
(a) to terminate the license granted to Assignor _.to collect the. rents without taking possession, and to demand,
collect, receive, sue for, attach and levy against the rents in Assignee's own name; to give proper receipts, releases and
acquittances therefor; and after deducting all necessary and proper costs and expenses of operation and collection as
determined by Assignee, including attorney's fees, to' apply the-pet proceeds thereof, together with any funds of
Assignor deposited with Assignee. upon any indebtedness secured hereby and in such order as Assignee may
determine;
(b) 'to declare all sums secured hereby immediately due and payable and, at its option, exercise all or any of the
rights and remedies contained in the Note and Deed of Trust;
(c) . without regard. to the adequacy of the security or the solvency of Assignor, with or without any action or
proceeding through any person or by agent or by the Trustee under any Deed of Trust secured hereby, or by a receiver
to be appointed by a court, and without regard to Assignor's possession, to enter upon, take possession of, manage and
operate the Real Property or any part thereof; make, modify, enforce; cancel, or accept surrender of any lease now or
hereafter in effect on the Real Property or any part thereof; remove and evict any lessee or tenant; increase or decrease
rents; decorate, clean and repair and otherwise do any act or incur any reasonable costs or expenses as Assignee shall
deem.proper to protect the security hereof, as fully and to the same extent as Assignor could do if in possession; and in
such event, to apply the rents so collected in such order as Assignee shall deem proper to the operation and
management of the Real Property, including the payment of reasonable management, brokerage and attorneys fees,
payment of the indebtedness under the Note and Deed of Trust. and payment to a reserve fund for replacements, which
fund shall not bear interest; and
(d) require Assignor to transfer all security deposits to Assignee. together with al l records evidencing such deposits.
S Default Not Cured By Collection. The collection of rents and application as aforesaid and /or the entry upon and
taking possession of the Real Property shall not cure or waive any default;-or waive., modify or affect any notice of default
required under the Note and Deed of Trust; or invalidate any act done pursuant to such notice. The enforcement of any right.
or remedy by Assignee, once exercised. shall continue until Assignee shall have collected and applied such rents as may have
cured (for the time) the original default. Although the original default be cured and the exercise of any such right or remedy
be discontinued, the same or any other right or remedy hereunder shall not be exhausted and may be reasserted at any time
and from time to time following any subsequent default , The rights and powers conferred on Assignee hereunder are
cumulative'and not in lieu of any other right and powers otherwise granted Assignee.;
6. Effect of Assignment. The acceptance by Assignee of.this Assignment, with all of the rights, powers, privileges and
authority so created, shall not, prior to entry.upon and taking possession of the Real'Property by Assignee, be deemed or
construed to constitute Assignee a "Mortgagee in Possession ".
Assignee shall not be liable for any loss sustained by Assignor resulting from, Assignee's failure to let the Real Property after
default or from anv actor omission of Assignee in managing.the Real Property after default unless such loss is caused by the
willful misconduct and bad faith of Assignee. Assignee shall not be obligated to perform or discharge, nor does Assignee
undertake to perform or discharge, any obligation. duty, or liability under the Lease or under or by reason of this
Assignment. or to assume any obligation or responsibility for anv security deposits or other deposits delivered to Assignor by
any lessee and not assigned and delivered to Assignee. This:Xssignment shall not operate to place responsibility for the
control, care. management or repair of the Real Property upon Assignee, nor for the carrying out of any of the terms and
conditions of the Lease; nor shall it operate to make Assignee responsible or liable for anv waste committed on the Real
Property by the tenants or any parties or for any dangerous or defective condition of the Real Property, or for any negligence
in the management, upkeep, repairor control of the Real Property, resulting in loss or injury or death to any tenant, licensee.
employee or stranger.
2 of3
7. Indemnification. Assignor hereby agrees to indemnify and hold Assignee harmless from any and all liability, loss,
damage or expense which Assignee may incur under or by reason or in defense ofany and all claims and demands whatsoever
that may be asserted against Assignee by third parties arising out of the Lease. including, but not limited to, any claims by
any tenants ofcredit for rental for any period under any lease more than one t 1► month in advance of the due date thereof paid
to and received by Assignor, but not delivered to Assignee. Should Assignee incur any such liability, loss, damage or expense,
the amount thereof (including attorneys fees, whether incurred at trial, on appeal or otherwise) with interest thereon at the
Default Rate (as defined in the Note► shall be payable to Assignee immediately without demand, and shall be secured as a
lien hereby and by the Deed of Trust.
S. Termination of Assignment. Payment of Rent. Upon payment in full of the principal sum, interest and
indebtedness secured hereby and by the Security Instruments, this Assignment shall become and be void and of no effect, but
the affidavit, certificate. letter or statement of any officer. agent or attorney of Assignee showing any part of said principal,
interest or indebtedness to remain unpaid shall be and constitute conclusive evidence of the validity, effectiveness and
continuing force of this Assignment and any person may, and is hereby authorized to, rely thereon.. Assignor hereby
authorizes and directs the lessee named in the Lease or any.. other or future lessee or occupant of the premises described
therein or in the Deed of Trust upon receipt from Assignee of written notice to the effect that Assignee is then the holder of the
Note and Security Instruments and that a default exists thereunder or under the Assignment to pay over to Assignee all
rents, income. contract rights,' issues, security deposits and profits arising or accruing under the Lease or from the premises
described therein or in the Deed of Trust and to continue to do so until otherwise notified by Assignee.
9. As'signee's Right to Deal With Security. Assignee may take or release other security for the payment of the
principal sum, interest and indebtedness, may release any party primarily or secondarily liable therefor and may apply any
other security held by it to the satisfaction. of such principal'. sum, interest or indebtedness without prejudice to any of its
rights under this Assignment.
10. Cross Default. Breach of anyterm, covenant, and condition herein contained by Assignor shall likewise constitute
a default under the Note and each of the Security Instruments, and a default under any of said documents shall constitute a
default hereunder.
11. No Waiver. Nothing contained in this Assignment and no act done or omitted by Assignee pursuant to the powers
and rights granted it hereunder shall be deemed to be a waiver by Assignee of its rights and remedies under the Note and
Security Instruments. this Assignment is made and accepted without prejudice to any of the rights and remedies possessed
by Assignee under the terms of the Note and Security Instruments. The right of Assignee to collect the principal sum,
interest, and indebtedness and to enforce any other security therefor held by it may be exercised by Assignee either prior to,
simultaneously with, or subsequent to any action taken by it hereunder.
la. Conflict With Deed of Trust. In the case of any conflict between the terms of this instrument and the terms of the
Deed of Trust, the terms of this Assignment shall prevail., s
13. Severability. If any provision of this Assignment or the application thereof to any entity, person or circumstance
shall be held to be invalid, illegal or unenforceable in any respect, the remainder of this Assignment and the application of
such provisions to other entities, persons or circumstances shall not be affected thereby and shall be enforced to the greatest
extent permitted by law.
14. Construction. Whenever used herein whenever the context so requires, the singular number shall include the
plurali theplural the singular, and the use of any gender -shall include-all genders. All obligations of each Assignor
hereunder shall be joint and several.
1S: Governing Law. The law of the state in which the Real Property is located shall govern the validity, interpretation,
construction and performance of this Assignment.
16. Entire Agreement. This Assignment constitutes the entire and complete agreement concerning the assignment of
rents and leases between the parties hereto. No variations, modifications or changes herein or hereof shall be binding upon
any party hereto unless set forth in a document duly executed by or on behalf of such party.
17. Assignment Binds Successors. This Assignment, together with the covenants and warranties herein contained,
shall inure to the benefit of Assignee and any subsequent holder of the Note and Deed of Trust and shall be binding upon
Assignor. Assignor's heirs, personal representatives, successors and assigns, all tenants and their subtenants and assigns,
and any subsequent owner of premises described in the Deed of Trust.
Signature of Assignor
Vincent S. Fonte Alan J. McVay
Marianne E. Fonte
Affix notarial acknowledgment for each Assignor.
Dale Anne McVay
Robert D. Lombardi:
51 -30 -3378 M/ / 88) 3 of 3
Executive Director - Secretary
George J. Moylan RECEIVED
FEB 2 011990
ADMINISTRATION.
Ssf . LUIS OBIS 's 96
John Dunn, CAO
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403 -8100
Dear Mr. Dunn;
RE: CDBG Rehabilitation Loan; Park Hotel
Request for Subordination
February 28, 1990
In November of last year, the Housing Authority forwarded to you a request
for subordination of the CDBG Rehabilitation Loan on the Park Hotel. At that
time, the owners were requesting conceptual approval. On November 30, you
sent us a letter outlining the City's approval in concept. A copy of the
letter is attached. The owners are now ready to execute the new loan.
Attached for your review are copies of the unexecuted loan documents, statement
from Security Pacific Bank of the loan payoff on the first to be paid off and
a statement by the owners of the attendant costs for the new loan. As noted
by the owners, they are actually putting additional cash into the transaction.
For the City's execution, attached is the Subordination Agreement. If all
is acceptable, please sign and forward to First American in the envelope
provided. If there are any questions, please call me at 543 -4478.
Sincer ly,
Richard Crutchfi ld
Construction Co dinator
Attachments
cc: Terry Sanville
caanl MOUSING
OPPORTUNITY
�UAlNq
housinci Authmi ty
OF THE CITY OF SAN LUIS OBISPO
487.Leff Street a P.O. Box 638 * San Luis Obispo, CA 93406 • (805) 543 -4478
Executive Director - Secretary
George J. Moylan RECEIVED
FEB 2 011990
ADMINISTRATION.
Ssf . LUIS OBIS 's 96
John Dunn, CAO
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403 -8100
Dear Mr. Dunn;
RE: CDBG Rehabilitation Loan; Park Hotel
Request for Subordination
February 28, 1990
In November of last year, the Housing Authority forwarded to you a request
for subordination of the CDBG Rehabilitation Loan on the Park Hotel. At that
time, the owners were requesting conceptual approval. On November 30, you
sent us a letter outlining the City's approval in concept. A copy of the
letter is attached. The owners are now ready to execute the new loan.
Attached for your review are copies of the unexecuted loan documents, statement
from Security Pacific Bank of the loan payoff on the first to be paid off and
a statement by the owners of the attendant costs for the new loan. As noted
by the owners, they are actually putting additional cash into the transaction.
For the City's execution, attached is the Subordination Agreement. If all
is acceptable, please sign and forward to First American in the envelope
provided. If there are any questions, please call me at 543 -4478.
Sincer ly,
Richard Crutchfi ld
Construction Co dinator
Attachments
cc: Terry Sanville
caanl MOUSING
OPPORTUNITY
t y of sAn luis CA93403-8100 oBispo
1 990 PaIM Street/Post Office Box 8100 e San Luis Obispo,
dtl,U
dE l.—
November 30, 1989
DEC 619x9
HOUSING AUTHORIT
Mr. Richard Crutchfield IF SAN LUIS OR'
San Luis Obispo Housing Authority
487 Leff Street
San Luis Obispo, CA 93401
Subject: Request for Subordination of the CDBG Rehabilitation Loan for the Park
Hotel
Dear Mr. Crutchfield:
In response to your November 8th letter and attached materials, the city planning staff
and city attorney has reviewed Vintage Properties proposal to refinance the Park Hotel
rehabilitation project.
In concept, the city supports the refinancing of the project and subordination of the city's
CDBG loan to a new deed of trust subject to receipt and city execution of a formal
subordination agreement and with the following understandings:
1. The city's equity position in the Park Hotel project is not in any way weakened
by the refinancing of the project.
2. The proposed refinancing is covering only the balance due and loan costs.
If we can be of any further assistance, feel free to contact me or 'Terry Sanville in the
Community Development Department.
Dunn
Administrative Officer
cc Terry Sanvilie
Jeff Jorgensen
IN *V TAG E'
P R O P E R T I E S
February 28, 1990
Richard Crutchfield
Housing Authority of San Luis Obispo
487 Leff Street
San Luis Obispo, California 93401
Re: park Hotel Loan - City of San Luis Obispo Subordination
Richard,
Enclosed is a payoff demand statement from Security Pacific National Bank which
shows the payoff amount which we made on January 31, 1990 of $498,835.52.
This was the first position loan on the Park Hotel and is the position we are
placing Standard Insurance, the new lender in the amount of $490,000.00.
A schedule of our attendant fees on this transaction is as follows:
Loan Fee to Lender
$4900.00
Loan Fee to Broker
$7350.00
Title Insurance Costs
$1176.00
Escrow Fees
$ 710.00
Recording Fees
$ 50.00
TOTAL ATTENDANT LOAN FEES $14,186.00
As you can see, we are actually putting cash into the project in this transaction, so
it would not appear that the City's position is weakened Eby the subordination. Let
us know if you need any other information.
Sincerely,
AI McVay
VINTAGE PROPERTIES
890 Osos Street, Suite 0 • San Luis Obispo, California 93401 • 8051544 -6529
•
so
SECURITY PACIFIC NATIONAL SANK
RESIDENTIAL REAL ESTATE BUSINESS HEADOUARTERS.10600 VALLEYVIEW STREET. CYPRESS. CALIFORNIA
MAILING ADDRESS: POST OFFICE BOX 6012, CYPRESS. CALIFORNIA 90630 -0012
JANUARY 2. 1990
ROBERT D. LOMBARDI
C/O VINTAGE'.PROPERTIES
890 OSOS STREET; STE. $D
SAN LUIS OBISPO, CA 93401
RE: REAL ESTATE LOAN NUMBER 159806
Dear Customer,
Your loan is due and payable in full on 11 -1 -89 1P To prevent the
accrual of further interest after that date, the following funds should be
remitted:
Principal Balance $ 477,287.57
Interest from 10 -1 -89 to 2 -1 -90 $ 2.1,477.95
Reconveyance Fee $ 65.00
Recording Fee $ 5.00
FHA Premium $ .00
Late Charges $ .00
Impound Advance $ .00.
Other $ _00
TOTAL PAYOFF $ 498,835.52
After 2 -1 -90 interest will accrue at $ 178.9829 per day through
the date funds are received by us. We cannot accept any payment of less
than the total amount due.
The balance in your loan trust fund, if any, will be refunded after payoff.
Sincerely,
i1berta Shaw
,Real Estate Officer
Payoff /Assumption Unit
( 714) 220 -3821 /0/1..)
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March 1, 1990
city of sAn luis oBispo
990 Palm Street /Post. Office Box 8100 o San Luis Obispo, CA 93403 -8100
TO: John Dunn, City Administrator
FROM: Jeff Jorgensen, City Attorne
RE: CDBG Rehabilitation Loan; Park Motel
Request for Subordination
As you requested on February 28, 1990, I have reviewed the February
28, 1990 letter from the housing authority, the February 28, 1990
letter from Vintage Properties, the February 2, 1990 letter from
Security Pacific National Bank, the proposed Subordination
Agreement, and accompanying loan documents, and find them
acceptable as to form. Based upon those documents, and the
representations made by the parties to the agreements, it would
appear that the City's equity position in the Park Hotel project
will not be adversely affected by the subordination of the CDBG
Loan.
Therefore, it is my recommendation that it be initialed and signed
before a notary (assuming you are authorized to do so on behalf of
the City) and forwarded to First American Title Insurance Company
as requested.
JGJ /sw
cc: Terry Sanville