HomeMy WebLinkAboutAslami, Mohammad and Naheed; 1999-10-01;NOTICE TO BORROWER: THE CLIFFS AT CALAVERA HILLS
THIS NOTE IS NOT ASSUMABLE
PROMISSORY NOTE
Secured by Deed of Trust
$ 45.000.00 Carlsbad, California
October 1 . 1999
FOR VALUE RECEIVED, the undersigned Mohammad H. Aslami and Naheed
Aslami_ (the "Borrower") promises to pay to the City of Carlsbad, a municipal corporation (the
"City"), or order, at the Housing and Redevelopment Department, 2965 Roosevelt Street, Suite
B, Carlsbad, California 92008, or such other place as the City may designate in writing, the
principal sum of $_45.000.00_, plus Contingent Interest calculated pursuant to Section 3 below.
1. Purpose of Loan. Borrower is purchasing the Residence located at 2903
Cliff Circle, in the City of Carlsbad. This Note evidences a loan made by the Seller of the
Residence (the "Seller") to the Borrower, utilizing subsidy funds provided by the City and the
Seller, and assigned by the Seller to the City (the "City/Seller Loan"). The City/Seller Loan is in
the amount determined by the City to be necessary for the Borrower to afford to purchase the
Residence making a reasonable downpayment and using conventional first mortgage financing
for the balance of the purchase price not financed by the City/Seller Loan. The Seller made the
City/Seller Loan to the Borrower and assigned the City/Seller Loan to the City in fulfillment of
certain inclusionary housing obligations pursuant to City Ordinance No. NS-232 and an
Affordable Housing Agreement between the Sambi Seaside Heights, L.L.C. (Seller's predecessor
in interest) and the City dated November 11,1996, as amended.
2. Definitions. The terms set forth in this Section shall have the following
meanings in this Note.
a. "Appreciation Amount" shall mean the amount calculated by
subtracting the total original purchase price of the Residence paid by the Borrower, which was
One Hundred Eighty Six Thousand Nineteen Dollars ($186.019.00 X from one of the
following amounts, as applicable: (i) in the event of a sale of the Residence, the amount received
by the Borrower as the sale price of the Residence, as certified by the Borrower pursuant to
Section 13 below; or (ii) in the event of a prepayment of this Note, a Transfer other than sale of
the Residence, or in the event of a default, the Fair Market Value of the Residence; or (iii) in the
event a creditor acquires title to the Residence through a deed in lieu of foreclosure, a trustee's
deed upon sale, or otherwise, the amount paid for the Residence at a creditor's sale of the
Residence.
1010\03\111697.6
04/02/99 1
b. "Contingent Interest" shall mean the percentage of the
Appreciation Amount set out in Section 4.
c. "Fair Market Value" shall be determined by a real estate appraisal
made by an independent residential appraiser designated by the City. If possible, the appraisal
shall be based upon the sales prices of comparable properties sold in the market area during the
preceding three-month period. The cost of the appraisal shall be paid by the Borrower. Nothing
in this subparagraph shall preclude the Borrower and the City from establishing the Fair Market
Value of the Residence by mutual agreement in lieu of an appraisal.
d. "First Mortgage" shall mean the promissory note and deed of trust
evidencing and securing the first mortgage loan for the Residence.
e. "Residence" shall mean the housing unit and land encumbered by
the deed of trust executed in connection with this Note.
f. "Transfer" shall mean any sale, assignment or transfer, voluntary
or involuntary, of any interest in the Residence, including, but not limited to, a fee simple
interest, a joint tenancy interest, tenancy in common interest, a life estate, a leasehold interest, or
an interest evidenced by a land contract by which possession of the Residence is transferred and
the Borrower retains title. Any Transfer without satisfaction of the provisions of this Note is
prohibited. A transfer: (i) to an existing spouse who is also an obligor under the Note; (ii) by a
Borrower to a spouse where the spouse becomes the co-owner of the Residence; (iii) between
spouses as part of a marriage dissolution proceeding; (iv) to an existing spouse or child of the
Borrower by devise or inheritance following the death of the Borrower; (v) by the Borrower into
an inter vivos trust in which the Borrower is the beneficiary; or (vi) by deed of trust or
imposition of a lien subordinate to the Deed of Trust, shall not be considered a Transfer for the
purposes of this Note; provided, however, that the Borrower shall continue to occupy the
Residence as his or her principal place of residence and the Borrower shall provide written notice
of such transfer to the City pursuant to Section 14 below.
3. Security. This Note is secured by a second deed of trust dated the same
date as this Note (the "Deed of Trust").
4. Contingent Interest. The Borrower shall pay contingent interest equal to
Twenty Four Point Nineteen percent (24.19 %) [staff to insert appropriate percentage
which shall in no event exceed (50%)] of the Appreciation Amount (the "Contingent Interest").
No interest other than Contingent Interest shall be due hereunder. The Contingent Interest shall
be paid to the City at the time set forth in Section 7(a) below, unless forgiven by the City
pursuant to Section 7(b) below. Borrower acknowledges that the Contingent Interest percentage
amount is equal to the City/Seller Loan principal amount as a percentage of the total purchase
price of the Home paid by the Borrower at the time of purchase, multiplied by seventy-five one
hundredths (.75). Borrower acknowledges that this calculation of the percentage of the
Appreciation Amount due to the City as Contingent Interest includes a twenty-five percent (25%)
1010\03\111697.6
04/02/99 2
9. Prepayments. The Borrower may prepay all or part of the balance due
under this Note including principal and Contingent Interest. In the event the entire amount of
principal due under this Note is prepaid, all Contingent Interest, calculated as of the date of
prepayment, shall also be due at the time of prepayment.
10. No Assumption of Note. The Borrower acknowledges that this Note is
given in connection with the purchase of property (the "Residence") as part of a program of the
Agency to assist in the purchase of homes by lower income persons. Consequently, this Note is
not assumable by transferees of the Residence, but is due in full upon Transfer.
11. Maintenance: Taxes: Insurance. Borrower shall maintain the Residence in
good repair and in a neat, clean and orderly condition. Borrower shall promptly pay all property
taxes due on the Residence prior to any delinquency and shall comply with the insurance
requirements set forth in the Deed of Trust.
12. Refinance of First Mortgage Loan. The outstanding principal and interest
on this Note shall not be due upon prepayment and refinance of the First Mortgage, and the Deed
of Trust shall be subordinated to the refinanced loan, provided that (i) such refinancing is
approved by the City, (ii) the amount refinanced does not exceed the outstanding principal
balance of the First Mortgage at the time of refinance plus reasonable costs of refinance, and (iii)
the refinance does not result in higher monthly payments on the First Mortgage Loan than were
due prior to the refinance.
13. Certification of Purchase Price on Transfer. Upon any sale of the
Residence, the Borrower shall submit to the City at least fifteen (15) days prior to the close of
escrow, a copy of the sales contract and a written declaration, under penalty of perjury, from the
Borrower and the proposed purchaser in a form acceptable to the City stating the gross sales
price of the Residence. The certification shall also provide that the proposed purchaser or any
other party has not paid and will not pay to the Borrower, and the Borrower has not received and
will not receive from the proposed purchaser or any other party, money or other consideration,
including personal property, in addition to what is set forth in the sales contract.
14. Notice to City of Transfers. Borrower shall provide the City with written
notice of any sale, assignment or transfer, voluntary or involuntary, of any interest in the
Residence, including, but not limited to, encumbrance of the Residence with a junior deed of
trust or transfer of the Residence to a spouse or trust. Borrower shall provide this notice to the
City no later than fifteen (15) days before the sale, assignment, or transfer occurs, except where
the transfer is by devise or inheritance after death of the Borrower in which event notice shall be
provided within thirty (30) days of the date of transfer.
15. Default.
a. The Borrower shall be in default under this Note if he or she is in
default under the First Mortgage following the expiration of First Mortgage cure periods, or if,
after the notice and cure period provided by the City to the Borrower pursuant to the notice and
1010\03\111697.6
04/02/99 4
cure provisions of the Deed of Trust, the Borrower (i) fails to pay any money when due under
this Note; (ii) breaches any representation or covenant made in this Note in any material respect;
or (iii) breaches any provision of the Deed of Trust.
b. Upon the Borrower's breach of any covenant or agreement of the
Borrower in this Note or the Deed of Trust, including, but not limited to, the covenants to pay,
when due, any sums secured by the Deed of Trust, the City, prior to acceleration, will send, in
the manner set forth in Section 19, notice to the Borrower specifying: (1) the breach; (2) if the
breach is curable, the action required to cure such breach; (3) a date, not less than thirty (30) days
from the date the notice is effective, by which such breach, if curable, is to be cured and (4) if the
breach is curable, that failure to cure such breach on or before the date specified in the notice
may result in acceleration of the sums secured by the Deed of Trust and foreclosure by the City.
The notice will also inform the Borrower of the Borrower's right to reinstate after acceleration
and the right to bring a court action to assert the nonexistence of default or any other defense of
the Borrower to acceleration and sale.
16. Acceleration. JUpon the occurrence of a default under this Note, the Deed
of Trust, or the First Mortgage, the City shall have the right to declare the full amount of the
principal along with any Contingent Interest under this Note immediately due and payable. Any
failure by the City to pursue its legal and equitable remedies upon default shall not constitute a
waiver of the City's right to declare a default and exercise all of its rights under this Note and the
Deed of Trust. Nor shall acceptance by the City of any payment provided for herein constitute a
waiver of the City's right to require prompt payment of any remaining principal and interest
owed.
17. No Offset. The Borrower hereby waives any rights of offset it now has or
may later have against the City, its successors and assigns, and agrees to make the payments
called for in this Note in accordance with the terms of this Note.
18. Waiver; Attorney Fees and Costs. The Borrower and any endorsers or
guarantors of this Note, for themselves, their heirs, legal representatives, successors and assigns,
respectively, severally waive diligence, presentment, protest, and demand, and notice of protest,
dishonor and non-payment of this Note, and expressly waive any rights to be released by reason
of any extension of time or change in terms of payment, or change, alteration or release of any
security given for the payments hereof, and expressly waive the right to plead any and all statutes
of limitations as a defense to any demand on this Note or agreement to pay the same, and jointly
and severally agree to pay all costs of collection when incurred, including reasonable attorney
fees. If an action is instituted on this Note, the Borrower promises to pay, in addition to the costs
and disbursements allowed by law, such sum as a court may adjudge reasonable as attorneys' fees
in such action.
19. No Waiver by the City. No waiver of any breach, default or failure of
condition under the terms of this Note shall be implied from any failure of the City to take action
with respect to such breach, default or failure or from any previous waiver of any similar or
unrelated breach, default or failure.
1010\03\111697.6
04/02/99
c. the failure at any time of any of Borrower's representations to the
Seller or the City to be true and correct.
24. Termination of Restrictions. Any legal restrictions on conveyance of the
Residence (as defined in 24 CFR 203.41(a)(3)(u)) included in this Note shall terminate upon
transfer of the Residence by foreclosure, deed in lieu of foreclosure, or assignment to the
Secretary of the United States Department of Housing and Urban Development.
25. Controlling Law. This Note shall be construed in accordance with and be
governed by the laws of the State of California.
26. Assignment by City. The City may assign its right to receive the proceeds
under this Note to any person and upon notice to the Borrower by the City all payments shall be
made to the assignee.
27. Invalid Provisions. If any one or more of the provisions contained in this
Note shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such
provision or provisions shall be deemed severable from the remaining provisions contained in
this Note, and this Note shall be construed as if such invalid, illegal or unenforceable provision
had never been contained in this Note.
28. Entire Agreement. This Note (along with the Deed of Trust) sets forth the
entire understanding and agreement of the City and the Borrower and any amendment, alteration
or interpretation of this Note must be in writing signed by both the City and the Borrower.
BORROWER
Mohammad H. Aslami
(Print Name)
Naheed Aslami
(Print Name)
1010\03\111697.6
04/02/99
H'SCGRIKD REQUEST OF FIRST AMERICAN TITLE J}QQ J 1999~0698037
SUBDIVISION SALE-OUT DEPARTMENT
Recording Requested and OCT 15, 1999 4 = 35 PM
°: 8707 unum
Housing and Redevdopmen, Department ™.™ ™OB
2965 Roosevelt Street, Suite B pgrg. 43 QQ
Carlsbad, CA 92008-2839 yftY: 2
Attn: Housing and Redevelopment Director
NOTE TO BORROWER: 1 999-069803?
THIS DEED OF TRUST CONTAINS
PROVISIONS PROHIBITING ASSUMPTIONS
DEED OF TRUST
AND SECURITY AGREEMENT
THIS DEED OF TRUST AND SECURITY AGREEMENT ("Deed of Trust")
made as of this 1st of October , 1999, among Mohammad H.
Aslami and Naheed Aslami ("Borrower") as trustor, and First
American Title Insurance Company ("Trustee"), and the City of
Carlsbad, a municipal corporation (the "City"), as beneficiary.
The Borrower, in consideration of the promises herein recited and the trust herein created,
irrevocably grants, transfers, conveys and assigns to the Trustee, in trust, with power of sale, the
property located in the City of Carlsbad, State of California, described in the attached Exhibit
"A" (the "Property").
TOGETHER with all the improvements now or hereafter erected
on the property, and all easements, rights, appurtenances, and
all fixtures now or hereafter attached to the property, all of
which, including replacements and additions thereto, shall be
deemed to be and remain a part of the property covered by this
Deed of Trust; and
TOGETHER with all articles of personal property or fixtures
now or hereafter attached to or used in and about the building or
buildings now erected or hereafter to be erected on the Property
which are necessary to the complete and comfortable use and
occupancy of such building or buildings for the purposes for
which they were or are to be erected, including all other goods
and chattels and personal property as are ever used or furnished
in operating a building, or the activities conducted therein,
similar to the one herein described and referred to, and all
renewals or replacements thereof or articles in substitution
therefore, whether or not the same are, or shall be attached to
said building or buildings in any manner; and all of the
foregoing, together with the Property, is herein referred to as
the "Security"; SAID DEED op TRUST IS THIRD AND SUBORDINATE TO A FIRST DEED
OF TRUST IN THE AMOUNT OF $115,350.00 AND A SECOND DEED OF TRUST IN THE AMOUNT OF
$20,000.00 BOTH RECORDING CONCURRENTLY HEREWITH.
8708
To have and to hold the Security together with acquittances to the Trustee, its successors
and assigns forever;
TO SECURE to the City the repayment of the sums evidenced by a promissory note
executed by the Borrower to the City dated October 1 , 1999, in the amount of Forty Five
Thousand Dollars ($ 45,000.00 ) (the "Note");
TO SECURE to the City the payment of all other sums, with interest thereon, advanced in
accordance herewith to protect the security of this Deed of Trust; and the performance of the
covenants and agreements of the Borrower herein contained; and
TO SECURE the performance of any obligations of Borrower in any other agreements
with respect to the financing of the Property or the Security the failure of which would adversely
affect Beneficiary, whether or not Beneficiary is a party to such agreements.
BORROWER AND CITY COVENANT AND AGREE AS FOLLOWS:
1. Borrower's Estate. That the Borrower is lawfully seized of the estate hereby
conveyed and has the right to grant and convey the Security, that other than this Deed of Trust,
the Security is encumbered only by that deed of trust executed by the Borrower in connection
with a loan made to the Borrower by North American Mortgage Company or its successors and
assigns (the "First Lender"), dated October 1 . 19 99 , executed by the Borrower in favor of First
Lender, and recorded in the County of San Diego on OcT (*T , 19^, and assigned
Recorder's Serial No.'ffi'ffifffSg'Ohe "First Lender Deed of Trust"), securing a promissory note
executed by the Borrower in favor of the First Lender ("First Lender Note"), to assist in the
purchase of the Property. The Borrower agrees to warrant and defend generally the title to the
Security against all claims and demands, subject to any declarations, easements or restrictions
listed in a schedule of exceptions to coverage in any title insurance policy insuring the City's
interest in the Security. (As used in this Deed of Trust, the term "First Lender" shall include all
successors and assigns of the First Lender.)
2. Repayment of Loan. The Borrower will promptly repay, when due, the principal
and interest required by the Note. The Note contains the following provisions concerning
repayment of the loan under certain conditions:
No Assumption of Note. The Borrower acknowledges that this Note is given in
connection with the purchase of property (the "Residence") as part of a program
of the Agency to assist in the purchase of homes by lower income persons.
Consequently, this Note is not assumable by transferees of the Residence, but is
due in full upon Transfer.
3. First Lender Loan. The Borrower will observe and perform all of the covenants
and agreements of the First Lender Note, First Lender Deed of Trust, and related First Lender
loan documents.
4. Owner-Occupancy Required. The Borrower shall occupy the Property as his or
her principal place of residence. The Borrower shall be considered as occupying the Property if
1010\03\101715.01 O
8709
the Borrower is living in the unit for at least ten (10) months out of each calendar year. The
Borrower shall provide an annual written certification to the City that the Borrower is occupying
the Property as his or her principal place of residence.
5. Charges: Liens. The Borrower will pay all taxes, assessments and other charges,
fines and impositions attributable to the Security which may attain a priority over this Deed of
Trust, by the Borrower making any payment, when due, directly to the payee thereof. The
Borrower will promptly furnish to the City all notices of amounts due under this paragraph, and
in the event the Borrower makes payment directly, the Borrower will promptly discharge any
lien which has priority over this Deed of Trust; provided, that the Borrower will not be required
to discharge the lien of the First Lender Deed of Trust or any other lien described in this
paragraph so long as the Borrower will agree in writing to the payment of the obligation secured
by such lien in a manner acceptable to the City, or will, in good faith, contest such lien by, or
defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement
of the lien or forfeiture of the Security or any part thereof.
6. Hazard Insurance. The Borrower will keep the Security insured by a standard fire
and extended coverage insurance policy in at least an amount equal to the replacement cost of the
Security, but in no event less than the amount necessary to prevent the Borrower from becoming
a co-insurer under the terms of the policy.
The insurance carrier providing this insurance shall be
licensed to do business in the State of California and be chosen
by the Borrower subject to approval by the City; provided, that
such approval will not be withheld if the insurer is also
approved by the First Lender, the Federal Home Loan Mortgage
Corporation, Fannie Mae, Freddie Mac, the United States
Department of Housing and Urban Development, the United States
Department of Veterans Affairs, or successors thereto.
All insurance policies and renewals thereof will be in a form acceptable to the City and
will include a standard mortgagee clause with standard lender's endorsement in favor of the
holder of the First Lender Note and the City as their interests may appear and in a form
acceptable to the City. The City shall have the right to hold, or cause its designated agent to
hold, the policies and renewals thereof, and the Borrower shall promptly furnish to the City, or
its designated agent, the original insurance policies or certificates of insurance, all renewal
notices and all receipts of paid premiums. In the event of loss, the Borrower will give prompt
notice to the insurance carrier and the City or its designated agent. The City, or its designated
agent, may make proof of loss if not made promptly by the Borrower. The City shall receive
thirty days advance notice of cancellation of any insurance policies required under this section.
Unless the City and the Borrower otherwise agree in writing, insurance proceeds, subject
to the rights of the First Lender, will be applied to restoration or repair of the Security damaged,
provided such restoration or repair is economically feasible and the Security of this Deed of
Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the
security of this Deed of Trust would be impaired, the insurance proceeds will be used, subject to
the rights of the First Lender, to repay the Note and all sums secured by this Deed of Trust, with
the excess, if any, paid to the Borrower. If the Security is abandoned by the Borrower, or if the
Borrower fails to respond to the City, or its designated agent, within thirty (30) days from the
1010\03\101715.01 -)
8710
date notice is mailed by either of them to the Borrower that the insurance carrier offers to settle a
claim for insurance benefits, the City, or its designated agent, is authorized, subject to the rights
of the First Lender, to collect and apply the insurance proceeds at the City's option either to
restoration or repair of the Security or to repay the Note and all sums secured by this Deed of
Trust.
If the Security is acquired by the City, all right, title and interest of the Borrower in and to
any insurance policy and in and to the proceeds thereof resulting from damage to the Security
prior to the sale or acquisition will pass to the City to the extent of the sums secured by this Deed
of Trust immediately prior to such sale or acquisition subject to the rights of the First Lender.
7. Preservation and Maintenance of Security. The Borrower will keep the Security
in good repair and will not commit waste or permit impairment or deterioration of the Security.
8. Protection of the City's Security. If the Borrower fails to perform the covenants
and agreements contained in this Deed of Trust, the First Lender Note, the First Lender Deed of
Trust, or if any action or proceeding is commenced which materially affects the City's interest in
the Security, including, but not limited to, default under the First Lender Deed of Trust, the First
Lender Note or any other deed of trust encumbering the Property, eminent domain, insolvency,
code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the
City, at the City's option, upon notice to the Borrower, may make such appearances, disburse
such sums and take such action as it determines necessary to protect the City's interest, including
but not limited to, disbursement of reasonable attorney's fees and entry upon the Security to
make repairs.
Any amounts disbursed by the City pursuant to this paragraph, with interest thereon, will
become an indebtedness of the Borrower secured by this Deed of Trust. Unless the Borrower
and City agree in writing to other terms of payment, such amount will be payable upon notice
from the City to the Borrower requesting payment thereof, and will bear interest from the date of
disbursement at the lesser often percent (10%) or the highest rate permissible under applicable
law. Nothing contained in this paragraph will require the City to incur any expense or take any
action hereunder.
9. Inspection. The City may make or cause to be made reasonable entries upon and
inspections of the Security; provided that the City will give the Borrower reasonable notice of
inspection.
10. Forbearance by the City Not a Waiver. Any forbearance by the City in exercising
any right or remedy will not be a waiver of the exercise of any such right or remedy. The
procurement of insurance or the payment of taxes or other liens or charges by the City will not be
a waiver of the City's right to accelerate the maturity of the indebtedness secured by this Deed of
Trust.
11. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct
and cumulative to any other right or remedy under this Deed of Trust or any other document, or
afforded by law or equity, and may be exercised concurrently, independently or successively.
12. Successors and Assigns Bound. The covenants and agreements herein contained
1010\03\101715.01 /.
8711
shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the
City and the Borrower subject to the provisions of this Deed of Trust.
13. Joint and Several Liability. All covenants and agreements of the Borrower shall
be joint and several.
14. Notice. Except for any notice required under applicable law to be given in
another manner, all notices required in this Deed of Trust shall be sent by certified mail, return
receipt requested or express delivery service with a delivery receipt, or personally delivered with
a delivery receipt obtained, and shall be deemed to be effective as of the date shown on the
delivery receipt as the date of delivery, the date delivery was refused, or the date the notice was
returned as undeliverable as follows:
To the Owner: Mohammad H. Aslami and Naheed Aslami
At the address of the Residence. 2903 Cliff Circle, Carlsbad, CA 92008
To the City:
City of Carlsbad
Housing and Redevelopment Department
2965 Roosevelt Street, Suite B
Carlsbad, CA 92008-2389
Attn: Housing and Redevelopment Director
The parties may subsequently change addresses by providing written notice of the change
in address to the other parties in accordance with this section.
15. Controlling Law. This Deed of Trust shall be construed in accordance with and
be governed by the laws of the State of California.
16. Invalid Provisions. If any one or more of the provisions contained in this Deed of
Trust or the Note shall for any reason be held to be invalid, illegal or unenforceable in any
respect, then such provision or provisions shall be deemed severable from the remaining
provisions, and this Deed of Trust and the Note shall be construed as if such invalid, illegal or
unenforceable provision had never been contained in this Deed of Trust or the Note.
17. Captions. The captions and headings in this Deed of Trust are for convenience
only and are not to be used to interpret or define the provisions hereof.
18. Default: Remedies. Upon the Borrower's breach of any covenant or agreement of
the Borrower in this Deed of Trust, including, but not limited to, the covenants to pay, when due,
any sums secured by this Deed of Trust, the City, prior to acceleration, will send, in the manner
set forth in Section 14 of this Deed of Trust, notice to the Borrower specifying: (1) the breach;
(2) if the breach is curable, the action required to cure such breach; (3) a date, not less than thirty
(30) days from the date the notice is effective as set forth in Section 14 of this Deed of Trust, by
which such breach, if curable, is to be cured; and (4) if the breach is curable, that failure to cure
such breach on or before the date specified in the notice may result in acceleration of the sums
1010\03\101715.01 r-
8712
secured by this Deed of Trust and sale of the Security. Notice shall be effective as of the date
shown on the delivery receipt as the date of delivery, the date delivery was refused or the date the
notice was returned as undeliverable. The notice will also inform the Borrower of the Borrower's
right to reinstate after acceleration and the right to bring a court action to assert the nonexistence
of default or any other defense of the Borrower to acceleration and sale. If the breach is not
curable or is not cured on or before the date specified in the notice, the City, at the City's option,
may: (a) declare all of the sums secured by this Deed of Trust to be immediately due and
payable without further demand and may invoke the power of sale and any other remedies
permitted by California law; (b) either in person or by agent, with or without bringing any action
or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its
security, enter upon the Security and take possession thereof (or any part thereof) and of any of
the Security, in its own name or in the name of the Trustee, and do any acts which it deems
necessary or desirable to preserve the value or marketability of the Security, or part thereof or
interest therein, increase the income therefrom or protect the security thereof. The entering upon
and taking possession of the Security shall not cure or waive any breach hereunder or invalidate
any act done in response to such breach and, notwithstanding the continuance in possession of
the Security, the City shall be entitled to exercise every right provided for in this Deed of Trust,
or by law upon occurrence of any uncured breach, including the right to exercise the power of
sale; (c) commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or
specifically enforce any of the covenants hereof; (d) deliver to the Trustee a written declaration
of default and demand for sale, pursuant to the provisions for notice of sale found at California
Civil Code Sections 2924, et seq., as amended from time to time; or (e) exercise all other rights
and remedies provided herein, in the instruments by which the Borrower acquires title to any
Security, or in any other document or agreement now or hereafter evidencing, creating or
securing all or any portion of the obligations secured hereby, or provided by law.
The City shall be entitled to collect all reasonable costs
and expenses incurred in pursuing the remedies provided in this
paragraph, including, but not limited to, reasonable attorney's
fees.
19. Acceleration. Upon the occurrence of a default under the Note, this Deed of
Trust, the First Lender Note, or the First Lender Deed of Trust, the City shall have the right to
declare the full amount of the principal along with any interest under the Note immediately due
and payable. Any failure by the City to pursue its legal and equitable remedies upon default shall
not constitute a waiver of the City's right to declare a default and exercise all of its rights under
the Note and this Deed of Trust. Nor shall acceptance by the City of any payment provided for
in the Note constitute a waiver of the City's right to require prompt payment of any remaining
principal and interest owed.
20. Borrower's Right to Reinstate. Notwithstanding the City's acceleration of the
sums secured by this Deed of Trust, the Borrower will have the right to have any proceedings
begun by the City to enforce this Deed of Trust discontinued at any time prior to five (5) days
before sale of the Security pursuant to the power of sale contained in this Deed of Trust or at any
time prior to entry of a judgment enforcing this Deed of Trust if: (a) the Borrower pays City all
sums, if any, which would be then due under this Deed of Trust and no acceleration under the
Note has occurred; (b) the Borrower cures all breaches of any other covenants or agreements of
the Borrower contained in this Deed of Trust; (c) the Borrower pays all reasonable expenses
1010\03\101715.01 r
8713
incurred by City and the Trustee in enforcing the covenants and agreements of the Borrower
contained in this Deed of Trust, and in enforcing the City's and the Trustee's remedies, including,
but not limited to, reasonable attorney's fees; and (d) the Borrower takes such action as City may
reasonably require to assure that the lien of this Deed of Trust, City's interest in the Security and
the Borrower's obligation to pay the sums secured by this Deed of Trust shall continue
unimpaired. Upon such payment and cure by the Borrower, this Deed of Trust and the
obligations secured hereby will remain in full force and effect as if no acceleration had occurred.
21. Reconveyance. Upon payment or forgiveness of all sums secured by this Deed of
Trust, the City will request the Trustee to reconvey the Security and will surrender this Deed of
Trust and the Note to the Trustee. The Trustee will reconvey the Security without warranty and
without charge to the person or persons legally entitled thereto. Such person or persons will pay
all costs of recordation, if any.
22. Substitute Trustee. The City, at the City's option, may from time to time remove
the Trustee and appoint a successor trustee to any trustee appointed hereunder. The successor
trustee will succeed to all the title, power and duties conferred upon the Trustee herein and by
applicable law.
23. Subordination to First Mortgage. Notwithstanding any other provision hereof,
the provisions of this Deed of Trust shall be subordinate to the lien of the First Lender Deed of
Trust and shall not impair the rights of the First Lender, or the First Lender's successor or assign,
to exercise its remedies under the First Lender Deed of Trust in the event of default under the
First Lender Deed of Trust by the Borrower. Such remedies under the First Lender Deed of
Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure.
After such foreclosure or acceptance of a deed or assignment in lieu of foreclosure, or upon
assignment of the First Lender Deed of Trust to the Secretary of the United States Department of
Housing and urban Development (the "Secretary"), this Deed of Trust shall be forever terminated
and shall have no further effect as to the Property or any transferee thereafter; provided, however,
if the holder of such First Lender Deed of Trust acquired title to the Property pursuant to a deed
or assignment in lieu of foreclosure, or if the First Lender's Deed of Trust is assigned to the
Secretary, this Deed of Trust shall automatically terminate upon such acquisition of title, or
assignment to the Secretary provided that (i) the City has been given written notice of default
under such First Lender Deed of Trust and (ii) the City shall not have cured or commenced to
cure the default within such 30-day period and given its firm commitment to complete the cure in
the form and substance acceptable to the First Lender. Borrower agrees to record any necessary
documents to effect such termination, if applicable.
23 A. Subordinate Clause. This Deed of Trust is hereby subordinate to a First Deed of
Trust in the amount of $115.350.00 in favor of North American Mortgage Company and
subordinate to a Second Deed of Trust in the amount of $20,000.00 in favor of Carlsbad
Homebuyer's Assistance Program. Recording concurrently herewith.
1010\03\101715.01
8714
24. Attorney's Fees. If any action or proceeding is brought to enforce this Deed of Trust
or any provision of this Deed of Trust or the Note, the prevailing party shall be entitled to its
attorney's fees and the cost of such action or proceeding.
IN WITNESS WHEREOF, the Borrower has executed this Deed Of Trust as of the date
first written above.
Borrower
Mohammad H. Aslami
(Print Name)
Borrower
Naheed Aslami
(Print Name)
1010\03\10171S.01
8715
EXHIBIT A
Property Description
PARCEL 1:
AN UNDIVIDED 1/18™ FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE
COMMON AREA OF MODULE A AS SHOWN ON THE CONDOMINIUM PLAN, PHASE 1,
RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON
AUGUST 11, 1999 AS FILE NO. 1999-0556005 OF OFFICIAL RECORDS ("CONDOMINIUM
PLAN"), WHICH IS LOCATED ON LOT 1 OF CITY OF CARLSBAD TRACT 97-04, IN THE CITY
OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP
THEREOF NO. 13714, RECORDED ON DECEMBER 30, 1998.
EXCEPTING AND RESERVING THEREFROM NON-EXCLUSIVE EASEMENTS FOR ACCESS,
INGRESS, EGRESS, ENCROACHMENT, MAINTENANCE, REPAIR, DRAINAGE, SUPPORT, AND
FOR OTHER PURPOSES, ALL AS DESCRIBED IN THE CONDOMINIUM PLAN AND
DECLARATION.
PARCEL 2:
RESIDENTIAL UNIT NO. 29. AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN.
EXCEPTING AND RESERVING THEREFROM A YARD USE AREA EASEMENT FOR THE
BENEFIT OF THE ADJACENT RESIDENTIAL UNIT AS DESCRIBED ON THE CONDOMINIUM
PLAN AND IN THE DECLARATION.
FURTHER EXCEPTING AND RESERVING THEREFROM A FRONT YARD MAINTENANCE
AREA EASEMENT FOR THE BENEFIT OF THE ASSOCIATION AS DESCRIBED ON THE
CONDOMINIUM PLAN AND IN THE DECLARATION.
PARCEL 3:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR INGRESS,
EGRESS, USE AND ENJOYMENT, OVER, IN, TO AND THROUGHOUT THE ASSOCIATION
PROPERTY SHOWN ON THE CONDOMINIUM PLAN DESCRIBED IN PARCEL "A" ABOVE
AND OVER, IN, TO AND THROUGHOUT, FUTURE PHASES OF THE PROJECT DESCRIBED IN
THE DECLARATION WHICH EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT
DESCRIBED ABOVE. THIS EASEMENT SHALL BECOME EFFECTIVE AS TO EACH OF THE
FUTURE PHASES, RESPECTIVELY, UPON (i) RECORDATION OF A DECLARATION OF
ANNEXATION, DECLARING SUCH PHASES, RESPECTIVELY, TO BE SUBJECT TO THE
DECLARATION, AND (ii) CONVEYANCE OF THE FIRST CONDOMINIUM COVERED BY THE
DECLARATION OF ANNEXATION, ALL AS MORE FULLY SET FORTH IN THE
DECLARATION. THE ASSOCIATION PROPERTY REFERRED TO HEREIN AS TO EACH OF
SUCH PHASES SHALL BE AS DESCRIBED ON THE CONDOMINIUM PLAN COVERING EACH
SUCH PHASE RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY, CALIFORNIA, EXCEPTING THEREFROM THE COMMON AREA AND RESIDENTIAL
UNITS SITUATED THEREON.
1010X03X101715.01
8716
STATE OF CALIFORNIA )
)ss
COUNTY OF SAN DIEGO )
on -qq
W.
, v>i ) i KtxM YV-X- ^' ?/ , pejsfiJnally appeared,.199 M, before me,
B c^tXrvil, pcjoonally laiowrrtcrme-(or proved to me on the basis of
satisfactory evidence) to be the person(s) wjipse namefpfis/^e subscribed to the within
instrument and acknowledged to me thatfie/sjie/they executed the same idl-us/jier/their
authorized capacity(ies), and that by^us/per/their signature(s) on the instrument the person(s) or
the entitrnipon behalf of which the per§5n(s) acted, executed the instrument.
WI
CHRISTINE S. DIAZCOMM.#1180012 o
NOTARY PUBLIC-CALIFORNIA W
SAN DIEGO COUNTY QMy Commission Expires .
APRIL 17, 2002 I
STATE OF CALIFORNIA )
)ss
COUNTY OF SAN DIEGO )
On }0 * 0
d rT(5 1 CufY\ I
J_,199_L before me,ersonally appeared
, pgrcnnally Vnnwn tn mp (pr proved tO me^On the basis of
satisfactory evidence) to be the person(s) whose nameCsl'i^re subscribed to the within
instrument and acknowledged to me mat he/g§2lhey executed the same in his^Eer^their
authorized capacity(ies), and that by his^r^eir signature(s) on the instrumenTme person(s) or
the entityXipon behalf of which the person(s) acted, executed the instrument.
CHRISTINE S. DIAZCOMM. #1180012
NOTARY PUBLIC-CALIFORNIA
SAN DIEGO. COUNTYMy Commission Expires
APRIL 17, 2002
<fl
1010\03\101715.01
Loan No.
WHEN RECORDED MAIL TO:
8717
DOC ft 1999-0698038
OCT 15, 1999 4=35 PM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
GK60RY J. WITH, COUNTY RECORDER
FES: 15.00
SPACE ABOVE 1990-0698038
Request For Notice Under Section 2924b Civil Code
In accordance with Section 2924b, Civil Code, request is hereby made that a copy of any Notice of Default and a copy
of any Notice of Sale under the Deed of Trust recorded as Instrument No.
, 19on
Records of
, in , Page_
County, California, and describing land therein as
CowGM (Z.iLen A-Uj
, Official
executed by
in which
MOHAMMAD H. ASLAMI AND NAHEED ASLAMI
CITY OF CARLSBAD, A MUNICIPAL CORPORATION
Beneficiary, and FIRST AMERICAN TITLE INSURANCE COMPANY
be mailed to CITY OF CARLSBAD HOUSING AND REDEVELOPMENT DEPARTMENT
at 2965 ROOSEVELT STREET, SUITE B
_, as Trustor,
Js named as
, as Trustee,
Number and Street
SAN DIEGO, CA 92008-2389
City and State
NOTICE: A COPY OF ANY NOTICE OF DEFAULT AND OF ANY NOTICE OF SALE WILL BE SENT ONLY
TO THE ADDRESS CONTAINED IN THIS RECORDED REQUEST. IF YOUR ADDRESS CHANGES, A NEW
REQUEST MUST BE RECORDED.
STATE OF CALIFORNIA
COUNTY OF
}ss.}MOHAMMAD H.-ASLAMI
before me,NAHEED ASLAMI
4-
personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person(s) wjjese name(s) is/are subscribed to the within
instrument and acknowledgarfto mi that he/she/they executed the same in
his/her/their authorized capacity (iesl, andfliat by his/her/their signature(s) on
the instrument the persor/s) or the^ntijy/ipon behalf of which the person(s)
acted, executed the instrument.
WITNESS my hand an| official i
Signature
CHRISTINE S. DIAZ |COMM.#1180012 o
NOTARY PUBLIC-CALIFORNIA W
SAN DIEGO COUNTY «My Commission Expires
APRIL 17, 2002
(This area for official notarial seal)
1168(1/94)
8718 ORDER NO. 1227860-5
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY
OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS:
A CONDOMINIUM COMPRISED OF:
PARCEL 1:
AN UNDIVIDED 1/18™ FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE
COMMON AREA OF MODULE A AS SHOWN ON THE CONDOMINIUM PLAN, PHASE 1,
RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON
AUGUST 11, 1999 AS FILE NO. 1999-0556005 OF OFFICIAL RECORDS ("CONDOMINIUM
PLAN"), WHICH IS LOCATED ON LOT 1 OF CITY OF CARLSBAD TRACT 97-04, IN THE CITY
OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP
THEREOF NO. 13714, RECORDED ON DECEMBER 30, 1998.
EXCEPTING AND RESERVING THEREFROM NON-EXCLUSIVE EASEMENTS FOR ACCESS,
INGRESS, EGRESS, ENCROACHMENT, MAINTENANCE, REPAIR, DRAINAGE, SUPPORT, AND
FOR OTHER PURPOSES, ALL AS DESCRIBED IN THE CONDOMINIUM PLAN AND
DECLARATION.
PARCEL 2:
RESIDENTIAL UNIT NO. 35 . AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN.
EXCEPTING AND RESERVING THEREFROM A FRONT YARD MAINTENANCE AREA
EASEMENT FOR THE BENEFIT OF THE ASSOCIATION AS DESCRIBED ON THE
CONDOMINIUM PLAN AND IN THE DECLARATION.
FURTHER EXCEPTING AND RESERVING THEREFROM A SIDE YARD MAINTENANCE AREA
EASEMENT FOR THE BENEFIT OF AND WHICH EASEMENT IS APPURTENANT TO
RESIDENTIAL UNIT NO. 34 AS DESCRIBED ON THE CONDOMINIUM PLAN AND IN THE
DECLARATION.
PARCEL 3:
A NON-EXCLUSIVE EASEMENT FOR ACCESS, INGRESS, EGRESS AND MAINTENANCE AS
PROVIDED UNDER THE DECLARATION OVER THAT PORTION OF THE ADJACENT
ASSOCIATION PROPERTY DESIGNATED ON THE CONDOMINIUM PLAN AS A SIDE YARD
MAINTENANCE AREA FOR THE BENEFIT OF AND WHICH EASEMENT IS APPURTENANT TO
THE RESIDENTIAL UNIT DESCRIBED ABOVE.
PAGES
ORDER NO. 1227860-5
8719
PARCEL 4:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR INGRESS,
EGRESS, USE AND ENJOYMENT, OVER, IN, TO AND THROUGHOUT THE ASSOCIATION
PROPERTY SHOWN ON THE CONDOMINIUM PLAN DESCRIBED IN PARCEL "A" ABOVE
AND OVER, IN, TO AND THROUGHOUT, FUTURE PHASES OF THE PROJECT DESCRIBED IN
THE DECLARATION WHICH EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT
DESCRIBED ABOVE. THIS EASEMENT SHALL BECOME EFFECTIVE AS TO EACH OF THE
FUTURE PHASES, RESPECTIVELY, UPON (i) RECORDATION OF A DECLARATION OF
ANNEXATION, DECLARING SUCH PHASES, RESPECTIVELY, TO BE SUBJECT TO THE
DECLARATION, AND (ii) CONVEYANCE OF THE FIRST CONDOMINIUM COVERED BY THE
DECLARATION OF ANNEXATION, ALL AS MORE FULLY SET FORTH IN THE
DECLARATION. THE ASSOCIATION PROPERTY REFERRED TO HEREIN AS TO EACH OF
SUCH PHASES SHALL BE AS DESCRIBED ON THE CONDOMINIUM PLAN COVERING EACH
SUCH PHASE RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY, CALIFORNIA, EXCEPTING THEREFROM THE COMMON AREA AND RESIDENTIAL
UNITS SITUATED THEREON.
SEPTEMBER 20, 1999 2:57 PM RT
PAGE 9