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HomeMy WebLinkAboutFox, Lori Ann; 2001-06-11; (2)WF4M3 CARLSBAD HOMEBUYER ASSISTANCE PROGRAM NOTICE TO BORROWER: THIS NOTE IS NOT ASSUMABLE HERD LEM PROMISSORY NOTE Secured by Deed of Trust $ 20,000.00 Carlsbad, California JLNE11 .2001 FOR VALUE RECEIVED, the undersigned KRE-fflWHK (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 $__** _ , plus Contingent Interest calculated pursuant to Section 4 below. 1 . Purpose of Loan. Borrower is purchasing the Residence located at 6137 PKW) TTSKTTIAR _ in the City of Carlsbad. This Note evidences a loan made by the City to the Borrower (the "City Loan") pursuant to the Carlsbad Homebuyer Assistance Program ("CHAP"). The City 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 Loan, as amended. 2. Definitions. The terms set forth in this Section shall have the following meanings in this Note. 1010\02\111700.3 **ONE HLNDRED EIQflY FIVE TKJUSfiND FOE HECKED ** $185,400 a. "Appreciation Amount" shall mean the amount calculated by subtracting the total original purchase price of the Residence paid by the Borrower, which was ** Dollars ($ ** ). 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. ( 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. Jf 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 mearithe housing unit and land encumbered by the deed of trust executed in connection with thisjNote. 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 device 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"). 1010\02\111700.3 FOX 4. Contingent Interest. The Borrower shall pay contingent interest equal to*** percent (*** %) 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(b) below, unless forgiven by the City pursuant to Section 7(c) 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%) discount to Borrower to account for any capital improvements Borrower may make to the Residence. ***TEN POINT EIGHTY ONE PERCENT/ 10.81% 5. Term. The Term of this Note shall mean the period commencing on the date of this Note and expiring on the date fifteen (15) years thereafter. 6. Residency. First Time Homebuyer. and Owner-Occupancy Requirements: Representations Regarding Requirements. a. The Borrower shall either have lived in the City for a minimum of sixty (60) days or work in the City, and also be a first time homebuyer. Failure of the Borrower to comply with these requirements shall be a default under this Note. The Borrower shall provide written certification to the City that he or she meets these requirements. b. The Borrower is required to occupy the Residence as his or her principal place of residence, and failure by the Borrower to comply with this requirement shall be a default under this Note. The Borrower shall be considered as occupying the Residence if the Borrower is living in the Residence 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 Residence as his or her principal place of residence. The Borrower shall not lease the Home to another party. Any lease of the Residence shall be a default under this Note. c. Borrower hereby certifies that all income, residency or employment, and first time homebuyer status information previously submitted to the City is true and correct Misrepresentation by Borrower of this information provided to the City shall be a default under this Note. 7. Repayment. a. Repayment of the principal amount of this Note shall be deferred for the first five years from the date of this Note. At the end of five (5) years, the Borrower shall begin making monthly repayments of principal in the amount of *** Dollars ($ ** ) based on a ten (10) year principal repayment schedule and due and payable on the first day of each calendar month commencing , 200_ . X$[LpLwxAJL I YuJCXu. ***ONE HUNDRED SIXTY SIX DOLLARS AND SIXTY SEVEN CENTS/ $166.67 1010\02M11700.3 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 the 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 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 20, 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. Upon 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 1010MJ2M11700.3 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. 20. Notices. All notices required in this Note 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 Borrower: At the address of the Residence. To the City: City of Carlsbad Housing and Redevelopment Department 2965 Roosevelt Street, Suite B Carlsbad, CA 92008-2389 Attention: Housing and Redevelopment Director 1010\02\111700.3 The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section 20. 21. Joint and Several Obligations. This Note is the joint and several obligation of all makers, sureties, guarantors and endorsers, and shall be binding upon them and their successors and assigns. 22. Nonliability for Negligence. Loss, or Damage. Borrower acknowledges, understands and agrees that the relationship between Borrower and the City is solely that of borrower and lender, and that the City does not undertake or assume any responsibility for or duty to Borrower to select, review, inspect, supervise, pass judgment on, or inform Borrower of the quality, adequacy or suitability of the Residence or any other matter. The City owes no duty of care to protect Borrower against negligent, faulty, inadequate or defective building or construction or any condition of the Residence and Borrower agrees that neither Borrower, or Borrower's heirs, successors or assigns shall ever claim, have or assert any right or action against the City for any loss, damage or other matter arising out of or resulting from any condition of the Residence and will hold the City harmless from any liability, loss or damage for these things. 23. Indemnity. Borrower agrees to defend, indemnify, and hold the City harmless from all losses, damages, liabilities, claims, actions, judgments, costs, and reasonable attorneys fees that the City may incur as a direct or indirect consequence of: a. the making of the loan to Borrower; b. Borrower's failure to perform any obligations as and when required by the Note or the Deed of Trust; of 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 1010«J2\111700.3 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 (Print Name) (Print Name) 1010\02M11700.3 WF*14 BORROWER DISCLOSURE STATEMENT SERRANO AT RANCHO CARRILLO HOMEBUYER ASSISTANCE PROGRAM The City of Carlsbad (the "City"), through its Inclusionary Housing Ordinance, has required the developer of the Serrano at Rancho Carrillo condominium development to sell the homes in the development to qualified households under terms that make the home affordable to you and the other new homebuyers. The City has also provided financial assistance to the developer to assist in making the Serrano at Rancho Carrillo homes affordable. Your new home is affordable to you because the City and the developer are providing you with second mortgage financing through the Serrano at Rancho Carrillo Homebuyer Assistance Program (the "Program") so that you will be able to buy your home. The City offers the Program in order to enable low income households to own their own homes in Carlsbad. As a condition of the financing, the City will require you to sign a Promissory Note and a Deed of Trust. The Deed of Trust will be recorded against your property. This Disclosure Statement explains the major provisions of the Promissory Note and the Deed of Trust to help you understand their requirements. You should, of course, read all of the City loan documents yourself and become completely familiar with them. A. PRIMARY RESIDENCE AND LEASING YOUR HOME H 1 Under the terms of the Promissory Note and Deed of Trust, the home you buy with the assistance of the City loan must be your main place of residence. This means you must live in the home no less than 10 months out of each calendar year. Each year, you must certify in writing to the City that you are living in your home as your main place of residence. In addition, you cannot lease your home. If you fail to follow these provisions, you are considered to be in default, and the City may declare its loan immediately due and payable. B. NOTICES TO CITY 1. Notice of Intent to Sell. Assign or Transfer. If you decide to sell, assign or transfer your home or any partial interest in your home, or if you record a mortgage or deed of trust against your home, you must let the City know in writing at least fifteen (15) days prior to the sale, assignment, transfer, or the recording of a mortgage or deed of trust. 2. Notice and Certification of Purchase Price. If you go to sell your home, at least fifteen (15) days before the sale closes (close of escrow), you must give the City a copy of the sales contract and a written statement that declares, under penalty of perjury, the gross sales price of the home. The written statement must be signed by both you (as seller) and the proposed buyer. The written statement must also certify that the proposed buyer, or any other party, has not paid and will not pay to you money or any other consideration that is not set out in the sales contract for the home. -1 - The statement must also certify that you (as the seller) have not received and will not receive from the proposed buyer, or anybody else, money or other consideration that is not included in the sales contract. 3. Delivery of Required Notices. Any notice you must provide to the City under the terms of the City loan documents must be sent by certified mail, return receipt requested, or express delivery service with a delivery receipt, or personally delivered with a delivery receipt obtained. C. INTEREST ON THE CITY LOAN; "CONTINGENT INTEREST" The City loan charges "contingent interest". The contingent interest represents the benefit you received from the City loan, and may generally be described as the percentage of the sales price that the City loaned to you, with an adjustment or discount applied. The contingent interest on your loan is due immediately if: $ You default under the City loan or the First Mortgage, or $ You sell or transfer title to your home, or $ The end of the term of your loan is reached, with exceptions (see section E. below) The contingent interest on your City loan has three (3) parts: (1) Appreciation Amount; (2) Contingent interest percentage; and (3) Automatic 25% discount to account for any improvements you may make to the home. An example is used to show each of the three (3) parts and how each would be calculated. Example 1 Your loan from the City is $18,200. The original sales price you paid for your home was $140,000. When you sell, the sales price is $173,600. 1. Appreciation Amount. The appreciation amount is generally the difference between the original sales price you paid for the home and the price at which you sell it. For example: Price of Home When You Sell: $173,600 Minus Price of Home When You Bought: - $140.000 Appreciation Amount: $ 33,600 The appreciation amount is calculated differently under certain circumstances. If you (a) prepay your City loan, or (b) transfer your home by means other than selling it, or (c) are in default under the terms of the City loan, the appreciation amount will be figured by using the Fair Market Value of the home (instead of the price of the home when you sell, as above). Fair Market Value is the value of -2- the home as determined by an independent appraiser chosen by the City. If such an appraisal is necessary, the cost of the appraisal will be paid by you. If a creditor takes title to your home, the appreciation amount will be figured by using the amount paid for the home at the creditor's sale. 2. Contingent Interest Percentage. The contingent interest percentage is the percentage of the sales price that the City loaned to you. This percentage is figured by dividing the amount of the City loan by the purchase price you paid for the home. Continuing with the example: City Loan Amount: $ 18,200 Divided By Price of Home When You Bought: -4- $140.000 Equals Contingent Interest Percentage = 13% 3. Automatic Discount For Possible Capital Improvements. During the time that you live in your home, you may make improvements to it that will increase its value. For example, you may put in a new central heating system or update the bathroom. To recognize the possibility that you have invested in improvements which have contributed to an increase in value beyond the increase due to a rise in the general real estate market, the contingent interest on the City loan provides for a 25% discount. This discount is given automatically, even if you have not made any improvements. Continuing with the example, the discount for capital improvements reduces the contingent interest owed the City as follows: Appreciation Amount: $ 33,600 Multiplied By Contingent Interest Percentage x .13 $ 4,368 $ 4,368 Multiplied By Automatic Discount x . 25 Total Dollar Amount of Discount $ 1,092 Contingent Interest Amount $ 4,368 Minus Discount Amount - 1.092 Contingent Interest You Owe City $ 3,276 The automatic capital improvement discount shall be calculated by the City as set out in the Promissory Note under Section 4. "Contingent Interest". The result is the same as with the calculation above. A mathematical step has been eliminated. Appreciation Amount: $ 33,600 Multiplied By Contingent Interest Percentage x .13 $ 4,368 -3- Automatic Discount Applied x .75 Contingent Interest You Owe City $ 3,276 D. PAYING BACK YOUR CITY LOAN 1. No Payments Required for 30 Years Unless You Sell. Transfer, or Default. Your loan from the City is a "deferred" loan. This means that you do not have to make payments on your loan for the entire 30 year term. If, however, at any time you sell, assign or transfer the home or if you break the terms of the loan documents, both the principal and contingent interest owed on the loan will be immediately due and payable. The refinancing of your first mortgage loan does not trigger immediate payment of principal and contingent interest if the refinancing meets the terms of the Promissory Note (as described in section F. below). 2 When You Sell Your Home. When you sell, transfer, or assign your home or any interest in it, the principal and contingent interest owing is immediately due and payable. The only times when this is not the case is when a transfer is to an existing husband or wife who signed the Promissory Note, to a husband or wife who then becomes a co-owner of the home, to a husband or wife as part of a marriage or a divorce, to an inter vivos trust in which you are the beneficiary, or to a husband, wife, or child upon death of the borrower. Example 2 shows the repayment process for the City loan when the home is sold. Example 2 You have lived in your home for 8 full years and now must sell it because you received a promotion to a job in another state. You bought your home for $140,000. The City provided you with a loan of $18,200 to help you buy your house. The sales price of your home is $ 200,000. (a) Amount of Principal Owed Upon Sale. Since the City Loan is a deferred loan, and you have made no payments during the time you have held the loan, the full amount of principal must be repaid to the City at the time of sale. In this example, the principal amount due is $18,200. (b) Amount of Contingent Interest Owed. To figure out the amount of contingent interest you owe the City, we need to calculate the appreciation amount and the contingent interest percentage, and then apply the automatic discount. Calculating the Appreciation Amount Sales Price of Your Home: $200,000.00 Minus Price You Originally Paid: - $140.000.00 Appreciation Amount $ 60,000.00 -4- Calculating the Contingent Interest Percentage Your City Loan divided by the Price You Originally Paid: $18,200 -s- $140,000 = 0.13 Contingent Interest Percentage = 13% Calculating Contingent Interest Owed (With Discount Applied) Appreciation Amount: $ 60,000.00 Multiplied By Contingent Interest Percentage x .13 $ 7,800.00 Multiplied By Automatic Discount _x .75 Contingent Interest Owed City $ 5,850.00 Total You Owe City Upon Sale of the Home Principal Owed: $18,200.00 Plus Contingent Interest: + S 5.850.00 Total Owed $ 24,050.00 E. POTENTIAL FORGIVENESS OF CONTINGENT INTEREST Under the terms of the Promissory Note, the contingent interest on your loan is due at the end of the 30-year loan term. However, you will not have to pay the contingent interest at the end of the loan term if you meet all of the following conditions: (1) You live in your home and there has been no sale or transfer during the entire 3 0 year term, and (2) You have repaid all of the principal you owe the City, and (3) You are not in default under the City loan. F. REFINANCING FIRST MORTGAGE LOAN The Promissory Note allows you to refinance your first mortgage loan without triggering repayment of your City loan if the following conditions are met. The refinancing must be approved by the City. The amount received from the refinancing can be no more than the remaining principal amount of your first mortgage plus reasonable closing costs of the refinancing. The refinance cannot result in higher monthly payments on the first mortgage loan than were due before the refinancing. If these conditions are not met, principal and contingent interest on your City loan must be paid to the City when you refinance. -5- G. DEFAULT PROVISIONS When you accept City loan assistance, you agree to meet all of the conditions of all of the City loan documents. If you violate any provisions of the documents, you are considered to be in default under your City loan. Also, if you default under the first mortgage loan, you would also be considered to be in default under the City loan. If you do not correct the violation, the City could require you to immediately repay the principal and contingent interest owing on the City loan. The City could also go to court and get a court order to enforce the provisions of the City loan documents, which may result in a foreclosure on your home. Please sign the enclosed copy of this Borrower Disclosure Statement in the space provided below and return it to the City at _ , Carlsbad, California. I have-fead and understand the above Borrower Disclosure Statement. By: / S/.Al/n By: Signature of Borrower / Signature of Borrower Print Name of Borrower Print Name of Borrower Dated: W C7 O LS Dated: -6- Please complete this information. RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: DOC ft 2001-0438997 JUN 28. 2OO1 1O:41 AM 7393 OFFICIAL RECORDS SON DIEGO CQUKTY RECORDER'S OFHCE GREGORY J. SMITH, COUNTY RECORDER FEES: 0.00 (7H/S 2001-0438997 i (Please fill in document title(s) on this line) THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Additional recording fee applies) 7394 WF#13 RECORDING REQUESTED BY flfi AIBUCAH SHI &*$U&AWCS AND WHEN RECORDED MAIL TO: City of Carlsbad City Clerk's Office 1200 Carlsbad Village Drive ; Carlsbad, CA 92008 Attention: City Clerk No fee for recording pursuant to f^QfrjJ 6t%f&L£ I Government Code Section 27383 x (Space above for Recorder's Use) NOTE TO BORROWER: 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 II. day of JUNE ,2001, among Iffil .ANN KK ("Borrower") as trustor, and EER5I MiRICAN TTTLE OOMEfiMf ** ("Trustee"), and the City of Carlsbad, a municipal corporation (trre 'City"), as beneficiary. ** ^ CALIRENIA OCRKEATJON 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"). 6B7 EASED EN3ILLAR, CARLSBAD, CA 92009 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"; 7395 To have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever; ^•-v TO SECURE to the City the repayment Of the sums evidenced by a promissory note executed hv the Borrower to the City'dated J^ISIE H 2001, in the amount of TWEMYTrllEM) Do|]ars ($20,000.00 Uthe "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 _WTT,S FARCD HTME ** or its successors and assigns:HMI{IGAGE, INC. (the "First Lender"), dated .INF, 11 2001, executed by the Borrower in favor of First Lender, and recorded in the County of San Diego on ** , 2001, and assigned Recorder's Serial No. (the "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 City 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 a Transfer as defined in the Note. 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 ** RBXRD 7396 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 senior to 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 senior to 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 date notice is 7397 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 proc««ds 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 of (1) ten percent (10%) per annum or (2) the highest interest 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. 7398 12. Successors and Assigns Bound. The covenants and agreements herein contained 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: At the address of the Borrower. To the City: City of Carlsbad Housing and Redevelopment Department Attn: Housing and Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad, CA 92008-2389 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 7399 (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 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 wnich 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 as if acceleration under the Note 7400 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 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. Sucn 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. 7401 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. answer (Print Name) Borrower (Print Name) 7402 ORDER NO. 506080-5 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 UNIT COMPOSED OF: PARCEL 1: AN UNDIVIDED FRACTIONAL INTEREST AS TENANT IN COMMON IN AND TO THE BUILDING ENVELOPE IN WHICH THE LIVING UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED EQUAL TO THE RECIPROCAL OF THE NUMBER OF LIVING UNITS WITHIN THAT BUILDING ENVELOPE; BEING A PORTION OF LOT 1 OF CITY OF CARLSBAD TRACT 98-15 RANCHO CARRILLO VILLAGE "B", ACCORDING TO MAP THEREOF NO. 14002, FILED WITH THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON JULY 18, 2000. EXCEPTING THEREFROM EACH LIVING UNIT LOCATED WITHIN SUCH BUILDING ENVELOPE, AS SHOWN ON THE CONDOMINIUM PLAN DESCRIBED IN PARCEL 2 BELOW. RESERVING THEREFROM THE EXCLUSIVE RIGHT TO POSSESSION AND USE OF ANY EXCLUSIVE USE AREA SHOWN ON CONDOMINIUM PLAN DESCRIBED IN PARCEL 2 BELOW. FURTHER RESERVING THEREFROM ALL THE RIGHTS AND EASEMENTS SET FORTH IN THE DECLARATION OF RESTRICTIONS FOR SERRANO AT RANCHO CARRILLO (THE "DECLARATION") AND THE MASTER DECLARATION OF RESTRICTIONS FOR RANCHO CARRILLO (THE "MASTER DECLARATION"), INCLUDING BUT NOT LIMITED TO THE EASEMENTS FOR INGRESS, EGRESS AND GENERAL UTILITY PURPOSES AND GRANTOR'S RIGHT AND EASEMENTS TO CONSTRUCT AND MARKET RESIDENCES AND CONSTRUCT RELATED IMPROVEMENTS. PARCEL 2: LIVING UNIT NO. 56, AS SHOWN UPON Tl'E CONDOMINIUM PLAN RECORDED OCTOBER 5. 2000 AS DOCUMENT NO. 2000-0534956 AND RE-RECORDED FEBRUARY 16, 2001 AS FILE NO. 2001-0092231, BOTH OFFICIAL RECORDS OF SAN DIEGO COUNTY, CALIFORNIA (THE "CONDOMINIUM PLAN"). RESERVING FROM PARCEL 2 ALL RIGHTS AND EASEMENTS SET FORTH IN THE DECLARATION AND THE MASTER DECLARATION. PARCEL 3: NON-EXCLUSIVE APPURTENANT EASEMENTS IN AND TO THE ASSOCIATION PROPERTY NOW OR HEREAFTER OWNED BY THE ASSOCIATION AS SET FORTH IN THE DECLARATION. 7403 ORDER NO. 506080-5 PARCEL 4: A NON-EXCLUSIVE EASEMENT FOR VEHICULAR AND PEDESTRIAN ACCESS, INGRESS AND EGRESS AND DRIVEWAY PURPOSES AND FOR THE USE OF PRIVATE STORM DRAINS, OVER, UNDER, ALONG, ACROSS AND THROUGH THAT PORTION OF LOT 207 OF CARLSBAD TRACT 97-02 RANCHO CARRILLO VILLAGES "A-D", IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 13582, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY. CALIFORNIA ON JUNE 10, 1998 AS FILE NO. 1998-0352224 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 207; THENCE ALONG THE EASTERLY AND SOUTHERLY PROPERTY LINES THEREOF, THE FOLLOWING COURSES: SOUTH 22°16'38" WEST 53.04 FEET; THENCE SOUTH 24°20'16" WEST 50.74 FEET TO THE TRUE POINT OF BEGINNING, ALSO BEING THE BEGINNING OF A NON-TANGENT 58.50 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY, TO WHICH A RADIAL LINE BEARS NORTH 87°54'36" EAST; THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 35°27'52" A DISTANCE OF 36.21 FEET; THENCE SOUTH 33°23'24" WEST 230.96 FEET TO THE BEGINNING OF A NON-TANGENT 22.50 FOOT RADIUS CURVE CONCAVE EASTERLY, TO WHICH A RADIAL LINE BEARS NORTH 56°34'59" WEST; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 82°20'15" A DISTANCE OF 32.33 FEET; THENCE SOUTH 48°55'15" EAST 23.42 FEET TO THE BEGINNING OF A TANGENT 100.00 FOOT RADRJS CURVE CONCAVE NORTHEASTERLY; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 02°22'29" A DISTANCE OF 4.14 FEET; THENCE SOUTH 51017'44," EAST 54.80 FEET TO THE BEGINNING OF A NON-TANGENT 100.00 FOOT RADRJS CURVE CONCAVE SOUTHWESTERLY, TO WHICH A RADIAL LINE BEARS NORTH 38°42'14" EAST; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 05°33'30" A DISTANCE OF 9.70 FEET; THENCE SOUTH 45°44'15" EAST 51.08 FEET TO THE BEGINNING OF A NON-TANGENT 48.00 FOOT RADR7S CURVE CONCAVE SOUTHWESTERLY, TO WHICH A RADIAL LINE BEARS NORTH 06°17'12" WEST; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 72°39'49" A DISTANCE OF 60.87 FEET; THENCE SOUTH 23°37'23" EAST 50.00 FEET TO THE BEGINNING OF A TANGENT 90.00 FOOT RADRJS CURVE CONCAVE NORTHEASTERLY; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 11°57'12" A DISTANCE OF 18.78 FEET; THENCE SOUTH 54°25'25" WEST 10.00 FEET; THENCE SOUTH 53°07'09" WEST 58.01 FEET TO THE BEGINNING OF A NON-TANGENT 90.00 FOOT RADRJS CURVE CONCAVE SOUTHWESTERLY, TO WHICH A RADIAL LINE BEARS NORTH 53°56'42" EAST; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 12°25'56" A DISTANCE OF 19.53 FEET; THENCE NORTH 48°29' 14" WEST 50.00 FEET TO THE BEGINNING OF A TANGENT 48.00 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 45°55'59" A DISTANCE OF 38.48 FEET; THENCE NORTH 45°44'15" WEST 58.34 FEET TO THE BEGINNING OF A TANGENT 100.00 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 02°04'27" A DISTANCE OF 3.62 FEET: THENCE NORTH 43°39'48" WEST 51.89 FEET TO THE BEGINNING OF A TANGENT 100.00 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 05°15'25" A DISTANCE 7404 ORDER NO. 506080-5 OF 9.18 FEET; THENCE NORTH 48°55'14" WEST 48.27 FEET TO THE BEGINNING OF A TANGENT 50.00 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 07° 13 '51" A DISTANCE OF 6.31 FEET TO THE BEGINNING OF A REVERSE 38.50 FOOT RADIUS CURVE CONCAVE EASTERLY; THENCE NORTHERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 118°28'45" A DISTANCE OF 79.61 FEET; THENCE LEAVING SAID PROPERTY LINE OF LOT 207 SOUTH 27°40'20" EAST 7.00 FEET TO THE BEGINNING OF A NON-TANGENT 31.50 FOOT RADIUS CURVE CONCAVE SOUTHEASTERLY, TO WHICH A RADIAL LINE BEARS NORTH 27°40'20" WEST; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 21°18'04" A DISTANCE OF 11.71 FEET TO THE BEGINNING OF A REVERSE 25.00 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 50°15'17" A DISTANCE OF 21.93 FEET; THENCE NORTH 33°22'27" EAST 254.69 FEET; THENCE SOUTH 65°39'44" EAST 21.92 FEET TO THE TRUE POINT OF BEGINNING. PARCELS: THE EXCLUSIVE RIGHT TO USE ANY EXCLUSIVE USE AREA SHOWN ON THE CONDOMINIUM PLAN AS BEING APPURTENANT TO THE LIVING UNIT DESCRIBED IN PARCEL 2 ABOVE. APRIL 30.200! 4:!5 PM RF 7405 STATE OF CALIFORNIA ) )ss COUNTY OF SAN DIEGO ) JULIE A, PALAZZOLO Comm.l 1287196 IOTARY PUBLIC-CALIFORNIA W San Diego County "• 'MyComm, Expires Dec. 14,2004 •!*, .., i ...... J ,2001, before me&\) \\4 A.KVofrL^N ,J personally appeared _, paraonally known to m» (or proved to me on the basis of satisfactory evidence) to be the person^ whose namej^JdS^re subscribed to the within instrument and acknowledged tame that ha(£Kg2they executed the same in his^^their authorized capacity@es), and that by his/Mef/their signatures'on the instrument the personj^Tor the entity upon behalf of which the personal).acted, executed the instrument. WITNESS my hand and official seal. Mil A, 'PAIAHOLO J*Comm.# 1287196 !i 'OTARY PUBLIC-CALIFORNIA 0) San Di«so County •" lyComm. Expires Dec. 14,2004 •? STATE OF CALIFORNIA ) )ss COUNTY OF SAN DIEGO ) On _, 2001, before me,__, personally appeared _, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Order No. kscrow No. WHEN RECORDED MAIL TO: CITY OF CARLSBAD CITY CLERKS: OFFICE 1200 CARLSBAD VILLAGE DRIVE CARLSBAD, CA 92008-2839 DOC « 2001-0438998 JUN 2B, 2OO1 1O=41 AM''••'! «,A/% OFFICIAL RECORDS 7406 m DIEEO OUffY RECORDER'S OFFICE GREGORY J. SMITH, COUNTY RECORDER FEES: 0.00 2001-0438998 SPACE ABOVE THIS LINE FOR nECOnDEfp(U5E.ONLY 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. ** on ' ,19 , in Book ..Page .Official Records of SAN DTF.GO Counly, California, and describing land therein as SEE EXHIBIT "A" **RECORDED CONCURRENTLY** IflRI A1SNRKexecuted by _ in which CITY OF CARLSBAD Beneficiary, and FIRST AMERICAN TITLE COMPANY. A CALIFORNIA CORPORATION be mailed to CITY OF CARLSBAD. CITY-CLERKS OFFICE ATTNL -CITY CLERK at 1200 CARLSBAD VILLAGE DRIVE _, as Trustor. is named as , as Trustee, CARLSBAD, CA 92008-2839 Cllv »no Suit N OTIC E: A COPY OF ANY NOTICE OF DEFAULT AND OF ANY NqTjcEaXsALENviLL BE SENT ONLY TO THE ADDRESS CONTAINED IN THIS RECORDED REJ^Ll^SJr^^3nrt^Q£aa.^HANGES. A NEW REQUEST MUST BE RECORDED. (Jt- CAUI-UHNIA COUNTY OF S_AJL On "JUNE 11, 2001 THE UNDERSIGNED "' personally appMrod__ KI-TT--HAZ2AKD—- personally known to me (or proved to me on IhB basis of satisfactory evidence) to be the person(s) whose name(s) is/are substribod 10 ihn withm insla/menl and acknowledoed ID me lhal he/she/mey e/scuiad ihe sarng in his/her/their authorized capacity(ies). pnrflhnl hyhis/hor/ihairsignaiurefK) on ihe instrument Ihe parBon(3) or ths aniily upon bahall ol which cho porson(s) gclBrt, «x8cu\ed the instrument WITNCSS my hand aprd"official MotayPubfc-l Sort Pteppff M/Conrm&pteSepliMMl (This nrnn lor niiiaoi notarial seal)i i 7407 GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: Name of the Notary:.i^A Commission Number: \ 2.7^ & 1 Q _ Date Commission Expires: County Where Bond is Filed: Manufacturer or Vendor Number: (Located on both sides of the notary seal border) Signature:. Mfi/d Firm Name (if applicable) -> ^^^ v v ^ - *> Date: C*'Place of Execution: _ -> ^^^ v v ^ - *> _ Date: 7408 "" ORDER NO. 506080-5 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 UNIT COMPOSED OF: PARCEL 1: AN UNDIVIDED FRACTIONAL INTEREST AS TENANT IN COMMON IN AND TO THE BUILDING ENVELOPE IN WHICH THE LIVING UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED EQUAL TO THE RECIPROCAL OF THE NUMBER OF LIVING UNITS WITHIN THAT BUILDING ENVELOPE: BEING A PORTION OF LOT 1 OF CITY OF CARLSBAD TRACT 98-15 RANCHO CARRILLO VILLAGE "B", ACCORDING TO MAP THEREOF NO. 14002, FILED WITH THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON JULY 18, 2000. EXCEPTING THEREFROM EACH LIVING UNIT LOCATED WITHIN SUCH BUILDING ENVELOPE, AS SHOWN ON THE CONDOMINIUM PLAN DESCRIBED IN PARCEL 2 BELOW. RESERVING THEREFROM THE EXCLUSIVE RIGHT TO POSSESSION AND USE OF ANY EXCLUSIVE USE AREA SHOWN ON CONDOMINIUM PLAN DESCRIBED IN PARCEL 2 BELOW. FURTHER RESERVING THEREFROM ALL THE RIGHTS AND EASEMENTS SET FORTH IN THE DECLARATION OF RESTRICTIONS FOR SERRANO AT RANCHO CARRILLO (THE "DECLARATION") AND THE MASTER DECLARATION OF RESTRICTIONS FOR RANCHO CARRILLO (THE "MASTER DECLARATION"), INCLUDING BUT NOT LIMITED TO THE EASEMENTS FOR INGRESS, EGRESS AND GENERAL UTILITY PURPOSES AND GRANTOR'S RIGHT AND EASEMENTS TO CONSTRUCT AND MARKET RESIDENCES AND CONSTRUCT RELATED IMPROVEMENTS. PARCEL 2: LIVING UNIT NO. 56 . AS SHOWN UPON TFE CONDOMINIUM PLAN RECORDED OCTOBER 5. 2000 AS DOCUMENT NO. 2000-0534956 AND RE-RECORDED FEBRUARY 16, 2001 AS FILE NO. 2001-0092231, BOTH OFFICIAL RECORDS OF SAN DIEGO COUNTY, CALIFORNIA (THE "CONDOMINIUM PLAN"). RESERVING FROM PARCEL 2 ALL RIGHTS AND EASEMENTS SET FORTH IN THE DECLARATION AND THE MASTER DECLARATION. PARCEL 3: NON-EXCLUSIVE APPURTENANT EASEMENTS IN AND TO THE ASSOCIATION PROPERTY NOW OR HEREAFTER OWNED BY THE ASSOCIATION AS SET FORTH IN THE DECLARATION. 7409 ORDER NO. 506080-5 PARCEL 4: A NON-EXCLUSIVE EASEMENT FOR VEHICULAR AND PEDESTRIAN ACCESS, INGRESS AND EGRESS AND DRIVEWAY PURPOSES AND FOR THE USE OF PRIVATE STORM DRAINS, OVER, UNDER, ALONG, ACROSS AND THROUGH THAT PORTION OF LOT 207 OF CARLSBAD TRACT 97-02 RANCHO CARRILLO VILLAGES "A-D", IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 13582, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY. CALIFORNIA ON JUNE 10. 1998 AS FILE NO. 1998-0352224 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 207; THENCE ALONG THE EASTERLY AND SOUTHERLY PROPERTY LINES THEREOF, THE FOLLOWING COURSES: SOUTH 22°16'38" WEST 53.04 FEET; THENCE SOUTH 24°20'16" WEST 50.74 FEET TO THE TRUE POINT OF BEGINNING, ALSO BEING THE BEGINNING OF A NON-TANGENT 58.50 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY, TO WHICH A RADIAL LINE BEARS NORTH 87°54'36" EAST; THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 35°27'52" A DISTANCE OF 36.21 FEET; THENCE SOUTH 33o23-24" WEST 230.96 FEET TO THE BEGINNING OF A NON-TANGENT 22.50 FOOT RADIUS CURVE CONCAVE EASTERLY, TO WHICH A RADIAL LINE BEARS NORTH 56°34'59" WEST; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 82°20'15" A DISTANCE OF 32.33 FEET; THENCE SOUTH 48°55'15" EAST 23.42 FEET TO THE BEGINNING OF A TANGENT 100.00 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 02°22'29" A DISTANCE OF 4.14 FEET; THENCE SOUTH 51°17'44/" EAST 54.80 FEET TO THE BEGINNING OF A NON-TANGENT 100.00 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY, TO WHICH A RADIAL LINE BEARS NORTH 38°42'14" EAST; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 05°33'30" A DISTANCE OF 9.70 FEET; THENCE SOUTH 45°44'15" EAST 51.08 FEET TO THE BEGINNING OF A NON-TANGENT 48.00 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY, TO WHICH A RADIAL LINE BEARS NORTH 06°17'12" WEST; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 72°39'49" A DISTANCE OF 60.87 FEET; THENCE SOUTH 23°37'23" EAST 50.00 FEET TO THE BEGINNING OF A TANGENT 90.00 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 11°57'12" A DISTANCE OF 18.78 FEET; THENCE SOUTH 54°25'25" WEST 10.00 FEET; THENCE SOUTH 53°07'09" WEST 58.01 FEET TO THE BEGINNING OF A NON-TANGENT 90.00 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY, TO WHICH A RADIAL LINE BEARS NORTH 53°56'42" EAST; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 12°25'56" A DISTANCE OF 19.53 FEET; THENCE NORTH 48°29' 14" WEST 50.00 FEET TO THE BEGINNING OF A TANGENT 48.00 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 45°55'59" A DISTANCE OF 38.48 FEET: THENCE NORTH 45°44'15" WEST 58.34 FEET TO THE BEGINNING OF A TANGENT 100.00 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 02°04'27" A DISTANCE OF 3.62 FEET: THENCE NORTH 43°39'48" WEST 51.89 FEET TO THE BEGINNING OF A TANGENT 100.00 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 05° 15'25" A DISTANCE 7410 ORDER NO. 506080-5 OF 9.18 FEET; THENCE NORTH 48°55'14" WEST 48.27 FEET TO THE BEGINNING OF A TANGENT 50.00 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 07° 13'51" A DISTANCE OF 6.31 FEET TO THE BEGINNING OF A REVERSE 38.50 FOOT RADIUS CURVE CONCAVE EASTERLY; THENCE NORTHERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 118°28'45" A DISTANCE OF 79.61 FEET; THENCE LEAVING SAID PROPERTY LINE OF LOT 207 SOUTH 27°40'20" EAST 7.00 FEET TO THE BEGINNING OF A NON-TANGENT 31.50 FOOT RADIUS CURVE CONCAVE SOUTHEASTERLY, TO WHICH A RADIAL LINE BEARS NORTH 27°40'20" WEST; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 21°18'04" A DISTANCE OF 11.71 FEET TO THE BEGINNING OF A REVERSE 25.00 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 50°15'17" A DISTANCE OF 21.93 FEET; THENCE NORTH 33°22'27" EAST 254.69 FEET; THENCE SOUTH 65°39'44" EAST 21.92 FEET TO THE TRUE POINT OF BEGINNING. PARCELS: THE EXCLUSIVE RIGHT TO USE ANY EXCLUSIVE USE AREA SHOWN ON THE CONDOMINIUM PLAN AS BEING APPURTENANT TO THE LIVING UNIT DESCRIBED IN PARCEL 2 ABOVE. APRIL 30. 2UOI 4:!5 PM RF