HomeMy WebLinkAboutSpeer, Christi Carol; 2001-09-17;b. The total amount of the principal and any Contingent Interest owed
under this Note shall immediately become due and payable (i) in the event of a default by the
BorroweF under this Note, the Deed of Trust, or the First Mortgage, (ii) on the date Transfer is
made whether voluntarily, involuntarily, or by operation of law and whether by deed, contract of
sale, gift, devise, bequest or otherwise, (iii) in t~e event Borrower ceases to occupy the· Residence
as his or her principal place of residence; or (iv) at the end of the Term of this Note as described
above in Section 5. Failure to declare such amounts due shall not constitute a waiver on the part
of the City to declare them due in the event of a ~bsequent Transfer.
c. . In the event, upon expiration of the Term. (i) no Transfer has
occurred, (ii) Borrower has repaid all principal pursuant to subsection (a) above, (iii) Borrower
continues to owner-occupy the Residence, and (iv) Borrower is not in default hereunder or under
the D~ed ofTrust, the.City shall forgive repayment of all Contingent Interest due hereund~r.
8. Late Payment Fees. If any payment due hereunder is not paid
withil\ five_(5) days tfom the date such becomes due;-Borrower shall pay a reasonable late or
collection charge equal to five percent (5%) of the amount so unpaid. The City and Borrow~
'agree that the actual damages and costs sustained by the Cjty due to the failure to make timely
payments would be extremely difficult to measure and that the charges specified in this paragraph
·represent a reasonable estimate by Borrower and the City ofa fair average compensation for such
damages and costs. Such charges shall be paid by Borrower without prejudice to the right of the
,City to collect any other amounts provided to be paid under this Note or the Deed of Trust or,
with respect to late payments, to'declare a default.
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 th.is Note is prepaid, all Contingent Interest, calculated as of the date of
prepayment, shall also be due at the.time of prepayment.
I 0. 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 ofho~es 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 conditiQJl, 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. Refin~~~e 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 ex:ceed the outstanding principaf
balance of the First Mortgage at the time of refinance plus reasonable costs of refinance, and (iii)
t
1010102\11 t700.3 4
the refinance does not result in higher monthly payments o~ 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 proyi~e 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.
l
. 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. Bci'rtower shall provide th.is 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 thiny (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 th~ ~.eed 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, r
· when due, any sums secured by the Deed ofi'n.ist, th!,' 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 breabh
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 a~d 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 nonexistc;nce of default or any other defense of the
Borrower to acceleration and sale. ··'' · ·
16. Acceleration. Upon the:occurrence of a defauit 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.
AJ1y failure by the City to pursue its legal and equitable remedies upon default shall ·not constitute
I 1010\02\111700.3 5
a waiver of the City's right to declare a default and exercise· all of its rights under this Note and
the Deed ofTrust. 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 wit~ 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 tenns 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
statute.s ofl1mitations·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 i-
at~orney 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 ofany breach, default or failure
of condition under .the tenns ofthls 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. AJI notices required in this Note shall be sent by certified
mail, return receipt requested, or exp'tess 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:
I
1010'02\111700.3
To the Borrower:
At the addres, 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
6
The parties may subsequently change addresses by p·roviding 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 U!}dertake 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 c~re to protect Borrower against negligent, faulty, inadequate or defective building or .
cons.truction or any condition of the Residence and Borrower agrees that neither Borrower.or
Borrower's heirs, successors or assigns shall ever clajm, 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
Resideilc_e and will hold the City harmless from any liability, loss or damage for these thingi
23. Indemnity. Borrower agrees to defend, indemnify, and hold the City
hannless 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 BorTower;
b. BorTowcr's failure to perform any obligations as and when required
by the Note or the Deed ofTrust; 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 ofRestritiions. Any legal restrictions on conveyance of the r
Residence (as defined in 24 CFR 203.41(a)(3)(u)) included in this Note shall terminate upcin
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 cons&rued 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\02\111700.3 7
DOC# 2001 -0701085
7 \66 SEP 2B, 2001 9:31 RECORDING REQUESTED
!WV F1RST AMERlcAN TITLE
RECORDlNG REQUESTED BY (ffICift RECORDS
AND WHEN RECORDED MAIL TO:
City of Carlsbad
Cily Clerk's Office
~ DIEOO WJfTY ~·s omCE
GREGIF:V.J. SMITH, llUITV REcmoER
FEES: 0.00 ~v: 2
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Altention: City Clerk
JJ_\ \ No fee for recording pursuant to
f;sCV>w 60 '13?Jit..S
o ~ ~ 11 q/?Jt-5" IIIU Him urn 1111H
2001-0701085
\ \ "~ Qovcrnmem Code Section 213&3
{Space above for Recorder's Use)
.\r\ ·j
t,
THIRD LIEN
NOTE ro BORROWER:
THIS DEED OF TRUST CONTAINS
PROVISIONS PROHIBITING ASSUMPTIONS
DEED OF TRUST
AND SECURITY AGREEMENT
THIS DEED OF TRUST AND SECURITY AGREElVIBNT ("Deed of Trust") made as of
this 17th day of SEPTEMBER 200I, among CHRJ.;STI CAROL SPEER
("Borrower") as trustor, and FIRST AMERICAN TITLE 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, wilh power of sale, the
property located in the City of Carlsbad, State of California, described in the attached Exhibit II A 11
(the "Propertyu). 6046 PASEO SALINERO, CARLSBAD, CA. 92009
. . i
TOGETHER with all the improvements now or hereafter erected on the property, and all 1
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 ·
TOGETIIBR with all articles of personal prope,:ty 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 c9mfortable 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
th'e 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";
1
AM
to the Residence through a deed in lieu o·f 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. 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 b'y 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 ofan 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'holl'sing 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 transferre.d and. the
Borrower retains title. Ally Transfer without satisfaction of the provisions of this Note is
prohibited. A transfer: (i) to an existing spouse who is also an oblig9r ~nder 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 t6
the City pursuant to Section 14 below.
3. Securit:i. This Note is secured by a second deed of trust dated the same·
date as this Note (the "Deed of Trust").
** THIRTY SIX POINT THIRTY. SIX *** 36-.36% ***
4. Contingent Interest. The Borrower shall pay contingent interest equal to
** percent ( ***/4) ("Contingent Interest Percentage Amount") !seller to insert
appropriate percentage which shall in no event ~·xteed (50¾)] 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 Continge_nt
Interest Percentage Amount is equal to the City/Seller Loan principal amount as a percentage of
the total purchase price of the Residence paid by the Borrower at the time of purchase. multiplied
by seventy-five one hundredths (.75). Borrower acknowledges that this calculation of the
04/02199 2
percentage of the Appreciation Amount clue to the City as Contingent Interest includes a twenty-
fiye percent (25%) discount to Borrower to account for any capital improvements Borrower may
make to the Residence.
5. Term. The Tenn. of this Note shall mean the period commencing on the
elate of this Note and expiring on the date thirty (30) years thereafler.
6. Owner-Occupancy Required· Representat.ions Regarding Income.
a. 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 sh.all not lease the ·
Residence to another party. Any lease of the Residence shall be a default under this Note .
. .... , ..
b. Borrower hereby certifies tf-iat-all income information previously
submitted to the Seller and/or the City is true and correct. Misrepresentation by Borrower of .
income information provided to the Seller and/or the City shall be a default under th.is Note.
7. Repayment.
a. The total amount of the principal and any Contingent Interest owed
under th.is Note shall immediately become due and payable (i) in the event of a default by the
Borrower under this Note, the Deed of Trust, or the First Mortgage, (ii) on the date Transfer is
made whether voluntarily, involuntarily, or by operation of law and whether by deed, contract of
sale, gift, devise, bequest or otheiwise, (iii) in the event Borrower ceases to occupy the Residence
as his or her principal place of residence; or (iv) at the end of the Term of this Note as described
above in Section 5. Failure to declare such amounts due shall not constitu'te a waiver on the part
of the City to declare them due in the event of a subsequent Transfer.
b. In the event, upon expiration of the 'Tenn, (i) no Transfer has
occurred, (ii) Borrower has repaid all principal pursuant to subsection (a) above; (iii) Borrower: ,
continues to owner-occupy the Residence. and (iv) Borrower is not in default hereunder or under
the Deed of Trust, the City shall forgive repayment of all Contingent Interest due ·hereunder. · '
· 8. Late Payment Fees. If any payment due hereunder is not paid within five i i
(5) days from the date it is due, Borrower shall pay a reasonable late or co'fiection charge equal to
five percent (5%) of the amount so unpaid. The City and Borrower agree that the actual damages
and costs sustained by the City due to the failure to in'~k~ timely payments would be extremely
. difficult to measure and that the charges specifiea fo this paragraph represent a reasonable
estimate by Borrower and the City of a fair average compensation for such damages and costs.
: Such charges shall be paid by Borrower without prejudice to the right of the City to collect any
other amounts provided to be paid under this Note or the Deed of Trust or, with respect to late
payments, to declare a default. ·
04/02/99 3
9. Prepayments. The Borrower may prepay all or part of the balance due
under this Note including principal and Contingent Interesi. 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
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 Tta~sfer.
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. Refinani;e ofFirst Mortgage L.oan1 .. _The outstanding principnl 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 refin"nced 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 ~osts 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 oft he
Residence, the Borrower shall submit to the City at least fifteen ( 15) ~l<\}'S 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 Transfer of the Residence or 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 Transfer occurs, except where the Transfer js by devise or inhei:~nce 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 ii:t 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 nny money when due under this
4
Note; (ii) breaches any representation or covenant made in this Note in any mat'erial 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 coun action to assen the nonexistence of default or any other defense of the
Borrower to acceleration and sale.
16. Acceleration. _Upon the·occurrep_ce ofa default under this Note, the Deed
of Trust, or the First Mortgage, the City shall have the rigfit-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 lega[ and equitable remedies upon default shall not constitute a
. waiver of the City's right to declare a default and exercise all of its righ_ts 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 prin~ipal 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 s·uccessors and assigns, and agree~ t~ make the payments
called for in this Note in accordance with the terms of this Note. · •
18. Waiver; Attom«y Fees and Costs. The Borrower and any endorsers or
guarantors of this Note, for themselves, their heirs, legal representatives, s·uccessors and assigns,
respectively, severally waive diligence, presentment, protest, and demand, and notice of prqtes~
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 ,. f ►·
security given for the payments hereof, and expressly waive the right to plead any and all statutes 1
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 coµrt may adjudge reasonable as attorneys' fees ;
in such action. · ·
19. No Waiver by the City. Nci ivaiver 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
· u_nr~lated breach, default or fa_ilure. · · ·
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
04/02/99 5
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
Attention: Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, CA 920~8-2389
The parties may subsequently change addresses by"'providing written notice of the change
in address to the other parties in accordance with this Section 20. .
. . 21. Joint and Several Obligations. This Note· is the j9int and several obligation
of au ·makers, sureties, guarantors and endorsers, ·and shall be binding upon them and their
successors and assigns.
22. Nonliabjlity for Negligence, Loss or Damage. Borrower acknowledges,
understands and agrees that the relationship between Borrower and t\le City is solely that of
borrower and lender, and that the City does not undertake or assume.any (esponsibility for or
duty to Borrower to select, review, inspect, supervise, pass judgment ori, or inform Borrower of
the quality, adequacy or suitability of the Residenee 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 ofth'e t'
Residence and will hold the City hannless 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 in~irect consequence o[_
a. the making of the Ion~ to Borrower;
: : : ; . ~
b. Borrower's failure·to·pcrform any obligations as and when required
by the Note or the.Deed of Trust; or . .
c. the failure at any time of any of Borrower's representations to the
Seller or the City to be true and correct.
04/02/99 6
24. Tennination of Restrictions. Any legal restrictions on conveyance of the
Residence (as defined in 24 CFR 203.4 l(a)(J)(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. Contro)ljng Law. This Note shall be construed in accordnnce 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 th.is Note to any person and upon notice ~o the Borrower by the City all payments shall be
made to the assignee.
27. 1 nvalid 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 invali~, illegal or unenforceable provision had
never been contained in this Nofe. ·-~ .. ·-..
28. -Entire Agreement. This Note (along with the Deed ofTrust) sets forth the
. entire understanding and agreement of the City and the Borrower and any amendment, alteration
or in"terpretation of'this Note must be in writing signed by both the City and the Borrower.
~-Cal,,£~
Borrower CHRISTI CAltOLPEER
(Print Name)
Borrower
(Print Name)
04/02199 7