HomeMy WebLinkAboutGoodwin, Richard and Frances; 1988-10-19;411
1. Payment of Principal and Interest. Borrower shall pr~tly pay when due the principal of and interest on the
indebtedness evidenced by the Note, and the principal of and interest on any Future Advances secured by this Deed of Trust.
2. Occupancy. Borrower will occupy the Property as Borrower's principal residence and be the sole occupant of property
conveyed by this Deed of Trust. This restriction includes, but is not limited to, prohibition of Borrower's renting or
otherwise leasing the Property with or without consideration.
3. Sale or Transfer of Property. Before the sale or transfer of title, the Borrower or the Borrower's representative
shall notify the Lender of his or her intention to sell or otherwise transfer title. Except as otherwise provided in this
Deed of Trust, when Borrower transfers title, the entire Loan which is evidenced by the Note and additionally secured by the
Security Agreement, shall be imnediately due and payable. Uhere title is transferred to, or otherwise altered to include or
favor, a spouse or person signing the Note and Security Agreement, and such spouse or person resides on the Property conveyed
in this Deed of Trust and is independently eligible for assistance under the Program, the transfer or alteration of title shall
not result in acceleration of the Loan evidenced by the Note and Security Agreement. Similarly, when a spouse or person
signing the Note takes title to the Property which secures this Deed of Trust by devise, descent or by operation of law upon
the death of a joint tenant and such spouse or person resides on the Property and is independently eligible for assistance
under the Program, the transfer of title shall not result in acceleration of the loan evidenced by the Note.
Upon sale of the Property, the Lender shall be paid the amounts described in the Note, in part, from the increase, if
any, of the fair market value at the time of sale over the purchase price or the resale price of the property (as these terms
are defined in the Note), whichever is greater. For this reason, if the Borrower determines to sell the Property, he or she
has the affirmative duty to protect the interest of the Lender by selling the property at its fair market value.
~hen the proposed transfer is to be made pursuant to a proposed sale, the Borrower shall notify the Lender of the sales
price agreed upon by the Borrower and the proposed purchaser of the Property. The Lender shall then appoint, within ten
(10) working days of receipt of Borrower's notification, an appraiser to determine if the proposed sales price is at fair
market value. The Borrower shall be informed within thirty (30) working days of the appraiser's determination of fair market
value.
4. Charges; Liens. Borrower shall pay when due all taxes, assessments and other charges, fines and impositions
attributable to the Property which may attain a priority over this Deed of Trust. Borrower shall pronptly furnish to Lender
all notices of amounts due and paid 1.11der this paragraph. Borrower shall promptly discharge any lien which has priority over
this Deed of Trust; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree
in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith
contest such lien in a manner acceptable to Lender, or shall 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 Property or any part
thereof. Borrower shall not allow the attachment of any subordinate lien or other encumbrance on the Property without prior
written consent of the Lender.
5. Preservation and Maintenance of Property; COIIJll iance with Doclll!ents. Borrower shall keep the Property in good repair
and shall not C011111it waste or permit impairment or deterioration of the Property. Borrower shall perform all of Borrower's
obl igations under the articles end bylaws and constituent documents creating and governing Lender. Borrower shall perform
all of Borrower's obligations under and pay when due all assessments and charges required by the Lender and any special
assessments and charges-made by the Lender.
6. Protection of Lender's security. If Borrower fails to perform the covenants and agreements contained in this Deed
of Trust, including those contained in the Note and the Security Agreement, or if any action or proceeding is commenced which
materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code
enforcement, or arrangements or proceedings involving a bankruptcy or decedent, then trustee at Lender's option, upon notice
to Borrower, may make such appearances, disburse such sums, and take such action as is necessary to protect Lender's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs.
Any amounts disbursed pursuant to this Section, with interest thereon, shall become additional indebtedness of Borrower
secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable
upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the
rate of 15% per annum, unless payment of interest at such rate would be contrary to applicable law, in which event, such
amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this Section shall
require Lender to incur any expense or take any action hereunder.
7. Inspection. Lender may make or cause to be made reasonable entries upon and inspection of the Property, provided
that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's
interest in the Property.
8. Condeonation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
conde1Mat ion or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned
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and shall be paid to Lender.
In the event of a total taking of the Property, the proceeds shall be treated as if received from a sale of the Property.
The proceeds shall be applied to the suns to be repaid in the amount and mamer described in Sections I.A. of the Note. Any
part of the proceeds remaining after these amounts have been paid shall be paid to the Borrower. In the event of a partial
taking of the Property, unless Borrower and Lender otherwise agree in writing, the proceeds shall be treated as if received
from a sale of that portion of the Property which is taken in the condem,ation. The percentage value of the portion taken,
as compared to the full value of the entire Property, shall be determined by dividing the condemnation proceeds by the fair
market value of the entire Property just prior to the taking." This percentage value, once determined, shall be used in the
following manner to allocate the condemation proceeds:
a. First, to the amount of principal owing under Section I.A. of the Note shall be allocated the value equal to
the percentage value determined above nultiplied by the principal then outstanding in Section I.A. of the Note.
b. Second, to the contingent interest described in Section I.A. of the Note shall be allocated the value equal to
the fair market value of the entire Property just prior to the condemnation minus the purchase price (as this term is defined
in the Note) multiplied by the percentage value determined above multiplied by the percentage value set out in Section I.A. of
the Note (or the most recent calculation of this latter percentage value).
c. Third, to the Borrower.
Following the making of the above allocations of an award in partial condemnation, the principal amount owing under
section I.A. of the Note and the purchase price of the Property, as this term is defined in the Note, shall both be reduced
for all purposes by the percentage value determined above. The percentage value set out in Section I.A. of the Note shall
not be affected by any allocation of an award in partial condemnation.
If the Property is abandoned by Borrower, or if after notice by Lender to Borrower that the condemner offers to make
an award or settle a claim for damages, and Borrower fails to respond to Lender within 30 days after the date such notice
is mailed. Lender is authorized to collect and apply the proceeds, at Lender's option, either to restoration or repair of
the Property or to the suns secured by this Deed of Trust.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the payments referred to in Sections 1 and 4 hereof.
9. Hazard Insurance. The Borrower shall maintain hazard insurance on mobilehome. In tne event of a distribution of
hazard insurance proceeds in lieu of replacement, restoration or repair following a loss to the Exclusive Use Area of Borrower
or to the comnon areas and facilities of the Lender, any such proceeds payable to Borrower are hereby assigned and shall be
paid to Lender.
In the event of a total loss of the Property, the proceeds shall be treated as if received from a sale of the Property.
The proceeds shall be applied to the SllllS to be repaid in the amount and manner described in Section I.A. of the Note. Any
part of the proceeds remaining after these amounts have been paid shall be paid to the Borrower. In the event of a partial
loss of the Property, unless Borrower and Lender otherwise agree in writing, the proceeds shall be treated as if received
from a sale of that portion of the Property which is lost and being compensated for by insurance. The percentage value of
the portion lost, as compared to the full value of the entire Property, shall be determined by dividing the insurance proceeds
by the fair market value of the entire Property just prior to the loss. This percentage value, once determined, shall be used
in the following ,namer to allocate the insurance proceeds specified in Section 8 regarding the allocation of Condemnation
proceeds.
Following the making of the above allocations of an insurance award in case of a partial loss, the principal amount owing
under Section I.A. of the Note and the purchase price of the Property, as this term is defined in the Note, shall both be
reduced for all purposes by the percentage value determined above. The percentage value set out in Section I.A. of the Note
shall not be affected by any allocation of an award in partial condeimation.
If the property is abandoned by Borrower, or if after notice to Borrower that the insuror or third party causing the loss
offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within thirty (30) days after the
date such notice is mailed, is authorized to collect and apply the proceeds, at option, either to restoration or repair of
the Property or to the SUllS secured by this Deed of Trust.
10. Lender's Prior Consent. Borrower shal l not, except after notice to Lender and with lender's prior written consent,
consent to:
(i) the abandonment or termination of the Lender;
(ii) any material amendment to the Covenants, Conditions and Restrictions, Articles of Incorporation, By-laws of the
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Lender, or any equivalent constituent docunent of the Lender, including, but not limited to, any amendnent which would change
the percentage interests of the owners in the connon areas and facilities of the Lender.
(ff!) the transfer, release, encurbrance, partition or slbdivision of all or any part of the Nonprofit's COlllllOn areas
and facilities, except as to the Lender's right to grant easements for utilities and similar or related purposes.
11. Borrower Not Released. Extension of the time for schedule of the suns secured by thi~ Deed of Trust and tho Security
Agreement granted by Lender to any successor in interest of Borrower shall not operate to release, in any manner, the liability
of the original Borrower and Borrower's successors In interest. Lender shall not be required to cOlllllence proceedings against
such successor or refuse to extend time for payment of the suns secured by this Deed of Trust and the Security Agreement by
reason of any demand made by the original Borrower and Borrower's successors in interest.
12. forbearance by Lender Not a Maiver. Any forbearance by Lender in exerc1s1ng any right or remedy hereunder, or
otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. The
procurement of insurance or the payment of taxes or other lions or charges by Lender shall not be a waiver of Lender's right
to accelerate the maturity of the indebtedness secured by this Deed of Trust and the security Agreement,
13. Remedies Curulatfve. All remedies prcvided in this Deed of Trust are distinct and curulative to any other right or
remedy under this Deed of Trust or afforded by law or equity, and may be exercised concurrently, Independently or successively.
14. Successors and Assigns Bound; Joint and Several Liability; Captions. The covenants and agreements contained in this
Deed of Trust shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and
Borrower, subject to the provisions of Section 17 hereof. All covenants and agreements of Borrower shall be joint and
several. The captions and headings of the paragraphs of this Deed of Trust are for convenience only and are not to be used
to interpret or define the provisions hereof .
15. ~-Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower
provided for in this Deed of Trust shall be given by mailing such notice by certlffed mail addressed to Borrower at the
Property Address or at such other address as Borrower may designate by notice to Lender as provided in this Section, and (b)
any notice to Lender shall be given by certified mail, return receipt requested, to Lender's addresses stated in this Deed
of Trust or to such other address as Lender may designate by notice to Borrower as provided in this Section. Any notice
provided for in this Deed of Trust shall be deemed to have been given to Borrower or Lender when given in the manner designated
herein.
16. Governing Law; Severability. This Deed of Trust shall be governed by the law of California. In the event that any
provision or clause of this Deed of Trust or the Note or the Security Agreement conflicts with applicable law, such conflict
shall not affect other provisions of this Deed of Trust or the Note or the security Agreement which can be given effect without
the conflicting provision, and to this end the provisions of the Deed of Trust, the Note, and the Security Agree11ent are
declared to be severable.
17. Borrower's Copy. Borrower shall be furnished a conformed copy of this Deed of Trust, the Note, and the Security
Agreement at the time of execution or after recordation hereof.
18. Sale or Transfer of the Property. If all or any of the property or an interest in it is sold or transferred by
Borrower, excluding per11!tted transfers to a spouse or other person signing the Note and the Security Agreement in the manner
described in Section 4 above, all the suns secured by this Deed of Trust and the Security Agreement shall be imnediately dJe
and payable. In the event of such an acceleration, Lender shall mail Borrower notice of the acceleration in accordance with
Section 19 hereof. Such notice sholl provide a period of not less than 30 days froo the date the notice is mailed within
which Borrower may pay the Sl.lllS declared due. If Borrower fails to pay such suns prior to the expiration of such period,
Lender may, without further notice or demand on Borrower, invoke any remedies per~itted by Section 19 hereof.
19. Acceleration; Remedies. Except as provided in Section 16 hereof, upon Borrower's breach of any covenant or agreement
of Borrower in this Deed of Trust, the Security Agreement or the Note, and incorporated by reference in this Deed of Trust,
Inc luding the covenants to pay when due any suns secured by this Deed of Trust, Lender prior to acceleration shall mail
notice to Borrower as provided in Section 15 hereof specifying: (1) the breach; (2) the action required to cure such breach;
(3) a date, not less than 30 days from the date the notice is mailed to Borrower, by which such breach must be cured; and
(~) 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 the Security Agreement and sale of Property. The notice shall further inform Borrower of
his or her right to reinstate after acceleration and of the right to bring a court action to assert the non-existence of a
default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified
in the notice, Lender may declare all of the suns secured by this Deed of Trust to•be inmediately due and payable without
further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled
to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Section 19, including, but
not limited to, reasonable attorney's fees.
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(O\JNERSHIP INTEREST)
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us $17.244 Carlsbad, California
October 19, 1988
I. FOR VALUE RECEIVED, the undersigned ("Borrower") promises to pay The Redevelopment Agency of the City of Carlsbad,
herein known as "Lender", or order the principal sun of Seventeen Thousand Two Hundred Fourty Four and zero one hundredths
Dollars ($17,244), in the manner and plus the additional SLJ!lS described below:
A. 1. Upon th~ sale of the Property which secures this promissory note ("Property"), the principal sum plus
contingent interest equal to Twenty one and sixty eight one hundredths percent (21.68¾) of the value of 1) the increase in
the appraised fair market value of the property or 2) the resale price of the Property, whichever is greater shall be paid.
If no sale of the Property is made before OCtober 25. 2018 the sum of Seventeen Thousand Two Hundred Fourty Four and zero one
hundredths Dollars ($17,244) plus an additional sun equal to Twenty One and sixty eight one hundredths percent (21.68%) of
the value of the increase in the appraised fair market value of the Property over the original purchase price of the property
shall be due and payable. The principal amount and percentage value stated in this Section l .A.1 shall be adjusted, as
necessary, during the term of the Loan pursuant to the provisions ~nd requirements set out in Sections below. The fair market
value/original purchase price of the Property, at the time that the Promissory Note is executed, is determined to be $79.554.
2. At the time this note becomes due and payable, pursuant to Section I.A.1., contingent interest shall
be determined by utilizing the original total purchase price as follows:
TOTAL CI TY ASSISTANCE PROVIDED (Loan amount)
-divided by-
ORIGINAL PURCHASE PRICE PLUS APPRAISED MOBILEHOME VALUE
-equals-
PERCENTAGE (equity share)
-multiplied by-
APPRAISED VALUE OF PROPERTY OR
RESALE PRICE OF PROPERTY,
WHICHEVER IS GREATER
-equals-
TOTAL PAYMENT TO CITY
3. Borrower may choose to prepay all or part of the principal and contingent interest described in Section
l.A.1.above by making one or more payments toward these amounts in addition to the mont°hly payments amount described in Section
I .A.1. above. Any such amount paid by the Borrower are Excess Payments and shall reduce the suns payable in section
I.A.1. above as provided in Section JI. below.
4. Borrower agrees that he/she will not make payments on any other loans secured by the Property except
such minimum periodic payments as are required by the Note and Deed of Trust or other docunents evidencing such loans until
such t ime as Borrower has paid the amounts described in Section I.A.1. above., unless the Lender has given written approval.
JI. EXCESS PAYMENTS (as defined in Section I.) of $2,500 or more may be made by Borrower to Lender in any month, but not
more than once per year. The Borrower shall notify Lender of his intent to make "Excess Payments" at least thirty (30) days
in advance and shall arrange for an appraisal to be performed by a Lender-approved Appraiser. The Borrower shall submit the
appraiser's report within thirty (30) days of the Lender's notification to the Borrower of the existence of Aggregated Excess
Payments. \.lithin thirty (30) days of receipt of such appraiser's report, the Lender shall recalculate the Borrower's
obligation under Section I.A.1. The Aggregated Excess Payments shall be credited partially to principal and partially to that
portion of the increase in fair market value over purchase price which is owing pursuant to Section I.A.1.
A. The portion of the Aggregated Excess Payments to be allocated to repayment of the portion of principal described
in Section l.A.1., or to the most recent recalculation of such portion of the principal which has been made according to this
Section II or Section IV.B. below, shall be calculated·as follows:
Purchase Price
Appraised Fair
Market Value
X
Aggregated
Excess Payments
B. That portion of the Aggregated Excess Payments re!ll81n1ng after the value determined ·in Section II.A. above has
been subtracted shall be allocated to that portion of the increase in fair market value of the property over the purchase price
owing pursuant to Section I.A.1.
C. At the same time the allocations in Sections II.A. and B. above are made, the Lender shall also recalculate,
pursuant to the following fornJla, the percentage value used in Section I.A.1. above:
CV x E -R
p =
V
V The value of the Property, as determined by
the appraisal.
E = The percentage value, stated in Section I.A.1. or the most recent recalculation of this value
made according to this formula, or, the formula in Section IV.B. below.
R = The Aggregated Excess Payments.
P = The recalculated percentage
D. The Lender shall provide Borrower with a statement of the above recalculated values each time such adjustments
are made.
III. DEFINITION: The term "Property" means the following described property:
A. Mobile home described as follows: 1968 HMTTE. Mobilehome Serial Number(s) MC1165XX. MC1165XXU and all
substitutions, accretions, component parts, replacements thereof and additions thereto, and
B. The Property described in Exhibit A of the Deed of Trust securing this Note.
IV. IMPROVEMENTS TO PROPERTY which increase the value of the property which cost the Borrower one Thousand Dollars
($1000.00) or more may reduce the percentage value used in Section I.A.1. above. Such improvements shall reduce the percentage
value used in Section I.A.1. to the extent that the increase in value caused by the improvements, plus the cost to the
Borrower of two appraisals, one made before and one made after the improvements, minus the value by which the value of the
Property has been increased by other work not constituting improvements performed between the two appraisals, results in an
increase to the value of the Property ("Value of the Improvement"). The two appraisals, made to determine the value of the
Property before and after the improvement are made, shall be made by an Approved Appraiser. The second appraisal shall be
an update of the first. The first appraisal shall be made no earlier than one month prior to the time the improvements are
begun and the second shall be _made no later than one month following substantial COR1)letion of the improvements.
A. "Improvements" means substantial repairs, renovations or additions which increase the value of the Property
or bring such Property into conformance with local or state building or housing standards.
1. "Improvements" includes:
a. replacement of built-in appliances, fixtures and equipment which were originally sold as
part of the space, or replacement of structural components of the space, including plumbing
and electrical systems, provided that replacement is required by the nonoperative,
deteriorated, or obsolescent nature of the original appl lance, fixture, equii:xnent or
structural component;
b. improvements to the C0111110n area of a mobilehome park resulting in a mandatory assessment
by the Association; and
c. permanent additions to the space.
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2. "Improvements" does not include:
a. a mobilehome vehicle and appurtenant structures attached or affixed to the space to the
extent title is held by Borrower, not the Association;
b. routine or cosmetic maintenance such as painting and replacement of items made necessary
due to normal wear and tear; and
c. replacement or repair of Items damaged or destroyed because of a fire or natural disaster,
unless such activity is necessary to bring such property into conformance with local or state
building or housing standards which are higher than previous standards in which case only
the cost of work necessary to alter the premises from the lower to the higher standards will
be included as an illl)rovement.
B. Where the improvements do increase the value of the property as described in this Section, the recalculation
of the percentage value used in Section I.A.1. shall be made in the following manner:
E = (V X D
CV+ I )
E = The recalculated percentaged used in Section I.A.1.
V = The appraised value of the Property inmediately prior to the making of the Improvements.
D = The percentage value stated in Section I.A.1. or the most recent recalculation of this value made
according to this formula, or, the formula in section 11.c. above.
I= Value of the improvements based on appraisal.
c. Lender shall provide Borrower with a statement of the above recalculated percentage value each time such
an adjustment is made.
D. To be eligible for the reduction in percentage value described in this Section IV, the Borrower must
receive approval of the proposed illl)rovements from the Lender . To receive the required approval, the Borrower must notify
the Lender of the proposed improvements and their projected cost to Borrower at least thirty (30) days prior to beginning
construction on the improvements. The Lender shall notify the Borrower of approval of eligibility, or, disapproval of
eligibility, of the proposed improvements for the reduction in percentage value within twenty-one (21) days of receipt of
notification from the Borrower of the proposed improvements. If construction is not begun and completed within the allotted
time, or, the Borrower has not sought and received an extension of the allotted time, the conditional ruling of eligibility
will be revoked and the improvements will be adjudged ineligible for the reduction in percentage value described in this
Section IV. When improvements are to the comnon areas, the Lender may take other necessary action on behalf of the Borrower
as described in this section.
E. Notice of change in the value of the Property due to illl)rovements as defined in this Note must be provided
to the Lender, along with the required appraisal and appraisal update, within forty-five (45) days of completion of the
improvements.
F. Improvements which do not increase the value of the Property but do bring the Property into conformance with
local and state building or housing standards shall reduce the percentage value used In Section I.A., if the cost to the
Borrower of such improvements is One Thousand Dollars ($1000.00) or more.
V. UNLESS OTHERYISE PROVIDED HEREIN:
A. Any ti1110 the services of an appraiser are required by this Note, the Borrower shall appoint an appraiser which
shall be approved.by the lender and pay for the services of such appraiser.
VI. Presentment, notice of dishonor, and protest are hereby waived by all makers, sureties, guarantors and endorsers
of this Note. This Note shall be the joint and several obligation of all malcers, sureties, guarantors and endorsers, and shall
be binding upon them and their successors and assigns.
VI I. Any notice to Borrower provided for in this Note shall be given by mailing such notice by certified mail addressed
to Borrower at the Property Address stated below, or to such other address as Borrower may designate by notice to the Lender.
Any notice to the Lender shall be given by mailing such notice by certified mail, return receipt requested, to the Lender
at t he address stated in the first paragraph of this Note, or at such other address as may have been designated by notice to
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