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HomeMy WebLinkAboutGreen, Ivan; 1988-09-15;1705 1. PaymetJt of Principal and Interest. Borrower shall pr01J'1tly 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 Propertx 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 innediately due and payable. l.ttere 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 Agreenent. Similarly, when a spouse or person signing the Note takes title to the Property whfch secures thfs 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 81110Wlts described in the Note, in part, from the increase, if any, of the fafr market va lue 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 detemines 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 P1Brket value. When 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 11&rket value. 4. Charges; Liens. Borrower shall pay when due all taxes, assessments and other charges, fines and iff1)0sitions attributable to the Property which may attain a priority over this Deed of Trust. Borrower shall pr~tly fumish to Lender all notices of amounts due and paid under this paragraph. Borrower shall proq>tly 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 al low the attachment of any subordinate lien or other encU1Drance on the Property without prior written consent of the Lender. · 5. Preservation and Maintenance of Property: Conpl iance with DocU'llents. 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 obligations under the articles and byfaws and constituent doctrnents creating and governing Lender. Borrower shall perfor111 all of Borrower's obligations l.nder and pay when due all assessments and charges req.Jired by the Lender and any special assess111ents and charges made by the Lender. 6. Protection of Lender's Security. If Borrower fails to perfor• 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 camienced 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 sllllS, 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 11&ke 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 tel'IIS of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disburset.nent at the rate of 15X per annun, 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 specifyfng reasonable cause therefor related to Lender's interest in the Property. 8. Conde!Wllltion. The proceeds of any award or clai• for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned 2 17 ard shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be treated as if received fr011 a sale of the Property. The proceeds shall be applied to the SllllS to be repaid in the 81110Ult and mamer described in Sections I.A. of the Note. Any part of the proceeds remaining after these 8IIKU'lts have been paid shall be paid to the Borrower. In the event of a partial taking of the Property, 111less Borrower and Lender otherwise agree fn wrftfng, the proceeds shall be treated as if received from a sale of that portion of the Property which is taken in the condetnation. The percentage value of the portion taken, as c~red to the ful l value of the entire Property, shall be determined by dividing the condennation 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 mamer to allocate the condennation proceeds: a. First, to the a110unt of principal owing under Section I.A. of the Note shall be allocated the value equal to the percentage value de~ernined above multiplied 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 condelmation minus the purchase price (as this term is defined in the Note) nultipl ied 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 condennation, the principal amount owing lllder Section I.A. of the Note and the purchase price of the Property, as this tern 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 condellnation. · If the Property is abandoned by Borrower, or if after notice by Lender to Borrower that the condennor 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 sums 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 Inst.ranee. The Borrower shall maintain hazard insurance on mobilehome. In the 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 conmon 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 frOIII a sale of the Property. The proceeds shall be applied to the sums to be repaid in the amount and mamer described in Section I.A. of the Note. Any part of the proceeds renaining 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 coq,enseted for by insurance. The percentage value of the portion lost, as Coql8red to the full value of the entire Property, shall be determined by dividing the insurance proceeds by the fair market va lue of the entire Property just prior to the loss. This percentage value, once determined, shall be used in the following manner to allocate the insurance proceeds specified in Section 8 regarding the allocation of Condemnation proceeds. Following the malcing of the above allocations of an insurance award in case of a partial loss, the principal alllOU"lt 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 shal l not be affected by any allocation of an award in partial condemnation. 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 sl.l'flS secured by this Deed of Trust. 10. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, consent to: Ci) the abandonment or termination of the Lender; (ii) any material amenchent to the Covenants, Conditions and Restrictions, Articles of Incorporation, By·laws of the 3 EXHIBIT "A" 1711 A Copdominium Comprised Of: SOLAMAR PARCEL 1: An undivided l/108th interest in and to a portion of Lot Hof RANCHO AGUA HEDIONDA, in the City of Carlsbad, County of San Diego, State of California, a~cording to Map thereof No. 823 filed in the Office of the County Recorder of San Diego County, November 16, 1896, ~ore particularly described as follows: Beginning at a point on the Southerly boundary of said RANCHO AGUA HEDIONDA, said Point of Beginning being also the Southwest corner of that parcel of land described in deed to the Atchison, Topeka and Santa Fe Railway Company recorded August 29, 1946 in Book 2216 at Page 412 of Official Records of said San Diego County; thence Northerly along the Westerly boundary of said "railroad" parcel the Northerly along the Westerly boundary of said "railroad" parcel the following courses: North 23° 12' 20" West, 963.14 feet (record North 25°. 54.~ Wesdt 964.26 feet) thence North 66 • 47' l{)" East, 25.00 feet ( record North 64 • 06' East) thence North 23° 11' 19" West, 601.58 feet (record North 25° 54' West, 600.00 feet) to a point on the Westerly right-of-way line of the 100.00 foot right-of-way of the Atchison, Topeka and Santa Fe Railroad as said right-of-ay was conveyed to said Railroad by document recorded March 10, 1881 in Book 38 at Page 172 of Deeds in the Office of the County Recorder of said San Diego County; thence Northerly along said Westerly right-of-way line, North 23° 11' 19" West, 116.82 feet to a point on the NortheL·ly line of that parcel of land conveyed to P.A. Horton and Eva M. Horton by deed recorded March 10, 1944 in Book 1641, Page 437 of Official Records of said San Diego County; thence along said Northerly line, South 89° 54' 07" West, 390.30 feet (record South 89° 58' 13" West, 390. 53 feet) to an· intersection with the Easterly line of that parcel of land condemned for freeway purposes by the State of California for the County of San Diego, Case No. 165983, described in Final Order of Condemnation as Parcel 20-A recorded March 12, 1953 in Book 4781, Pege 510 of Official Records; thence along ~he Easterly Boundary of said Parcel 20-A, South 24• 44' 20" East, 1714.35 feet (Record 1715.95 feet) to a point on the Southerly line of said RANCHO AGUA HEDIONDA; thence along said Southerly line, North 89° 55 • 34" East, (Record North 89° 58' 13" Eest) 313.07 feet to th.a Point of Beginning. EXCEPTING THEREFROM Living Units l through 108, inclusive, as shown and de- fined upon that certain Solamar Condominium Plan recorded May 31, 1988 as File No. 88-255644 , Official Records of San Diego County. ALSO EXCEPTING TilEREFROH the exclusive .right to possession of those portions designated as exclusive use areas on the above referenced Condominium Plan. PARCEL 2: Living Unit73 as sho\.l'Il and defined on the Condominium Plan referred to above. PARCEL 3: The exclusive right to possession of those areas designated as exclusive use areas on the Condominium Plan referred to above, as appurtenant to Parcels land 2 above described. (OYNERSHIP INTEREST) us $25. 113 Carlsbad, California Septenber 15, 1988 I. FOR VALUE RECEIVED, the undersigned ("Borrower•) promises to pay The Redevelopnent Agency of the City of Carlsbad, herein known as "Lender", or order the principal SI.Ill of Twenty five Thousand One Hundred Thirteen and zero one hundredths Dollars (S25 .113>, in the manner and plus the addt ttonal suns described below: A. 1. Upon the sale of the Property which secures this promissory note ("Property"), the principal sun plus contingent interest equal to Thirty Two and eighto one one hundredths percent (32.81%) 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 fs made before Septenber 23. 2018 the s1.111 of Twenty Five Thousend One Hundred Thirteen and zero one hundredths Dollars ($25,113) plus an additional sun equal to Thirty Two and eighto one one hundredths percent (~X) 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 I.A.1 shall be adjusted, as necessary, during the term of the Loan pursuant to the provisions and requirements set out fn 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 S76.529. 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 CITY ASSISTANCE PROVIDED (Loan amount) ·divided by- ORIGINAL PURCHASE PRICE PLUS APPRAISED MOBILEHOME VALUE -equals· PERCENTAGE (equity share) -nul ti plied 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 I.A.1.above by making one or 1110re paynents toward these amounts in addition to the monthly payments amount described in Section I .A.1. above. Any such amount paid by the Borrower are Excess Payments and shall reduce the SllllS payable in Section I.A.1. above as provided in Section II. below. 4. Borrower agrees that he/she will not make payments on any other loans secured by the Property except such mini11U1 periodic payments as are required by the Note and Deed of Trust or other documents evidencing such loans until such time as Borrower has paid the amounts described in Section 1.A.1. above., unless the Lender has given written approval. II. EXCESS PAYMENTS (as defined in Section J.) of $2,500 or 110re 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 suboit the appraiser's report within thirty (30) days of the Lender's notification to the Borrower of the existence of Aggregated Excess Payoonts. Within 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 morket 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 I.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 Payinents B. That portion of the Aggregated Excess Payments rema1n1ng 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 formula, the percentage val.ue 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 for11Ula, or, the forrula 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 adjustment$ are made. II I. DEFINITIOI: The term "PropertY'' means the fol lowing described property: A. Mobile home described as fol lows: 1968 HMTTE. Mobilehgne Serial Nuri>erCs) SO378XX & S0378XXU 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. IIIPROVENENTS 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 inprovements shall reduce the percentage value used in Section l.A.1. to the extent that the increase in value caused by the inprovements, plus the cost to the Borrower of two appraisals, one made before and one made after the i~rovements, minus the value by which the value of the Property has been increased by other work not constituting inprovements performed between the two appraisals, results in an increase to the value of the Property ("Value of the Improvement•). The two appraisals, 11ade to determine the value of the Property before and after the improvement are made, shall be 11ade 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 il'llprovetnents are begun and the second shall be made no later than one month following substantial c~l•tion of the improvements. A. "lnprovements" 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. •Jmprovements" includes: ~-replacement of built-in appliances, fixtures and equipnent which. were originally sold as part of the space, or replacement of structural COIJl>Ollents of the space, including pll.rnbing and electrical systems, provided that replacement is required by the nonoperative, deteriorated, or obsolescent nature of the original appliance, fixture, equipment or structural coq,onent; b. i~rovements to the comnon area of a mobilehome park resulting in a 11andatory assessment by the Association; and c. permanent additions to the space. 2 2. "lnprovements• does not include: a. a mobi leh0111e 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 replacenent of items 11&de 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 fnto conformance with local or state building or housing standards which are higher than previous standard& in which case only the cost of work necessary to alter the prenises from the lower to the higher standards will be included as an inprovement. B. Where the inprovements do increase the value of the property as described in this Section, the recalculation of the percentage value used in Sect-ion I.A.1. shall be ll8de in the following A111nner: E = CV X D (V + I E = The recalculated percentaged used in Section I.A. 1. V = The appraisecl value of the Property innedlately prior to the making of the lnprovements. D = The percentage value stated in Section I.A.1. or the most recent recalculation of this value made according to this fornula, or, the foM1Ula in section 11.c. above. I • Value of the inprovements based on appraisal. C. Lender shall provide Borrower with a statement of the above recalculated percentage value each time such an adjustment is made. 0. To be eligible for the reduction in percentage value described in this Section IV, the Borrower rwst receive approval of the proposed iq>rovements from the Lender. lo receive the required approval, the Borrower must notify the Lender of the proposed iniproveinents and their projec~ed cost to Borrower at least thirty (30) days prior to begiming construction on the iq:irovements. The Lender shall notify the Borrower of approval of eligibility, or, di~approval of eligibility, of the proposed inprovements for the reduction in percentage value within twenty-one (21)·c:tays of receipt of notification from the Borrower of the proposed inprovenents. 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 rul·ing of e'tigibility will be revoked and the inprovements will be adjudged ineligible for the reduction in percentage value described in this section IV. When i111>rovements are to the coomon 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 ill1)rovements as defined in this Note iwst be provided to the Lender, along with the required appraisal and appraisal update, within forty-five (45) days of COll1)letion of the inprovements. F. J11provements i.hich do not increase the value of the Property but do brfng 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 iq>rovements is one Thousand Dollars (S1000.00) or inore. V. UNLESS OTHERUISE PROVIDED HEREIN: A. Any time the services of an appraiser are required by this Note, the Borrower shall appoin! 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 obl igatim of all makers, sureties, guarantors and endorsers, and shall be binding upon them and their successors and assigns. ' VII. Any notice to Borrower provided for in this Note shall be given by 1111iling 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 the address stated in the first_paragraph of this Note, or at such other address as may have been designated by notice to 3