HomeMy WebLinkAboutReso RDA 5-1996-, RESOLUTION NO. 5-96
REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO
STATE OF CALIFORNIA
A RESOLUTION APPROVING AN OWNER PARTICIPATION
AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND
ROBERT J. MULHALL RELATED TO 905 LINDEN AVENUE
(APN NO. 012-101-100) AND A PROMISSARY NOTE AND
DEED OF TRUST RELATED TO THE $76,900 LOAN APPROVED
AS PART OF THE OWNER PARTICIPATION AGREEMENT
RECITALS
WHEREAS, the South San Francisco Redevelopment Agency is authorized to and
desires to enter into an Owner Participation Agreement which provides for a loan of $76,900
for use for site improvements for property located at 905 Linden Avenue.
WHEREAS, Robert J. Mulhall agrees to the terms of the Owner Participation
Agreement and desires to enter said agreement;
WHEREAS, the Executive Director recommends approval of the form of the
Promissary Note and Deed of Trust securing the loan;
NOW THEREFORE, the Redevelopment Agency of South San Francisco does hereby
resolve as follows:
1. The Redevelopment Agency hereby approves the Owner Participation
Agreement related to the property located at 905 Linden Avenue (APN No. 012-101-100)
between Robert J. Mulhall and the Redevelopment Agency of South San Francisco, a copy of
which is attached hereto as Exhibit A.
2. The Executive Director is hereby authorized to execute the Owner
Participation Agreement on behalf of the Redevelopment Agency of South San Francisco and
is also authorized to implement the Agreement and the Promissary Note therein.
Ir ! I
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Redevelopment Agency of the City of South San Francisco at a regul ar
meeting held on the 12th day of dune , 1996 by the following
vote:
AYES: Boardmembers doseph A. Fernekes, Eugene R. Mullin, dohn R.
Penna, Robert Yee and Chairman Jack D_ra.qo
NOES: None
ABSTAIN: None
ABSENT: · No.e
ATTEST: Clerk~~ ~t? ~-
Redevelopment Agency of the
City of South San Francisco
EXHIBIT A TO RESOLUTION NO. 5-96
DRAFT 1
OVVNER PARTICIPATION AGREEMENT
THIS OWNER PARTICIPATION AGREEMENT (this "Agreement") dated as of June 19.
1996, is entered into by and between the CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT
AGENCY, a public body corporate and politic (the "Agency") and Robert J. Mulhall, doing business
as Coast Gas & Mini Mart ("Participant"). The Agency and Participant agree as follows:
RECITA~ S
This Agreement is entered into with reference to the following facts:
A. The purpose of this Agreement is to effectuate the Redevelopment Plan for the Project
.... Area by providing for the redevelopment of the Property. Completion of the Improvements
constituting the Project pursuant to this Agreement is in the best interests of the City and the
Agency, and the health, safety and welfare of residents and taxpayers of the Project Area and the
City, and is in accord with the public purposes and provisions of applicable and state and local
laws.
B. A material inducement to the Agency to enter into this Agreement is the agreement by
Participant to construct the Improvements within a limited period of time, and the Agency would be
unwilling to enter into this Agreement in the absence of an enforceable commitment by Participant
to construct the Improvements existing under the Community Redevelopment Law of the State of
California and with full power and authority to execute this Agreement. The Principal office of the
Agency is located at 400 Grand Avenue, South San Francisco, California 94080.
AGRFFMFNT
ARTICLE 1. DEFINITIONS:
1.1.1. Agency Ioan means the loan of funds by the Agency to Participant as set fort in
Article 3.
1.1.2. Agency means the City of South San Francisco Redevelopment Agency, a public
body, corporate and politic, exercising governmental functions and powers and is organized and
existing under the Community Redevelopment Law of the State of California.
1.1.3. /~,greement means this Owner Participation Agreement.
1.1.4 City_ means the City of South San Francisco, a municipal corporation. The principal
office of the City is located at 400 Grand Avenue, South San Francisco, California 94080.
1.1.5. Improvements means the improvements described on Exhibit A, attached hereto
and incorporated herein by this reference (the 'Scope of Development:).
1.1.6. Pro_iect means the construction of the Improvements on the real property located
at 905 Linden Avenue in accordance with the Scope of Development.
1.1.7. Project Area means Downtown Central Redevelopment Project Area No. I of the
Agency.
1.1.8. Properly means the real property located at 905 1 inden Avenue (APN No. 012-101-
loo).
1.1.g. Redevelopment Plan means the Redevelopment Plan for the Redevelopment
Project No. 1 approved by the City Council by Ordinance No. 1056-89 on July 12, 1989.
1.1.10. Participant shall mean Robert J. Mulhall.
ARTICLE 2. DEVELOPMENT OF THE PROPERTY
Section 2.1. Ownership of the Business. Participant hereby covenants that Participant
is the lessee of the Property and is the sole owner of the business known as Coast Gas & Mini Mart
located on the Property as of the date and execution of this Agreement. Participant covenants that
he has three years remaining on the lease of 905 Linden Avenue and that the lease authorizes him
to construct the improvements on the property.
Section 2.2. Development of the Property.
2.2.1. Scope of Development.
Participant hereby agrees to construct the Improvements, identified in the "Scope of
Development' included herein as Exhibit 'A', on the Property pursuant to the 'Schedule of
Performance included herein as Exhibit 'D'. Participant shall complete all Improvements within
eight (8)months from the date of this Agreement.
Section 2.3. Cost of Construction.
The Cost of developing and constructing the Improvements shall be borne solely by
Participant and shall not be an obligation of the Agency, except to the extent the Agency shall
assist Participant by reimbursing the cost of construction of the Improvements, up to the amount
of the Agency Loan.
Section 2.4. Final Construction r3rawin(~s and Related Documents.
Participant has prepared, submitted, and obtained Planning Commission approval of the
site plan for the Improvements. In addition, Participant hereby covenants that it has obtained all
necessary permits which may be required by the City or any other govemmental agency having
jurisdiction over such construction or development with the exception of building permits which
Participant shall obtain not later than thirty (30) days after approval of this Agreement.
Section 2.5. Progress of Construction.
During construction of the Improvements, Participant shall submit to the Agency from time
to time, within ten days following the Agency's request therefor, but not more frequently than
monthly, a written report of the progress of the construction when and as requested by the Agency.
The report shall be in such form and detail as to inform the Agency fully of the status of
construction.
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Section 2.6. Rights of Access.
In addition to those rights of access to and across the Property to which the Agency and
City may be entitled by law, members of the staffs of the Agency and City shall have the right of
access to the Property, without charge or fee, anytime, to inspect the work being performed at the
Property.
Section 2.7. Local. State and Federal Laws.
Participant shall carry out the construction of the Improvements in conformity with all
applicable laws, including all applicable federal and state occupation, safety and health standards.
Section 2.8. Anti-discrimination Durin9 Construction.
Participant shall not discriminate against any employee or applicant for employment
because of age, sex, marital status, race, handicap, color, religion, creed, ancestry, or national
origin in the construction of the Improvements.
Section 2.9. Failure to Complete Construction of Improvements VVithin Eight Months.
If Participant fails to complete the construction of the Improvements on the Property within
eight (8) months from the date of this Agreement, then all sums disbursed or advanced by the
Agency shall, at the option of Agency, immediately become due and payable, and the Agency shall
.... be released from any and all further obligations to Participant under the terms of this Agreement.
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ARTICLE 3. AGENCY LOAN TO PARTICIPANT
Section 3.1. Agency ~ oan.
The Agency agrees, in consideration for Participant's construction of the Improvements on
the Project, subject to the terms and conditions precedent set forth below, to lend to Participant up
to $76.900 to construct Improvements. The Agency Loan shall be evidenced by a promissory note
(the "Promissory Note") in the form attached hereto as Exhibit "B" and incorporated herein by this
reference and a second deed of trust ('Deed of Trust') on Participant's real property located at 848
Arguello, Pacifica, California in the form attached as Exhibit 'C' and incorporated herein by
reference. At the option of the Agency, payments for the construction of the Improvements may
be made by the Agency upon completion of the Improvements on the Property, by means of
progress payments or in a lump sum payment, either directly to contractors employed by
Participant or in payment to Participant.
Section 3.2. Conditions Precedent to Disbursement of the Agency Loan.
The Agency's obligation to disburse the Agency Loan is subject to the following conditions
precedent:
3.2.1. Regarding the loan proceeds credited to Participant or his contractors, loan
proceeds in the amount of $76,900 shall be deposited to Liberty Bank for loan administration.
Participant understands that no loan proceeds will be disbursed until all of Agency's conditions for
making the loan have been satisfied.
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Loan proceeds will be dispersed by Liberty Bank as follows:
Amount paid to Participant or Contractor(s) on Participant's behalf: $68,700
$68,700 to be disbursed according to Promissory Note, Exhibit
"E" of Owner Participation Agreement.
Amount to be paid to City Public Works Department
on Participant's behalf: $ 8,200
$8,200 to be disbursed to Public Works Department to undertake sidewalk improvements as
specified in Exhibit "A" Scope of Development, of the Owner Participation Agreement.
Participant shall submit to Uberty Bank a payment request in respect of the Improvements, which
payment request shall state all construction costs incurred by Participant in the construction of the
Improvements. The payment request submitted by Participant shall be accompanied by legible
copies of all invoices, payment vouchers, and such other documentation as may reasonably be
requested by the Agency or Liberty Bank in order to verify the actual total cost of construction for
which payment is sought, together with Participant's wdtten certification that all such construction
of the Improvements have been completed. Notwithstanding the provisions of this subsection, in
no event shall the aggregate amount of reimbursement from the Agency exceed the reasonable
cost of constructing the Improvements.
3.2.2. The total cost incurred by Participant in the construction of the Improvements shall
be verified by the Agency based upon the documentation submitted pursuant to subsection 3.2.1
above, and the determination thereof by the Agency shall be final and conclusive as to the amount
of such total cost.
3.2.3. Participant shall not be in default hereunder or under any other agreement with the
Agency or the City.
3.2.4. Participant's execution and delivery to the Agency of the Promissory Note and Deed
of Trust.
ARTICLE 4. TRANSFERS AND SECURITY INTERESTS
Section 4.1. Limitation as to Transfer of the Property and Assignment of Agreement
4.1.1. Prior to the repayment of the Agency Loan, Participant shall not, except as permitted
by this Agreement, sell, transfer, assign, convey or sublease Participant's interest in the Property
or in Participant's real property and improvements at 848 Arguello Boulevard, Pacifica, California.
Participant acknowledges that the identity of Participant is of particular concern to the Agency, and
it is because of Participant's identity that the Agency has entered into this Agreement with
Participant.
4.1.2. If prior to the repayment of the Agency Loan Participant (i) sells, transfers, conveys,
subleases or assigns Participant's interest in the Property or in Participant's real property and
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improvements at 848 Arguello, Pacific, a, California or any of Participant's rights in this Agreement
to or in favor of any person or entity, or (ii) sells, transfers, assigns, subleases or conveys
Participant's leasehold interest in the Property, then all sums disbursed or advanced by the Agency
shall, at the option of Agency, immediately become due and payable.
ARTICLE 5. USE OF THE PROPERTY
Section 5.1. Uses.
Participant covenants and agrees for itself, and its successors and its assigns, that during
construction and thereafter, Participant, such successors, and such assignees shall use the
Property solely for the purposes of operating a gas station and mini-mart pursuant to the approval
issued by the South San Francisco Planning Commission. Participant is expressly prohibited from
using the Property for any uses prohibited by applicable City zoning ordinances or regulations, or
the Redevelopment Plan for the Project Area.
Section 5.2. Obligation to Refrain from Discrimination.
There shall be no discrimination against or segregation of any person, or group of persons,
on account of sex, marital status, age, handicap, race, color, religion, creed, national origin or
ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the
Property, and Participant (itself or any person claiming under or through Participant) shall not
establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees,
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-- _ or vendees thereof or any portion thereof.
Section 5.3. I=ffect and Duration of Covenants.
All of the terms, covenants, agreements or conditions set forth in this Agreement pertaining
thereto shall cease and terminate upon complete repayment of the Agency loan including any
interest and fees owed excepting only the following provisions which shall survive in accordance
with their provisions:
1. Section 5.1 (relating to uses) shall remain in effect for a pedod starting from the date
that this Agreement is executed until the Agency Loan is satisfied and thereafter until a new land
use approval is issued.
2. Section 5.2 (relating to nondiscrimination) shall remain in effect in perpetuity.
ARTICLE 6. DEFAULTS, REMEDIES AND TERMINATION
Section 6.1. Defaults - General.
6.1.1. Failure or delay by either party to perform any term or provision of this Agreement
constitutes a default under this Agreement. The party who so fails or delays must immediately
commence to cure, correct, or remedy such failure or delay, and shall complete such cure,
correction or remedy with reasonable diligence and during any period of curing shall not be in
?'- default.
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6.1.2. The non-defaulting party shall give written notice of default to the party in default,
specifying the default complained of by the injured party. Failure or delay in giving such notice shall
not constitute a waiver of any default, nor shall it change the time of default.
6.1.3. Except as otherwise expressly provided in this Agreement, any failure or delay by
either party in asserting any of its rights or remedies as to any default shall not operate as a waiver
of any default or of any such rights or remedies or deprive either such party of its right to institute
and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce
any such rights or remedies.
Section 6.2. Applicable Law.
The laws of the State of California shall govern the interpretation and enforcement of this
Agreement. Any action must be instituted in either the Superior Court of the County of San Mateo,
State of California, or in an appropriate court in that County.
Section 6.3. Rights and Remedies are Cumulative.
Except as otherwise expressly stated in this Agreement, the dghts and remedies of the
parties are cumulative, and the exercise by either party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same time or different times, of any other rights or
remedies for the same default or any other default by the other party.
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Section 6.4. Inaction Not a Waiver of ~ef~ult.
Except as expressly provided in this Agreement to the contrary, any failures or delays by
either party in asserting any of its rights and remedies as to any default shall not operate as a
waiver of any default or of any such rights or remedies, or deprive either such party of its rights to
institute and maintain any actions or proceedings which it may deem necessary to protect, assert
or enforce any such rights or remedies.
Section 6.5. Remedies.
If either party defaults with regard to any of the provisions of this Agreement, the non-
defaulting party shall serve written notice of such default upon the defaulting party. If the default
is not commenced to be cured within ten (10) days after service of the notice of default and is not
cured promptly in a continuous and diligent manner within a reasonable period of time after
[ ' commencement thereof, then (i) the non-defaulting party may terminate this Agreement, and the
defaulting party shall be liable to the non-defaulting party for any damages caused by such default,
and the non-defaulting party may thereafter commence an action for damages against the
defaulting party with respect to such default; and/or (ii) the non-defaulting party, at its option, may
thereafter commence an action for specific performance of the terms of this Agreement pertaining
to such default; and/or (iii) the Agency shall be released from any and all further obligations to
Participant under the terms of this Agreement. Lastly, in addition to any other condemnation ~cjhts
of the Agency, if Participant is the defaulting party, the Agency may acquire Participant's interest
in the Property by any legal means, including eminent domain, for redevelopment in accordance
~ - with the Redevelopment Plan. Participant hereby stipulates and agrees that the only issue in such
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All notices shall be deemed received on the date two (2) business days alter the date of deposit
into the U.S. mail in the fashion provided herein.
Section 7.2. Conflicts of Interest.
No member, official or employee of the Agency shall have any direct or indirect interest in
this Agreement, nor participate in any decision relating to the Agreement which is prohibited by law.
Section 7.3. Warranty Against Payment of Consideration for A(~reement.
Participant warrants that it has not paid or given, and will not pay or give, to any third
person, any money or other consideration for obtaining this Agreement, other than normal costs
of conducting business and costs of professional services such as architects, engineers and
attorneys.
Section 7.4. Nonliability of Agency and City Officials.
No member, official or employee of the Agency or City shall personally be liable to
Participant, or any successor in interest of Participant, in the event of any default or breach by the
Agency or for any amount which may become due to Participant or successor or on any obligation
under the terms of this Agreement.
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Section 7.5. Iitigation.
If the Agency shall be or shall become a party to any legal proceedings instituted in
connection or arising out of this Agreement or the improvement of the Property, or in the event of
any dispute between the parties hereto arising out of this Agreement in which the Agency is the
prevailing party, Participant agrees to pay to the Agency all sums paid or incurred by the Agency
as costs and expenses in the legal proceedings, including but not limited to actual attorneys' fees
and costs incurred by the Agency.
Section 7.6. Severability.
Any failure by the Agency to enforce any of its remedies hereunder in any particular
instance shall not constitute a waiver by the Agency of its right to subsequently enforce its rights
in the event of a subsequent default.
Section 7.7. Entire Agreement. Waivers and Amendments.
The Agreement is executed in duplicate originals, each of which is deemed to be an original.
This Agreement, together with all attachments and exhibits hereto, constitutes the entire
understanding and agreement of the parties. This Agreement integrates all of the terms and
conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous
agreements between the parties with respect to all or any part of the subject matter hereof. Any
waiver or modification of any provision of this Agreement must be in writing and signed by the party
to be charged.
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IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the day
and year first above written.
CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT AGENCY
Executive Director
APPROVED AS TO FORM: ATTEST:
Agency Counsel Clerk, Redevelopment Agency of
South San Francisco
"Participant"
Robert J. Mulhall, dba
Coast Gas & Mini-Mart
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Exhibit A
SCOPl= OF nFVFI OPMFNT
Participant shall, at its own cost and expense, provide or cause to be provided, the following
improvements within eight (8) months from the date that Participant and the Agency entered into
a Owner Participation Agreement:
Preparation of all plans for architectural, mechanical, electrical, plumbing, all plans needed
to met permit requirements for City of South San Francisco.
Concrete and window construction for west and east end of south wall.
Store area electrical, water line and framing.
Ceiling installation.
Ceramic tile floor installation.
Cabinet, shelving and baseboard installation.
Bathroom office redesign.
Installation of perimeter fencing.
Installation of new gutter and drain separator.
Landscape island construction.
Sidewalk repair and replacement.
New awning canopy and signage.
.17
Exhibit B
pROMISSORY NOTF
$76.900 South San Francisco, California
June 12 ,1996
FOR VALUE RECEIVED, the undersigned Participant Robert J. Mulhall, doing business as
Coast Gas & Mini Mart(collectively, the "Maker" or'Borrower'), hereby promises to pay to the order
of the CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY (the "Holder or
'Lender'") through its trustee Liberty Bank, at South San Francisco, California, without deduction
or offset, the sum of seventy six thousand, nine hundred dollars(S76.900), together with interest
on the funds as drawn at the rate of three percent (3%) per annum from the date funds are drawn.
Payments shall be due as follows:
1. Borrower will pay this loan in regular monthly payments of accrued unpaid interest
beginning July 12, 1996, and subsequent interest payments are due on the same day of each
month after that through November 12, 1996. Interest on this Note during this period shall be
computed, on the amount of $68,700, on a 365~360 simple interest basis; this is, by applying the
ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal
balance, multiplied by the actual number of days the principal balance is outstanding.
2. Commencing on December 12, 1996, Borrower will pay this loan, in the amount of $68,700,
in regular monthly payments of $474.43. The first payment is due on December 12, 1996 and all
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subsequent payments are due on the same day of each month after that. The final payment due
December 12, 2012, will be for all principal and all accrued interest not yet paid. Payments include
principal and interest on the amount of $68,700. Interest on this Note during this period shall be
computed on a 30~360 simple interest basis; this is, with the exception of odd days in the first
payment period, monthly interest is calculated by applying the ration of the annual interest rate over
a year of 360 days, multiplied by the outstanding principal balance, multiplied by a month of 30
days. Interest for the odd days is calculated on the basis of the actual days to the next full month
and a 360-day year.
3. No interest shall accrue and no principal payments shall be made by the Borrower on the
amount of $8,200. In the event that the Borrower does not meet the Agency requirements,
stipulated in the Promissory Note and Owner Participation Agreement, the amount of $8,200 with
accrued interest shall become due and payable immediately. If the Borrower meets all Agency
requirements for the pedod of fifteen years, the balance of $8,200 shall convert to a forgiven grant
of funds, on the first day of the sixteenth year.
4. Borrower will pay all payments to Lender CIO Liberty Bank, 500 Unden Avenue, South San
Francisco, CA 94080, or at such other place as Lender may designate in wdting. Unless agreed
or required by applicable law, payments will be applied to any unpaid collection costs and any late
charges, then to any unpaid interest, and any remaining amount to principal.
5. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 6.000%
of the regular scheduled payment. Late payments charges will be forwarded to the Agency by
:-" Liberty Bank.
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The Maker may prepay, without penalty or premium, any amount of the principal under this
Note prior to the Final Due Date hereof. Any amounts paid hereunder shall first be credited against
accrued interest charges and the balance shall be credited against principal.
Should default be made by the Maker in the payment when due of interest, principal, or any
other sums due hereunder, and if the default is not cured within ten (10) days after the due date
of such payment, or should the Maker default on the terms of that certain Owner Participation
Agreement (the "Owner Participation Agreement'3 between the Maker and the Holder dated June
12, 1996, and if such default is not cured within thirty (30) days from the due date of such
performance, then, at the Holder's option, all sums owing hereunder shall, at once, become due
and payable. Thereafter, interest shall accrue at the maximum legal rate permitted to be charged
by non-exempt lenders under the usury laws of the State of California.
If the Maker, prior to the Initial Due Date, (i) sells, transfer, conveys, assigns or subleases
Maker's interest in the Property located at 848 Arguello Boulevard, Pacifica, California or any of
the Maker's rights in this Agreement to or in favor of any person or entity, or (ii) sells, transfer,
assigns, subleases or conveys the Maker's leasehold interest in the Property or the Maker's
interest in Coast Gas & Mini Mart, then all unpaid interest and principal shall immediately become
due and payable.
This Note and the Owner Participation Agreement between the Maker and the Holder shall
be governed by and construed in accordance with the laws of the State of California.
All parties who are obligated to pay any portion of the indebtedness represented by this
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Note, whether as principal, surety, guarantor or endorser, hereby waive presentment for payment,
demand, protest, notice of protest and notice of dishonor, and all other notices to which they might
otherwise be entitled, and further waive all defenses based on release of security, extension of time
or other indulgence given in respect to payment of this Note, to whomsoever given, and further
waive all defenses, generally, except the defense of actual payment of this Note according to its
tenor.
If any amount due under this Note is not paid when due, the Maker hereby covenants and
agrees to pay all the Holder's costs and expenses of collection, whether by suit or otherwise, at any
time or from time to time incurred, including the Holder's attorneys fees.
Subject to the foregoing, the terms of this Note shall be binding upon and inure to the
benefit of the respective heirs, successors in interest and assigns of the Maker and the Holder.
Time is of the essence with respect to each and every provision hereof. If any provision
hereof is found to be invalid or unenforceable by a court of competent jurisdiction, the invalidity
thereof shall not affect the enforceability of the remaining provisions of this Note.
Participant
"Maker"
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Exhibit C
DFFD OF TRUST
Exhibit D
SCHI=DULE OF PFRFORMANCl=
1. Participant shall submit Construction Documents, based upon the site improvement plan
approved by the City's Planning Commission on August 17, 1995 with conditions, to the
City's Building, Engineering and Planning Divisions within 30 days of Agency approval of
the Owner Participation Agreement.
2. Participant shall submit Construction Documents and request a Building Permit from City's
Building Department.
3. Participant shall request bids from qualified contractors to complete the proposed
construction within 10 days of receipt of Building Permit from the City. Bids will have to be
submitted to Participant within 15 days of receipt of qualified bids.
4. Participant shall execute loan documents prepared by Liberty Bank on behalf of Agency
within 30 days after Agency approval of Owner Participation Agreement.
5. Participant shall award contract to a qualified contractor based upon those bids submitted
within 15 days of receipt of qualified bids.
6. Construction shall begin within 30 days of Participant's awarding a contract to a qualified
-- contractor.
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7. Participant shall submit Design Concepts for all new signage to be approved by Chief
Planner and CDBG Coordinator within 6 months of Agency approval of Owner Participation
Agreement.
8. Participant shall work with CDBG Coordinator to prepare concept plan for awning canopy
to mini-mart. Design Concept to be completed within 6 months of Agency approval of
Owner Participation Agreement. Design concept and awning, budget to be submitted to
CDBG Coordinator for approval pdor to construction of awning. Awning construction to be
completed within 8 months subsequent to beginning construction of this project.
9. Construction shall be completed within eight (8) months subsequent to receiving a building
permit.
10. Within 21 days subsequent to completion of construction, Participant shall submit to Agency
a composite report of all monies expended during the construction of the project.
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RECORDATION REQUESTED BY:
Soultt San Fren;~co Redevelopment Agency
400 Grend Avenue
P. O, BoxTI1
WHEN RECORDED MAIL TO:
~outh ~en Fmnot~:o necicvalop,.cnt Agency
4~0 GmmJ Avenue
P. O. Ilox ?11
South San Francim:o, CA
SPACE ABOVE THIS UNE IS FOR RECORDER'S USE ONLY
DEED OF TRUST
THIS DEED OF TRUST IS DATED JUNE 12, 1996, among Robert J. Mulhall, an unmarried man, whoae addreas
i~ 848 Arguello Blvd., Pacifica, CA 94044 (referred to below as "Trustor"); South San Francisco
Redevelopment Agency, who~e addreas ie 400 Grand Avenue, P. O. Box 711, South San Francisco, CA
94080 (referred to below sometimea as "Lender" and sometimea as "Beneficiary"); and First American TilJe
Insurance Company (referred to below as "Trustee").
CONVEYANCE AND GRANT. For valuable consideration, Truelor Irrevocably grants, thrusters and _~_gn~ to Trustee in Inml, with power
of ~ale, for lite benmflt of ~ ee B~, MI of Trustor% right, title, and interest in and to the foltowing described ~ properly, togetfmr
with MI ex~ting or subsequentiy erected or affixed buildings, improvements ancl flxturas; all easements, rights of way, and appurtermnces; ~li
vmMr riglds and ditch rights (incJucling stock in utilities with ditch or intgation rights); and Mi.ofher dghts, royalties, and profits re~ting to the mai
properly, including w~thout limitation MI minerals, oil, gas, geothemmi and simlim' matters, Iocatei] in San Mate<) County, State of
California (the "Real Property"):
LOT 31, BLOCK 17, AS SHOWN ON THE MAP ENTITLED "TRACT NO. 685 LINDA MAR NO. 5 SAN
MATEO COUNTY, CALIFONIA", FILED IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SAN
MATEO, STATE OF CALIFORNIA IN BOOK 38 OF MAPS AT PAGE 24.
The Real Property or its addreas ia commonly known as 848 Arguello Blvd., Pacifica, CA 94044. The
Pm'cM Number for the Real Property is 023-121-130.
Trustor pmsent~/assigns to Lender (also known as Beneflcimy in this Deed of Trust) Mi of Trusto~'s r~ght, t~de. and interest in and to all present and
future leases of the Prol~ ancl ali Rents from the Property. This is an ~:~olute assignment in the Rents given as additional Security pursuant to
CalifomM ~ Code Section 2938. In addition, Trustor grants Lender a Uniform Commorc~ Code security interest in the Rents and the
DEFINITIONS. The following words sheJI hove the following meanings when used in this Deed of Trust. Tm'ms not othew~se defined in this Deed
of Trust ~ have the meanings atfributecl to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in
Beneflctery. The word 'Beneficiary" means South S~n Francisco Redevelopment Agency, its successors and assigns. South S~n Francisco
Redevelopment Agency also is referred to as "Lender" in this Deed of TrusL
Deed of Tnmt. The words "Deed of Trust" mean this Deed of Trust among Trustor, Lender, and Trustee, and includes vnthout lim~tion
assignment and security interest provisions relating to the Persona] Property and Rents.
E3dMIng ImJebtmJne~ The words "Ex~s§ng Inclebteclness" n'm~n the indebtedness described below in the Existing Indebtedness sec~on of
this Deed of Trust.
Gum'ant(w. The word "Guamntod' means and inclucles without limitet]on any and MI guarantors, sureties, and accommodation parties in
connec~on with the Indebtedness.
Improvemente. The word 'Improvements" means and includes without limitation all mdsting and future improvements, buadings, sfruntums,
mobile homes affixed on the Real Property, facilities, additions, replacements and other construotton on the Real Property.
I~ The wool "inctsbte~nass" me, ms MI principal and Interest p~y~b~ under the Note and ,ny amounts expended or advanced
by Lender to clischmge obl~ttons of Trustor or expenses incurred by Trustee or Lender to ®nto~e ob~galtons of Trustor unclm' this Deed of
Trust, to~ with interest on such ~mounts ~s pro~cled in this Deed of Trust.
~ ~he word "Note" me~m the ~te d,ted June 12, ~m, in the principal amount of $76,900.00 Mm Trusto~ to Lender,
~ Property. The words 'Petsorml Properly" mean MI equipment, fixtures, and other articles of personal properly now or heraa~r
owned by Trustor, and now or hereafter attached or afltmd to the Real Prop~, together with MI ~,;c~ions, parts, and additions to, MI
0e-12-1996 DEED OF TRUST Page 2
Loan No 801001 (ConUnued)
raplauements of, ~ ~11 substitutions for, ,,ny of such property;, and together with all proceeds (including without llm~tk~n M Insurenca
proceeds anti refunds of prem!un~) trom any sale or other disposition of the Property.
Property. The won:l "Prol:~ty~ means collectively the Real ~ and the Personal Property.
~ Property. The worde '1:lmd Properly' mean the property, interests and rights descdbecl above in the "Conveyance ~nd Griufl' sec~on.
Related Docurnen~. The words '1:b~tecl Documents' mean ~nd include without llm~tion ~ll promissory notes, credit ~greernents, loan
~greaments, environmental ~greaments, guarantys, security agreements, modgegas, deeds of trust, ~nd &Il other instruments, ~greements and
documents, whether now or hereafte~ existing, executed in connection with the indebtedness.
Rent&. The word 'Rents' ms, ns ~!1 present =nd future rents, revenues, income, issues, royalties, profits, and other benefits ~ ~rom the
TnJMee. The word 'Trustee' means First Amedcan TIUe Insurence Compeny and any substitute or successor trustaas.
TruMor. The worcl "Trustot' means any and ~ persons and en~es exec~ng this Deed of Trust, including without llmit~lon ~ll Trustms
THIS DE~D OF TRUST, INCt. UDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL
PROPERTY, I$ GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ANY AND ALL OBUGATIONS OF
TRUSTOR UNDER TtE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST IS GIVEN AND ACCEPTEO
ON THE FOLLOWING TERMS:
PAYMENT AND PERFORMANCE. Except ~ other~ provided in this Deed of Trust, Trustor sh~l pay to Lender Idl ~mounts securecl by this
Deed of Trust as they become due, and shall stn~ly and in a timely manner perform Idl of Trustor's obliger]ohs under the Note, this Deed of Trust,
~ the Retstecl Documents.
POSSESSION AND MAINTENANCE OF THE PROPERTY. Trustor agreea that Trustor's possession and use of the Property shall be governed by
the following provisions:
Pos~madon ancl U~e. Until the occurrenue of an Event of Default, Trustor may (a) remain in possession and control of the Property, (b) use,
operate or n~nage the Property, and (c) collect any Rents from the Properly.
Duty to Maintain. Trustor shall n~in~n the Property in tensntable condition and promptiy perform ~ll repeirs, raplm~ments, and
rnaintanance necessmy to preserve its v;due.
~s Subatance~ The terms "hez~rdous wasta,' "hazardous substance,' 'disposal,' 'Yele~.~e,' ~nd "threatened release,' as used in this
Deed of Trust, shall have the same meanings as set forth in the Comprehensive Environmental Response, Compensation, ~nd Uabillty Act of
lg~0, as amended, 42 U.S.C. Section 9601, et seq. ("CERCt. A'), the Superfund Amendments and Re~uthod,~on Act of 1~6, Pub. L. No.
9g.-4gg ("S,NRA'). the H~z~rdous Idatedais Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Consew~tion ~ Recover/Act,
42 U.S.C. Section 6901, et seq., Chapters 6.5 through 7.7 of Division 20 of the Californi~ Health and Safety Code, Section 25100, et seq., or
other applicable state or Fedend laws, rules, Or regulations adopted pursuant to any of the foregoing. The terms "h-~rdous waste' and
'hazardous substance' shall also include, without limitation, petroleum and petroleum by--products or any fraction thereof and asbestos.
Trustor represents and warrants to Lender that:. (a) During the pedod of TrustoCs ownmship of the Properly, there has been no use,
generation, manufacture, storage, treatment, disposal, reMase or threatened release of any tm~,rdous waste or substance by any person on,
under, about or from the Property;, (b) Trustor has no knowledge of, Or reason to believe that there has been, except as pre~ously disclosed
to and acknowledged by Lender in writing, (i) any use, generation, menutecture, storage, treatment, disposal, release, or threatened release of
any hazardous waste or substance on, under, about or from the Property by any prior owners or occupants of the Property or (ii) any actual or
threatened litigation or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed to and acknowledged
by Lender in writing, (i) neither Trustor nor any tenant, contractor, agent or other authorized usm' of the Property shall use, genemta,
manufacture, store, treat, dispose of, or release any hazardous waste or substance on, under, about or from the Property and (ii) any such
activity shall be conducted in compliance with all ~oplicable federal, state, and local laws, regulations and ordinances, including without
limitation those laws, regulations, and ordinances dascdbed above. Trustor authodzas Lender and its agents to anter upon the Property to
make such inspections and tests, at Trustor'$ exper--,=e, as Lender may deem approprteta to determine compliance of the Properly with this
section of the Deed of TrusL Any Inspections or tests made by Lender sh~dl be for Lender's purposes only and shall not be construed to
oreate any responsibility or liability on the part of Lender to Trustor or to any other person. The representations end wmmntles contained
herein are based on Trustor's due diligence in investigating the Property for hazardous waste and hazardous substances. Trustor hereby (a)
releasea and waives any future claims against Lender for indemnity or contribution in the event Trustor becomes liable for cleanup or other
costs under any such laws, and (b) agrees to indemnify and hoid harmless Lender against any and ~11 claims, losses, Ilablil~, damages,
penal~s, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Deed of Trust or
as a consequence of any use, gensmtion, manufacture, storage, disposal, retease or threatened release occurring prior to Tmstor's ownership
Or interest in the Properly, whether Or not the same was or should have been known to Trustor. The provisions of ~ section of the Deed of
Trust, including the obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of
this Deed of Trust and shall not be affected by Lender's acquisition of any interest in the Properly, whether by foreclosure or otherwise.
NulMnce, WaMe. Trustor shall not cause, conduct Or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the
Properly or any portion of the Property. Without limiting the generality of the foregoing, Trustor will not remove, or grant to any other party the
~ght to remove, any timber, minerals (including oil and gas), soil, grevel or rock products without the prim' written consent of Lender.
Removal of Improvements. Trustor shall not demoiish or remove any Improvements from the Real Property without the prior written consent
of Lender. As a conditlon to the removal of any Improvements, Lender may require Trustor to make arrangemants salistactm7 to Lender to
replace such Improvements with Improvements of at least equal value.
L.ender'a Right to Enter. Lender and its agents and reprasentativas may enter upon the Real Property at all reasonable times to attend to
Lender's interests and to inspect the Properly for purposes of Trustor's compltance with the terms and conditions of this Deed of TrusL
Comp#artce with Governmental Requirements. Tmstor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in
effect, of all governmental authodtias applicable to the use or occupancy of the Properly. Trustor may contest in good faith any such law,
ordinance, or regulation and withhdid compliance during any proceeding, including appropriate appeals, so long as Trustor has notitlad
Lender in writing ~ to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardiz~l. Lender may
require Trustor to post adequata security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interesL
06-12-1996 DEED OF TRUST Page
Lmm No 801001 (Continued)
Duty to Protect. Trustor ~ neither to .J~ndon nor leeve unattenckKI the ProlxNly. Tmstor shell do ~ti other ects, In ''dclition to those ~ts
set fodh Ibove in this section, which from the chenmtar ,,nd use of the Properly ire reesoMbly nece~sey to protect Ind presen~ the
0UE ON ~ - CONSENT BY LENDER. Lender rely. et ~ option, decllm ImrnecSitely due and I~Ylbie ell sums ~ecunKI by this Deed of Trust
upon the s~e or tmnster, without the Lender's prior mttten cortsent, of ~li or any prat of the ~ Properly, or ~ny interest in the R~ Property. A
volunt~y or Involuntmy;, whether by outdght sele, deed, instalment ~ contract, ¼nd con~-"t, contract for deed, ieesehold Intm~t with a term
greeter tt~n throe (3) yem~, leesa-optton contract, or by s~le, ~signment, or fi.~nster of ~ny benefic~ interest in or to ''ny ~ trust holding tttie to
the Real Property, or by any other method of conveys~ of ~ Property interest, ff ~ny Trustor is '' corporation, pmtnership or limited liebility
coml~my, tm,~;~,- ~,o includes any chenge in ownership of more then twenty-five percent (25%) of the voting stock, p~tnership interests or limited
liebility core.ny interests, ~s the case mey be, of Trustor. However, this option sl~ll not be exen~sed by lenck~ if such exercise is prohibited by
~opliad~ iew.
TAXES AND LIENS. The following provisions re~ting to the tsxes and liens on the Property me a p~rt of this Deed of Trust.
I~j~n~. Trustor sheli I~Y when due (''nd in ~ll events ''t leest ten (10) deys pztor to detinquency) ~ trams, spe~d t~xes, &ssessments,
chmges (including w''ter and sewer), fines ''nd impositions ~ ''g~inst or on ~ocount of the Property, ''nd shall p~y when due ~li c~ims for
work done on or for ser/~es rendered or m~ter~ furnished to the Property. Trus~ sh~ll m~in~n the Property free of ~1 liens heving priorlty
over or equel to the interest of Lender under this Deed of Trust, except for the lien of taxes and &ssassments not due, except for the ex~ting
indebtedness retem~ to below, ''nd except ~s othenvise provided in this Deed of Trust.
Right To Contest. Trustor rn~y withhold payment of ''ny tm(, ~ssessment, or c~im in connect]on with '' good teith dispute over the obligation
to p~y, so long ~s lender's interest in the Properly is not jeopardized. If '' lien ~ses or is filed es '' result of nonp~yrnant, Trustor st~ within
IIfteon (15) cl~ys after the lien m'ises or, if a lien is filed, within fifteen (15) deys ''fret Tmstor hes notice of the filing, secure the disct~ge of the
lien, or if requestad by lender, deposit with Lender cash or '' sufficient corporate surety bond or other security setisf~ofory to lender in ~n
~nount suf~.ient to discherge the lien plus any costs and attorneys' fees or other charges thet could ''corue es '' result of '' fomclusum or ssie
under the lien. In any contest, Trustor studl defend it~f and lender and sl~l s~tisty any adverse Judgment before enforcement against the
Prof~ly. Trustor sh~ll nsme lender ~s ''n addtiiorud obligee under any surety bond furnished in the contest proceedings.
Evidence of Pwment. Trustor sh~li upon den~md furnish to lender satisfactory evidence of p''yment of the trams or ~_~___~me_ nfs and si'mli
authoriz~ the approp~te govemmen~ office! to deliver to Lender at ''ny time a w~ton statement of the taxes and ~essments ~gainst the
No#ce of Con~tton. Trustor sheli nofi~ Lender ''t leest fifteen (15) deys before ''ny work is commenced, ''ny services ere furnished, or
~ny m~teri~ ~re supplied to the Property, if ~ny mechenic's lien, metori~lmen's lien, or other lien could be ~serted on re:count of the work,
services, or mater.s. Trustor will upon request of Lender furnish to lender advence ;~ssumnces satisfactory to lender thet Trustor c~n
w~l p~y the cost of such improvements.
;~ROPERTY DAMAGE INSURANCE. The following provisions re~ting to insuring the Property m'® '' part of this Deed of Trust.
Maintenance of Insurmce. Trustor shell procure ''nd m~in~n po~:ies of fire iusur~nce with stenderd extended coverage endorsements on
repiecement ~ for the full insumbie velue covering ~11 improvements on the ~ Property in an ''mount suffidont to ''void ~pplination of
''ny coinsurance c~use, ''nd with a standerd mor~gee ctause in favor of Lender, together with such other hezmd and ~ insurance ~s
Lender may reasonably require. Notwithstanding the foregoing, in no event sh~l Trustor be required to provide h~u~rd insurance in e~cess of
the replacement velue of the improvements on the ~ Property. Policies shall be wdtton in form, ''mounts, coverages ''nd ~ reesonsbly
&cceptabie to lender and issued by a company or companies reasonably aoceptsbte to lender. Trustor, upon request of Lender, w~ ~
to lender fi.om time to time the policies or certifinates of insurance in form satisf~ory to lender, including stipuietions thet coverages will no~
be c~ncetied or diminished without at k~st ten (10) ci~ys' prior written notice to Lender. E,~ch insurance policy ~ sheli include
endorsement providing thet coverage in tevor of Lender will not be impaired in any w~y by ''ny act, omission or deteuif of Trustor or any other
person. Should the ~ Property at any time become located in an ~ma designat~ by the Director of the Fedend Emergency
Agency ~s a spec~ flood t~-,~rd mee, Trustor ~grees to ob~n ''nd rr~n~n Fedend flood Insurance to the extent such insurance is required
by lender and is or becomes ''veiiebie, for the term of the loan ''nd for the full unpaid prir~p~l ~ of the loan, or the n~mum limit of
~,PldlC~q~t of Protect. Trustor sheli promptly notify lender of any loss or c~mage to the Properly. Lender mey mak~ proof of loss if
Trustor ~ to do so within fifteen (15) deys of the c~su~/. If in lender's sole judgment Lender's security interest in the Prupedy has been
iml~, Lender mey, at its eiec~on, receive ~ rein the proceeds of any insurance and ~pply the proceecis to the reduction of the
indebtedness, p~yment of any lien ''fte~ng the Property, or the restoration and repot of the Prope~/. If the proceeds ~re to be ~oplied to
restom~on and top.ir, Trustor shell re.ir or replace the demeged or destroyed Improvements in '' mennar s~tisf~ctory to lender, lender
studl, upon sa~fectory proof of such expenditure, p~y or reimburse Trustor fi.om the proceecis for the re~sonabie cost of repair or restoration if
Trustor is not in de~ult under this Deed of Trust. Any process which heve not been disl0ursecl within 180 clays atler their re.pt ''nd which
lender h~s not committed to the repair or restoration of the Property si~ be used first to I:~Y ,,ny ''mount owing to lender under this Deed of
Trust, then to p''y ~ interest, ''nd the ren~n~, if ''ny, sh~li be ~oplled to the principal b~ianue of the Indebtedness. ff lender holds
''ny proceeds after p~yment in full of the Indebtedness, such proceeds sheli be p~ld to Trustor ~s Trustor's interests mey ~opeer.
Unexpired Insurance at Sale. Any une~irod insurance shell inuro to the benefit of, and pass to, the purcheser of the Property covered by
this Deed of Trust ''t ''ny trustoe's sete or other sale held under the provisions of this Deed of Trust, or ~t ''ny for~osure sete of such Property.
Compltance with l~stlng Indobtodnee~. During the period in which ''ny Existing Inck~tednees described bolow is in effect, compliance with
.... the insurance provisions con. ned in the instrument evidonc~ng such Ex]sting Indebtedness sl~l constitute complienco with the insurance
provistons under this Deed of Trust, to the ext~ complience w~th the tsrms of this Deeci of Trust would oonstifute a duplicatton of insur=nce
mclulremont, ff any proceeds ~om the Insumn~e become p''yabie on k~, the provisions in this Deed of Trust for division of proceeds shell
~oply onty tO thet portion of the proceeds not p~y~bie to the holcier of the Ex]sUng Indebtedness.
TAX AND INSURANCE RESERVES. Subject to ~ny limitations set by ~oplic~ie i~w, lender m~y require Trustor to m~in~n with Lender resewes
for p~yment of ''nnu~ tm~s, esseesments, ''nd insurm~e premiums, which reserves sMI be cm~tod by ''dwnoe p~yment or montNy p~yments of
a sum estimated by Lencier to be suffiolent to produce, ''t least fifteen (15) deys before due, ''mounts ''t leest equ~ to the tm~s, ~ssessrnants,
insurm~e premiums to be p~id. if fifteen (15) deys before payment is due the ~ funds ~re insufficient, Trustor shell upon ckm~nd pay
delk:iency to Lender. The ~ funds studl be held by Lender es '' genend deposit fi.om Trustor, which Lender may satisty by p~yment of the
06-12-1996 DEED OF TRUST Page 4
Loan No 801001 (ContJnued)
· ~s, assessments, ~nd Insurance premlum~ required to be paid by Trustor es they become due. Lender shall hive the rigM to draw upon thi
~serve funds to pay such items, &nd Lender shall not be required to determine the validity or .ocuracy of any item before pa/lng IL Nothing in the
eecl of Trust shall be construed ~s requiring Lender to &dvance other monies for such p _urpo,~___, and Lenclar shall not Incur any ~abllity for
nything it n~y dO or omit to do with respect to the r,~ewe ~ccounL NI amounts In the reserve Iccount are hereby pledged to further secure the
Indebtedness, and Lender Is hereby euthortzed to withdraw and apply such amounts on the Indabtadne~ upon the occurmnca of an Event of
DefeuiL Lender ~ not be required to pay ,,ny Infarct or e~ninge on the ~ funds unles~ required by I~w or .~'eed to by Lender In writing.
Lender does not hold the resarva funds in trust for Trustor, and Lender is not Trustor's agent for psyment of the texas ''nd assassmants required to
be ~ by Tn~stor.
EXPENDITURES BY LENDER. If Trustor fails to comply with ''ny provision of this Deed of Trust, including any obligation to maln~n Existing
Indebtedness in good standing as required below, or if any ~n or proceeding IS commenced thit would materialy affect lende¢$ intsmsts in the
Prol~, ~ on TruatoCs behiIf may, but shall not be required to, tske ''ny action that Lender deems Koproprieta. Any ''mount that Lender
expends in so doing will bear Interest at the rate provided for In the Note from the date incurred or paid by Lender to the defe of repayment by
Trustor. Al such expenses, at LendeCs option, will (a) be payable on demand, (b) be added to the belence of the Note end be appodionad
m~)ng ~ be payable with any installment payments to become due during either (1) the term ot any oppllcable insurance policy or (ii) the
rerrmining term of the Note, or (c) be treated as '' baJloon p''yment which will be due and p''y~ble at the Note's msturity. This Deed of Trust also
wil secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which
lender may be entitk~l on account of the defeuit. Any such action by Lender shall not be constnmd as curing the default so as to bar lender from
''ny rentecly thlt it otl~ would have had.
WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a pm1 of this Deed of TrusL
Title. Trustor warrants thit: ('') Trustor holds good and m~kotebte title of record to the Property in fee simple, free and clear of all liens .nd
encunlbrancas other than those set forth in the Real Property description or in the Existing Indebtedness section betow or in any title insurance
po#W, ~te report, or final title opinion issued in tavor of, and ~ccepfed by, Lender in connection with this Deed of Trust, and (b) Trustor has
the full right, power, and authority to a~ecofe end deliver this Deed of Trust to lender.
Defense of Title. Subject to the exception In the paragraph above, Trustor warrants and will forever defend the title to the Properly against
the lawful claims of ali persons. In the event any action or proceeding is commenced that questions Trustor's title or the interest of Trustee or
Lender under this Deed of Trust, Trustor shall detend the action at Trustor's expense. Trustor may be the nominal party in such proceeding,
but Lencle~ shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
Trustor will deliver, or cause to be delivered, to lender such instruments as lender may request from time to time to permit such participation.
COmldtence With Law~. Trustor warrants that the Properly and Trustor's use of the Property complies with all existing applicable laws,
ordina ._w_~___, and regulations of governmental authorities.
XISTING INDE])TEDNESS. The following provisions concerning existing Indebtedness (the "E)dsting Indebtedness") are '' part of this Deed of
Ex~llng Lion. The lien of thIs Deed of Trust securing the Indebtedness may be secondary and infmior to mn ex~sting lien. Trustor expres~y
covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any
default under the instruments evidencing such indebtedness, or any default under any security documents for such indebtedness.
Default. If the payment of any installment of principal or any Interest on the Existing Indebtedness is not mede within the time required by the
note evidencing such indebtedness, or should a default occur under the instrument securing such indebtedness and not be cured during any
applicable grace ps,od therein, then, at the option of Lender, the Indebtedness secured by this Deed of Trust shall become immedlataly due
and payable, ''nd this Deed of Trust shall be in default.
No Modlflcatton. Trustor shall not enter into any agreement with the holder of any modgege, deed of trust, or other security ''greement which
has p~xity over thIs Deed of Trust by which that agreement is modified, amended, extended, or renewed without the prior written consent of
Lender. Trustor shall neither request nor accept any futura advances under ''ny such security agreement without the prior written consent o~
CONDEMNATION. The following provisions relating to eminent domain and inverse condemnation proceedings are a part of this Deed of TrusL
.~Fpll:lt&=n of Not Pr___,'~,K~. If any ''ward IS made or sattlement entered into in ''ny condemnation proceedings affecting all or any part ot
the Properly or by ''ny proceeding or purci~so in lieu of condemnation, lender may at its oloction, and to the extent parmitted by law, require
that al or ~ny porlion of the award or settlement be applied to the Indebtedness and to the repayment of all reasonable costs, expa .__~__, and
attorneys' fees incurred by Trustee or lender in connection with the condemnation procaedings.
I~ng.. If ''ny eminent domain or inversa condemnation proceeding is commenced attecting the Properly, Trustor shall promptly notify
lender in writing, ''nd Trustor shi# promp~ take such steps as may be nacassar/to pursue or defend the action and obtain the award.
Trustor may be the nominal party in ''ny such proceeding, but lender shall be entitled, at its alection, to participate in the proceeding and to be
represented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to Lender such instruments as
may be requested by it from time to time to permit such participation.
IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes.
Current Tmm~, Fees ~ Clla~gee. Upon request by lender, Trustor shall execute such documents in addition to this Deed of Trust and take
whiteve¢ other action is requested by lender to perfect and continue lender's lien on the Real Property. Trustor shill reimburse Lender for M
texas, as de~ below, together with all expenses Incurred in reoording, per~ng or continuing this Deed of Trust, including without
..... timit, tion all taxes, fees, documentm.y stamps, and other charges for rer..ording or registming this Deed of TrusL
TI;r~l. The following shall constitute taxes to which this soction applies: ('') '' specific tex upon this type of Deed of Trust or upon aJ or .ny
p~t Of the Indebtedness secured by this Deed of Trust; (b) ,~ specific tax on Trustor which Trustor IS authoriz,d or required to deduct from
payments on the Indebtedness secured by this type of Deed of Trust; (c) a tax on this type of Deed of Trust chargeable against the lend~ or
the holder of the Note; and (d) a specific t,x on al or any portion of the Indebtedness or on payments of principal -nd interest mede by
Trustor.
Suh,squent Taxes. If any tax to which this saction applies is enacted subsequent to the defe of this Deed of Trust, this event shill hive the
same effect as an Event of Default (as defined below), and Lender may exercise any or all of its availabla remedies for an Event of Default as
o6-.12..1gg~ DEED OF TRUST Page s
Loan No 801001 (ConUnued)
provided ~ unie~ Trustor either (a) p~ys the tex before if becomes delinquent, or (b) contests the tex as pro~ded ~x~ve In the Trams
and Liens section and ciepc~i~ with lender ossh or & sufficient corporate surety bond or other security satisfactory to lender.
r, ECURITY AGREEMENT; FINANCING STATEMENTS. The foilowing provisions reieting to this Deed of Trust as a security agreement m a ~
~f this Deed of TrusL
Se~zllty Agzz.~,~lnt. This Instrument sh~l constitute a security agreement to the extent any of the Prope~/constitutas itxtums or oth~
Ix~onei property, and lender sha# have ~ of the rights of a secured p.~/under the Uniform CommercisJ Code as amended from time to
8ecurlly Intoreel. Upon request by lender, Trustor sl~ll execute flrmnctng statements and take whatever other action is requested by lender
to per/oct and continue lendor'$ security Interest in the Rents and Perso~ Property. TnJStor sh~ reimburse lencier for ~1 .xpens~ inctJrmd
In pe~ecting or continuing this security Intereet. Upon cle~uit, Trustor sheti assombie the Personal Property in a mannar and at a place
reason~ convenient to Trustor and lender and make it avaJlabie to lender within three (3) clays after receipt of written ctem~nd from lender.
Addra~.e~. The msJting addresses of Trustor (dei~tor} and Lender (secured party}, from which infornmtion concerning the security interest
granted by this Deed of Trust nmy be ob~nad (each as required by the Uniform Commerc~ Code), ere as stated on the first page of this
0eed of TrusL
FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following prc~sions refaling to further =ssurancec and attorney-in-fact ~re a part of this
Deed of Trust.
Further A~surancee. At any time, and from time to time, upon request of lender, Trustor will make, execute and deliver, or will c~use to be
mede, executed or delivered, to lender or to lender's c~;~gnee, and when requested by lender, c~use to be filed, recorded, reiited, or
rerecorded, as the case may be, at such times and In such offices and pl~cee ;is lender mey cleero ,:pproprlate, any and M such mortgages,
deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance.
certif~:~, and other documents as mey, in the sole opinion of Lender, be necessary or clasirabie In order to effectuate, complete, perfect,
continue, or preserve (a) the obligations of Trustor under the Note, this Deed of Trust, and the Rei~ted Documents, and ('o) the liens and
Security interests cm~ted by this Deed of Trust on the Property, whether now owned or hereeftor ~..Cluired by Trustor. Unless prohibited by
I~w or ~]reed to the corttr~y by tender in writing, Trustor she# reimburse lender for ~11 costs and expenses incurred in connection with the
metters mten'ed to in this per:graph.
Altomey-tn-Fact. If Trustor f~iis to do any of the things ~ to in the preceding paragraph, lender mey do so for and in the name of
Trustor and at Trustor's expense. For such purposes, Trustor hereby Irrevocably appoints lender as Trustor's attorney-in-fact for the purpose
of making, executing, deiivering, filing, recording, and doing ~ll other things as m~y be necessary or desirable, in lenchlCs sole opinion, to
accomplish the metters retorted to in the preceding p~ragmph.
,1JL.L PERFORMANCE. If Trustor p~ys ~ the Indebtedness when due, and othe~vi~ pettorms 811 the obligations imposed upon Trustor under this
~ of Trust, lenc~' sha# execute and deliver to Trustee ,~ recluast for full reconveyance and shall execute and detiver to Trustor suitable
tatements of termirmtion of any financing st.tement on file evidencing lender's security interest in the Rents and the PersonaJ Property. lenc~
may ch~ge Trustor a re~sonabie reconveyance fee ,~t the time of reconveyance.
DEFAULT. Each of the foilowing, at the option of lender, shall constitute an event of default ("Event of Default") under this Deed of Trust:
Default on Indebtednee~ Failure of Trustor to make any p~ymant when due on the Indebtedness.
Default on Other Pwment~. Failure of Trustor within the time required by this Deed of Trust to rr,ike any p~yment for taxes or insurance, or
any other payment ~ to prevent filing of or to effect discharge of any lien.
Compliance Default. Failure of Trustor to comply with any other term, obligation, covenant or condition containsd in this Deed of Trust, the
Note or in any of the Fle~fad Documents.
Feiee Slatemento. Any wanznty, representaUon or statement mede or furnished to lender by or on behalf of Trustor under this Deed of Trust,
the Note or the I:k~ted Documents is f~se or misleading in any materi. I respect, either now or at the time made or furnished.
Defective Coflateralization. This Deed of Trust or any of the I:le~ted Documents ceases to be in full force and effect (Including failure of any
coti~teraldocuments to creete a veiid and per/ected security interest or lien} at any time and for any reason.
Death m' Insolvency. The death of Trustor, the insoivency of Trustor, the appointment of a receiver for any p~l of Trust.s property, any
assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any b~.ruptcy or
insctvency I~ws by or ageinst Trustor.
Foreckmure, FoHeiture, ®re. Commencement of foreclosure or forfeiture proceedings, whether by judic~ proceeding, seif-help,
repossession or any other method, by any creditor of Trustor or by any governrnantal agency N~linst any of the Property. However, this
subsac~on sh~l not apply in the event of a good faith dispute by Trustor as to the validity or reesonsblenesa of the claim which is the ~ of
the foreclosure or forefaiture proceeding, provicied that TnJstor gives lender written notice of such c~im and furnishes reserves or a surety
bond for the c~Jm satisf~ory to Lender.
Breach of Other Agreement. Any bre~ch by Trustor under the terms of any other agreement between Trustor and lender that is not
remedied within any grace period provided therein, including without llmifation any agreement cortcerning any indebtedness or other obllg=tion
of Tr~__~._~ to Lender, whether ex]sting now or ieter.
Even~ Affecting Guarantor. Any of the precocllng events occurs with respect to any Guarantor of ,:ny of the Indebtaclnass or any Gu-rantor
dies or becomes incompetent, or revokes or disputes the ~ of, or li,bility under, any Guaranty of the Indebtedness. lender, at its opt]on,
mey, but sheti not be required to, permit the Guemnto¢$ astate to assume unconditioneily the obligations ,:,1sing under the guemnty in a
menner s~lts~ to lender, ~cl, in doing so, cure the Event of Oefauit.
Advetle Change. A metar~l adverse chenge occurs In Trustor'$ flnanciei condition, or lender betieves the prospect of p~ymant or
Exi~blg Indebtedne~ A def~uit sheti occur under any Existing Indebtedness or under any instrument on the Property securing any F_xtsting
Indob#K~rmss, or commencement of any suit or other &ction to foreclose any ex]sUng lien on the Property.
Right to Cure. If such a failure is curable and if Trustor has not been given a notice of a bre~ch of the same provision of this Deed of Trust
within the preceding twelve (12) months, it may be cured (and no Event of Defauit will have occun'ed) if Trustor, ~ifer Lender sends written
o6-12-1 DEED OF TRUST Page
Loin No 801001 (Continued)
noace dem~nding cure of such failure: (e) oures the failure w~hin fifteen (15) days; or (b) if the cure requires more tl~n I~toan (15) days,
immedlatoty Ini~los steps sufficient to curt the failure and thereatter continues and completes ail reasonable and necessar/trope sufl~lent to
,IGI. n~ AND REMEDIF.~ ON DEFAULT. Upon the occurrence of ~ny Event of Default and at any lime thereafter, Trustee or lender, at Ils oplton,
rn~y ex~c~ any one or more of the foltow~ng ~hts and remedies, in edditlon to any otha~ rights or remedk~ provided by iaw:
Fore~do~ure by ~ie. Upon an Event of Default under this Deed of Trust, Benef~"lmy m~y daclm'e the entire Indebtedness secured by this
Deed of Trus! immediately due and p~yabia by d~ivery to Trustee of written dec~ration of datault and clen~nd for sale and of written notice of
default ~ of election to c~usa to be sold the Properly, which notice Trustee shail cause to be flied for record. Banetiol~/~ shall deposit
with Trustee this Deed of Trust, the Note, other documents requested by Trustee, and all documents evidencing expenditures secured hereby.
Alter Ibe lapse of such time as may then be required by law following the recordetion of the notice of default, and notice of sale having been
given as then required by law, Trustee, without demand on Trustor, shall sell the Property at the time and place fixed by it in the notice of sale,
either as a whole or in separate pa~ets, and in such order as it may determine, at pubac auction to the highest bidder for cash in lawful money
of the United States, payable at time of sale. Trustee may poslpone sale of all or any portion of the Properly by public announcement at such
time and place of sale, and from time to time thereafter may postpone such sale by public announcement et the time tixed by the preceding
poslponement in accordance with applicable law. Trustee shall deliver to such purchaser its deed conveying the Properly so sold, but without
any covenant or warranty, express or implied. The recttsts in such deed of any matters or facts shall be conclusive proof of the truthfulness
thereof. Any pemon, including Trustor, Trustee or Beneliolmy may purchase at such sale. Alter deducting all costs, fees and expenses of
Trustee end of this Trust, Including cost of evidence of lille in connection with sale, Trustee shall apply the proceeds of sale to payment of:. all
sums ex)ended under the tm'ms hereof, not then repaid, with accrued Interest at the amount eitowed by law in effect at the date hereo~, all
other sums then secured hereby;, and the remainder, if any, to the person or pemons legally enffiled thereto.
Judicial Foreotoaure. With respect to all or any part of the Real Property, Lender shall have the right in Iteu of foreclosure by power of sale to
foreclose by judicial foreclosure in accordance with and to lhe full extent provided by California law.
UCC Flemedle~. With respect to al or any pad of the Personal Properly, Lender shall have all the rights and remedies of a secured party
under the Uniform Commemlal Code, including without limitation the right to recover any deficiency in the manner and to the full extent
provided by California law.
Collect Renl~ Lender shall have the dght, without notice to Trustor, to take possession of and manege the Property and collect the Rents,
including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In
furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender.
If the Rents are collected by Lender, then Trustor Irrevocably designates Lender as Trustor% attorney-in-taot to endorse Instruments received
in payment thereof in the name of Trustor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender
in response to Lender's demand shall saltsfy the obligations for which the payments are made, whether or not any proper grounds for the
demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through · receiver.
Appoint Receiver. Lender shall have the dght to have a receiver appointed to take possession of ail or any pad of the Properly, with the
powor to protect and preserve the Properly, to operate the Propmty preceding forectosure or sale, end to colleof the Rents from the Properly
and apply the proceeds, over and above the cost of the recaivemhip, against the Indebtedness. The receiver may serve without bond if
permitted by law. Lender's right to the appolntmsnt of -, receiver shall exist whether or not the apparent value of the Properly exceeds the
Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from se~ing as a receiver.
Tenancy at Sufferance. If Trustor remains in possession of the Properly etter the Property is sold as provided above or Lender otherwise
becomes entilted to possession of the Properly upon default of Trustor, Trustor shall become a tenant at sufferance of Lender or the purchaser
of the Property and shall, at Lender's option, either (a) pay a reasonable rental for the use of the Property, or (13) vacate the Properly
Immediately upon the demand of lender.
Ollter Flemed~. Trustee or Lender shall have ,=ny other right or remedy provided in this Deed of Trust or the Note or by law.
Notice of Sale. Lender shail give Trustor reasonable notice of the lima and place of any public sale of the Pemonai Property or of the time
alter which any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall mean notice given
at least tive (5) dlys before the time of the sale or diaposi~on. Any sale of Personal Prope~ may be made in conjunction with any sale of the
~ of the PrOl~er~. To the extent permitted by applicable law, Trustor hereby waives any and all rights to have the Property marshailed. In
examieing its dghls and remedies, the Trustee or Lender shall be free to sell all or any pad of the Property together or separately, in one sale or
by separate sales. Lender shall be entitted to bid at any public sale on all or any portion of the Property.
Waiver;, Eleotimt of Reme(Itet. A waiver by any party of a breach of a provision of this Deed of Trust shall not constitute
prej _ual!ce.__ the party's rights othetwtse to demand strict compliance with that provision or any other provision. Election by Lender to pursue any
remedy provided in this Deed of Trust, the Note, in any Related Document, or provided by law shall not exclude pursuit of any other remedy,
~cl an etectton to make expenditures or to take action to perform an obligation of Trustor under this Oeed of Trust after failure of Trustor to
perform shall nof affect Lender's right to declare a detauif and to exmcise any of its remedies.
Altomeye' Feel; Expeneel. If Lender institutes any suit or action to enforce any of the terms of this Deed of Trust, Lender shall be enliflad to
recover such sum as the court may adjudge reasonable as attorneys' fees at trial end on any appeal. Whether or not any courl action is
Involved, ali reasonable expenses incurred by lender which in lender's opinion are nece~ary at any lime fix the protection of its interest or
the e~-;o,-c~mont o~ its rights shall become a pm1 of the Indebtedness payable on demand and shell bear interest at the Note rote from the date
of expenditure until repaid. ~ covered by this paragraph include, without limitation, however subject to any limits under applicable
law, Lender's ~torneys' fees whether or not there is a lawsuit, Including ettorneys' fees for bankruptcy proceedings (Including efforts to modify
or vaclte any automatic stay or Injunction), appeals and any anticipated post-judgment coSeolton sorvtcos,the cost of searching records,
obteining title reports (Including foreclnsure reports), surveyom' reporls, appraisal fees, title Insurance, and fees for the Trustee, to the extent
permiltod by appacable law. Trustor also will pay any court costs, in addition to ail other sums provided by law.
Rlgltll of Truatee. Trustee shall have all of the dghts and duties of lender as set fo~lh in this
POWERS AND OSUGATION$ OF TRUSTEE. The foltowing provisions relating to the powers and obligations of Trustee are part of this Deed of
Trust.
Po~I of Tm.lee. In addition to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following aclions
06-12-1996 DEED OF TRUST Page 7
Loan No 801001 (Continued)
with respect to the Property upon the wdtten request of lender ''nd Trustoc (,,) Join In prep~tng ~ Iging '' n~o or piet of the ~ Property,
Inoiuding the dedication of streets or other rights to the public; (b) Join in gr~nting ''ny essement or oreeltng ''ny msldclton on the ~
I~, ,,nd (c) join in ''ny sU'oordin~tlon or other &greement &fteotlng this Deed of Trust or Ihe Inta~esl of Lender under this Deed of Trust.
.~ton or proceeding In which Trustor, lender, or Trustee sh~ll be '' I~rty, unless the ''otion or proceeding is I~ought by Trustee.
Tn~l~e. Trustee sh~ll meet ~11 quefiltc~ltons required for Trustee under ~oplic~ble iew. In ''ddilton to the rights &nd remedies set forth ~bove,
with resped to ~11 or any p~rt of the Properly, the Trustee shell heve the right to foreclose by notice and sale, ~nd lender ~ I~ve the r~ght to
foreclose by judic~ foreclosure, in either c~4 In ~u:cordsnce with ''nd to the full extent provided by .ppli~bie I~w.
Su~cet~or Trustee. lender, ''t lender's option, may from time to time oppoint '' SL~_~_-_=~r_. Trustee to ''ny Trustee ~=~x~inted hereunder by
~n instrument executed ''nd ~knowiedged by lender ''nd recorded in the office of the recorder of S~n I~teo County, P..~forn~ The
Instrument sheti con. n, in eddition to ~11 other mettere required by state isw, the names of the original lender, Trustee, ~1 Trustor, the book
~qd page where this Deed of Trust is recorded, ,,nd the name ''nd address of the s~ Irustee, -,nd the instrument ~ be executed ''nd
~cknowtedged by lender or its suocessore in interest. The su~,~or trustee, without conveyance of the Properly, sheti ~ to ~11 the title,
power, ~nd duties conferred upon the Trustee in this Deed of Trust ''nd by ~pplic~bie I~w. This procedure for substtiution of trustee shoe
govern to the exclusion of ~11 other provisions for substitution.
NOTICES TO TRUSTOR AND OTHER PARTIES. Any notice under this Deed of Trust sh~ll be in writing, rn~y be be sent by tsiof~osimilie, and
shall be effective when acfuMy ds#vered, or when deposited with '' nationally recognized overnight courier, or, if m~led, she~ be deemed effective
when deposited in the United States ~ lt~t oiess, certified or registered m~l, postage prepaid, directed to the edd~,s~es shown neet the
beginning of thie Deed of Trust. Any party may change its address for notices under this Deed of Trust by giving formal w,;~',.n noltce to the other
padis, specifying tl~t the purpose of the notice is to cl~nge the party's eddress. All copies of notices of foreclosure from the holder of ,,ny lien
which has pHodty over this Deed of Trust shall be sent to lender's address, es shown ne~' lho beginning of this Deed of Trust. For notice
p _urp,'~e~___, Trustor ''gress to keep lender ''nd Trustee Informed at ail times of TrustoCs current eddrees. E~ch Tmstor requests that copies of any
nonces of default ''nd sWe be directed to TrustoCs ''ddress shown near the beginning of this Deed of Trust.
STATEMENT OF O~LIGATION. lender mey coiled '' fee, in ''n ''mount not to exceed the statutory m~dmum, for furnishing the statement of
obligetion es provided by Section 2943 of the Civil Code of Californi-,.
MISCELLANEOUS PROVISIONS. The following miscelieneous provisions are = part of this Deed of Trust:
Amendmento. This Deed of Trust, together with ''ny Reieted Documents, constitutes the entire understending ~ agreement of the p~lles es
to the metters set forth in this Deed of Trust. No alten~lton of or ''mendment to this Deed of Trust shall be effecltve unless given in writing and
signed by the party or ~ sought to be ch~ged or bound by the ~emtion or ''mendmenL
Ar.r.~ptan~e by Trustee. Trustee ~ccepts this Trust when this Deed of Trust, duly executed and ~u:knowiedged, is mede '' public record es
provided by iew.
AH~ration. Lender Ired Trustor agree that all di~p~te~, otalms and controversle~ betll~een them, wbelher Individual, Jofnt, or ~ In
nature, .lalng from lhl~ Deed of Trust or o~, Inofuding without limitation contract and bxt dtepute~, altall be a¢oitrated
~ constitute ,, w~ver of this ~rbtimtion agreement or be prohibited by this ~bitration ,,greement. This includes, without limitetion, ob~ning
injunc~ve relief or '' temporary restraining order;, invoking a power of sale under ~ny deed of trust or mortgage; obt-ining '' writ of ''ttechment
or impes#ion of '' receiver; or exercising any rights rel-ting to personal prope~/, including tsYJng or disposing of such property with or without
judic~l process pursuant to Article 9 of the Uniform Commerci~ Code. Any disputes, cieims, or controversies concerning the I~wfuiness or
reesor~bieness of any act, or exercise of ''ny right, concerning ''ny Coiietend, including .ny ctaim to rescind, reform, or ofh~wise modify ,,ny
~greement rel-,ting to the Co~tend, shell aJso be a~bitr''tad, provided however that no arbitrator shall have the right or the power to enjoin or
restrain ''ny ~'t of any p~ly. lender and Trustor ''gree that in the event of an action for judicl~ foreslosum pursuant to Californ~ Code of Civil
Procedure Section 726, or any simiier provision in any other state, the commencement of such ''n ~"tion will not constitute '' ~ of the right
to arbltrete ,md the court sl~ll refer to ~'bitretion es much of such ~ction, including counterctaims, ;is tawfully mey be referred to ~bitrelton.
Judgment upon ''ny ,,w~rd rendered by ~ny ~bitr-tor mey be entered in ~ny court heving Jurisdiction. NolNng In this Deed of Trust sh~l
preclude ''ny p~ty from seeking equitebie rsiief from '' court of competent juHediction. The statute of limitations, estopp~, w~vor, I~ches, ''nd
~ doctrines which would othenvise be opplic~bie in ''n ~-'tion brought by '' ~ sh~l be opplicabie in -,ny ~oitn~tion pr,_~'~ _~ding, ''nd the
comntencement of an ~bitretion pr___nc~_=,_~d_ lng shall be deemed the commencement of ''n action for these purp__r,~___ The Fedsr, J Arbitration Act
shall opply to the construction, interpretetion, and enforcement of this ~ubitndion provision.
.4ppllcalde I.a~. Thi~ ~ of Trust h~ been delivered to Lender and accepted by lender In Ibe State of Calitontla. Subject to Ibe
i;.'ovlalons on arblb'alton, this Deed of Trusl shall I~ governed by and constru~l In aocordem~ wilh Ihe law'' of Ble State of Callfomta.
C4~ Heeding~ Caption heedings in this Deed of Trust ~re for convenience purp__nses__ only ''nd ~re not to be used to interpret or define the
Merger. There sh~ll be no merger of the interest or estate created by this Deed of Trust with ''ny other Interest or estate in the Properly ,,t any
time hetd by or for the benefit of lender in ''ny cap''city, without the written consent of lender.
Severr..*~lly. If '' coud of competent jurisdiction finds ''ny provision of this Deed of Trust to be Invalid or unenforceable es to ''ny person or
oi~cumstence, such finding ~ not render that provision inv~id or unenforceebie es to .ny other persons or oircumstwlos~ If fe~ibie, ,,ny
such o6ending provision ~ be deemed to be modified to be within the limits of enforce~bliity ex ~ however, if Ihe ~lending provision
c~nnof be so modified, it ~ be stricken ''nd ~11 other provisions of this Deed of Trust in ~11 other respects ~ remain ~ ~1 enforce~10ie.
Succe.,o.'' and Aesigrm. Subject to the limit,~tions stated in this Deed of Trust on transit of Trustor'$ interest, this Deed of Trust shall be
binding upon ,,nd Inure to the benofit of the p~ties, their s,.;-~;~ssors ,,nd ~ssigns. If ownership ot the Property becontes vested in a person
ofhor th~n Trustor, Lender, without notice to Tmstor, mey ~ with Tr,_~_,?s sc-~_=~.__~rs wifh reference to this Deed of Trust and the
Indebtedness by w''y of forbe~,,nce or extension without releasing Trustor fi'om the obligations of this Deed of Trus~ or ~abillty under the
W~vers and Consents. lender sh~ not be deemed to heve w~ved ''ny dghts under this Oeed of Trust (or under the Retated Documents)
06-12-1996 DEED OF TRUST Page 8
Loan No 801001 (Continued)
unless such wm~ve~ Is In writing ancl signed by Lender. No cletay or omission on the pm1 of Lender in exerr..~ng any right si'mil operate ~s ':
w~v~' of such right or any ofh~ dght. A w~ver by ,:ny party of ': prov~on of this Deed of Trust she]l not const~ute ': w~er of or prejudLce
the p~ty'$ right othetwisa to clemancl strut compllanco with trmt prov~on or ':ny other prov~on. No I~tor w~iver by Lender, nor any course of
cl~iing between lender ·ncl Trustor, I1~11 constltuto · waiver of ·ny of Lencl~$ ~hts or ~ty of Trustor'$ oblig~ticm~ m to ·ny Mum
tram·orions. Whenever consent by Lender is mClUimcl In this Deed of Trust, the granting of such consent by Lender in ·ny inM~nce shall not
constitute continuing consent to subsequent Instances where such consent Is required.
EACH TRUSTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS ~ OF TRUST, AND EACH TRUSTOR AGREES TO
ITS TERMS.
TRU~TOR:
X
~ J. Mulhall
CERTIFICATE OF ACKNOWLEDGMENT
STATE OF
COUNTY OF
C)fl . before me,
ixfsondy ippeaJlCl Robed J. Mulheil, personally known to me (or proved to me on the basis of sattsfactofy evidence) to be the person(si
whose name(s) is/are subscribed to the within Inslrument ':nd acknowledged to me that he/she/they executed the same in his/her/their
~zuthodaKI capacity(les), ':nd that by his/her/theh' signature(s) on the Instrument the person(s), or the entity upon behalf of which the presort(s)
acted, executed the inslrument.
WITNESS my hand and offlctel se~l.
S~gnstum
(DO NOT RECORD)
REQUEST FOR FULL RECONVEYANCE
(To be used only when obligations have been paid in full)
To: , Trustee
The undemigned Is the legal owner ':nd holder of all Indebtedness secured by this Deed of Trust. All sums secured by this Deed of Trust have
been fu#y paid ,:nd satisfied. You are her~y directed, upon payment to you of any sums owing to you under the terms of this Deed of Trust or
pursuant to ':ny applicable statute, to cancel the Note secured by thIs Deed of Trust (which Is delivered to you together with thIs Deed of Trust),
':nd to reconvey, without warranty, to the padles designated by the terms of this Deed of Trust, the estate now held by you under thIs Deed of
Trust. Please mail the reconveyance ':nd Related Documents to:
__Oale: Beneflctary:
By:
I11:
LASER PRO, RI0, U.~, Pit. · T.M. Off., Vi'. 3.21 (C) 1~ CFI pr~l~ll, lrl~: All rlohtl r'ii.vecL [OA-(~01 801001 .LN R11.OVL]
AGREEMENT TO PROVIDE INSURANCE
~.'..':i.,..'~:~:~. $"~,~O.IX~ ..,, ." ~-'lff,-l~ .'1~.;.~|'.~::..,: ~'llXrl ":.! ::.'..?: .'.;.'.~:::'......::...;..'..'"..'.':,"!.~'..:..".':.'.:. ,::....';.'~,..:~:~'..::.~;.......'~:.~, ~:'.'..~!'::.'...,i~t{~O.": ~'.,.'.'..~.., ':.:'
I~ In the shaded ~ ~ra for Lender~ use ont~ and do nol limit th~ Iippl~blRt~ ~ this document to any I~u~r ~ or Item.
)rrower: Ro~rt ~. Mumm Lender: South S~n Frmmm Re~v~t Ag~y
&il Azgualio Blvd. 400 Grind Avenue
Paolfloa, CA 94O44 P.O. Box 711
INSURANCE REQUIREMENTS. I, Flobort J. Mulhell ('Grant~. understand thet Insurance cove~ge is r~lulred in connection with the extending of
k~n or the proving of other financial accommodations to me by Lender. These requirements me set forth in the security documents. The following
minimum insunmce covetugas must be provided on the following described collateral (the "Cdlateml"):
Type. Fire and extended coverage.
Amount. Full Insurable value; however in no event greater then the value of the replacement cost of the Improvements.
F. JtdOrsemenll. Standard mortgegee's clause with stipulation that coverage will not be cancelled or dimlnished without a minimum of ten
(10) days' prior written notice to Lender, and without disclalmor of the insurer's IMbitily for failure to give such notice.
INSURANCE COMPANY. I may obtain insurance from any insurance company I may choose thet is reasonably acceptable to Lender. I understand
Ifit credit may not be denied solely because insurance was not purchased through Lender.
FLOOD INSURANCE. Flood Insurance for propely given as security for this loan Is described as follows:
Real Ealale al Ma Arguello Blvd., Paciflca, CA 94044.
Should the CollateraJ at any time be deemed to be located in an area designated by the Director of the Federal Emergency Management Agency
as ,: special flood hazard area and should Federal Flood Insurance covering the Collateral ever become available, I agree to obtain and maintain
Federal Flood Insurance, to the extent such insurance is reduired by Lender, for the term of the loan and for the full unpaid principal balance of
the loan, or the maximum limit of coverage that is available, whichever Is less.
FAILLEIE TO PROVIDE INStJRANCE. I agree to purchase and maintain any required flood insurance wltnin 45 days following notice given by Lender.
Additionally, I agree to daliver to Lender, on or before dosing, evidence of all othor required insumnoa as provided above, with an effective date of
June 12, 1996, or earlier. I acknowledge and agree thet if I fail to provide any required Insurance or fail to continue such insurance in force, Lender
may do so at my expense as provided in the applicable security document. The cost of any such insurance, at the option of Lender, shall be payable
~ demand or shall be added to the indebtedness as provided in the security document. I ACKNOWLEDGE THAT IF LENDER SO PURCHASES ANY
)I. JCH INSURANCE, THE INSURANCE Will PROVIDE LIMFrED PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO THE
~,LANCE OF THE LOAN; HOWEVER, MY EQUITY IN THE COLLATERAL MAY NOT BE INSURED. IN ADDITION, THE INSI.JRANCE MAY NOT
~:IOVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL
RESPONSIBILITY LAWS.
AUTHORIZATION. For purposes of insurance coverage on the Collateral, I authorize Lendm- to provide to any pamon (including any insurance agent
or company) all Information Lender deems appropriate, whether regarding the Collateral, the loan or other financial accommodations, or both.
I ACKNOWLEDGE HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE INSURANCE AND AGREE TO ITS TERMS. THIS
AGREEMEHT I$ DATED JUNE 12,
X
RM~Mt J. Mulhall
FOR LENDER USE ONLY
DATE: INSURANCE VERIFIGATION PHONE:
AGENT'S NAME:
INSUP. ANCE COMPANY:
POLICY NUMBER:
EFFECTIVE DATES:
COMMENTS:
LASER PRO, Reg' U.S. Pat. & T.M. Off., Ver. 3.21 (c) 19e~ CFI Ft'oSM'vk:el, In~. All right8 reserved. [CA-I 10 801001 .LN R 11.0VL]
DISBURSEMENT REQUEST AND AUTHORIZATION
'"'" i I
$76.~00.00 06-12-1996 1 12-12,-;20121 801001 ! '1 ....... I""JGO ! .....
Refere __m'e~__ In the shaded area are for I. ander'$ use only and do not limit the applicability of this document to any paftictder Io~n or Item.
~rrower: ~ j. Mu~ lender: ~mth ~n Frmo~co rlr~;velop,,~lrkt A0ency
~1~ Arguello Blvd. 400 Grand Avonu~
Peciflca, CA 94044 P.O. BOX 711
SOUth San F~, CA 940~0
LOAN TYPE. This is s Fixed Rata (3.000%), Installment Loan to s Consumer for $76,cJ00.00 due on December 12, 2012.
PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for:.
Investment.
~] Bualne~ (Including Real EMale Inve~tnlent).
IR.OOD INSURANCE. The properly that will secure the loan is not located in an area that hes been identified by the Director of the Federal E~
Management Agency as an area having special flood hazards. Therefore, although flood insurance may be available for the i~opedy, no special food
I~rd insurance is required by law for this loan.
DISBURSEMENT INSTRUCTIONS. I understand that no I~an proceeds will be disbursed until all of lender's conditions for making the loan have
been satisfied. Please disburse the loan proceeds of $76,900.00 as follows:
Amount paid to others on my behalf:. $76,900.00
$8,200.00 to City Public Works Department
$68,700.00 PER OWNER PARTICIPATION AGREEMENT OF EVEN
DATE HEREWITH
Note Principal: $76,900.00
.~'AX CONSEQUENCES. I understand that lender makes no representation or warranty whatsoever concerning the tax consequences of this loan,
r~ciuding the deductibility of interest, sncl that I should consult with my own tax advisor for guidance on this subject. I also agree that Lender shall not
~e liable in any manner whatsoavm' should the interest paid on the loan not be deducible.
FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, I REPRESENT AND WARRANT TO LENDER THAT THE INFORMATION
PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN MY FINANCIAL CONDITION
AS DISCLOSED IN MY MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED JUNE 12, 199~.
BORROWER:
X
Robert J. Mulhall
CREDIT INSURANCE DISCLOSURE
VOLUNTARY CREDIT INSLJRANCE. CREDIT UFE INSURANCE AND CREDIT DISABILITY INSURANCE ARE NOT REQUIRED TO OBTAIN
CREDIT.
~ By Mgnlng Ix~ow, I acknowledge that I am not o~talnlng credff Insurance for this loan for one of the following reason~ (s) I am
not ell0ible for credit In~uraince; (b) Credit Insurance Is not avdtable from Lender;, or (c) If I I~ ell01ble and credit Insurance ta
available from Lender, I do not want It.
Prior to signing thl~ Credit Insurance Notice on June 12,199~, I read and understood all of the provtalon$ of thta Dl~ofosure.
BORROWER:
Fixed Rill. Iftlt&llmlnt. LASER PRO, R®O. U.S. Pit. · T.M. Off., Vet. 3,21 (c) 1996 CFI I=roServlce,, In~. All rlg~ttl reserve4. ICA-120 ~01001.LN R11.OvL.]