HomeMy WebLinkAboutR10-Economic Development Agency
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DBVBLOPIIBRT DBPARTIIBRT
OF 'fIIB CITY OF SAIl Rn..nnIBO
RBOUBS'f l'OR COIMISSIOK/COUlICIL ACTIOR
From:
ICElmETB J. HENDERSON
Executive Director
Subject:
BICRT.A~ L1l'lBBRA1I
SBKIOR BOUSIBG, IRC.
Date:
November 15, 1991
SYnODS is of Previous C~fssionlrJmm~il/CaBBittee Actionls):
On August 14, 1991, the Housing Committee considered this issue and
recommended to the Community Development Commission spprova1 of a request
for assistance from Highland Lutheran Church for the development of a
fifty (50) unit senior housing apartment complex.
On August 19, 1991, the Community Development Commission approved
assistance in an amount not to exceed $2,922,636.00.
RecommPnded IIotionls):
lC~ftv Develft~ent C~ission)
MOTIO.:
That the Community Development Commission approve the deal
points for secondary financing in the amount of $676,504.00
for the Highland Lutheran Senior Housing Complex, direct
Agency Counsel to prepare the appropriate agreement and submit
same to the Commission at its November 18, 1991 meeting.
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Administrator
Ui1UU51:11 J. BElIDBRSOK
Bzeeative Director
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Contact person(s):
Ken Henderson/Doris Daniels Phone:
5081
Project Area(s):
Ward(s) :
Supporting Data Attached:
Staff ReDort
FUNDING REQUIREMENTS:
Amount: *676.504.00
Source:
Budget Authority:
______________________u________________________________________________________
CommissionlCoUD.cil Kotes:
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COIMISSIO. MEB'fIBG AGElUlA
lIeeting Date: 11/18/1991
AgeDda Item lfumber: &
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DEVBLOPMD'l' DBPAa.umn.. IBQUISr lOR COUIICILlCOIIIJ;SSIO. ACTIO.
Hi&h1au4 Lutheran SllIlior B0U8iD&, Inc.
October 30, 1991
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Svnoosis of Previous Counci1/Cn..issiODlCn..ittee Actiones) Continued...
On October 29, 1991, the Housing Committee approved the deal points for
the Highland Lutheran Senior Housing Complex and forwarded same to the
Community Development Commission for approval.
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KJH:DAD:lab:0154q
COIIIISSIO. IIBBrIlfG AGDDA
ReetiD& Date: 11/18/1991
Aaenda Item lfmIber: 112-
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DBVBLOPRBBr DBPARrRBBr
OF TIIB CIn OF lWI BBIlIARDIBO
STAPP RBPORT
Bl..h1.ftd LUt"'h_ran SMltor Boaafft_. Ine.
The Community Development Commission has previously considered this
issue, and on August 19, 1991, the Commission approved assistance in an
amount not to exceed $2,922,636 for the Highland Lutheran Church to
develop a fifty (50) unit senior citizen apartment complex consisting of
thirty-eight (38) one bedroom units and twelve (12) two bedroom units.
The church has since established HALC Investment Holding Corporation,
Inc. (Highland Lutheran Senior Housing Inc.) and applied for 50l(c)3
tax-exempt status, to develop the project on a 2.6 acre site next to the
Lutheran Church. The project located at 1829 Bast Highland Avenue is to
be constructed by Dukes-Dukes and Associates..
The August 19, 1991 action taken by the CODDission approved a
construction loan commitment and secondary financing. The purpose of
today's action is to identify deal points related to the secondary
finanCing. The agreement contains the following deal points which are
recommended for consideration and Commission action, as appropriate:
1. The Department's assistance with respect to the development of the
project will consist of the provision of a construction finanCing loan
in the amount of $2,922,636 and, upon completion of construction and
after having obtained a permanent loan, a secondary loan in an amount
equal to $676,504.
2. The construction loan and the secondary loan shall be used to fund the
construction costs of the project, as well as related costs.
3. The proceeds of the construction loan and the secondary loan shall be
evidenced by a single promissory note and secured by a single deed of
trust.
4. The construction loan shall be repaid to the Department when HALC
(Highland Lutheran Senior Housing Inc.) establishes permanent
finanCing provided, as previously agreed to, by the California Housing
Finance Agency (CHFA).
5. The construction loan shall include the sum of $563,000 as and for a
land draw which shall be disbursed as follows:
a) An amount approximately equal to $180,060 shall be utilized, as
necessary, to pay loan or processing costs and fees as required by
CHFA.
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CllNIISSIOB RBBTIIIG AGDDA
Reeting Date: 11/18/1991
Agenda It. lIuIIber: J:I2
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DEVBLOPMDT DBP~J: STAn' IIIPORr
Hi&hJ.aDd Lutheran SeD10r HOUll1D&. IDe.
l!lov_ber 14. 1991
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b) The cash equity requirement i~ tlie" amount of $146,132 shall be
repaid to the Department from the amounts designated as the land
draw.
c) The balance of the land draw shall be utilized for payment of
reasonably incurred aDd verifiable cost overruns in the
construction of the project.
6. The interest rate of the Conatruction Loan shall be equal to the prime
rate established by Bank of America plus one-percent (1%), fixed for
the term of the Conatruction Loan.
7. The interest on the Secondary Loan shall be equal to the prime rate
established by the Bank of America plus one percent aDd shall accrue
on the unpaid principal balance thereof from the date the Permanent
Loan is funded and the Secondary Loan is advanced by the Department.
8. The Secondary Loan shall be repaid from revenues of the Project after
the debt service and normal operating expense obligations have been
met, from first monies realized from refinancing the project or upon
sale of the Project.
9. The Secondary Loan shall be come due and payable in full immediately
upon sale. refinancing, or change in the use of the Project.
On October 29, 1991, the Housing Committee conaidered this matter and
unanimously recommended to the Community Development Commission approval
of this structure of the HighlaDd Lutheran Senior Complex secondary
financing.
Based upon the foregoing, staff recommends adoption of the form motion.
AaJUUloUI J. ""....l!lIl1OIl. Bzecutive Director
Develo~ent Departaent
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KJH:DAD:lab:Ol54q
CORO:SSIOIlIIBBTIBG AGBIIDA
Reet1D& Date: 11/18/1991
!sends It_ lIuIIber: J.I1.
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SBEOOOOl-31/DOC/525/ew
10/30/91 520
RECORDING REQt1E~TED BY:
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND WHEN RECORDED RETURN TO:
SABa " GREEN,
a Profe.sional Corporation
Suite 400
6320 Canoqa Avenue
Woodland Hill., California 91367
(Space Above for Recorder'. Use)
REDEVELOPMENT AGENCY OlP THE CITY OIP SAIl BERNARD:INO
OWNER PARTICIPATION AGREEMENT
(HIGHLAND LUTHERAN SENIOR HOUSING INC. PROJECT)
By and Between
REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO
and
HIGHLAND LUTHERAN SENIOR HOUSING INC.
a California non-profit corporation
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RECITALS
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section a.
section 9.
S.ction 10.
Section 11.
Section 12.
S.ction 13.
Section 14.
S.ction 15.
Section 16.
Section 17.
Section la.
Section 19.
Section 20.
Section 21.
Section 22.
Section 23.
Section 24.
Section 25.
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TABLE OF CONTENTS
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1
Defined Terms.................................... 5
Public Purpo.e................................... 5
Agency A..i.tanc................................. 6
Conatruction Loan Fundinq Proc.dure.............. 11
Construction of the Proj.ct...................... 11
Complianc. with Community Redev.lopment
Law; Incom. and R.ntal Price Limitations......... 15
Participatinq ~er'. Responsibilitie............ 15
Certain Sal.. or Tran.f.r. of the Project........ 1a
Notic. of Sal.. and Tran.fer..................... 1a
Public Bid and Pr.vailinq Waq.................... 18
Plans and Sp.cification.......................... 19
Ruedi... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19
Obliqation to Obtain Financinq................... 21
Rotic....,;............ ... ..... . . . . .... . . . . ........ 21
Applicability of Law. and Litiqation Co.t........ 23
NOndi.crimination and R.lat.d Cov.nants.......... 23
C.rtificate of Completion........................ 25
Succ...or. and As.iqn.; As.iqnment............... 26
Event. of D.fault................................ 26
Entire Aqr....nt; Amendment...................... 28
Several:>>ility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 28
Section H.adings................................. 29
Meaning ot Terms................................. 29
Indemnifica~ion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 29
Effective Date of This Aqreement; Execution;
Tar. of Agr.e..nt.............................. 30
EXHIBIT "A" - Leqal Oe.cription
EXHIBIT "B" - Scope of Development
EXHIBIT "C" - Promi..ory Note
EXHIBIT "0" - Deed of Tru.t
EXHIBIT "E" - Certiricate of Completion
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REDEVELOPMENT AGENCY OF THE CITY 01' SAN' BERNARDINO
OWNER PARTICIPATION AGREEMENT
(HIGHLAND LUTHERAN SENIOR HOUSING INC. PROJECT)
This owner Participation Aqre_ent (the "Aqre_ent") is
entered into this ____ day of
, 1991, by and between the
Redevelopment Agency of the City of San Bernardino, a public body,
corporate and politic duly organized and existing pursuant to the
Community Redevelopment Law of the State of California (hereinafter
referred to as the "Agency") and Hiqhland Lutheran Senior Housing
Inc. created pursuant to the California Non-profit Corporation Act
(hereinafter referred to as the "Participating owner") and is entered
into by the parties hereto with reference to the followinq facts:
RECITALS
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WHEREAS, the Aqency is authorized and _powered by the
Community Redevelopment Law, Chapter 1 of Division 24 of the
California Health and Safety Code, as amended (the "Law"), to permit
owner participation in the redevelopment of real property; to enter
into aqreements for the acquisition, disposition and development of
property or to otherwise assist in the redevelopment of real property
within a redevelopment project area conforminq with a redevelopment
plan adopted for such area; to acquire real and personal property in
redevelopment project areas; to receive consideration for the
provision of redevelopment assistance; to make and execute contracts
and other instruments necessary or convenient to the exercise of its
powers; and to incur indebtedness to finance or refinance
e:; redevelopment projects; and
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WHEREAS,
the Redevelopment Plan for the Uptown
Redevelopment Project, has been approved and adopted. by the City of
San Bernardino, California (the "City"), by Ordinance No. MC 527 (the
"Redevelopment Plan"); and
WHEREAS, the Participating OWner through an affiliated
entity controls the ownership of certain real property consisting of
an approximately 2.6 acre site generally located at 1829 E. Highland
Avenue which is located in proximity to the project area subject to
the Redevelopment Plan (the "Project Area"), as legally described in
Exhibit "A" attached hereto and incorporated herein by reference (the
"Property"); and
WHEREAS, the Participating OWner intends to cause the
development of the Property by undertaking the construction thereon
of a fifty (50) unit senior citizens apartment complex consisting of
thirty-eight (38) one bedroom units and twelve (12) two bedroom units
(the "Project"), all as more fully described in the Scope of
Development attached hereto as Exhibit "B" and incorporated herein by
this reference, in order to facilitate development of the Property
for uses consistent with the redevelopment goals of the Agency; and
WHEREAS, the Participating OWner has requested the Agency
to exercise certain redevelopment powers, pursuant to the Community
Redevelopment Law, and to assist the Participating OWner with respect
to undertaking the Project; and
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WHEREAS, it is proposed that the Aqency assistance with
respect to the development of the Project will consist of the
provision of (i) a construction financinq loan in the amount of Two
Million Nine Hundred Twenty-Two Thousand Six Hundred Thirty-six
Dollars ($2,922,636) (the "Construction Loan") and (ii) upon
completion of construction and after havinq obtained a permanent
loan, a secondary loan in an amount equal to Six Hundred Seventy-Six
Thousand Five Hundred Four Dollars ($676,504) (the "Secondary Loan");
and
WHEREAS, the proceeds of the Construction Loan and the
Secondary Loan shall be used to fund the construction costs of the
Project as well as related costs and both Loans shall be evidenced by
a sinqle Promissory Note (the "Promissory Note") executed by the
Participatinq OWner in favor of the Aqency, substantially in the form
as attached hereto as Exhibit "C" and incorporated herein by this
reference and secured by a sinqle Deed of Trust (the "Deed of Trust")
substantially in the form of Exhibit "D" attached hereto and
incorporated herein by this reference; and
WHEREAS, upon repayment of the Construction Loan by the
Participatinq OWner, which shall be in an amount equal to the
Construction Loan less the amount of the Secondary Loan, the
Participatinq OWner shall still have the obliqation to repay the
Secondary Loan upon the terms and conditions as more fully
hereinafter described; and
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WHEREAS, the California Housinq Finance Aqency ("CHFA") has
c:> previously aqreed to provide the permanent financinq for the Project
in an amount equal to Two Million One Hundred Thousand Dollars
($2,100,000) (the "Permanent Financ!nq"), and, upon the establishment
of such Permanent Financinq, the Participatinq OWner shall have the
immediate obliqation to repay the outstandinq balance of the
Construction Loan less the amount of the Secondary Loan; and
WHEREAS, the Aqency intends to assist the Participatinq
OWner in completinq the Project to the extent that the Aqency shall
provide the Construction Loan and the Secondary Loan pursuant to the
terms hereof (collectively the Construction Loan and the Secondary
Loan shall be referred to herein as the "Aqency Assistance"); and
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WHEREAS, the development of the Project will benefit the
Project Area by providinq .enior citizen housinq to the community and
the City thereby e1iminatinq bliqhtinq conditions within and adjacent
to the Project Area; and
WHEREAS, the Project will facilitate development of the
Property in a manner consistent with the Redevelopment Plan and help
encouraqe economic qrowth and revitalization in and around the
Project Area; and
WHEREAS, the Aqency deems it desirable to use its low and
moderate income housinq funds for the purposes of providinq the
Aqency Assistance; and
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WHEREAS, the Participating OWner has demonstrated to the
satisfaction of the Agency its financial ability to undertake the
completion of the Project.
NOW, THEREPORE, THE PARTIES HEREBY AGREE AS POLLOWS:
Section 1. Defined Terms. All terms not otherwise
defined herein shall have the same meaning as used in the Community
Redevelopment Law, Health and Safety Code Section 33000, At AJlg. (the
"Law"). The recitals are by reference incorporated herein and made
a part of this Agreement.
Section 2. Public Pumose. The Agency and the
PartiCipating OWner agree that the completion of the Project shall be
undertaken for the common benefit of the parties hereto and the
residents of the City in order to eliminate blight within the City
and areas adjacent to the Project Area. The Agency and the
Participating OWner further agree that the development of the proj ect
shall not only eliminate blight on the Property, but will also assist
in creating an environment which will encourage and facilitate the
elimination of blight within the Project Area and in neighborhoods in
proximity to the Project Area. Therefore, the completion of the
Project will be of benefit to the Project Area, and will help
improve, upgrade and revitalize,. both economically and physically, a
portion of the City located adjacent to the Project Area that
manifests itself as a blighted area. In addition, the Project will
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provide an affordable residential bas. to persons and households who
may be presently residinq in the Project Area and in other
redevelopment project areas of the Aqency.
Section 3. Aaencv Assistance. The Aqency hereby aqrees
that in order to assist the Participatinq owner in the development of
the Project, the Aqency shall provide the Construction Financinq in
an amount equal to Two Million Nine Hundred Twenty-Two Thousand Six
Hundred Thirty-Six Dollars ($2,922,636) and the Secondary Loan, which
is included within the amount of the Construction Loan, in an amount
equal to Six Hundred Seventy-six Thousand Five Hundred Four Dollars
($676,504) all as evidenced by the Promissory Note attached hereto as
Exhibit "C" and secured by the Deed of Trust attached hereto as
Exhibit "D".
Upon the provision of the funds repr.sentinq the Permanent
Financinq to be provided by CHFA, the Participatinq owner shall
immediately repay all principal and interest due and payable on the
Construction Loan, less the amount of the Secondary Loan, with the
r_aininq balance of the Secondary Loan to be repaid on the terms and
conditions as hereinafter set forth.
The Construction Loan shall include the sum of $563,000 as
and for a land draw, which sum shall be received and disbursed by the
Participatinq owner solely as follows:
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ea) An amount approximately equal to $180,060 shall be
utilized, as necessary, to pay loan or processinq costs and fees as
required by CHFA.
eb) The amount of $146,132 shall be deemed to be the cash
equity requirement imposed upon the Participatinq owner by CHFA and
shall be repaid to the Aqency from the amount. desiqnated as the land
draw on or before the fundinq of the Permanent Financinq toqether
with any other moneys repre.entinq the land draw which have not been
expended for reasonable and necessary costs of the Project.
ec) The balance of the land draw after deduction of the
foreqoinq sums .hall be utilized by the Participatinq owner for
payment of reasonably incurred and verifiable cost overruns in the
construction of the Project. Any portion of the balance of the land
draw not nece.sary to pay cost overrun. shall be returned to the
Aqency and shall be considered a payment towards sums due on the
Secondary Loan, with accrued but unpaid interest to be paid first and
the balance, if any, to be credited to principal. Furthermore, any
portion of the CHFA required amounts as may initially be funded
pursuant to ea) above which are either returned or refunded to the
Participatinq owner or are otherwise not required by CHFA, shall upon
receipt thereof by the Participatinq owner be immediately applied in
a similar manner for the payment of accrued and unpaid interest and
then to reduce the principal balance of the Secondary Loan.
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The interest rate of the Construction Loan shall be equal
to the prime rate established by Bank of America and existinq on the
date on which this Aqreement is fully executed, plus one percent
(1'), fixed for the term of the Construction Loan. Interest on the
Construction Loan shall initially be paid from the $151,200 interest
reserve as contained as a line item in the Construction Loan and upon
depletion of said interest reserve additional payments of interest
shall be the sole obliqation of the Participatinq OWner to pay from
other available sources.
One-Percent
Interest on the Secondary Loan shall be at the rate of ~ Prime*
percent (1 ') per annum and shall accrue on the unpaid principal
balance thereof from the date the Permanent Loan is funded and the
Secondary Loan is therefore de_ed to have been advanced by the
Aqency.
The Secondary Loan shall be repaid from (i) revenues of the
Project to the extent that said revenues exceed the aqqreqate total
of debt service on senior debt plus reasonable and necessary
operatinq expenses for the Project (the "Excess Revenues") (ii) the
first moneys realized upon any refinancinq of the Project up to the
principal and interest then owed on the outstandinq balance of the
Secondary Loan, or (iii) upon a sale of the Project except as set
forth in paraqraph (a) immediately followinq, and shall be paid as a
first priority claim aqainst the Excess Revenues until the Secondary
Loan, includinq accrued interest, shall have been paid in full. The
*Fixed at the date of execution of
this Agreement.
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Secondary Loan shall become due and payable in full illllllediately upon
c:> any or all of the followinq events:
(a) A sale of the Project or of the stock of the
Participatinq OWner, except that if the sale (i) is to a non-profit
corporation which is an Internal Revenue Code Section 501(c) (3)
exempt person and exempt from taxation pursuant to California
corporate income tax laws, and (ii) the Aqency, in its sole
discretion, has approved the purchaser and the terms of the sale, and
(iii) the purchaser expressly and in writinq assumes all obliqations
of the Participatinq OWner under this Aqreement, then the Secondary
Loan shall be assumable by the purchaser;
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(b) A refinancinq of the Project which is defined as any
financial transaction which affects the Secondary Loan or any loan
senior to the Secondary Loan or which adds new debt secured by the
Project irrespective that such new debt may be subordinate to the
Secondary Loan;
(c) A chanqe in the use of the Project which affects the
availability or quantity of senior citizen housinq in the Project.
The Aqency shall have the riqht from time-to-time, upon
reasonable notice, to review the books and records of the Project
and/or the Participatinq OWner reqardinq the finances of the Project.
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The Aqency Assistance is predicated upon the status of the
Participatinq owner as a non-profit corporation. The Participatinq
owner repre.ent. that it i. a validly formed California non-profit
corporation and that it is undertakinq to obtain the appropriate
certifications of tax exempt status from the Internal Revenue Service
and the California State Board of Equalization.
The Participatinq owner aqree. to provide the Aqency with
appropriate evidence, acceptable to the Aqency, of its tax exempt
status within twenty-four (24) months of the execution in full of
this Aqreement. In the event that the Participatinq owner fails to
provide such evidence within that time, the Participatinq owner shall
be required to .ell the Project within six (6) months thereafter.
The Aqency shall have the riqht in its sole discretion to approve the
purchaser. A sale to other than a non-profit corporation must be
made for an amount sufficient to repay the Aqency Assistance in full.
Upon a sale to a non-profit corporation which has been approved by
the Aqency, in its sole discretion, and which meets the other
requirements of this Aqreement, the Aqency will permit assumption of
the Aqency Assistance. A failure to sell the Project within the
twenty-four (24) month period or upon the terms provided herein shall
entitle the Aqency to declare all sums owed to it immediately due and
payable and to foreclose on its deed of trust or exercise such other
riqhts and remedies as may be available to it under this Aqreement or
in law or equity.
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Sec'tion 4.
Cons'truc'tion Loan Fundina Procedure. The
proceeds of the Construction Loan shall be disbursed in the manner as
hereinafter set forth after the Participatinq OWner has provided the
Aqency with an endorsement or title policy from a title insurance
company in favor of the Aqency showinq fee simple title in the site
in the name of the Participatinq OWner and the lien free status of
the site.
(a) The Aqency shall make monthly disbursements based upon
proqress Payment Requests, to be submitted by and certified as to
correctness by Dukes-Dukes' Associates (the "Project Manaqer"), to
the Aqency on or before the first business day of each calendar
month. Proqress Payment Requests timely received by the Aqency in
said manner shall be paid in one or more checks of the Aqency, either
to the Project Manaqer and/or one or more suppliers of labor or
materials and for the payment of fees and other related construction
expenses on or before twenty (20) business days after actual receipt
by the Aqency and acceptance of a properly prepared proqress Payment
Request.
(b) Such proqress Payment Requests shall include for
payment only those construction expense items of the Project (i) as
were previously paid as an advance of funds, if any, to the Project
Manaqer or the Participatinq OWner, (11) incurred by either the
Project Manaqer or the Participatinq OWner for which labor or
materials were previously rendered and/or supplied and for which
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payment has not been made, if any, and/or (iii) which are expense
items for labor or materials to be incurred and paid within the next
succeeding thirty (30) calendar day period.
(c) The Project Manager or the Participating OWner shall
provide the Agency with a current engineering schedule of values
denoting each line item for which a Progress Payment Request has been
submitted. Such schedule of values shall include any estimates,
agreements or contracts to evidence the actual dollar amount to be
paid to any subcontractor, labor contractor, vendor or supplier.
(d) Payments shall be made by the Agency for only those
line items included on a Progress Payment Request which have attached
thereto evidence of the actual dollar amount to be paid to any
subcontractor, labor contractor, vendor or supplier.
(e) Agency Staff shall conduct routine on-site inspections
on at least a weekly basis to verify that labor has been performed
and materials supplied to the Project in accordance with the most
recent Progress Payment Request for which payment has been made in
whole or in part. In the event Agency Staff determines that all or
a portion of the dollar amount advanced for one or more line items
has not in fact been paid or will not be paid by the date of
submission by the Project Manager of the next monthly Progress
Payment Request, the Agency shall deduct such unpaid amount from the
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total to be paid by the Agency pursuant to such next monthly prOCJress
Payment Request.
(f) The Project Manager shall submit with each Progress
Payment Request appropriate evidence of either conditional releases
for labor and material for which payment was not made and/or
unconditional releases for labor and material for which payment was
made, plus, if applicable, cash receipts or invoices indicating that
payment was made with regard to all labor and material costs advanced
or paid by the Agency for the immediately preceding monthly Progress
Payment Request.
(g) Except for the actual purchase of materials from
vendors or suppliers evidenced by unconditional releases, all labor
contracts and fixed fee labor and material contracts with
subcontractors as shall be entered into by either the Project Manager
or the Participating owner shall provide for a ten percent (lOt)
retention of each draw under the Construction Loan to be held by the
Agency and properly noted as funds not advanced under the
Construction Loan for each appropriate line it_. The Project
Manager shall so indicate on the prOCJress Payment Request the line
it_s for which the ten percent (lot) retention is applicable and
subtract such amount from the total draw request. The aggregate ten
percent (lOt) retention shall not be paid to the Project Manager
until (i) sixty (60) days after recordation which shall be filed
within ten (10) business days by the City of San Bernardino of a
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certificate of completion for the Project, (ii) there are no
(a) labor or material liens filed aqainst the Project, (b) liIl
nendens recorded aqainst the Project, and (c) there is no court
action filed aqainst the Participatinq owner, the Project Manaqer or
the Aqency disputinq any amounts paid or owed for labor or materials
as to the Project, and (iii) a title insurance company has issued an
appropriate lien release endorsement to the Aqency under a lender's
title policy. If liens, lis pendens or court actions are filed, the
Aqency shall withhold one hundred fifty percent (150') of the
estimated or actual stated value of each lien, lis pendens or court
action until such time as the matters addressed therein have been
either adjudicated or otherwise resolved.
(h) Each disbursement requested on the proqress Payment
Request shall include the applicable monthly interest draw from the
$151,200 interest reserve contained within the total amount of the
Construction Loan. Such monthly interest shall be calculated at the
rate set forth in Section 3 hereof and shall be applied to the total
principal balance of the Construction Loan outstandinq as of the date
of submission of each proqress Payment Request. The Aqency shall
draw such monthly interest from said interest reserve and credit it
to the accrued interest on the then outstandinq principal balance.
It is the intent that said $151,200 fiqure will not be funded as a
cash disbursement but will be treated as a bookkeepinq entry and thus
increase the outstandinq unpaid principal balance of the Construction
Loan until said interest reserve has been depleted. Upon depletion
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Upon depletion of said interest res.rve amount, it will thereupon be
the sole obliqation of the Participatinq owner to pay any accrued and
unpaid interest on the Construction Loan from all other available
sources.
Section 5. Con.truction of the Proiect. The
Participatinq owner shall undertake or cause to be undertaken the
acquisition, construction and installation of the private
improv_ents and public improv_ents comprising' the Project. The
Participating' owner anticipates the employment of the Project Manag'er
to act as the project manag'er on behalf of the Participating' owner.
The Participating' owner shall be responsible for the payment of any
and all fees and assessments that may be levied ag'ainst the Project
or the Property or which may be required in connection with the
construction of the private or public improvements which comprise the
Project. The Participating' owner shall cOlDIDence construction of such
private improvements prior to Dec~r 1, 1991 and shall complete
such construction within twenty-four (24) months of cOlDIDenc_ent of
construction subject to any extensions by mutual written consent of
the parties hereto.
section 6.
Comnlianee with Community Redevelonment Law:
Income and Rental Price Limitations.
[Compliance procedures to
follow] .
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'!')v 1.': ':31 DS:Z3PM SABO & GREEN
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P.1
Provided that t:he C!HFA fJ.nuc::inlJ a. r.ferr.d to in
.ec::Uon 3 h.reof in t:h. foZ'lll of t:h. PeZ'lllanent PinancJ.n; a. defined
in t:he r.cital. i. fUnded a. cont"plated by tht. ....ent, the
Aqency .hall not !apo.. any add1tional incOlll. limitaUon. or r.ntal
re.tric1:ion. on t:h. unit. COlllpridnlJ the Proj.ct or upon the
individuala who may r.nt and occ::upy .uch unit.. In th. .vent that
th. CHFA impo..d incOIIIe and rental r..triction. are r.l.a..d or
.liminat.d at any time prior to thirty (30) Y.u. from the date of
t:h18 Aqr....nt, the Participatinq OWn.r OJ:' it. .ucce..or or aSsign.
.hall .X.ClUt. and record .uch dOCN1ll.nt. a. d....d neoe..ary by the
AlJency to contJ.nu. auch limitation. and re.tricUon. .. wera
previoU.ly impo..d by CHFA.
If th. CHFA Permanent Pinanoinq 18 not obtained for any
r.a.on what.o.ver and an alternativa p.Z'IIIanent loan i. obtain.d,
wheth.r trOll a lJovernmental ageno,y, f.deral, .tate or local, or
from a conventional lendinlJ .ource, the ~articipatJ.n; OWn.r .hall
impo.. by r.corded dOCUlllent. .aU.factory to the Ag.ncy the
followin; r..trictions.
(1) 8 v.ry low income one-bedroom unit. for a houS.hold of
one (1) who.. incOlll. doe. not axce.d fifty perc.nt (sot>
of ar.. m.dian income for a hou.ehold .iz. of one (1)
who.. rent .hall not exceed tw.nty-fiv. p.rc.nt (25t> of
actual qro.. monthly income.
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N('N !4 .~! ~'241'M SABO & GREEN
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(2) 2 very low income two-J:le4room unit. for a hou.ehold ot
~wo (2) Who.e 1noome does not excee~ fifty percent (Sot)
ot are. median inoome for a hou.ehold 8ize of two (2)
Who.. rent 8h.ll not exce_ twenty-five peroent (25t) ot
a~ual vro.. aonthly inoome, euch reddente by virtue of
~heir relation8hip mu.t be conddared a. a hou.ehold anlS
J:loth inoomes, if applicable, will be ~aken into acoount
to determine inoome qualifioation..
(3) 3 units, which may 01' may not be thoee refened ~o in (1)
and (2) above, .hall be ren~ed to handioapped
individual., 8uch unit. rented to the handicapped may be
.eparately re.erved un.1.te provided that at aU time.
~ee (3) uni~. are rented to handicapped .1.ndividuale or
re.erved for the handioapped and not r.nt.lS to other
1n~ividuals; -h.ncUcappad" ae u.ed herein ehall mean
1ncUviduab who are either entirely bedridden or who have
lost the u.. ot on. or more .rm. or l.ge or .r8 confined
~o a wheelChair tor all ambulatory .ce....
_11MIICI2t
1111.191 !:U
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Se~~ion 7. Particina~ina OWner'. Re~Donsibilities. A
substantial portion of the consideration which supports the aqreement
as herein contained of the Aqency to assist in the redevelopment of
the Property is the aqreement of the Participatinq OWner to complete
the Project as set forth in the Scope of Development attached hereto
as Exhibit "B", includinq the construction of the public improvements
and cause the commencement of operations within the specified period,
all as evidenced by the issuance of a certificate of Completion in
the form attached hereto as Exhibit "E", subject to any extensions as
mutually aqreed upon by the Parties hereto.
However, the foreqoinq responsibility of the Participatinq
OWner shall be subject to the followinq limitations: By reason of
acts of God; strikes, lockouts or other industrial disturbances; acts
of public enemies; orders of any kind of the Government of the United
States or of the State of California or any department, aqency,
political subdivision, court or official of any of them, or any civil
or military authority; insurrections; riots; epidemics; landslides;
liqhtninq; earthquakes; volcanoes; fires; hurricanes; tornados;
storms; floods; washouts; drouqhts; arrests; restraint of qovernment
and people; civil disturbances; explosions; breakaqe or accident to
machinery; partial or entire failure of utilities; or any cause or
event not reasonably within the control of the Participatinq OWner,
the Participatinq OWner is unable in whole or in part to carry out
anyone or more of its aqreements or obliqations contained in this
Aqreement, the Participatinq OWner shall, for the time of said delay
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or such lonqer period a. shall be aqreed in writinq by the Aqency,
not be deemed in default pursuant to Section 19 hereof by reason of
not carryinq out said aqreement or aqreements or performing' said
obliqation or obliqations durinq the continuance of such inability.
The Participatinq OWner shall make reasonable effort to remedy with
all reasonable dispatch the cause or causes preventing' it from
carryinq out its aqre_ents; provided, that the settlement of
strikes, lockouts and other industrial disturbances shall be entirely
within the discretion of the Participatinq OWner, and the
Participatinq OWner shall not be required to make settlement of
strikes, lockouts and other industrial disturbances by accedinq to
the demands of the opposinq party or parties when such course is in
the judqment of the Participatinq OWner unfavorable to the
Participatinq OWner.
The completion and operation of the Project by the
Participatinq OWner shall substantially assist the Aqency to
implement the Redevelopment Plan. Therefore, the Participatinq OWner
will take all reasonable steps to enable the Project to be completed
within twenty-four (24) months of the date of execution of this
Aqreement. The Ag'ency has relied upon such representations in
determining" the scope of the Aqency Assistance that would be
warranted under the circumstances to encouraqe the construction of
the Project.
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For the purpos.s her.of, completion of the Project shall
mean the date on which the Aqency approves the issuance of a
Certificate of Completion provided that such approval shall not be
unreasonably withheld and which Certificate of Completion shall be
substantially in the form attached hereto as Exhibit "E", certifyinq
that the construction of the Project has been completed and that
operations as contemplated by the construction of the Project by the
Participatinq owner have commenced.
Sect:ion 8.
Ce~ain Sa1.. or Transfers of the ProiQct.
The Participatinq owner hereby cov.nants and aqrees not to sell,
transfer or otherwise dispose of the Property or the Project located
thereon prior to the completion of the Project and for a period of
five (5) years therefrom without obtaininq the prior express written
consent of the Aqency which consent shall be at the sole discretion
of the Aqency.
Section 9.
Notice
of
Sales
and
Transfers.
Notwithstandinq the foreqoinq, and for the term of this Aqreement,
the Participatinq owner aqre.s to notify the Aqency in writinq of any
sales or transfers of any portion of the Property or the Project
prior to the consummation of such sale and/or transfer, which notice
shall contain the name, address and formal description of the entity
so acquirinq interests in the Project or the Property.
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Section 10. Public Bid and Prevailina Waae. The
Participatinq owner shall comply with any public bid procedures and
shall comply with any prevailinq waqe requirements, as applicable, in
connection with the construction of the public improvements and the
private improvements which comprise the Project.
Section 11. Plans and SDecifications. The Participatinq
owner aqrees that the plans and specifications to be prepared for the
acquisition, construction and installation of the improvements
comprisinq the Project shall be submitted to the appropriate
department of the City for approval prior to commencement of
construction; provided, however, that said plans and specifications
shall be in all respects in accordance and in conformity with this
Aqreement and all appropriate plans or buildinq standards of the
City. In the event said plans and specifications are not reasonably
acceptable to such department of the City and in compliance with this
Aqreement, then, in such event, the Participatinq owner aqrees to
amend or modify said plans and specifications or to submit such
further or additional plans and specifications as may reasonably be
required by the appropriate department of the City. The plans and
specifications approved by the appropriate department of the City
shall not be amended or modified in any material respect subsequent
to such date of approval without the prior written approval of either
or both the City or the Aqency, as applicable.
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Sec~ion 12. Remedies. In the even~ ~he Par~icipa~ing
owner breaches any of i ~s covenan~s or obliga~ions under ~his
Aqreemen~, the Participa~ing owner shall, a~ the op~ion of the Agency
and upon demand by the Agency ~o ~he .Participa~ing owner, immedia~ely
repay ~o the Agency all amoun~s due and owing under the Cons~ruc~ion
Loan and/or the Secondary Loan. As a further and cumula~ive remedy,
~he Participa~ing owner, for i~.elf, legal represen~a~ives,
successors and assigns, aqrees tha~ the Agency, i~. successors and
assign., shall have the righ~ and power ~o ins~i~u~e and prosecu~e
any proceeding a~ law or in equi~y ~o enforce any covenan~s and
aqreemen~s herein con~ained and ~o enjoin the ~ea~ened or a~~emp~ed
viola~ion ~hereof by the Participa~inq owner, legal represen~a~ives,
successors, ~enan~s and assigns and/or ~o collec~ damages from ~he
aforesaid, whomsoever of which may viola~e said covenan~s and
agreemen~s; and in addi~ion, the Participa~ing owner for i~self,
legal represen~a~ive., successor. and assigns doe. hereby qran~ the
Agency such righ~ and power ~o in.~i~u~e and pro.ecu~e such
proceedinqs.
The remedies for the benefi~ of the Agency .e~ forth in
~his Sec~ion 12 shall be in addi~ion ~o any and all o~her remedies
available ~o the Agency under this Aqreemen~ or as a ma~~er of law.
The partie. acknowledge and aqree tha~ the Agency may exercise any
and all legal and equi~able remedies available ~o the Agency under
~he law. of the S~a~e of California ~o enable the Agency ~o exercise
the righ~. of the Agency hereunder and ~o enforce the provisions of
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this Aqre_ent includinq, but not limited to, those which are
contained in this Section 12.
The Participatinq owner further aqree. to pay upon written
demand of the Aqency all cost., fees and expenses of the Aqency
includinq, but not limited to, attorneys' fees, court costs and costs
attributable to Aqency Staff time, incurred in connection with any
enforcement by the Aqency of the provisions of this Section 12 or the
seekinq of any remedie. leqally available to the Aqency related to
this Aqre..ent.
In the event the Aqency breaches any of its covenants or
obliqation. under this Aqreement, the Participatinq owner may
exerci.e all leqal and equitable remedies available to the
Participatinq owner under the law. of the State of California.
Section 13. Obliaation to Obtain Financina. The Aqency
shall have no obliqation or commitment to provide any form of
financial assistance to the Participatinq owner in connection with
the Property or the completion of the Project, except as is
specifically provided in this Aqre..ent.
Section 14. Notices. All notices and demands of any
kind which any party hereto maybe-required to serve upon any other
party under the terms of this Aqre..ent shall he served in writinq on
such other party by personal service or by leavinq a copy of such
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by mailing a copy thereof by certified or regi.tered mail, po.tage
prepaid, airmail if the addre.. i. out. ide the state in which the
.ame is mailed, with r.turn r.ceipt r.qu.sted, addr....d a. follow.:
If to the Agency:
Red.velopment Agency of the City of
San Bernardino
201 North "E" Street, Third Floor
San Bernardino, California 92401-1507
Attention: Executive Dir.ctor
With a copy to:
Sabo , Gr.en
6320 Canoga Av.nu.
Suit. 400
Woodland Hill., California 91367
Attention: Timothy J. Sabo
If to the
Participating OWner:
Highland Luth.ran Senior Housing Inc.
Attention:
o In ca.. of s.rvic. by mail, .ervice .hall be deemed complete and
notic.. and demand. .hall be d.emed to have b..n rec.iv.d at the
expiration of the third calendar day after the date of mailing,
notwith.tanding any oth.r date for rec.ipt ..t forth on any return
rec.ipt or the failure of any party to r.c.iv. a r.turn rec.ipt. The
addre.... to which notic.. and demands may be d.livered or .ent may
be changed from time to time by .ervice of notice a. hereinabove
provided by any party upon the other party.
Sec~ion 1S.
Annlicabilitv o~ Law. and Litiaation Costs.
o
Thi. Agreement .hall be construed and enforced in accordance with the
law. of the State of California. Should any action be brought in any
court of comp.t.nt jurisdiction, the prevailing party in .uch action
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section 1!5.
Annlicabilitv o~ Laws and Litiuation Costs.
This Agre_ent shall be construed and enforced in accordance with the
laws of the state of California. Should any action be brouqht in any
court of competent jurisdiction, the prevailinq party in such action
shall be entitled to reimburs_ent by the other party for all
reasonable attorney's fees, court costs and other costs related to
such litiqation.
Section 16.
Nondiscrimination and Relatad Covenants.
The Participatinq OWner agree. that, in addition to the other
provisions set forth in this Agre_ent, every conveyance of the
Property, in whole or in part to the extent as permitted pursuant to
this Aqre_ent, shall, in addition to any other covenants, contain
covenants on the part of the Participatinq OWner, for itself, its
successor. and assiqns of the Property and which covenants shall be
covenants runninq with the land and shall bind the Participatinq
OWner, its successors and assiqns and all persons claiminq under or
throuqh it to effectuate the followinq:
(a) That the work of the redevelopment of the Property or
part or parts thereof as in this Agre_ent provided shall be
impl_ented'a. intended by this Agreement.
(b) That there shall be no discrimination aqainst or
seqreqation of any person or group of persons on account of race,
color, creed, reliqion, sex, marital status, national oriqin, or
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ancestry in the sale, lease, sublease, transfer, use, occupancy,
tenure or enjoyment of the premises to be conveyed, nor shall the
Participatinq OWner or any qrantees or any persons claiminq under or
throuqh the Participatinq OWner establish or permit any such practice
or practices of discrimination or seqreqation with reference to the
selection, location, number, use or occupancy of tenants, lessees,
subtenants, sublessees or vendees in the premises to be conveyed.
Cc) That, after the satisfactory completion of the Project
made necessary by this Aqre..ent, the Property shall be devoted to
the uses specified in this Aqre..ent and consistent with the
Redevelopment Plan and shall not, in whole or in part, be devoted to
any other use or used for any other purposes.
Cd) That such aqre..ents and covenants shall run with the
land, and shall inure to the benefit of and be enforceable by the
Aqency, its successors and assiqns. Furthermore, it is intended and
aqreed that the covenants contained in subsection Cb) of this
Section 16 shall remain in effect without limitation as to time.
Ce) Such aqreements and covenants shall run in favor of
the Aqency for the entire period durinq which such aqreements shall
remain in force and effect without reqard to whether the Aqency has
at any time been, remains, or is an owner of any land or interest
therein to which these covenants relate. In the event of any breach,
the Aqency shall have the riqht to exercise all the riqhts and
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remedies available at law or in equity to enforce the curinq of such
breach.
(f) That no portion of the Project or the Property shall
be sold or used by any tax-ex_pt entity for the duration of the
Redevelopment Plan without written consent of the Aqency.
It is the intent hereof that the provisions of subsections
(a) throuqh (f), inclusive, hereof shall survive the termination of
the other operative provisions of this Aqre_ent and as may
additionally be required by the Constitution and laws of the state of
California and the Law.
section 17. Certificate of ComDletion. The Aqency, its
successors and assiqns aqree that upon the full compliance by the
Participatinq OWner with the terms of this Aqre_ent which pertain to
the construction of the Project upon the Property, and followinq
completion of the Project, the receipt by the Aqency of a written
request from the Participatinq OWner for a Certificate of Completion
and notification that the Property is ready for occupancy, the Aqency
shall provide promptly and furnish to the Participatinq OWner a
Certificate of Completion, substantially in the form as attached
hereto as Exhibit "E", certifyinq that the construction and
acquisition or installation of the Project, as required pursuant to
this Aqreement, has been completed to the satisfaction of the Aqency,
its successors and assiqns. Upon issuance of the Certificate of
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Completion by the Agency, each of the covenants, restrictions,
warranties and conditions contained in this Aqreement relatinq to the
construction of the Project shall be deemed satisfied and shall
terminate.
section 18. Suce.s8or. and Assian..: Assianmen~. The
provisions of this Aqreement shall be bindinq upon and inure to the
benefit of the heirs, executors, administrators, successors and
assiqns of the parties hereto. The Participatinq OWner shall not
assiqn, transfer or in any manner hypothecate any or all of the
riqhts and obliqations of the Participatinq OWner under this
Aqreement or with respect to the Property without the prior written
approval and consent of the Aqency.
Section 19. Events of Default. "Event of Default"
wherever used in this Section, means anyone of the followinq events
(whatever the reason for such Event of Default and whether it shall
be voluntary or involuntary, or be effectual by operation of law
pursuant to any jUdqment, decree or order of any court or any order,
rule or requlation of any administrative or qovernmental body
superior to the Aqency):
Ca) Default in the performance, or breach, of any
provision of this Aqreement by the Participatinq OWner, and
continuance of such Default or breach for a period of thirty (30)
calendar days after the Aqency has qiven notice as specified in
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Section 14, and requiring it to be remedied and stating that such
notice is a "Notice ot Detault" hereunder; or
(b) The entry of a decree or order by a court having
jurisdiction in the premi8es adjudging the Participating OWner
bankrupt or insolvent, or approving as properly tiled a petition
seeking reorganization, arrangement, adjustment or composition of or
in respect of the Participating OWner under the Federal Bankruptcy
Act or any other applicable tederal or state law, or appointing a
receiver, liquidator, assiqnee, trustee, sequestrator, or other
similar otticial ot the Participating OWner or of any substantial
part of its property, or ordering the winding up or liquidation of
its affairs, and the continuance ot any such decree or order unstayed
and in ettect tor a period ot thirty (30) calendar days; or
(c) The institution by the Participating OWner of
proceedings to be adjudged bankrupt or insolvent, or the consent by
it to the institution ot bankruptcy or insolvency proceedings against
it, or the filing by it ot a petition or answer or consent seeking
reorganization or reliet under the Federal Bankruptcy Act or any
other applicable federal or state law, or the consent by it to the
filing ot any such petition or to the appointment ot-a receiver,
liquidator, assiqnee, trustee, sequestrator (or other similar
Official) of the Participating OWn~r or ot any substantial part ot
its property, or the making by it of an assignment for the benefit of
creditors, or the admission by it in writing of its inability to pay
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its debt. qenerally as they become due, or the takinq of corporate
action by the Participatinq owner in furtherance of any such action.
Sec'tion 20. Entire Aurae.ant:: Amendment:. Except as
otherwise expressly provided herein, this Aqreement constitutes the
entire aqreement between the parties pertaininq to the subject matter
hereof and supersedes all prior and contemporary aqreements and
understandinqs. The parties intend this Aqreement to be the final
expression of their aqreement with respect to the terms hereof and a
complete and exclusive statement of such terms. No modification,
amendment or waiver of any term hereof shall be bindinq unless
executed in writinq by any party or parties to be bound thereby.
This Aqreement may be amended from time-to-time as deemed
necessary by the parties hereto upon written instruments duly
approved and executed by the parties hereto. Any such amendments or
modifications shall be valid, bindinq and leqally enforceable only if
in written form and executed by both the Participatinq owner and the
Aqency after the same have been duly approved and authorized for
execution.
Section 21. Severabilitv. Each and every section of
this Aqreement is, and shall be construed to be, a separate and
independent covenant and aqreement. If any term or provision of this
Aqreement or the application thereof shall to any extent be invalid
or unenforceable, the remainder of this Aqreement, or the application
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of such term or provision to cirCUllllltances other than those to which
it is invalid or unenforceable shall not be affected thereby, and
each term and provision of this Aqreement shall be valid and shall be
enforced to the extent permitted b~ law.
section 22.
section Headinaa.
The headings of the
several sections of this Aqreement are inserted solely for
convenience of reference, and are not a part of and are not intended
to govern, limit or aid in the construction of any term or provision
hereof.
section 23.
Meanina of Terms.
Where the context so
requires, the use of the masculine gender shall include the feminine
and the neuter gender, and the singular shall include the plural and
vice versa.
Section 24.
IndAmnificat:ion.
It is understood and
aqreed that no official, employee or agent of the Agency shall be
personally liable to the Participating owner or to anyone else as to
any obligation or Obligations under the terms of this Aqreement. The
Participating owner shall save the Agency, and all parties in privity
to it, harmless from all claims, demands, causes of action, expenses,
and liability of whatsoever kind or nature which may arise out of,
because of, concerning, or incident to the performance of the
Participating owner under this Aqreement, including all court
actions, costs and expenses and attorney's fees relative to the
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Aqency beinq a party to this Agreement as may be initiated by the
Participatinq owner or any third party for any reason whatsoever,
includinq any claims for damaqes or with respect to personal injuries
on the Property.
Section 25.
Effective Dat. of This Aar..lIlent: Execution;
Term of Aareement. This Agreement shall not be effective for any
purpose whatsoever or bindinq and enforceable upon the Aqency until
such time as this Agreement has been approved pursuant to official
action of the Aqency in accordance with a duly adopted and approved
Aqency resolution authorizinq the Chairman and Secretary of the
Aqency to execute this Agreement on behalf of the Aqency. This
Aqreement may be executed in oriqinal counterparts, each of which
shall be deemed to be an oriqinal for all purposes, and such
counterparts shall constitute one and the same instrument. This
Aqreement shall remain in full force and effect until all of the
obliqations hereunder have been satisfied in full.
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IN WITNESS WHEREOF, the partie. hereto have executed this
Agreement on the year and day first hereinabove written.
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
By:
(SEAL)
Attest:
By:
Secretary
Approved a. to Form:
By:
Aqency Attorney
"PARTICIPATING OWNER"
HIGHLAND LUTHERAN SENIOR HOUSING
INC.
a California non-profit
corporation
BY:
,
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STATE OF CALIFORNIA
COUNTY OF
o
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) 8S.
)
this day of , 1991, before me, the
a Notary Public in and for the said County and State,
appeared and
, personally known to me or proved to me on the
basi. of satisfactory evidence to be the and ,
re.pectively, of the Redevelopment Agency of the City of
San Bernardino (the "Agency"), who executed the within instrument on
behalf of said Agency therein named, and acknowledged to me that such
Agency executed the within instrument pursuant to a resolution of
said Agency.
On
undersigned,
personally
WITNESS my hand and official seal.
[SEAL]
Notary Public in and for the
State of California
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STATE OF CALIFORNIA
)
) ss.
)
COUNTY OF
On , 1991 before me, the undersigned, a
Notary Public in and for said County and state, personally appeared
personally known to me or proved to me on the basis of
satisfactory evidence to be the of Highland Lutheran
Senior Housing Inc. a California non-profit corporation, the person
who executed the within instrument on behalf of said partnership and
acknowledged to me that said partnership executed the same.
WITNESS my hand and official seal.
Signature
[SEAL)
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EXHIBIT "A"
LEGAL DESCRIPTION
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10/31/91 16: 46 7l48879B .~_
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DU<ES-DU<ES & eyx.
PAGE 01
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...",. "HI raIUI OP POLICT or '!It'LK USrm,1ICI (:O,r.,....LlDD aT !'Ia' UPOR!l'
II.
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!l'IftoI S'O lAID U'lA'II mt III'l'IRI8!l' &'1 '!III DAft -BOP II VDDD 01.
BIftIIF.ll-D A9..v. Lv~-""'.lR l"IftmCII, & ~'I%~ or
CALII'ODD
'!III DDft OR DI'IIItIft IR 'ftII LUll) ....DIU'IIR DB~r8D OR
JlUDIW) '10 COftUD JI1' 'llltl aDCIl'l II.
& ru
'!III L&IID IlInUID 10 D 'l'ID' IDOR'I II lDaUSD D .. l'I&ft or
C&LlfOIUIU, COwn:t 01' lAB ....JU>DIO, UD II DUClUUD AI
~.
LO'l' 1, -.ocr 5 01' an IIIm1r\-.,e, D '1'1II Clft or lAB .-"Il.D~,
C~I OW lAB .-nlJDIO, I'l'Aft or C&LrJICmlIA, AI DR PLAt'
'~~D D IOClIt 5 or UP" ,At:I 77, I.ICClIDI 01' IUD ~I.
U~I" 'l'JIIIIDRCII DA'! JaRt'!OR DliIOIUD AI roI,tmI.
UGlD:r-. &1' 'fill DnUIC'IIOR or 'I'D cak_ LOll 01' AID JltlJlPy-o
1ftU'I wrm 'ftII _'IIIIIlLy noz,o.a'nOll 01' .. 1U'lDl.1' LID or
LO'I 3, -t<)CX ., IlIIIlIIU GIlO'Va BAC'I', Rft 11%"",\_, AI PD PLA.'I
ncoaDBD IR lOOK 11 01' UPI, ,~ 14, -WCOItDI 01' IUD coan,
'ftIIIIC3 lU'lDLy Il~ lAID CL"&"_ LDI or ~Il~ IftItft 10 I'll
:DI1'IIDC'!IOR WI'!II .. -.nL1' JIlOLORraftOR OW '!III UlDRL1' LDD
or lAm LO'I 1, ....."lI""~1 1Ov~...r.1' ~ IUD ~ UD B%D
Dl'lDL1' z,DQl or z..c. 1 10 & IoDII 'llaa'l'.'I'.M. WH'JI UD DUDIftI 273.00
PlI'I 101I.,-,,"'1101' ... lAID CL-~_ LID or .......0 nun. .......~.
nl'!Dl.1' uQIQ IUD 'J~~u,~. LID 10 IUD 8U'IDL1' IolIII OW lAID
r.ozo I, ....-~~2 JIOII~T"-"1' Il~ r.an lAID DlBllL1' s.r-. &lID D8
lIOII'fto...-.x,y "-QlQIIDOR '10 'DB .olft ow utllDbIQ.
110'1'1I. IUD LUID II ALIO ....... OR .~OI or ..'1'.1, .Ala 11,
BOOK 23, .KOGI 01' IUD ~I.
,Ala 2
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EXHIBIT "B"
SCOPE OF DEVELOPMENT
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EXHIBIT "B"
SCOPl OF DEVELOPMEnT
HIGIILARD LUTHBIWf SDIOI HOUSIlfG, IIIC.
The fifty (50) unit project will be located in a 2.6 acre site in northeast
San Bernardino. There will be thirty-eight (38) one-bedroom units, which
include three (3) handicapped unita; and twelve (12) two-bedroom unite. The
project will a1ao fsature a 2,080 aquare foot community building with laundry
room. The one-bedroom unita are aiz hundred and forty-three (643) aquare feet
in size and the two-bedroOll unita are eight hundred and twenty-eight (828)
square feet. The handicapped unita are the aame size aa the atandsrd
one-bedroOll unite and have apecial1y equipped bathrooms and kitchens. The
project ia deailned to provide a aense of aecurity to residenta and to
encourale aocia1 interaction in the courtyarda and open areaa throughout the
project. Tenanta will a1ao enjoy the feeling of privacy aa a result of
effective c1uatering and orientation of individual vieva.
Vehicular acceaa ia provided frOll Oabun load and frOll a aecondary entrance
from the church parking lot. The parking will consist of fifty (50) covered
spaces and twenty-five (25) uncovered apacea with four (4) handicapped
accessible parkina epaces. The entire project will be aecured by a
wrought-iron fence which will permit access through electronically controlled
lates.
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EXHIBIT .C.
PROMISSORY NOTE
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818 704 4729 ..
XEROX TELEcoPlER 295: 77-77-77:77:77 ?7;!.
OCT 31 '91 03:04PM ~ GREEt'\ .-;,..
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laIQO001-J1/DOC/12./ew
10/31/11 ..40
PROMIS8OaY ROTI
Rov~ , 1fti
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$2,.22,636
For value r.ceived, 1:he UDduai;ned, Bi9hland Luthuan
Seior Boueinq Ina. a califonai. non-proUt COZ'pOZ'aUon, bu.~
UDCondit:ionauy proai8u to pay to th. bclevelopaent Aqec:y ~ the
City of San hx'nudino Ith. wAqancyW) at 201 Rorth w.w 'ue.t,
T.bird Ploor, San Bernud no, california .2C01-1507 the principal
eWl. of no1: to aa.ed
TWO M1ToX.:tON NINI II1MIRED TnII'l"r-ftO DOVSUD
SIX IIOHDRED '1'HIMY-8XX DOT.T.IlRS
($2,'ZZ,636)
(th. -Loan.) with interut ther.on.
Thi. Rot. ha. be.n i8aud, aecuted and delivered in
connaot:ion with the financinq of a redevelopaant projact: involv!nq
the conatnct:ion of . fifty unit aenior Clitilee apart:.unt coapla
on c.rtain r..l property P\lZ'auent to an .;r....nt bu.tofor.
entered into by and Htwe.n the Aqenc:y and lIi.land Lutheran Senior
Boueinq Inc. (the w..uantW). Punuant to the .....nt, the
Aqenay hU a,"ed to IIaka the Loan in th. principal uaount of not
to exceed 'l'Wo llillion Nine 1lundre4 'l'nnty-'l'Wo 'l'bouaand .ix lluftdred
1'blrty-Six Dollar. (f2,'ZZ,6U) aubject: to 1:he cxm4iUon. pre0e4ent
e.t forth in the _e..nt, and the tmdueiqna4 baa .qree4 to repay
1:h. Loan a. .vidanaed by 1:hi8 Ro1:e in aClCOZ'dance wi1:h and UD4u the
teru provided in the .euant and .. bueinafter .et forth.
TIli. Not. &ball be r.paid to the Apnc:y .. follon.
(1) Upon the provieion of the tuhd. npruut:lng' the PeJ:a&nent
I'inancinq to be provided by CRl'A a. ..t forth in Sect:ion 3 of the
Aqreement, Hipland Lutheran .uior Houeinq Ino. &ball pay the .\lIl
of 'l'Wo Killion TWo llundred Forty-Six 'l'bou.ahd one Hundred Thirty-
'l'Wo Dollu. ('2,2U,U2) with inter..t ~l to the pri.. rat.
..taJ:lli8bed by Bank of AMriaa and _iatinq on the date on vbLob
th. Aqreeaant ie fully a.outed, plUII one percent (It), and (11)
u.pon . ..1., refinancing' or c!uuIq. in uea of the Project, or . .al.
of th. .togk of Highland Luthuan Senior BOWling InCl. .. Nt forth
in Section 3 of the Aqr...et, Highland Lutheran senior Houeing
Ina.lIhell pay th. .WI of Six Hundrecl seventy-six ThOWlan4 I'ive
Hundred Pour Dollare (,.,.,aOC) with inter.at at the rata of
pUClet (_') per annWl frea the date th. perun.nt Loan 18 fundi!:"
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XEROX TELECOPIER 295; ??-??-??;??:????;
OCT :31 '!OIl 03:05PM ~& GREEN
SIS 704 4728 ..
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'l'bi. Hote ..y a paid in WIlole or ill ,art a1: anl tiae
prior to 1:Ile aaturity date bereof at 'the oPtion ot the und..ivned
and without any penalty or pz'aiUll vhateoevu due .. e .1'..U1t
tbezoeot, pzoOVided, b0W8VU', that any .uab p.~1: 01' pa,...,.te ill
part .u11 not po.tpone 01' delay the l'...iniJs9 pzoinaipal payunta
due and payoUle bezoeunder. Any neb partial prepayunt. llball a
CZ'edUed and applied towud. 1:Ile Un,aid prinoipal balanc..
All payaen1:. ot ,rinai'al and intere.t on t:hi. Hote .hall
be ..d. in lawful Ilon.y of the united .tat.. of barica ,ayul. to
tbe Ag.ncy at the 'an Bernardino Jtedevelopaent Avency, 201 Hol'tb
.Z. .treet, 'l'bird Ploor, Ian Bernudino, californIa '2401-1107.
If a default in connection with the payaent of the
principal of tbi. Hate Mall bave OOCUl'I'ed and 'thia Hote 8ball bav.
been pz'Hentad to an attorney for coll-=ion, or if .uit 18 filed
hereon, or pzooceedinV. are had in bankruptcy, pz'obate,
reoeiver8bip, l'eorvaniaaUon, Ul'anpunt or other jucl!oial
proceeding. tal' 1:Ile e.ta1:Jl1lJbMnt or collecUon of any .-aunt
raczu!red bereundel', OZ' any .-aunt payable OZ' to be payable
bereunder 1. collected tbr:OUfb any neb prooeediftvj, the
under.ivned a;ree. to pay to 1:Ile bolder bareot all 1'e..OIlable co.t.
of collection includinv, but not li11ited to, attorney'. f... and
expan... and all co.te of any 189&1 PZ'OCeed1Df.. U an event of
default ahall have OOCUl'I'ed hereundezo or under the .eeaent or th.
principal and accrued intere.t 18 not tiMly repaid to t:he bolder
hereof, the principal and accrued inter..t than due and payable but
WIlieb ia delinquent and b.. not .0 Man paid by the undezo.ivned
ahall au intue.t trea the data auab pa~t w.. due on 1:Ile total
papant aaount than due and owiDf until paid at a rata per annWl
lI(J\Ial to the auk ot Alladca, ..'1'. . I.A. priM rata, a. .tated by
.aid bank a. of 1:Ile date any portion of the P1"QOaada Of the Loan
are .ubII.lttecl to 0WIlal'.
'l'b1a Hota i. Hcund by a Deed of Trut .xeouted
oontaporaneoualy berewith and the AlJenay i. entiUed to the
ben.tit and .ecurity Of the Deed at 'I'1'uat. The obli;ation of the
undezo.ivned to Uke or pz'ovide for the payunt raczuired bereunder
.u11 be abeolute and unc:Onditional, and 1:Ile underalvned aball aaJce
or provide for .uab payunt without abataaent, dillinution or
deduction r&CJar41... of any cau.e 01' C!rCWlaUnC.. vbat.oever
inclucUng, without l1aitaUon, any defena., .et-ort, reCO\lpllent or
oountezoclai. WIlich the under.ivned ..y ha.,. or ...art avdnat th.
A9Mcy or any other per.on.
the underai;ned an4..aU bclor.en or fUU'antor. bereof
expre..ly waiv. daund and proe.entaent for payunt, notiae of
nonpayunt, proot..t, notice at ,rot..t, notice of diabonor,
bdnCJ1n9 of .uit, and d1li;enae 1n takin, any action to collect any
..ount. called for heroeunder and in the handlin; of prcIpaRi..,
ri;bt. or collateral at: any tiae ai.Un, in oonneotion benvit:h.
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XEROX Ta5:!:'Y.'!!:R 295: ??-??-??:??:?? ??:
OCT 31 '91 03:06PM SOl GREEN
818 704 4729 ..
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O It the pZ'e.ed_d elate ot payaent hereunder b a .aturelal>'
OZ' l1ancSay OJ:' l~al holielay at the location ot tile pZ'iJlo1pal otfice
of tile Ataay, .UGh pa,.at .ull _ due aM payable on the Jlext::
.uooeed1ri9 bU8ine.. day.
'1'hi. Hote ha. -en i..ued, executed aM claUvued in the
lUte ot CaUtomia and .ull be vovemed by aM GOft8tZ'ued in
aOCOZ'CSanoe witll the la". ot the .tate of CaUfozonia.
Dr wrl'JfUI WHIRBOr, tbe unclerd;ne4 ha.... eauHd tIli. Bote
to be exaouted a. of thi. day of , 1"1.
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Hivh1ancl Lutheran laioZ'
Bouing Inc. ~a caUtOZ'ni.
non-pz'otit Cozpor&tion
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EXHIBIT "D"
DEED OF TRUST
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laID/OOO1-ll/DOC/IIO/..
10/n/t1 .,41
UCOlU):nrc DQ'C7ISHD BY:
bdevelopunt Agency of the City ot San .ernucUno
WIlD RlCORDJm XA.IL '1'0:
8AIO , -.."
A Prof...iOnal Cor,poration
1320 canota .Avenue,
Suite 400
Woodland Bill., California .1317
(lpaa nove for bco&'der'. U.e)
~~ OJ' Il'1IUStt AIm ..IJAYCIIiftN'l' 01' ......,
'l'hia DUD OP TRUST AND .A8SIomoarr 01" Rlll'rs (hereinatt:e
retvred ~ a. .uab or .. the "Mort,alJe"), ent:u'ed lnto on ,
1191, by and between BII:IIT.&JfI) Ltli-"~ 'DIOJt BOUSDlQ DIe. a
Calitornia non-profit COl"JlOraUon, (hereinattU' refUTed ~ a. the
.lruator.), Wbo.e addre.. 1.
(beelnan~ refUTed to as the "'lTuatee-) and the bdavelopaent
Agency of t:M Clty ot .an Bemudino, a pu!tlio body, OOl"JlOrate and
politic (bU'einatter referred ~ U the .Benefioiary-).
WIT..'88TH:
t:'DI.l''''TNC t!T J1.U..
. 1.1 ar.ft~. To Houre the full an4 tiaaly payaent of
the Xnc!ebtecsn... ancl the full ancl U..ly partonana an4 di.cbar9_
of the Obli,atlon., the 'lTuator has COllVlYID MD 1WUWrlJm, .ncI by
the.e pr.....u doea CON'VU ARD WAR:RAN'1', unto the lruate. the
MorQa9ed Property, a. defined bvein, .ub, eat , bowever, to the
PenJ.tted JInc:luaIm:~., a. elefine4 hU'ein, '1'0 8ft MD '1'0 BoLD the
XoZ"t9a,ed ftopez1;y unto tbe Truet.., foreve, and the lruator 40ee
bU'sby bind b1uelf, hl. .Ucceaeor. and ...1p. ~ werrant and
forever d.fand the tine to the MortCJa9ed Propeny unto the lruat..
alJdnet every par.on whOllllosver lawfully olaiaiDlJ or to data the
.... or any p&z't thereof I provide4, boweve, that 1t th. Tru.tor
.hall pay (or cau.e to be palel) the Inclebbc!nu. a. and wh... the
.... .hall beccaa due end payable ancl .hall pefon ancl eli.chelJe
(or oau.. to be performed and dl.Cbaqe4) the Obli,aUona On or
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XEROX Tal:COF,CR 295 l ??-??-??l??:????l
OCT 31 '91 03:0?PM sO & GREEN
818 704 47~
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atore the date .... are to a pertozoaed and 41.c:har9.d, then tha
l1ena, aeourlty inter..t, ..tat.. aM Z'ight. 9l"ante4 by the Rot.,
.. detined ber.in, and thi. KORP'. aball terainat., ot:herwia.,
.... ahall r...in in tull torce and etteat.
ARTICI:oZ II
D2lPIJn:TrOIfI
:I.1~. Aa uud berein, th. tollovinv t~
.all bave the followinv lIUJlin,.. .
"......t" &ball Man th.t carta in Owner Participation
.eaunt dated .. ot , un by aM betveen th.
Jledeve10paant Apm:y ot tlt. City ot San Jlernardino and Biplanes
Lutheran .anior aou.ing Inc.
"Beftet1oiary" ahall ..an th. Red.v.lopaant Agency ot the
City ot San hrnardinO, a publ1c body corporat. and politic, or any
.uooea.or or ...19ft.
".uilding." ahall Man any and all buUdin9a, open
parkinv ar... aDd 0tbU' iIIprov...nt., and any aM all additloM,
alter.tiOfttl, OJ: appurtananc.. ther.to, whiCh ..y a .1tuate4 upon
th. Land, .. detilied bar.ln, att.r ooapl.UOIl ot the Projeat in
.ccordance with the provldoM ot the ..aant.
"City" &ball ..an th. City ot Ian Bernardino, Calitornia,
or any .uco...or.
"BYant ot Detault" &ball ...n any happening or OCClUZ'ranca
d..cdad in ~icle VI bereinbelow.
"rixtur.." &b.ll.un aU..t.d.l., 8Upp11.., aquipaent,
.pparatu. and othar itau whiCh ahall be attaabed to, inatalled in
or u.eel in connection with (taporarlly or paraanently) the Land or
any aUUdinv. whiab ..y be er.ct_ in aoool"danca with th.
prov1aiOfttl ot the .....nt.
"aOVarnaenta1 Authority" llhall ..an any and all court.,
boarde, avanei.., 008i..ion., ottice. or authoriti.. ot any nature
What.cav.r' for any VOYanlllantal unit (teeleral, .tat., county,
cU..t:riot, lIWlioipal, clty or othervi.e) wh.thar now or her..tt.r in
exi.t:ance.
"%mpo.ition.. &ball ..an all r.al ..tate and per.ona1
property tax.., water, 9a., ....r, elaGtrioity and other utillty
rate. aM cbarge., charve. tor any .....ant, lioena. or agr.emant
..intained tor the an.tit ot the Mortg.,ed Property, and all Oth.r
tax.., ob.rg.. and ......lIant. and any intar..t, ocat. or pana1U..
with r..p.at th.r.to, ot any kind and nature wbat.oaver which at
any till. pdor to or atter the execution bareot ..y be .......el,
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OCT 31 '91 1213'0EIPM 5AE() GREEN>
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818 704 4729 +
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levied 01' ~ed upon th. lIoZ'1:9aIJed Pl'opeRy OZ' t:b. ltenb, ..
d.fined bueln, or t:b. ownuellip, a., occupancy OJ:' enjoylMftt
ther.ot.
-lnd~edne..- llball Man tile pzo.lnaipal and all otbv
aaounu, paYIIUt. and pr..i-. due Wldv and .ea\II'ed "'Y t:be .ote
and thi. Montav..
-Land- 8ball Mall tile 1'..1 e.tate OJ:' intva.t: tIler.in
de.cribed in Bxhibit: -A- .tt.Cbed bal'eto, and all righb, tit:l..
and intve.t appUZ'tenazat: thereto.
-Leaa..- llball MaD any and all 1....., .ubl.....,
licen.e., oonce.aiona 01' other .VZ'eaenu (vrit:bn 01' verbal), now
01' hereinatter in ettect wiCb VZ'ant a poa...aOZ'y int:er..t in and
t:o, 01' th. 1'1ght to uae, tile lIoZ't9a,ed PI'operty, ..va and qoept
any and all 1....., .ubl..... 01' otllv avreeaent:. pu.uant: to Wbic:h
the 'l'rU.~ 1. fl'anbd a poa....OI'y intere.t: in tbe Land.
-l.efal blil\lil'aent:a- aIlall Mall (i) any and all pl'..ent:
and tutue judicl.1 deoi.iona, .tat:ut:u, I'\IliDta, 1'\11..,
refUl.tlon., penaiu, cwt:ltioate. or OI'dlnanc:e. ot any
Governaental Autllority in any vay .pp11oOle to tIl. 'l'ru.t:or or th.
Xol'i:,a,ed l'ropaZ'ty, .lnaludiDf the OVDaI'.bip, ae, occupanoy,
opvatlon, uintenance, I'epail' OZ' reaonatl'uct:ion th.r.ot, CUI t:be
'l'rUatOI". pl'e.ently 01' .w.eCI\&A~~~ effective byla.. and art: 01..
ot incorporation, partnerellip, 1 bd PAl'tnaZ'aJllp, jOint: vantua,
tl'Uat: OZ' otller tora ot ..iNi.. a..oaiation (it eithv, both 01' all
be any ot ....), (ili) any and all Lea... and (iv) any and all
Lea... and othv DOnt:ract. (vritten OZ' 01'.1) ot oy n.tue by Wbic:h
the 'l'rUator OZ' any fUUantOZ' thereot MY be holancl.
-JIort:,a,ed I'roperty- llball .an the Land, 8ulldiDf.,
r1xtur.. .. detined herein, and Itenta totethal'vith (1) .l1ri9ht.,
pdvll.,e., teneaent:., heredltaaanb, 1'1,bu-ot-vay, ".Dent.,
appenda,.. and appurtenancea in anyway QPWtainint ther.to, .nd
.11 rl,bt, title and intv..t of tbe 'l'rU.tOI' in and to any .tr..t.,
vay., alley., .tI'ip. 01' 901'e. ot land adjOining the Land 01' any
part t:bVeGfl (11) all edcl1tiona, app\lZ'tenazac:e., .uIletit:uUon.,
r.placaenu and I'evvaion. ther.ot and tber.to and all I'everaiona
and r...1ndv. tIlV.in, (Ui) all ot tbe 'l'rUatOI". right, Utl. and
inter..t in and to any avard, .Vard., I'eauneration, _ttlaenu or
OOlDpen.ation har.t:otore llade or bv..tt:ar to be uete "'Y any
Goval'ftlMllltal Authol'iq. to t:be preeant 01' any ..u.eII'lant 0VIl8l" o~
the Land, Bulldinfa, I'ixtur.. 01' Pv.onalq., inoludiDf tho.e tor
.ny vacaUon ot, 01' Cban,e of fl'ade in, any .tI'..t. atfectint th.
Landi and (b) any and all other .eourity and collatval of any
nature Wbataoevw, now 01' ber..ft.... ,1vu for the npayaent of t:b.
Indehtedn... OZ' t:be pvtonanoe and di.obarte of tile Obl1vationa.
Aa a.d ber.in, tile t.n wlIol'i:,.,ed Propvtyw 1lba11 be expr...ly
detined .. ..n1n, all, or were the context penait. or requir..,
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XEROX TEl..ECOPIER 295: ??-??-??:??:????:
OCT :31 '91 03:08PM ~ GREEN, ....--
BIB 704 4729 +
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C' any portion of th. Uov. ud all or, *81". tJla aont.ft pan!ta or
requIr.., any intu..t th8l".in.
-.ot.- all.n Man tJla ft'Oai..OJ."Y Hota, datad a. of th.
data hvaot, exaouted by the ftuatOl" ud ,.yabl. to the 01"481" of
the aen.Ua1uy 1n the pZ'ino1pal UlOWlt of not to acelld, '1'Vo
K111ion H1n. 1l\mclI"-S Twenty Two 'l'houud au BIUldI"ed !l'h1rtY-lix
Dollar. ($3,.33,.34), and payable .. prov1dad t.heI".in.
-Ob119aUona- ahall Maft any and. .11 of tJla oovenant.,
V&ZTant:1.., r.pr..ent.tion. &nd oth8l" obl19.Uona (oth8l" than to
r.p.y the Indabtlldn...) ..d. 01" undertaken by the ftuator 01" ot.hel".
to the aan.Uaiary, the ftuat.. or other. .. ..t forth in the
..eunt, the Hot. and thi. IIorqa9..
-P.l'Il1ttlld lncnuIbranc..- ahal1 Man the outatand1nv
lien., ..Iaentl, r..t:dationa, 1.0U'1ty inter..ta and oth8l"
..tt8l"1 (1f eny) .. peZ'aittad by the AgZ'aeunt and the 11an and
..c:uZ'it:y interuta or..tad by th. Hota ud thi. IIorq.,..
-Project- aIlal1 _an th. oonaUuc:tlon of a f.l.tty UftU
lenior 01 th.n. a,a:rtllent ooaplex on the Land to be UunCad in
part with the Loan 18ClU'ed by thi. IIorq.ge and a. IlOl:. flllly
d..cr1bad in tha ....ent.
-Rentl- ahal1 _.n 811 of the rentl, ravanllu, incoaa
,rooaedl, ,roUte and. other benaUta paid 01" payable by part1.. to
tile La.... other than the 'lTutor 01" uinv, 1...1ft9, l1oana1ft9 ,
poa....ift9, opuaUng troa, r..iding in, Hllift9 or otharv1.e
anjoy1ft9 the 1Ioz'tf.'Iad Property.
-Stat.- 1ha11 Maft th. ltate of Ca11fomia.
o
-Truat..- lball Maft
01" J. te I"aoulor..
w1'nl.tor- lhall Man BiO'hland loIItheran lanior ~il\'l
Inc., 8 Cal1fomi. non-proUt OOZ'pOZ'aUon 01" it. I\lOO...or.
2.2 ~. WIler. the aontaft 10 requir.. tJla
ua ot the ...oul~lhall lnalud. tJla t_inin. and ftallt8l"
'lander., and tJla .ift9\llU' ft''''hv: ahal1 1nallld. th. ,lural and viele
verla.
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2.3 'l'lu. ....u~. 'lb. t1t:l.. .nd be.din9. of the
~iol.1 and Sect10D of th .. ~9. bav. bean 1naertad for
conven1.nee of r.fal"aft04l only and are not to be aonlidulld a part
h8l"aof and lhall not in any way IIOdify or n.triat any Of tJla t..ru
or ,rovillona bar.of ud 1ha11 MYV be aonald81"ad or 'lIven .ny
atf.at in conatru1ng th1. KOrqage or any ,rovilion b8l".of or in
..certalnineJ intent, 1f any ",.IUon of 1Dtant ahoIIld eri...
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AIl'1'%CLB III
.lI!D1tl:llb'I'A'I'YOH. AND V.".'dI'l'.t..
I'ba ftUtor herO, UDaOnditionally wananb Ut4
repre.anb ~ tIla aenefioiar.r:..:follov..
3.1 . VaUd!t:v D~ ",an r~t"'_.ftt.. 'IIle Rote Ut4 thb
Kortta,a OOMtituta tha leval, valid and biniU._ -ligation. of tIla
T1'\a.tor and other. _ligated undw tIla teZ'llll of the R~a and tIli.
Mortga,a, in aOOOZ'4&na with thair re.pecUYII t.....
3.a 'l'i~l. ~e lIefteraqM ltrllm.~ an4-JJ." er ~~
rn.trumant. 'rIl. T1'\a.tor b. ,ood Ut4 aarketabla Uti. to the
Land (in t.. .1IIpla), fr... &ftcS olear of any liana, oIl&rqa.,
anO\lllbz'anoe., ~ity interub and acSYllr.. claiu vhaboever
excapt tile PenittecS InC1Ulbl:ano... Thi. lIortta,a conatitute. a
valid, .ubebtill9 dMcS of tn.t on tile Land in .ooorclanae witll the
~ hereof.
UTtCLB IV
APPrlUATrVII eoVEIIAHTJ
o
I'ba ftUtor hereby WlOoncUtionally aovananb and .gre..
witll tile aenaficiary .. follow..
4.1 P~".ant aftd Per~DrmandA. Th. T1'\a8tor w111 pay tile
IndalltacSna.., .. and wilen called for in tile Rob Ut4 thi. Mortga,e
and on Or befor. tile due data tIler.ot, and w111 parfon all of the
Obligation. in tull and on or befora tIla dab. .... era to ba
pazofOJ:'lllllS .
4.2 l!mImUaftaA 1(~th T--l f~tr--..t~. ~ 'l'l'uator
w111 p&'OIIptly and faithfUlly cOllply w tIl, ocmtona to and obey all
pr...nt and future t.egal Raquiraant..
o
4.3 PaYlllaftt D~ r_~~UDft.. 'l'Il. ftu8tor will duly pay
and di.ahu9., or oauae to be paid and diac:llU'9ecS, tile IItpDdUona
not later than tile dua date thereot, or tile day any fina, penalty,
inter.at or OO8t ..y be added tIlw.to or !llpoaed, or tile day any
lian ..y ba tilad, for the nonpayaent thereof (1t .uch day ia uaed
to d.tan1ne tile due data of the re.pact1Y11 it..); provida4,
bowever, that the Tn.tOI' ..y, if peaittad by law and if .uab
in.tallaant payaant would not create or peait t!aa filing of a lien
a,a1n.t the KoZ't,aCJad Property, pay tile tIlpoaitiona 1n 1natallaanb
whether or not intarut ahan aoane on tile unpaid balance of nob
Iapo.itiOM.
. · 4 RaDair. 'rile T1'\aator w11l k.ap. tha MoZ'tCJa,ad
Property in CJood oondit10n &ftcS rapair.
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4.1 In.ur~no.. !'o the eftent not: iJI aonf1iat with
1:h. iuU'UlOtI reqW.J:'aunu of an,. lander PZ'ovitift9 aIlJ' fon .of
can.tzouct:ion .or pu'lW\ent fiJlancift9 with r..peat: t:.o the lfol'tva,ac1
Property. the 1TwIt:.ol' w111 obtain and ...inta1n 1n.U'UlOtI upon and
r.lat1ft9 t:.o the Jlal't:9a,ed Property iMUl'1nv a,aiMt: pareonal iJI~Ul'J'
and d.ath, 1_. ~ fir. ancI .uOb ot:bu ba.Uda, auualt,t... and
conti..anoi.. a. ar. n.ona11,. and \18\1811,. oovveel by axt:en4ac1
oover&9. po11oi.. in .ff.ct: in the lut:a an .ucb other d.u .. ...,.
be .pacifie4 bl' the Benetioiary, fro. tiM t.o tiM, all in euob
aaaunt:a and with euOb IMU'w. .of raC09ftiled 1'..ponalbUit,. a. v.
accaptabl. ta the Ben.ficiary.
4.' :rn"I).~iftn. 'l'be 1TwItal' will panit the 1TwIt..
and th. .....t1ci.l'J', and th.ir allanu. npJ:'eHftt:aU".. and
aaploy..., ta 1Dapect: the JIol't,a,acI Pl'opart,. at all I'...anable
tJ.Ua.
4.7 ~ 1la"""1.... Upon an bent of Default: bel'auncIu' Ol'
under the "aunt, tha '!'natOI' wl11 hava the _11,at:ion t:.o dafand
and hald the Ben.ticdary hal'a1... to the ut:ant .. pzoovichcl iJI the
..aant.
4.1 Im::.--n+.. 'l'ba 1TwItor will coapl,. tully with
and pwfOZ'll eaCh and all .of hi. CO'Vaftanta, _U,aUon. and
a9l'euent. .at fal'th in the AlJI'aaant.
AR'l'ICLB V
N1P.t!1.'l'rvIr ~&N'l'&
'l'b. 1TwItOZ' hereby' aovuant. and agr... with the
"ef1ciAl'J' that, until the entizo. InclUt:acInu. llball bave bean
pdd in full and all .of the Obli,atiou .ball baY. bean full,.
perfonad and dl.ClUl'9ac1l
5.1 n.. Viel~t~. '1'ba Tl'uator will not: ...,
..iJIt:ain, operata 01' ocC\lP)f, .or all_ the .a, ...iJItanance,
aperatian Ol' occupancy at, 1:h. JIol't,a9acl PI'opart:y iJI an,. lIIUUlar
whiOb (i) vialatea en,. taCJal Raquiraant,' (11) ..y be dantel'ou.
unl... .at~ .. I'aquiracl by la., (111) exmatltute. . publio
.01' private nut.anae Ol' (iv) aaJc.. void. voidable 01' aancelula, .oJ:'
lncr..... the pr_iW18 .of, an,. iMUl'UlOtI than in farce with r..peat
1:bareta.
5.:1 w..+.~. 'l'b. '!'natal' will nat OOlIIIU .or pendt any
wa.te .of the JlOl't:9aCJacI PZOa~.
5.3 l'ur+.h.r En...."'lo...nca.. '1'ha '1'rIlator viII nat
cr.at., place .or pal'Ilit t.o be cr.atad .or placed, or t:hz'outh aIlJ' aat
OJ:' failU'a ta aot, acqui..ca in the placl.. Of, .or all_eel ta
r...in, any aortCJaCJ., pled", 11an (etatutol'J', exmatitut:1onal .or
contractual) , HCUZ'it,. inter..t, anCl1DlJ:lranca .or ClUl'9a, or
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conditional .al. 01' othv t1tle Z'.tentlon alJl'MMnt vb1_ ..y 1n
any way GOIlpZ'oai.e th. Z'ighta Of th. aen.fiCl1azoy uncIv tIlJ.. Deed of
Truat.
I... Me ..1.. I!llr Milar 'l'r._~.I:'.. Ix~.. ot:bezowi..
pZ'ovJ.dad 1n laotion 3 of tile .......t, tile TruatoZ' will not ..11,
tranatel' OJ:' otlle:rwi.. di~ of th. Jronva9ad hoputy pdOZ' to
th. Z'epayaent of th. Ind.btednu..
U'l'ICLI VI
ZVJ!NIrtI 0,. DD'a.m..'1'
'lb. tent -bqt of Default-, .. uad 1n t:be ~e and thi.
KOZ't9a9., Ithall Man th. 00CNn'en0e OZ' bappeninv', at any t1.. and
fZ'OII tiM to tbut, of eny cme 01' 1lOl'. of tile followintl .
'.1 Par-.m: tJi~ ~nd~.""..., It the Tnator .ball taU,
I'.tu.. 01' Nl91ec:t to pay, tIlll, th. Iadebtedn... a. and When th.
.... ahall bee... due and paY.l., whetbel' at the due date thv.of
at.lpulated in the Irot. and th1. Kortgage, OJ:' at a elate fixed for
Pl'.payaent, 01' by acoalvaUon v othezow1...
o
I.a
Detault ahall
.....nt.
"'~.ult!. Uftdar 'l'h~ &ara_ant. If any "'.nt of
OGO\IZ', .. the.... . defined 1n laction U of th.
1.3 . It th. holdv of any
u..n 01' ..CNZ'1ty tv..t on the lIoZ'tgafad hopvt:y iMtituta.
fozoeolCHIve v Otbel' pl'oceed11lf. tv th. entOZ'o--nt of it.
Z'aed1.. ~v.
AIl'1'ICLI VII
R1P.MI!nU!8 tJPOK nl!N'JOll 01' Dl!:n~1'
. . 7.1 1I-.aa. It an bqt of Default ahall DCIClUZ', th.
Ben.tioiazy ..y, at the aanat101&I'Y'. elec:tion and by ozo tlu:ough
the TZ'wItee 01' othe:rw1.. exvc:1a. any OZ' all of the tollowill9
Z'ig'bt., 1'...41.. and reoourau:
(.) Aaa.l.r.~lDftl Declar. the pl'incipal balance,
and eny aClaZ'\led but unpaid poz1:10n of tile IndebtedM.. to be
1aecliately due and payabl., without fUZ'tbu notice,
pZ'..antaent, ,Z'ot.e.t, d...nd 011:' aation of any nature
whataoevell:' (..ob of Whl_ bvUy 1a upzo..a1y waived ~ th.
'l'ruatol'), Whv.upon th. .... ebal1 baOOlle 1-.<<1at.ly due and
payable.
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Ca,) b~rv eft lIeftmacrad Izc".~, Dlt~ upon ~.
~av.4 Property ancl taka uol\laiv. po.....ion thereot u4
of all book., reool'cle ancl aoooun1:. 1'.1at!nv ~.to.
Co) ODara~ 1Ift""''''.SM ~: ItAId, ~,
unave, operat. 01' ot:liiftbe uae 01' panalt the uae ot ~
lIol't9avecl Propez1:y, .1~~ it..lf 01' by ot:beZ' pe&"8OM, fine
or entiti.., in .\l0b UJUl~, fol' nOb tiu and upon neb ot:beZ'
t8Z'U .. the lenef10iary ..y de.. to INa pndut and haaonabl.
Uftdar the cil'ouutanou. Apply all Ranta and otbar aaoun~.
colleotecl ~ ~ TZ'wtt.. in connection ~arevlth in aclScmlanca
wl~ ~ provi.ione of Section 7.7 "low.
Cd) per.ole.!:..nd aa1.: ..11 or Offar for ..1,.
~. lIol't9a,acl Prope~y nab portion., ordar ancl plll'Oel. ..
~ Benefioiary ..y dat.l'Iline, .i~ 01' .ithol.lt bav!nv fil'.t
taken poa....lon ot ...., to the bitbaat biddar at publio
auction. Any .\l0b auction' 8ball H ocmcluotacl puaoauant to
.ection. 2.24a-2.240 and 2124f-ata4b of tba CalifOl'Dia Civil
Coda.
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C.) 'l'ru.~_ -- lIal!.taE: Upon, 01' at any ti_
after, ~ftClq.nt of foreoloe\IN of tba lien and .lICQl'Uy
inter..t provi4ecl fOl' bar.in 01' any laval prooaa41ft9.
bar.UDder! IIake application to a 00Ul'1: of "OIIpetent
juriadict on a. a uttar of .tdct right an4 without DOtlca to
the TZ'wttor 01' r..,al'4 to the adequacy of the lIoZ'tIJaga4
Property for ~e I'epayaent of th. In4.btadne.., fol'
appointMftt of a reo.!".. of the XortgaVed Pr~y and tb.
'1'l'uatOl' don b~Qy il'reVoc:Oly ooneent to .uab appointaant.
(f) M1I.~1 JIX.l'Gu. any and all other dght.,
l'-.4i.. and heoul'OelJ vrantad Un4al' tba Nct. and thi.
)(ortgav. or now or bal'eattar uuting in equity, at la., by
virtua of atatuta 01' otbel'Wi...
7.a ..-....~. Sa1... '!'be MortgaVed Pl'op~y ..y _
sold in one 01' aDl'. peI'O.l. and in auClb UIU\U' and Ol'dal' a. th.
Tru.t.., in ita eol. dJ.8Cl'.tion, ..y .1ect.
~ . 3 ......~.. CUllula~f v.. t!cncuyaftt ~ Nan-
Ib(oluaiva. '!'be Ien.noiary .aU bave aU I' gIlta, p--41.. and
1'.00\11'''' lJI'anted in the Note and thi. Mortgag. and .va11abl. at
law 01' aqu1ty and .uob I'...di.. 8ball H non-axolua1ve.
o
7.4 ..1.... e. aI'UI Ila.~ ~e l!811.t.aral. The
Benet1ciary ..y 1'.1...., l'agUdl~ ot oonaldaration, any part of
th. IIol'1:9aVa4 Property without a. to the raaindar, in any .ay
iapairlnv, affectinv, .UOI'clinat1nv or l'el"'in9 the lien 01'
..curity 1nt~e.t oreated in 01' avidancad by tba Nota and this
)(onga,..
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7.5 .aivar ef .--~t.eft. ~aa a"d 'Ila...~lli"llI Of
b.ah. '1'0 th. tull..t .xtant para ttad by law, !l'z'Iaa~E'
h.reby in.voaably and unconditionally vaiftl and E'.l..... (1) all
_n.fit. that al,bt accna to th. TruatOZ' by vUtua of any p&'uant
OE' future law axaptln; th. Ifol't;a,.d h'op.RY fftlll atbchllant,
l.vy or ..1. on ax.ouUon OZ' pl'OVld1n; fOZ' any .Pp&'d....nt,
v.luation, .t.y of execution, .xaaption froll clvil proa...,
E'.dallption OZ' .xt:an.ion of tiM foE' payunt, (11) all ,,"loa. ot
any Bv.nt of Default (axc.pt a. lIay be provi4ad fOZ' in laction 7.1
abov.) or ot th. 'l'ruat..'1 .l.otion to axvcia. or it. actual
axerel.. of any rl;bt, raady or E'.COUZ'H p&'ovlded tOZ' Unclv the
Not. and thla IIoRP9. .nd (lU) any dght to a Il&E'HalliftlJ of
....t. or a .al. in Lnv.r.. oE'der of alienatlon.
7.1 ni.~on't.i"ua!)ae Df Proa~. In C&H th.
aan.t1oiuy .ball have pE'ooeadad to nvoke any &'lght, Z'e1I12a o&'
reCOUZ'H paraittad unde th. Rob and tbi. JIol"tlJ... and 11
thereattv el.ct ~ dlaoontinua OZ' abandon .... fOZ' any r..aon, the
aaneUoluy Hall baft the uqual1tiad rlgbt to clo eo and, ln Rail
an .vant, the 'l'ru.tOE' and the llanet101ary aball _ re.tOZ'acI to
their f~ poait1ona wlth &'..pact to the Indabtadnaa., the
01:l11,atlo"., th. !rob and thla Ifol't;ag., tha JIo&'t:9a,ed Propa&'ty and
otha&'Vi.., and th. dght., &'....,,1.., I'.OOUZ'... and power. of the
Ban.t101uy aball conUnua a. it .... bad n.vu _an lnvoked.
7.7 .a.peliaaUDn Dr Pree.... The P&'OCl.ada of any .al.
of, and th. bnt. and othu aaount. ,enerated by th. bolcU.n;,
1...1nq, operaUon OE' othu u. of, the IIoRta,ac1 Propal'ty 1Ih.1l be
applied by the aan.ticiuy (OZ' th. receive, if OM ia appoLn't.acl)
to the extant that funda are eo availalll. tIleretroll in th.
tollovln; oE'de of priority:
(a) t1r.t, ~ th. par-ant of the co.t. and expe...
ot 1:akinv po.....lon of the MoRta,ed koplRY and ot boldin;,
Ulint, 1.a.ln9, I'epdrint, tQrovin; and ..11inv the ....,
lnoluding, wlthout lWi:atlon, (1) the trut..'. and
r.oaiV&&'.' t..., (U) couR co.t., (lU) .t~rney.' and
aCOO\llltanu' f..., (iv) coata ot advaRi.eaant, and (v) th.
payaent ot any and all I..,.itiona, liana, Houdty in1:eh.t.
or othar ri;bt., titl.. or inter..ta equal OZ' .uperiOZ' ~ tha
lian and .eOUZ'1ty int.rut of thi. MoR9a,. (axoapt tha. to
Which the JloR9a9.cS Property baa bean .old I1mjaat ~ and
wlthout in any way iap1ylnv th. laneUCliuy'. p&'iol' OOftHn~ ~
the creation thv.ot),
(b) HCond, ~ the payaent of all aaount., Oth.r
than the principal J:aalanaa ot the Indut.cSDa.., which uy be
clu. ~ the ..n.f1oiary Uncle the Kote and tbb IIort,a,.,
(0) third, ~o th. payaent ot the outatand1n9
pr1nolpa1 balanoa of the Indebte4ne..,
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Cd) fouth, to the ~.ftt fUftda ve available
therefor ou1: of the Hle pl'oceecS. or the "n1:. and, 1:0 the
~eftt: JuIown ~ the BaIlefied.ary, to the payun1: of any
1nc1ebtedne.. or obU,atlon .aoure4 by a .Ubordlnau deed of
Uu1: on or .aourUy 1n1:v..t 1n the lIOZ't:9avecl .r~y, and
Ce) fifth, to the ftUtor.
7.1 II&2tJ.a t:n t:h. Aa_IIIW. '1'he Beneficiary &ball ,iv.
prompt: wr1tten notice of any lvant of Default: Uftder ArUcle VI
hereof and the ruedy takan pur.uant to .ection 1.1 hereof.
AR'l'ICLI VIII
..... \ I t ~ ~ I" .J \.
1.1 c."-Ql. "'..IU.ately upon Uta1n1nv bovlacSve cf
the inatitution of any prooead1nv for the ooncInnat1on of the
McrtpVeeS Proputy, Other 1:IWIa aondanation 1nitiaUd by the City
or the Benatlo1uY, the 'l'rutor ahall vive vdtun notice to the
ftUt.. Ud the BaIleficiary of euch fact. '1'he ftu.tor &ball then,
if reque.teeS b.r the a.neftoiary, file or defend hi. olat.
thereunder end proaeoute .... with due d11i'8D08 to ite final
di.poaUion aDd &ball aue any awarda or .ettluat. to be paid
over to the Beneficiary tor dt.pc.Ulon pur.uant to the 1:UIIa of
th1& Mortta,e. If the lIort,a,ed Property i. Uken or di.t...iahecl in
value, 01' if a conaent .ettlaent 1& enterecl, by or under threat of
neb proceedi" the awvd or .ettlaent payable 1:0 the 'l'rutor by
virtue ot M. nter..t 1n the lIori:;a,eeS Property &ball be, and by
th..e preeente 1&, ...igneeS, vanafured Ud .et over unto the
Beneficiary to be held by it, in trwIt, .\abject to the 11en and
.eourity i~..t of thl. MOZ't9a,., and di.burMd .. the inter..t.
ot the partie. &hall appev.
AR'l'ICLIl IX
eoNcmuttNC TIm 'l'ROl!l'l'J:J:
'.1 _0 Lia~Uit:y. '1'he ftUt.. &hall not be liabl. for
any error of jUdpent or act done by the Tna1:ee in .004 fdUl, or
be othel'Vi.. l'e.pona1bl. or acc:ountable \IftCIer any oirCNIUtanoe.
Wbat.oever, except: for the rn.tee'. nevU,enoe or bad taith. 'l'he
'l'ru.tee &ball not be per.onally liable 1n aa.e of entry by it, 01'
anyone enter1nv by virtue of the power. here1n 9l'en1:eeS it, upon the
lIortga,a4 Property for debt. ocmvact:ed or 11abllU:y or daIIaI'..
incurred 1r. the unavaent or operation Of the lIOZ't:9aved Property.
'l'he 'l'ruaue .all have the I'i.ht 1:0 I'el, on any 1netruaent,
docuaant or 81vnature au1:hoddnv or npport1n/J eny action taJcan or
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Pl'opo.ed to be taku by it ber.Uftttar, beli.ved by it in 900cl taith
to be ,uuine. 'l'b. TrwIt.. lIhall be uti~l.d to 1'.I.bt.Ir....nt tor
upu... 1ncNned by 1t 1n th. pvtorunce of 1te duU.. he.under
anct to I"..onul. coapan..Uon tor it. .u-v1C88 bereuncier a. llball
be I'.ndered. '1'he TrIl.tOI' w111, frea tiM to U.a, "pay tu
oOlDp.uaUon dua to tha TrwItee hereunder and r.1IIbur.. tu TrwIt..
tor, and ..va it II.u1Ila.. a,atut, any and all Uu1l1q. and
.xpan... whlch ..y be incurred by 1t ift th. perfor-"c, of lta
dut1... .
I.a .at:ant:lan at llanal:' AllllOnaY8 race1ved by tu
TrIlate. llball, until uaed or appl ed a. beraiJ\ pz'ov1ded, be held in
tru.t for tu p~a' tor Which thay were rece1ved, but nead not
be 'egI'.,ated in any UftI\aI' tro. any otur lIOftay. (except to tu
extant r~lred by law), and th. TrIlet.. ahall be unciu no
liability for inter..t on any IIOney. rece1ved by it lI.ernn4er.
'.3 aaoo.a.ar ZI:IIIIt:.... 'l'ba TrIlat.. ..y 1'U19ft by th.
,iving ot notice of .uab r..1vnation ln wr1tinv to th. '''t101ary.
If tha TrIlat.. ahall d1a, r..l9ft or becOlle d1equa1itlad t.... aotih9
in tha executlon of th1e 1:ruat or aball fall or r.fuae to _.au~.
the .... When I'equ..ted by tha leneflci&I'Y 110 to 40, or 1f, for any
r...on, tu hneflcl&I'Y .hall pl'.fer to appoint a 8ublIti~ut.
tru.te. to act iutead of tu atol'anUed TrwItea, th. ...ficiaZ'Y
ahall hava full power to appoint a .uat1tute1:ruate. and, it
pr.ferred, ..veral .u1:>>ltiWte tn.te.. in ,uooudon vbo ell.&11
auocead to all the eatata, dpu, power. and duU.. of th.
aforanuad TrIl.t.a, ..ld .\I1:)aUwtlon to be _de in tu lI&nIler
provided by th. law. ot th. .tate, a. the .... _y be frea tlaa to
tlaa '''nded and .uppl..uted.
'.4 Bucca.alan :r.DSl'1DIIaftt:.. by UW TrIlat,. appointed
purauant to any of the provij1ona hereof aball, wlthout any tul'tber
a01:, deed or convayance, beCOlle va.tad wlth all th. aetat..,
pro~i.., ri,lI.t./ powu. and tn.t. of lu pl'edeoa..Ol' in the
ri,lI.t. hereunder wlth lJ.k. attect it or11inally .....d a. TrIlete.
herelnl but nevutblla.., upon the witten I'~.t of tha
Beneficlary or of the .uooa.aor TrIlataa, the Tzuat.. 0_.1nIJ to act
.ball -acuta and deliver and 1ne~ i:ranafarr1nv to II1Ich
'ucca.aor TrIl.t.., upon the truat. herein axp1'...ed, '11 th.
e.tata., propaz1:1e., rilJbt., JlOW8I" and tru.te of the ~tee '0
caadlllJ to aot, and 1lba1l dully a..l9ft, tranafer and deliver any of
the property and aoney. beld by .uCIII. TrIlIIt.. to the .U0C88.or
Tru.tee ao appointed in it. place.
ARTIct.I X
1U1!I(!IP.1'.T.""mrrg
10.1 aurvival o~ Obllcrat:ltm.. hob a.. all of the
. Obl1,aUon. .ball .urviv. the -xeautlcn and del1vazoy of the lIote
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and thb IIortvaqe, and the OONlUUtiOll of t:he Loan aalled for
therein, and ~ll con~inue in tull fozoc. and .fteat: util 1:he
:rn4~~e4n... ,.hall have been paid in tull.
o
10.2 ~fth.r AaaPralle!... 'l'h. Tl'UIItozo, upon the r~ of
the '1'z'Q~.. or the Ben.fiCIary, vill ex.aut., acJalowledq., deUver
and Z'.oord and/or fU. .UClh tvtheZ' in.t:naenu and do .UClh fUZ'thv
.ct. .. ..y be MCa..ary, d..bable 01' ,rope ~o carry out lI01'e
.ffectiV.ly the purpo... of the Hote and thi. JIoftgaqe and to
.eject to the u.&nli and .ecvity inter..t. t:hereof. any property
intended by the ~ena theZ'aof to be covered thuaby, inolWl!n9)Nt
not liaited to any Z'en.al., addition., aub.titutiOll8, Z'eplaceaenu
ozo a,purtenance. to the then IIortvapd Proparty.
10.3 . upon the OCC'IIZTeca of en
zvent of Default a. .pacif ell n the .eaent, t:he 'l'rutozo llhall
O&uae the Hote and thb lIortvap &lid all lUIItftdaant:a and npplaanu
thveto and .ubatitution. theefor to be reoorded, filed,
Z'erecoZ'dad &lid Z'efile4 .in neb JI&ftftU' and in .uo!l ,lac.. .. the
1'l'\l.t.. or the Beneficiary ~11 Z'H.onuly Z'aque.t pureuant to t:he
....nt, and will pay all .uOb record1n9, filing, rereooZ'ding and
ref.iUnv taxa., f.e. and othu cbaZ'q...
10.4 lfeUt!.~. All notio.. 01' othu ooaunicatiOll8 to be
9iven or ..de hereunder eball be in wit1nv and ehall be d....~ to
be properly ,ive or ..cI. it .ent Z'&9i.tered ..il, ret\lZ'ft r.ceipt:
reque.tad, po.~age prepaid, aclclr..eed .. follow..
aen.f1oiary, :IX.Cl\ltive Director
Jte4evel"PMftt Agency of tile
City of Ian lemuclino
201 Hol:'th -I- .tre.t, 'l'hiZ'd Floor
len Bernardino, Califor.nia 12401-1507
Hi9hland Lutberaft lenior Houain, Inc.
1'l'\letoZ' ,
TZ'uate..
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Any .uob .ddl'..... ..y be Clbanqed at any t.illa upon written lIOtiaa
of auc:h ahantJe 8Mt, .. provicled &bov. in tbJ.. '.O~iOll, ~o tile
ot.h.r ~i...
10.5 JlQ...J(dvar. Any failure by the TZ'uetH ozo tile
Beneficiary tolneiat, or any elecUon by t:he Truet.. or the
Banaficiary not to iNli.t, upon .trict pertonana. by the !'ruator
of any of the teE1l8, provi.ion. or COndition. of the Note .ncI thi.
Mort9aq. eall not be eSe..d to be . waiver of .... or of afty othe
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n_n . - ___. ._., - &........... fr rr ft. (r. (r... Jr.
OCT 31 '91 03' 15PM 5FlBO & GREEN
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~U'II, pz-ovt.10n or aoncl1~ion ther.of, and th. Tru.t.. or the
Ben.ficiary aIlall bav. the ript at any tiM or ti... 1:herautel' ~o
in.t.t upon .trict pertOZ'UnCe by the Truator of any ancl all of
.uob tene, proviaion. and aoncu. tion..
10.& .AftA~.rv'. Rip~ to PArl_ th. Ohl~. If
tb4t 'l'nI.1:OZ' aIlall fail, I'.fu.e or nev1e= to .u. any payaent or
perton any a= r~1recS by the !fote and thia Irortgeve, then at any
th. thereatter ancS without notice to 01' cSaancI upon the 'l'Z'Utor
ancS withou~ wdving 01' re1...ing any oth.r dp~, raaacly or
reoour.. the Benetioiary ..y bave beaalla. ot ...., the Beneficiary
..y (but lIball not be obu'.,a~acI to) .ue 811Gb papul~ or parton
.uGb .01: for the eoaount of and .t th. expan.e of the Tru.tor, aftcS
.aU bave the d.,ht to enter the Land for .uab purpo.e and to UJce
all .uch action thereon ancS w1th rupect to tb4t Irortg.tecS Pr~y
a. it ..y cS... llIIoe..ary 01' appropriate. fte ~tor ..11
1ftcSlIJIftify tJse Ben.t1ciary tor all 1oa.e., .'CpA....., daaava, c1.*
ancl calla" ot action, inclucUnv r"aonab1a attorftaya' fMa,
inourrad or aaoruing by rauon of any aobl perforaacl by the
Banefio1ary pul'8Ilant to the provi.1cma of tbi. 1aot1on 10.' or by
r.uoa of any other prov1a1on in the !fote and thi. lIoftgage. All
.UU paid by th. Ben.fioiary pul'8IIant to thi. .action 10. &, ancl .11
other .,.. expencSecS by the Ben.fio1ary to whiGb U .ball be
entitled to be 1ncSaniflad, t09.tbar with inblZ'ut thereon at the
r.t. .pac1fiacS in the Hot. Iroa the data of 81Iab payaent or
expancS1ture, ahall oon.tituta .cSc!1t1on. to the %ncSabtecSlllla., aIlall
be Hcurecl by the !fot. and tIl1. Docluaant ancl lIball be paid by the
~toZ' to tJse BaIlIIficiary upon cSaand.
10.7 Cov._I'l~. Ruftl'lf,1HI with thA t.al'ltt. All obUtat1ollll
oontained in tIl. Hot. ancl tht. Irortgave ancS all oovenant.,
Obu'.,aUona and agr.aanbl ..t forth 1n tIl. A9J:'---nt are in~endad
by the parti.. to be, and .ball be aoDtltruacS u, aovananta Z'IlMll19
witll the lIoftga,ad Property.
10.' 8uoc..eor. and "dcme. All of tile teraa of the
Hot. ancIthi. Irortg.V. aIlall apply to, be bindinv upon end 1nuzoe to
the benIltit ot tIl. 11&I'1:1.. ther.to, their r..paotiva 8\locaaaor.,
a..ivne, b.ir. ancl leval rapr..antativa., end .11 other per.one
. cl.iain9 by, through or uncIer th...
10.' ~r.~.ut.~. :rt any Articl. or '.=ion of thi.
MOZ'tIJa.,. aball be nY.lid, i11eva1 or unenf0Z'ca&b1., the validi~y,
l&9.11ty ancS enforoubiUty of tbe r..aininv An:ic1e. and '.=iona
aha11 no1: in any vay be .tfected or iapaincS.
10.10 llrI~h.. ~lIP....n~ .Nt Amal'ldmAnta. The!fota and thi.
Mortva9. contain the enUr. .VZ'....nt. betw.en th. parti.. relatin.,
to th. aub'.ct ..ttar bareot ancS ther.ot and all priol' .VZ'....n~.
r.lativ. ther.to whiGb are not contained barein or therein ar.
teZ'llinatacS. Th. Hota aNt thia Mort.,.,. ..y be ...ndect, r.viead,
wdvad, diachart.cS, rel...ad or tarainatacS only by . written
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in.truaent 01' iutrua.nta ex.cut8d by i:he puty a,ai.nat Which
entoreaent ot tbe uendaent, 1'.vi.ion, ..iYel', diacbar9., 1'.1_..
01' t.Z'laination i. ...8l'ted. Any .11eved &lMhdaent, r.viaion,
waiv.r, d1acb.Z'f., 1'.1..... or t.l'JIinition tfbich i. not .0
dOOWDented ahal1 not be ett~i". .. to .ny puty.
10.11 CDuftbroarb. 1'Il1i1 1101'1:9.'. ..y be daultaneou.ly
executed in aUltiple oounterpute, all ot which ahall conatitut.
one and i:he .... in.truaent .nd .ach ot Which ahall be, and 1Ih.1l
be d....4 to !:Ie, an or1,1nal.
10.12 aava~ifta Lav. 'l'hi. JIortga,e ahall be 'overned
))yo and conatrued in aOCOrdano. with 1:be 1... of 1:b. .tat. of
Calitorllia. .
10.13 Aul>r.-aHoO. If any 01' all of 1:be proaMde ot the
Note bave been wa8d to ext1nguiab, extend or renew any ind~edn...
heretofore exi8tinf ~a1ut i:he JIortgapd ft'opez'ty, 1:ben, to the
extent ot .uch fUDde eo u.8d, the Indebt8dn... and tbi. IIol'1:9a,.
.ball be .\Ibro9ated to all of the dgbte, ola1., lien., titl.. and
inter..t her.tofor. exi8tinf apiut i:he JIortga'ed Property to
..cure th. indebtedn... 80 ext.1fttu1Ihec1, extended Dr renewed and
the tOl'Jl8l' rigbte, olaw, liena, title. and inter..t, if any ue
not walved but l'ather u. oontinu8d in full forc. and efteot in
favor of the ..nefioiuy and an .uv8d with the lien and ..ourity
intere.t created herein a. CNau1ative HeNr1ty for th. npeyaent of
th. Ind~edft... and 1:b. ..ti.f.otion ot the ~li,atione.
10.14 2:b,ird Panv RaftaUm..a. lIotwitbetanding anything
to the contrary her.under, 1:be aedev.lopunt Agenayo of the City ot
San 8erftu'dino aball be MaR . third puty ben.ticiary of tbi.
lIortga,. for the purpoee ot .ntOl"Oinf ita reudi.. under the
.....nt.
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Truat
I1f WITHES' WK-EOr I t:be 'h'\gtOl' baa executed ~a Dead or
and Aaaignaent of .ent. t:bi. day of
I un.
1'Itunoa
BIGRtoAIQ) Lu.,L.....w .lIfIoa ROU.DrQ Dc:.
a cal1tomia non-PI'O!it CoZ'pOJ:aUon
By.
I
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OCT :31 '91 l!i3:11PM ~& GREEN
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I'1'ATI OF ClLI!'Ol1NIA
COtlNTY OF LOS UGm:.E8
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on betore ., the UDdar.19Md, .
lfO'tuy POlio 1ft and foZ' aaid ltate, pe1'lIOftally a,pau" ~
pc'acmally known to . 01' pro".. to .. OJI t:be .aJo. Of
.aUatactol'J evidence to be t:be ot IilJb1.. Lut:barlUl
sen1oZ' 80ua12\9 Inc. a California non"profW""aorpozoation, t:be p.non
Who executed t:be within .1natnunt onl:Mtbalf ot .a1d OOI'pOzoatioft
and acknov1"V.d to .. that .dd oOZ'pOZ'atioft executed .....
WIDZ88 'ay band and offiCl1a1 ...1.
Rotuy PUliCl .in and for
Sa.14 CcNftty and stat.
[BDl.]
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JlXBIBIl' lIAlI
1:0 Deed of 'I'l'Uat
CLeva1 DeacrlpUon of Land)
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TEL~.714-885-2598
Nov~.91 10:14 P.02
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Parcels 1 and that portion of Parcel 2 of Parcel Map No. 13158
as per map recorded in Book 154 of Parcel Maps, pages 80 and
81, records of San Bernardino County, California described as
ro110wsI
BGginninq at the. Northwest corner of Baid p'arce1 I,
thence N 89058'57" E , a10n; the North lina of said Parcell,
393.69 feet to the Northeast corner of said Parcel I,
thence S 0014'43" E , along the Bast line of 8aid Parcels 1
and 2, 365,00 feet,
thence s 89058'57" W , 185.97 feet,
thence N 0012'03" N , 15.00 feet:
thence S 89058'57" W , CO.OO feet:
. thence N 0012'03" N , 110.00 feet:
thence S 89058'57" W , 168.00 feet to the Southwest corner of
said Parcell:
thence N 0012'03" W , 240.00 feet to the Point of Beginning
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EXHIBIT "E"
CERTIFICATE OF COMPLBrIOIl'
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EXHIBIT "E"
When Recorded, Mail to:
CERTIFICATE OF COMPLETION
We, . Chairman and ,
Secretary of the Redevelopment Aqency of the City of San Bernardino
hereby certify as follows:
By its Resolution No. , adopted and approved
, 199_, the Redevelopment Aqency of the City of
San Bernardino has resolved as follows:
section 1. The improvements [or that certain portion of
the improvements described as ) required to
be constructed in accordance with that certain owner Participation
Aqreement (the "Aqreement") dated . 199_. by and between
the Redevelopment Aqency of the city of San Bernardino and Hiqhland
Lutheran Senior Housinq Inc. a California non-profit cOrPOration (the
"Participatinq owner") on that certain real property more fully
described in Exhibit "A" attached hereto and incorporated herein by
this reference have been completed in accordance with the provisions
of said Aqreement.
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Section 2. This Certificate of Completion shall
constitute a conclusive determination of satisfaction of the
agreements and covenants contained in the Agreement with respect to
the obligations of the Participating owner, and its successors and
assigns, to construct the improvements and the dates for the
beginning and completion thereof; provided, however, that the Agency
may enter the Property for purposes of enforcing any covenant of the
Agreement and shall have the right to offset such expenditures
against sums otherwise due to the Participating owner under the
Agreement. Said Agreement is an official record of the Redevelopment
Agency of the City of San Bernardino and a copy of said Agreement may
be inspected in the office of the Secretary of the Redevelopment
Agency of the City of San Bernardino located at 201 North "E" Street,
Third Floor, San Bernardino, California 92401-1507 during regular
business hours.
Sect:ion 3.
The real property to which this Certificate
of Completion pertains is more fully described in Exhibit "A"
attached hereto.
DATED AND ISSUED this
day of
, 199_.
(SEAL)
ATTEST:
Chairman of the
Redevelopment Agency of the
City of San Bernardino
Secretary of the
Redevelopment Agency of
City of San Bernardino
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STATE OF CALIFORNIA
)
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)
COUNTY OF
On this day of , 1991, before me, the
undersigned, a Notary Public in. and for the said county and state,
personally appeared known to me to be the
Chairman and known to me to be the
Secretary, respectively, of the Redevelopment Agency of the City of
San Bernardino (the "Agency"), who executed the within instrument on
behalf of said Agency therein named, and aclcnowledged to me that such
Agency executed the with instrument pursuant to a resolution of said
Agency.
WITNESS my hand and official seal.
(SEAL)
Notary Public in and for the
State of California
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JJ.
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EXHIBIT -A-
(Legal Description)
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