HomeMy WebLinkAboutR07-Economic Development Agency
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DEJ-IfLOPMEBT DEPARTMNT
\wOF THE CITY OF SAB BERlWIDIBO '"
REOUEST FOR COfWIISSIOB/COmrCIL ACTIOB
From:
KENNETH J. HENDERSON
Exeeutive Direetor
Subjeet:
SmrLAC CORPORATIOB
AGREEIm'IT
Date:
Mareh 10, 1992
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SvnoDsis of Previous Co..issionlCouncil/C~..tttee Action(s):
On November 13 and 26, 1991, the Housing Committee eonsidered this
item and reeommended to the Community Development Commission approval
of the Sunlac Corporation request for assistanee in an amount not to
exeeed $425,000 based upon information and reeommendations set forth
in the staff report.
On Deeember 11, 1992, the Community Development Commission approved
the Sunlae Corporation request for assistance in the amount of
$425,000 and authorized and directed Ageney Counsel to prepare an
appropriate agreement.
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Recommended Motion(s):
(Communitv Develooment CODBission)
MOTIOB
That the Community Development Commission approve an Owner
Participation Agreement with Sunlac Corporation in the amount
of $425,000 for land aequisition to provide for the
construetion of 16 low and moderate ineome single family
dwelling units.
Adm~trator
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Executive Direc or
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Contaet Person(s): Ken Henderson/Doris Daniels
Phone:
384-5081
projeet Area(s):
Mt. Vernon
Ward(s):
Three (3)
Supporting Data Attached:
Staff ReDort: Aareement
FUNDING REQUIREMENTS:
Amount: $425.000
20% Set-Aside
Source:
Budget Authority:
Established 12/11/91
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Commission/Council Botes:
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KJH:DAD:paw:03l8q
COfWIISSIOB MEETUG AGEBDA
Meeting Date: 03/16/92
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Agenda Itell Bo.
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DEVELOPMENT DEPARTMENT
OF THE CITY OF SAB IlERlWlDIBO
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STAFF REPORT
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S.mlac CorDoration Aareement
On November 13 and 26, 1991, the Housing Committee considered and
reviewed this item. On December II, 1992, the Community Development
Commission approved the Sunlac Corporation request for assistance in an
amount not to exceed $425,000 and authorized and directed Agency Counsel
to prepare an appropriate agreement.
The Redevelopment Agency of the City of San Bernardino will enter into an
Owner Participation Agreement (OPA) with Sunlac Corporation for the
development of sixteen (16) single family homes on approximately 4.5
acres of land located near the northeast corner of Pepper and Mill
Streets in the City of San Bernardino. The single family detached homes
range in size from 1350 to 1670 square feet and will be constructed with
a full range of amenities. Twelve (12) 1650 square foot homes (Plan A)
will sell for $144,950 and four (4) 1350 square foot homes will sale for
$118,950. The developer should realize a profit of approximately $15,700
on each of the twelve homes of Plan A and $5,200 on the four homes of
Plan B.
o DeDartment's Assistance
The project will be assisted by the Department's low and moderate income
housing set-aside fund in the amount of $425,000 to assist in the
acquisition of land. The Department's contribution will be repaid with
interest upon the sale of the homes with the Department having first call
on funds after repayment of the construction loan and miscellaneous
project costs.
Cost of Land & Terms
The Agency agrees to provide $425,000 for approximately 4.5 acres or
approximately $26,500 per lot. The OPA provides that the Agency will
deposit the Agency assistance at close of Escrow and that the Escrow shall
close within five (5) days of the deposit of the Agency Assistance.
Return of and Return on Investment
The Department's investment will accrue interest at a rate of 2% above Bank
of America prime. The Department will have first call on funds in excess
of the construction loan up to the amount of $425,000 plus accrued interest.
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KJH:DAD:paw:0318q
COIMISSION MBETIBG AGEBDA
Meeting Date: 03/16/92
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Agenda It_ No.
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DEVELOPMUT DEPARDlI5l'u QAFF REPoRT
Sunlac Corp. Agreement
March 11, 1992
Page IIU1lber - 2 -
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Loan Oriaination Fee
The OPA provides for the Sunlac Corporation to pay to the Agency a loan
origination fee of one and one-half (1.5%) of the principal amount of the
loan, which fee is in the sum of $6,375.00.
DeveloDers Eauitv ParticiDation In the Proiect
The developer has at least $100,000 in equity in the project. Expenditures
to date include engineering costs, ($32,000), City fees ($8,000) and fees
for recordation of final tract map ($60,000).
Furthermore, the developer will utilize personal assets to secure a $1.5
million construction loan from conventional sources.
Affordabilitv CovPft.nts
Under Health and Safety Code Section 33334.3 (f) (2), the Department is
required to ensure that an owner-occupied single family residence which has
received financial assistance in some form from the Low- and
Moderate-Income Housing Fund will remain available at affordable housing
costs to persons and families of low or moderate income and very low income
households for at least ten (10) years. The developer has agreed to record
such covenants for the longest feasible time period, obviating the need for
a sliding scale repayment schedule.
Rec~Pftllation
Staff recommends adoption of the form motion.
KEft~ERSOII' Executive
Development Department
Director
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KJH:DAD:paw:03l8q
COIIUSSIOII IlRETIIIG AGEllDA
Meeting Date: 03/16/92
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Agenda Item 110.
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SBBOOOOl-37/DOC/550/ew
01/13/92 345
RECORDING REQUESTED BY:
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND WHEN RECORDED RETURN TO:
SABa , GREEN,
a Professional Corporation
Suite 400
6320 Canoqa Avenue
Woodland Hills, California 91367
(Space Above for Recorder's Use)
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
uw.._ PU'l'J:CJ:PA'l'J:OR ACD.B--
(SUNLAC CORPORATION)
By and Between
REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO
and
SUNLAC CORPORATION,
a California corporation
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0 TABLE OF CONTENTS
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I. [100] SUBJEcr OF AGREEMENT
A. [101] Purpo.e of Aqre_ent . . . . . . . . . 1
B. [102] The Redevelopment Plan . . . . . . . . . 2
C. [103] The Site . . . . . . . . . . . . . . . . 2
D. [104] Partie. to the Aqreement . . . . . . . . . 2
1. [105] The Agency . . . . . . . . . . . . . . 2
2. [106] The Participant . . . . . . . . . . 3
3. [107] Prohibition Against Change in
OWner8hip, llanagement and
Control of the. Participant . . . . 3
4. [108] Benefit to Project Area . . . . . . 4
II. [200] ACQUISITION AND CONDITION OF THE SITE
A. [201] Vesting of Title to the Site . . . . . 5
B. [202] Acquisition of the Site . . . . . . . 5
C. [203] Condition of the Site . . . . . . . . . . 6
III. [300] IMPROVEMENT
0 A. [301] Improvement by Participant . . . . . . . 6
1. [302] Scope of Development 6
. . . . . . .
2. [303 ] Cost of Construction . . . . . . . . 6
3. [304] Construction Schedule . . . . . . 6
4. [305] Bodily Injury and
Property Damage Insurance . . . . . . 8
5. [306] city and Other Governmental
Agency Peraits . . . . . . . . . . . 9
6. [307] Rights of Access . . . . . . . . 10
7. [308] Local, State and Federal Laws . . . 10
8. [309] Antidiscrimination During
Construction . . . . . . . . . . 11
B. [310] Taxes, Assessments, Encumbrances
and Liens . . . . . . . . . . . . . . . . 11
C. [311] Prohibition Against Transfer of
the Site, the Buildings or
Structure. Thereon and A.siqnment
of Aqre_ent . . . . . . . . . . . . 11
D. [312] Promissory Note; Deed of Trust . . . . . 12
1. [313 ] Promissory Note . . . . . . . . . 12
2. [314 ] Deed of Trust . . . . . . . . . . 12
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0 E. [315] Mortgage, Deed of Trust, Sale
and Lease-Back Financing;
Rights of Holders . . . . . . . . . . . . 12
1. [316] No EnCWllbrances Except Mortgages,
Deeds of Trust or Sale
and Lease-Back for Development . 12
2. [317] Holder Not Obligated to
Construct Iaproveaents . . . . . 13
3. [318 ] Notice of Default to Mortgagee
or Deed of Trust Holders;
Right to CUre . . . . . . . . . . . 14
4. [319] Failure of Holder to
Complete IlIprov...nts . . . . . . . 15
5. [320] Right of Agency to CUre Mortgage
or Deed of Trust Default . . . . . . 16
F. [321] Right of Agency to satisfy Other
Liens On The Site . . . . . . . . . . . . 17
G. [322 ] Repayment of Note and Partial Releases
of Deed of Trust . . . . . . . . . . . 17
IV. [400] USES OF SITE; AFFORDABILITY COVENANTS
A. [401] Uses - Covenants Running With the Land . 18
B. [402] Maintenance of the Site . . . . . . . . . 21
0 C. [403] Effect of Violation of the Terms
and Provisions of this Agreement
After Completion of Construction . . . . 22
V. [500] GENERAL PROVISIONS
A. [501] Notices, Demands and Communications
Between the Parties . . . . . . . . . . 23
B. [502] Conflicts of Interest; Nonliability . . 24
C. [503] Enforced Delay; Extension of
Times of Performance . . . . . . . . . 24
D. [504] Inspection of Books and Records . . . 25
VI. [600] DEFAULTS AND REMEDIES
A. [601] Defaults - - General . . . . . . 26
B. [602] Legal Actions . . . . . . . . . . . . . 26
1. [603] Institution of Legal Actions . . . 26
2. [604] Applicable Law . . . . . . . . . . 27
3. [605] Acceptance of Service of Process . . 27
C. [606] Rights and Remedies are cumulative . . 27
D. [607] Inaction Not a Waiver of Default . . 27
E. [608] Remedies . . . . . . . . . . . . . . . 28
0 1. [609] Damages . . . . . . 28
(ii)
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VII. [700]
SPECIAL PROVISIONS
A.
[701]
[702]
Subaission of Documents to
Agency for Approval . . .
Successors in Intere.t
. . .
. . . .
B.
. . .
. . . . . .
VIII. [800]
IX. [900]
ENTIRE AGREEMENT, WAIVERS . . . . . . . . .. 29
TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
A.
Ti.. for Acceptance . . . . . . . . .
[901]
. .
ATTACHMENT NO. 1 - LEGAL DESCRIPTION
ATTACHMENT NO. 2 - SCOPE OF DEVELOPMENT
ATTACHMENT NO. 3 - SCHEDULE OF PERFORMANCE
ATTACHMENT NO. 4 - PROMISSORY NOTE SECURED BY DEED OF TRUST
ATTACHMENT NO. 5 - DEED OF TRUST WITH ASSIGNMENT OF RENTS
(Hi)
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SBBOOOOl-37/DOC/550/1w
01/14/92 200
OWNER PARTICIP"TION AGREEMENT
THIS AGREEMENT IS ENTERED INTO this
day of
, 1991, by and among the REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO (the "Agency") and SUNLAC CORPORATION, a
California corporation (the "Participant"). Agency and Participant
hereby agree as follows:
I.
[100]
SUBJECT OF AGREEMENT
A.
[101]
PumaSA of A.ar....n't
()
The purpose of this Agre8lllent is to effectuate the
Redevelopment Plan for the Kt. Vernon Redevelopment Project (the
"Project") by providing for Agency assistance to Participant for
the the acquisition and improv8lllent of the Site, which is located
in and will benefit the Kt. Vernon Redevelopment Project Area (the
"Project Area") of the Project. The completion of the improvement
of the Site pursuant to this Agreement is in the vital and best
interest of the City of San Bernardino, California (the "City") and
the health, safety and welfare of its residents, and in accord with
the public purposes and provisions of applicable state and local
laws and requir8lllents under which the Project has been undertaken.
The Co_unity Development Co_ission, acting on behalf of the
Agency, has determined that the uses cont8lllplated by this Agre8lllent
will benefit the low- and moderate-income housing needs of the City
and the Project, and has authorized the use of funds from the
e:> Agency's Low- and Koderate-Income Housing Fund.
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B. [102] The RedeveloDlllent Plan
The Redevelopment Plan was approved by ordinance of the
Common Council of the City of San Bernardino; said ordinance and
the Redevelopment Plan as so approved (the "Redevelopment Plan")
are incorporated herein by reference.
C. [103] The Site
The Site is that certain real property described in the
"Legal Description of the Site", which is attached hereto as
Attachment No. 1 and is incorporated herein by this reference.
D. [104] Parties to the Aareement
1. [105] The Aaencv
The Agency is a public body, corporate and politic,
exercising governaental functions and powers and organized and
existing under Chapter 2 of the Community Redevelopment Law of the
State of California (Health and Safety Code Section 33020, G JUlg.)
The principal office of the Agency is located at 201 North "E"
Street, San Bernardino, California 92401.
"Agency", as used in this Agre_ent, includes the
Community Developaent Commission of the City of San Bernardino, the
Economic Development Agency of the City of San Bernardino, the
Redevelopaent Agency of the City of San Bernardino, and any
assignee of or successor to their rights, powers and
responsibilities.
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2. [106] The ParticiDant
The principal office and mailing address
Participant for purpos.. of this Agr....nt is
, California .
of the
,
The Participant qualifi.. a. an owner participant
pur.uant to the R.dev.lopa.nt Plan and rule. promulgated pursuant
thereto pertaining to own.r participation.
3.
[107]
prohibit:ion Aaain.-t Chana. in OWn.r.hi'O.
Manaa...nt
Particinant:.
and
Cont:rol
of
the
Th. qualifications and identity of the Participant are of
particular concern to the Ag.ncy. It is because of those
qualification. and identity that the Ag.ncy has entered into this
Agre_ent with the Participant. No voluntary or involuntary
successor in interest of the Participant shall acquir. any rights
or powers under this Agreement except as expressly set forth
herein.
The Participant shall not as.ign all or any part of this
Agr._ent or any rights hereunder without the prior written
approval of the Ag.ncy, which approval the Ag.ncy may grant,
withhold or deny at its di.cretion. In the event of such transfer
or assignment: (1) the assignee shall expressly assume the
obligations of the Participant pursuant to this Agre_ent in
writing satisfactory to the Agency; (2) the original Participant
shall remain fully responsible for the performance and liable for
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the obligations of the Participant pursuant to this Agreement; and
(3) any quarantees provided to assure the performance of the
Participant I s obligations under this Agre..ent shall remain in full
force and effect.
:In the absence of spacific written agre..ent by the
Agency, no such transfer, assiCJllllent or approval by the Agency
shall be de..ed to relieve the Participant or any other party from
any obligation under this Agreement.
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All of the tel"llS, covenants and conditions of this
Agreement shall be binding upon and shall inure to the benefit of
the Participant and the permitted successors and assigns of the
Participant. Whenever the term "Participant" is used herein, such
term shall include any other permitted successors and assigns as
herein provided.
The restrictions of this Section 107 shall terminate and
be of no further force and effect upon payment in full of the Note
(as hereinafter defined). Nothing in this Section 107 shall act to
restrict the sale of completed residential units developed on the
Site to qualified purchasers if said sales are otherwise in
compliance with the tel"llS of this Agre..ent.
4. [108] Benefit to Proiect Area
Agency has determined that the acquisition and
c:> development of the property in accordance with this Agreement will
eliminate blight and provide needed low- and moderate-income
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housing to the Project Area which is neecled due to the
insufficiency of such housing within the Project Area.
II. [200] ACQUISITION AND CONDITION OF THE SITE
A. [201] Vestina of Title to the site
As of the date of this Aqre_ent, Participant is in
escrow (the "Escrow") to acquire the Site fro. a third party. The
escrow holder is ("Escrow HOlder").
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B. [202] Acauisition of the Site
Agency agrees to provide $425,000 (the "Agency
Assistance") towards the acquisition of the Site by Participant.
The Agency Assistance, together with a loan origination fee, shall
be reflected in a PrOlllissory Note in favor of Agency, as provided
in Section 312 hereof, and shall be secured by a Deed of Trust as
provided in Section 314 hereof. The Agency Assistance shall be
subject to the following:
1. The Agency Assistance shall be deposited by Agency
directly in the Escrow, together with an executed original of this
Agreement, the Deed of Trust and the Agency's instructions to the
Escrow Holder that the Agency Assistance IllaY be used in the
purchase of the Site on the condition that Escrow Holder record at
close of Escrow the deed conveying the Site to Participant, this
Agreement and the Deed of Trust, in that order, and on the further
condition that Agency be provided with a CLTA standard coverage
o lender's policy of title insurance insuring Agency's first lien
position on the Site in the amount of $431,375.00, plus interest.
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2. Aqency shall not be required to deposit the Aqency
Assistance until all other conditions to close of Escrow have been
satisfied. Escrow shall close within five (5) days of the deposit
of the Aqency Assistance, or Aqency may, at Aqency's option,
require the return of the Aqency Assistance and shall thereupon be
relieved of its obliqations hereunder. In the event that Escrow
does not close within ninety (90) days of the date of this
Aqre_ent, Aqency may, at Aqency's option, terainate this Aqre_ent
without further obliqation to Participant.
C. [203] Condition of the Site
Participant assumes all risk and responsibility for any
clearance or preparation of the Site as necessary for the provision
of Participant Improv_ents (as hereinafter defined). Aqency makes
no representations or warranties concerninq the Site, its
suitability for the use intended by the Participant, or the surface
or subsurface conditions of the Site. If the soil or other surface
or subsurface conditions of the Site are not in all respects
entirely suitable for the use or uses to which the Site will be put
as of the date of this Aqre_ent, Participant shall not be excused
fro. further perforllance under this Aqre_ent and it shall be the
responsibility and obliqation of Participant and not Aqency to take
such action as may be necessary to place the Site in a condition
entirely suitable for the comaenc_ent, development and completion
of the Participant Improv_ents, as defined in Section 301 hereof.
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III. [300J IMPROVEMENT
A. [301J ImDrovement bv ParticiDant
Participant and Aqency a<<;Jree that the central purpose of
this Aqreement is to provide for the construction on the site of
sixteen (16) sinqle family homes in a aanner consistent with the
Redevelopment Plan. Participant shall construct on the Site twelve
(12) homes of approximately 1,650 square feet and four (4) homes of
approximately 1,350 square feet. All of said homes will be
constructed with a full ranqe of amenities, as described in the
Scope of Development (see Section 302). Said home., toqether with
appurtenant improvements, shall be referred to herein as
"Participant Improvements".
1. [302J SCODe of DeveloDment
The Site shall be developed by Participant as provided in
the "Scope of Development", Which is attached hereto as Attachment
No. 2 and is incorporated herein.
2. [303J Cost of Construction
The cost of constructinq all Participant Improvements
shall be borne by Participant.
3. [304J Construction Schedule
Participant will seek to close the Escrow as soon as
reasonably possible and Participant shall thereafter promptly beqin
and diliqently prosecute to completion the construction of the
Participant Improvements. Participant shall beqin and complete all
construction and development of the Participant Improvements wi thin
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the times specified in the "Schedule of Performance" which is
attached hereto as Attachment No. 3 and incorporated herein.
Participant shall strictly conform to all time requirements and
limitations set forth in this Agreement.
4.
[305]
BodilY In1urv and ProD8~Y Damaae
In.oranea
Participant shall defend, assuae all responsibility for
and hold the Aqeney, the City and their r_pective officers, aqents
and employees, harmless from all clai_ or suits for, and damaqes
to, property and injuries to persons, includinq accidental death
(includinq attorneys' fees and costs), which may be caused by any
of Participant's activities under this Agreement, whether such
activiti.s or performance thereof be by the Participant or anyone
directly or indirectly employed or contracted with by Participant
and whether such damaqe shall accrue or be discovered before or
after termination of this Agreement. Participant shall take out
and maintain a comprehensive liability and property damaqe policy
in the amount of One million Dollars ($1,000,000) combined sinqle
limit policy, includinq contractual public liability, as shall
protect Participant, City and Aqeney from claims for such damaqes
until two (2) years after the payment in full of the Note.
Participant shall furnish a certificate of insurance
countersiqned by an authorized aqeney of the insurance carrier on
a form of the insurance carrier settinq forth the qeneral
~ provisions of the insurance coveraqe. This countersiqned
certificate shall name the City and Aqency and their respective
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officers, agents, and employees as additional insureds under the
policy. The certificate by the insurance carrier shall contain a
statement of obligation on the part of the carrier to notify city
and the Agency of any material change, cancellation or termination
of the coverage at least thirty (30) days in advance of the
effective date of any such _terial change, cancellation or
termination. Coverage provided hereunder by Participant shall be
primary insurance and not contributing with any insurance
maintained by Agency or City, and the policy shall contain such an
endorsement. The insurance policy or the certificate of insurance
shall contain a waiver of subroqation for the benefit of the City
and Agency.
Participant shall furnish or cause to be furnished to
Agency evidence satisfactory to Agency that any contractor with
whom it has contracted for the performance of work on the Site or
other wise pursuant to this Agreement carries workers I compensation
insurance as required by law.
5. [306J citv and Other Governmental Aaencv Permits
Before commencement of the Participant Improvements or
other construction or development of any buildings, structures or
other works of improvement upon the Site, Participant shall, at its
own expense, secure or cause to be secured any and all permits
which may be required by the City or any other governmental agency
having jurisdiction over such construction, development or work.
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Nothing contained in this Aqreement shall be deemed to be an
approval by the city of any application or permit required to be
obtained by Participant from the City.
6. [307] Riahts of Access
For . the purpo.e of a..uring cOllpliance with this
Aqre..ent, repre.entatives of Agency and the city shall have the
right of acc..s to the Site, without charge. or fe.s, at normal
construction hours durinq the period of work for the purpo.e. of
this Aqre..ent, including, but not limited to, the inspection of
the work being performed in constructing the improvements, so long
as they comply with all safety rules. Such representatives of
Agency or of the city shall be those who are so identified in
writing by the Executive Director of Agency. Agency shall hold the
Participant harmless from any bodily injury or related dUlaqes
arising out of the activities of Aqency and the city as referred to
in this Section 307 and resulting from the qross neqligence or
willful misconduct of the City or Agency. This Section 307 shall
not be deemed to diminish or limit any riqhts which the City or
Agency may have by operation of law irrespective of the Aqreement.
7. [308] Local. state and Federal Laws
Participant shall carry out the construction of the
Participant Improvements and all related activities on the Site in
conformity with all applicable laws, includinq all applicable
federal and state labor standards; provided, however, Participant
and its contractors, succes.ors, assiqns, transferees, and lessees
are not waivinq their riqhts to contest any such laws, rules or
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standards. Participant and its contractors and sub-contractors
shall pay prevailing wages to all employees on the project.
8. [309] Antidiscrimination Durina Construction
Participant, for itself and successors and assigns,
agrees that in the construction of the iJlprov_ents provided for in
this Agre..ent, Participant shall not discri.inate against any
employee or applicant for employment because of race, color, creed,
religion, age, sex, marital status, handicap, national origin or
ancestry.
B. [310] Tax... Assessment... Encl1mhpances and Liens
Prior to payment in full of the Note, Participant shall
not place or allow to be placed on the Site or any part thereof any
mortgage, trust deed, enCUlllbrance or lien other than as expressly
allowed by this Agreement. Participant shall remove or have
removed any levy or attachment made on any of the Site or any part
thereof, or assure the satisfaction thereof within a reasonable
time but in any event prior to a sale thereunder.
C.
[311]
Prohibition Aaainst Transfer of ~. site. the
Buildinofl or struct:.ures 'thareon and Assianment
of Aaree:ment
Prior to payment in full of the Note, Participant shall
not, except as permitted by this Agreement, without the prior
written approval of Agency, make any total or partial sale,
c:J transfer, conveyance, assignment or lease of whole or any part of
the Site or of the buildings or structures on the Site. This
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prohibition shall not be deemed to prevent a transfer expressly
permitted pursuant to section 107 of this Agreement, or the
granting of temporary or permanent easements or permits to
facilitate the develop.ent of the Site.
D. [312] PrOlllissorv Note: Deed of Trust
1. [ 313 ] PromissorY Note
Agency and Participant shall enter into a Promissory Note
(the WNoteW) in the form of Attachment No.4 which is incorporated
herein, by which Agency shall loan Participant $425,000 for the
acquisition of the Site. ParticiPant agrees to pay to Agency a
loan origination fee of one and one-half percent (1.5') of the
principal amount of the loan, which fee is in the sua of $6,375.00.
The amount of the Note shall be $431,375.00, to reflect the loan
fee.
2. [314] Deed of Trust
To secure said loan, Participant shall execute a Deed of
Trust in the Fora of Attachment No.5.
E.
[315]
Mo~aaae. Deed of Tru.~. Sale and La.s.-Back
Finaneina: Riah~. of Holders
1.
[316]
No Enl'!1.11nh"'.nc.. be.not Mortaaaes. n.ads
of Trust or Sal. and La.s.-Back for
Develonment
Participant intends to obtain, and Agency agrees thereto,
a construction loan in the approximate amount of $1,500,000.
Agency agrees that its Deed of Trust shall be subordinate to the
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lien of said construction loan providinq (i) the amount of said
lien does not exceed $1,500,000 and (ii) Aqency has approved the
terms of said construction loan and deed of trust, which approval
shall not be unreasonably withheld. Participant shall not enter
into any other conveyance or lien for financinq without the prior
written approval of Aqency, which approval Aqency aqrees to qive if
any such conveyance or lien for financinq is qiven to a bank,
savinqs and loan association, or other similar lendinq institution
and the teras of said financinq are reasonably acceptable to
Aqency. Approval of such other conveyance or lien for financinq by
the Aqency shall not constitute a subordination of the Deed of
Trust to such conveyance or lien. The form of approval by Aqency
shall be in writinq which references this Section 315, executed by
the Executive Director of the Aqency. In the event that the Aqency
fails to accept or reject such lender in writinq within fifteen
(15) days after written notice thereof is received by the Aqency,
such lender shall be deemed approved.
2.
[317]
Holder Hot Obliaated to Construct
YmnrOV811lents
The holder of any mortqaqe or deed of trust authorized by
this Aqreement shall not be obliqated by the provisions of this
Aqre_ent to construct or complete the Participant Improvements or
to quarantee such construction or completion. Nothinq in this
Aqreement shall be de_ed to construe, permit or authorize any such
holder to devote the Site to any uses or to construct any
improvements thereon, other than those uses or Participant
Improvements provided for or authorized by this Aqre_ent.
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3.
[318]
No~ic. of Dafaul~ to Mo~aaa.. or Deed of
Trus~ HoldArs: Riah~ to CUre
With respect to any mortgage or deed of trust granted by
Participant as provided berein, wbenever Agency sball deliver any
notic. or demand to Participant with respect to any breach or
default by Participant in cOllpletion of the construction of the
Participant Improvements, Agency sball at the s_. tim. d.li v.r to
.ach bolder of r.cord of any mortgag. or de.d of trust authoriz.d
by this Agr....nt a copy of such notice or demand. Each sucb
bold.r sball (insofar as the rigbts of Agency are conc.rned) bave
the rigbt, at its option, within thirty (30) days after the rec.ipt
of this notice, to cure or rem.dy or co_ence to cure or remedy any
sucb default and to add the cost thereof to the mortgag. debt and
o tbe lien of its mortgage. Nothing contain.d in this Agr.ement
sball be d.emed to permit or authorize such bolder to undertake or
continue the construction or co.pletion of the Participant
Improve.ents (beyond the .xtent necessary to conserve or protect
the Participant Improvements or construction already made) without
first baving expressly assumed the Participant's obligations to
Agency by written agreement satisfactory to Agency. '!'be bolder, in
tbat event, must agree to co.plete, in the manner provided in tbis
Agreement, the Participant Improvements to wbicb the lien or title
of such bolder relat.s, and submit .videnc. satisfactory to Ag.ncy
tbat it bas the qualifications and financial responsibility
necessary to perform sucb obligations.
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4.
[319]
pailure o:f
l:.Drov...n~.
Holder
to
Co:mnlete
In any case where, thirty (30) days after default by the
Participant in completion of construction of Participant
I.prov_ents under this Agre_ent, the holder of any mortgage or
deed. of trust creating a lien or enClmbrance upon the site or any
part thereof has not exercised the option to construct or if it has
exercised the option and has not proceeded diligently with
construction, Agency may purcha.e the mortgage or deed of trust by
payment to the holder of the amount of the unpaid mortgage or deed
of trust debt, inClUding principal and interest and all other sums
.ecured by the mortgage or deed of trust. If the ownership of the
site or any part thereof has vested in the holder, Agency, if it so
desires, .hall be entitled to a conveyance from the holder to
Agency upon payment to the holder of an amount equal to the sum of
the following:
a. The unpaid mortgage or deed of trust debt at the
time title became vested in the holder (less all appropriate
credit., including those resulting from collection and application
of rentals and other income received during foreclosure
proceedings);
b. All expenses with respect to foreclosure;
c. The net expense, if any (exclusive of general
overhead), incurred by the holder as a direct result of the
subsequent manag_ent of the Site or part thereof;
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d. Tbe costs of any Participant Improvements made by
such holder; and
e. An _ount equivalent to the interest that would have
accrued on the aggregate of such amounts had all such amounts
beco.e part of the aortgage or deed of trust debt and such debt had
continued in existence to the date of payaent by Agency; less
f. Any inco.e derived by the lender frOll operations
conducted on the Site (the receipt of principal and interest
payments in the ordinary course of business shall not constitute
income for the purPOses of this subsection f).
5.
[320J
Riah~ of AGency ~o CUr. Mortaaae or Deed
of Trust Default
In the event of a mortgage or deed of trust default or
breach by Participant prior to the completion of any part thereof
and the holder of any mortgage or deed of trust has not exercised
its option to complete construction, Agency may cure the default.
In such event, Agency shall be entitled to reimbursement from
Participant of all proper costs and expenses incurred by Agency in
curing such default, and such costs and expenses shall be included
as part of the Note under Section 313.
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F.
[321]
Riaht or Aa.ncv to Sa1:i.:fv O~er Liens On The
iliA
Prior to the completion of the Participant Improv_ents,
and after Participant has had written notice and has failed after
a reasonable time, but in any event not les. than fifteen (15)
day., to challenqe, cure, adequately bond aqainst, or satisfy any
lien. or encumbrances on the Site which are not otherwise permitted
under this Aqre_ent, Aqency shall have the riqht but not the
obliqation to satisfy any such liens or encumbrances and to include
the cost thereof as part of the Note under Section 313.
G.
[322]
ReDaV1llAnt oj! Note and Partial Releas.. or Deed
of Trust
Participant shall repay the Note from the proceeds of the
sales of the individual residences (or lots) to be constructed by
Participant. Aqency aqrees to place a partial reconveyance of deed
of trust in the escrow for each residence sold, with a d_and upon
escrow for $26,960.94, plus accrued interest thereon from the date
of the Note, plus any additional charqes or amounts owinq under the
terms of this Aqre_ent, the Note and/or the Deed of Trust, if any,
which additional charqes or amounts shall be allocated equally
between the remaininq unsold residential lots.
Upon repayment in full of all sums owed under the Note,
this Aqreement or the Deed of Trust, Aqency aqrees to reconvey the
Deed of Trust. Upon either the recordinq of a reconveyance of the
e:; full Deed of Trust or upon recordinq of the last partial
reconveyance of the Deed of Trust relatinq to the last of the
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sixteen residences to be sold, any party then owninq or therearter
purchasinq, leasinq or otherwise acquirinq any interest in the Site
or the ParticiPant Improvements shall not, as a result or such
ownership, lease or acquisition, incur any obliqation or liability
under this Aqreement except that such party shall be bound by the
covenants set rorth in Section 401 of this Aqre_ent, which shall
be applicable, each accordinq to its terms.
Reqardless of Participant's ability to cOBplete
construction of the Participant Improvements or to sell the
completed residential units, Participant aqrees to repay the Note
in full within three (3) years of the date of execution of this
Aqreement. A failure to do so within thirty (30) days of Aqency's
written d...nd shall constitute a material breach of this Aqreement
and shall entitle Aqency to declare all sums owed under the Note
to be immediately due and payable, to foreclose upon the Deed of
Trust as to any then unsold residential units or lots, and/or to
exercise any other remedies available under this Aqreement, the
Deed of Trust or at law or in equity.
IV. [400] USES OF SITE; AFFORDABILITY COVENANTS
A. [401] Uses - Covenants Runnina With the Land
Participant covenants and aqrees for itself, its
successors, its assiqns, and every successor in interest to the
Site or any part thereof, that for a period of ten (10) years
commencinq on the date of the issuance by City of the Certificate
e:> of Occupancy on the last of the sixteen residences to be
constructed by Participant, all of the sixteen sinqle family
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re.idences to be constructed on the site will be devoted to and
available for sale solely to persons or families with an income
which are low and moderate to very low, as those terms are defined
in Health and Safety Code Sections 50093 (low and moderate income)
and 50105 (very low income), with .ale. costs of each residential
unit to be at an affordable housinq cost (as such term is defined
in Health and Safety Code Section 50052.5).
The foreqoinq covenant shall run with the land for ten
(10) years cOllllencinq on the date that the City issues the
Certificate of Occupancy on the last of the sixteen residences.
The Participant further covenants and warrants that
Participant shall develop improvements on the Site in accordance
with the Scope of Development. Participant covenants to develop
the Site in conformity with all applicable laws. The covenants of
this paraqraph shall run with the land.
Participant covenants by and for itself and any
successors in interest that there shall be no discrimination
aqainst or seqreqation of any person or qroup of persons on account
of race, color, creed, reliqion, sex, marital status , aqe,
handicap, national oriqin or ancestry in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the Site, nor
shall Participant itself or any person claiminq under or throuqh it
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,
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subl....es or vend..s of the Sit.. Th. foregoing covenants shall
run with the land.
All d.ed., l.a.es or contracts pertaining to the Site
.hall contain or be subject to substantially the following
nondiscrimination or non-segregation claus.s:
1. In deed.: "Th. grant.. h.r.in covenants by and for
hi...lf or h.r..lf, hi. or her heirs, .x.cutor., administrators and
assigns, and all person. claiming under or through th8ll, that there
shall be no di.crimination again.t or segregation of, any person or
group of persons on account of race, color, cr.ed, religion, sex,
marital status, age, handicap, national origin or ancestry in the
sale, lease, .ublease, transfer, use, occupancy, tenure or
enjoYlllent of the land herein conveyed, nor shall the grantee
hi..elf or herself or any person claiming under or through him or
her, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, l.s.ee., subtenants,
sublessees or vendees in the land herein conveyed. The foregoing
covenants .hall run with the land."
2. In lea.es: "The lessee her.in covenants by and for
hi..elf or herself, his or her heirs, ex.cutors, administrators and
assign., and all persons claiming under or through him or her, that
this lease is made and accepted upon and subject to the following
conditions: "There shall be no discrimination against or
segregation of any person or group of person. on account of race,
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color, creed, religion, sex, marital status, handicap, age,
ancestry or national origin in the leasing, subleasing,
transferring, Use, occupancy, tenure or enjoyaent sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyaent of the
premises herein leased nor shall the lessee hiaself or herself, or
any person Claiming under or through him or her, establish or
permit any such practices or practices of discrimination or
segregation with reference to the selection, location, number, use
or occupancy of tenants, lessees, sublessees, subtenants or vendees
in the premises herein leased."
3. In contracts: "There shall be no discrimination
against or segregation of, any person, or group of persons on
account of race, color, creed, religion, sex, marital status, age,
handicap, ancestry or national origin, in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the
premises, nor shall the transferee himself or herself or any person
claiming under or through him or her, establish or permit any such
practice or practices of discrimination or segregation with
reference to the selection, location, number use or occupancy of
tenants, lessees, subtenants, sublessees or vendees of the
premises."
B. [402] Maintenance of the Site
Participant shall, until sale of all of the sixteen
residential units, maintain any of the Participant Improvements
which remain unsold and all other improvements on the Site and
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shall keep the Site free from any accumulation of debris or waste
materials.
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Participant further agree. to _intain the Site in a neat
and attractive manner until con.truction of the improvements
described in this Agreement i. cOllplete so as not to, in the
reasonable determination of an appropriate officer of the City, be
a public nuisance, or be detrimental to the health, safety and
welfare of the public, or impair value of property within one
thousand (1,000) feet of the Site, and agrees that in the event
Participant fails to do so, Agency may enter upon the Site for the
purpose. of performing necessary and desirable maintenance, that
Participant will be responsible for the cost of any such
maintenance undertaken by Agency, which shall be paid within thirty
(30) days after receipt by Participant of written demand therefor.
C.
[403]
Ef~ect of Violation of the Terms and
Provisions of ~hi. Aareemen~ After Co~~letion
of Construct.ion
The covenants established in this Agreement shall,
without regard to technical classification and designation, be
binding for the benefit and in favor of Agency, its successors and
assigns, as to those covenants which are for its benefit. The
covenants contained in this Agreement shall remain in effect until
the termination date of the Redevelopment Plan unless an earlier
date is specified. The covenants against racial discrimination
c:J shall remain in perpetuity.
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Agency is de_ed the beneficiary of the terms and
provisions of this Aqre_ent and of the covenants runninq with the
land, for and in its own riqhts and for the purposes of protectinq
the interests of the co_unity and other parties, public or
private, in whose favor and for whose benefit this Aqre_ent and
the covenants runninq with the land have been provided. The
Aqre_ent and the covenants shall run in favor of the Aqency,
without reqard to whether Aqency has been, r-.ins or is an owner
of any land or interest therein in the Site or in the Project Area.
Aqency shall have the riqht, if the Aqre_ent or covenants are
breached, to exercise all riqhts and r_edies, and to maintain any
actions or suits at law or in equity or other proper proceedinqs to
enforce the curinq of such breaches to which it or any other
beneficiaries of this Aqre_ent and covenants may be entitled.
V. [500] GENERAL PROVISIONS
A. [501] Rotic... Demand. and COmJllunications Between
the Panies
Written notices, d-.nds and c~unications between
Aqency and Participant shall be sufficiently qiven if delivered by
hand (and a receipt therefor is obtained or is refused to be qiven)
or dispatched by reqistered or certified mail, postaqe prepaid,
return receipt requested, to the principal offices of Aqency and
Participant. Such written notices, d_ands and co_unications may
be sent in the same manner to such other addresses as such party
may from time to time desiqnate by mail as provided in this
Section 501.
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Any written notice, demand or communication shall be
deemed received immediately if delivered by hand and shall be
deemed received on the tenth day from the date it is posbarked if
delivered by reqistered or certified mail.
B. [502] Con:flic1:. of rnt..r..t.: Nonliabili1:v
No a8JlJ)er, official or employee of Aqency shall have any
personal interest, direct or indirect, in this Aqreement. No
member, offj.cial or employee shall participate in any decision
relatinq to the Aqreement which affects his personal interests or
the interests of any corporation, partnership or association in
which he is directly or indirectly interested. No member, official
or employee of Aqency shall be personally liable to Participant, or
any successor in interest, in the event of any default or breach by
Aqency or Participant, or for any amount which may become due to
Participant or its successor or on any obliqations under the terms
of this Aqreement.
Participant represents and warrants that it has not paid
or qiven, and shall not payor qive, any third party any money or
other consideration for obtaininq this Aqreement.
c.
[503]
Enforced Dalav: Ert:enBion of TilDA. of
Parformance
In addition to specific provisions of this Aqreement,
performance by either party hereunder shall not be deemed to be in
o default, and all performance and other dates specified in this
Aqreement shall be extended, where delays or defaults are due to:
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war; insurrections; floods; earthquakes; fires; casualties; acts of
God; acts of the public enemy; freight embargoes; governmental
restrictions or priority; litigation; unusually severe weather;
acts or omissions of another party; acts or failures to act of the
ei ty or any other public or governmental agency or entity (other
than the acts or failures to act of Agency which shall not excuse
performance by Agency); or any other causes beyond the control or
without the fault of the party claiming an extension of time to
perform. Notwithstanding anything to the contrary in this
Agreement, an extension of time for any such cause shall be for the
period of the enforced delay and shall commence to run from the
time of the co_encement of the cause, if notice by the party
claiming such extension is sent to the other party within thirty
(30) days of the commencement of the cause. Times of performance
under this Agreement may also be extended in writing by the mutual
agreement of Agency and Participant.
Participant is not entitled pursuant to this Section 503
to an extension of time to perform because of past, present, or
future difficulty in obtaining suitable temporary or permanent
financing for the Site.
D. [504] :rnsnection of Books and Records
Agency has the right at all reasonable times to inspect
the books and records of Participant pertaining to the Site as
pertinent to the purposes of this Agreement. Participant has the
o right at all reasonable times to inspect the public records of
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Aqeney pertaininq to the site as pertinent to the purposes of the
Aqreement.
VI. [600] DEFAULTS AND REMEDIES
A. [601] Defaults - - General
Subject to the extensions of time set forth in
Section 503, failure or delay by any party to perfor. any term or
provision of this Aqre_ent constitutes a default under this
Aqreement. The party who so fails or delays must immediately
commence to cure, correct, or remedy such failure or delay, and
shall complete such cure, correction or remedy with diliqence.
The injured party shall qive written notice of default to
the party in default, specifyinq the default complained of by the
injured party. Except as required to protect aqainst further
damaqes, and except for Sections 317 and 319 of this Aqreement, the
injured party may not institute proceedinqs aqainst the party in
default until thirty (30) days after qivinq such notice. Failure
or delay in qivinq such notice shall not constitute a waiver of any
default, nor shall it chanqe the time of default.
B. [602] Leaal Actions
1. [603] Institution of Leaal Actions
In addition to any other riqhts or remedies hereunder,
Aqeney or Participant may institute leqal action to cure, correct
or remedy any default, to recover damaqes for any default, or to
o obtain any other remedy consistent with the purPOse of this
Aqreement. Any leqal actions initiated pursuant to this Aqreement
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or otherwise with respect to this subj.ct matter must be instituted
in the Superior Court of the County of San Bernardino, State of
California, or in an appropriate municipal court in that county.
2. [604] ADDlicable Law
The laws of the State of California shall qovern the
interpretation and enforcement of this Aqr....nt.
3. [605] Acc.~~anc. of Service of Proce..
In the event that any leqal action is co_enced by any
party aqainst anoth.r party, service of process on such party shall
be _de by personal service upon such party or in such other _nner
as may be provided by law, and shall be valid whether _de within
or without the State of California.
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C. [606] Riahts and Remedies are CUmulative
Except as otherwise expressly stated in this Aqreement,
the riqhts and remedies of the parties are cumulative, and the
exercise by any party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different
times, of any other riqhts or remedies for the same default or any
other default by any other party.
D. [607] Inaction Not a Waiver of Default
Any failures or delays by any party in ass.rting any of
its right and remedies as to any default shall not operate as a
o waiver of any default or of any such rights or remedies, or deprive
any party of its right to institute and maintain any actions or
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proceedings which it may de_ necessary to protect, assert or
enforce any such rights or r_edies.
E. [608] R_edies
1. [609 J DAllllOaes
Prior to the payaent in full of all sums due under the
Note, if either Participant or Agency defaults with regard to any
of the provisions of this Aqre_ent, the non-defaulting party shall
serve written notice of such default upon the defaulting party. If
the default is not cured or if a cure has not been commenced and is
being diligently pursued to completion by the defaulting party
within thirty (30) days after service of the notice of default, the
defaulting party shall be liable to the other for any damages
caused by such default, and the non-defaUlting party shall have the
right to seek specific performance and such other remedies as are
available in law or equity.
VII. [700] SPECIAL PROVISIONS
A. [701] Submi8sion of DocumAnts to Aaenc;v ~or.A1)1)roval
Whenever this Aqre_ent requires Participant to submit
any docwaent to Agency for approval, which shall be de_ed approved
if not acted on by Agency within the specified time, said document
shall be accompanied by a letter stating that it is being submitted
and will be de_ed approved unless rejected by Agency within the
stated time. If there is not a time specified herein for such
Agency action, Participant may submit a letter requiring Agency
approval or rejection of documents within thirty (30) days after
Submission to Agency or such documents shall be deemed approved.
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B. [702] Successors in Interest
The terms, covenants, conditions and restrictions of this
Aqre_.nt shall extend to and shall be bindinq upon and inure to
the benefit of the h.irs, executors, adllinistrators, successors and
assiqns of Participant.
VIII:. [800] ENTIRE AGREEMENT, WAIVERS
This Aqr....nt is execut.d in four (4) duplicat.
oriqinal., .ach of which is de_ed to be an oriqinal. This
Aqr...ent includ.. Attachments 1 throuqh 5, which toq.ther with
this Aqre_ent constitute the entire understandinq and aqre_ent of
the parties.
No private entity shall be de_ed to be a third party
beneficiary with respect to any provisions of this Aqre_ent.
Thi. Aqre_ent inteqrates all of the t.rms and conditions
mentioned herein or incidental hereto, and supers.d.s all
neqotiations or previous aqreements amonq the parties or their
predecessors in interest with respect to all or any part of the
subject matter hereof.
All waivers of .the provisions of this Aqr._ent must be
in writinq by the appropriate authorities of the Aqency and
Participant, and all amendllents hereto must be in writinq by the
appropriate authorities of Aqency and Participant, except that the
Executive Director of Aqency may aqree to non-substantive chanqes
hereto with concurrence by Aqency Counsel.
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Each individual signing below represents and warrants
that he has the authority to execute this Agreement on behalf of
and bind the party he purports to represent.
IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
A. [901] Time for Accenunce
This Agreement, when executed by Participant and
delivered to Agency, must be authorized, executed and delivered by
Agency on or before thirty (30) days after signing and delivery of
this Agreement by Participant or this Agre_ent shall be void,
except to the extent that Participant shall consent in writing to
a further extension of time for the authorization, execution and
delivery of this Agre_ent. The date of this Agreement shall be
the date when it shall have been signed by the Agency as evidenced
by the date first above shown.
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IN WITNESS WHEREOF, Agency and Participant have executed
this Aqre_ent on the day and date first above shown.
"Agency"
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
By:
W.R. Holcolllb
Chairman
APPROVED AS TO FORM AND
LEGAL CONTENT:
By:
Kenneth J. Henderson
Secretary
By:
Agency Counsel
"Participant"
SONLAC CORPORATION,
a California corporation
By:
Title:
By:
Title:
lIIIIlD'OlOIlIlClCWO
011141911:Il1O
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STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
)
) ss.
)
on this day of , 1992, before .e, the
underaigned, a Notary Public in and for the State of california,
peraonally appeared W.R. HOLCOMB and 1CEllNE'l'H J. HENDERSON
personally known to .e (or proved to .e on the basis of
.atiafactory evidence) to be the persons who executed this
instrument as the Chairman and Secretary, respectively, of ~e
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and acknowledqed
to .e said Aqency executed it.
Signature of Notary Public
(SEAL)
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STATE OF CALIFORNIA
)
) ss.
)
COUNTY OF
On this day of , 1992, J:lefore .e, the
undersigned, a Notary Public in and for the State of california,
personally appeared and , known
to.. (or proved to .e on the baai. of .ati.factory evidence) to be
the of SVNLAC CORPORATION, a California
corporation, and acknowledged to .. that they executed .aid
in.trument on behalf of said corporation.
Signature of Notary Public
(SEAL)
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
)
) ss.
)
On this day of , 1992, before .e, the
undersigned, a Notary Public in and for the State of california,
personally appeared personally known to .e (or
proved to .. on the basis of satisfactory evidence) to be the
person who executed this instruaent as COWl8el to the REDEVELOPMENT
AGENCY OF THE CITY OF SAM BERNARDINO and acJcnowledqed to .. said
Counsel for the Agency executed it.
Signature. of Notary Public
( SEAL)
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A'lTACJuIur 110. 1
LEGAL DBSCRIPrIOB OF TIlE SITE
THE EAST ORE-HALF OF THE WEST ONE-HALF OF LOT 118, TOWlllSITE OF RIALTO, AND
ADJOINING SUBDIVISION IN THE CITY OF SAN BBIl1WmINO, COUNTY OF SAN BBRNARDINO,
STATE OF CALIFORNIA, AS PER PLAT RECORDBD IN BOOIe 4 OF MAPS PAGB 11, RECORDS
OF SAID COUNTY. EXCBPT THAT PORTION THEREOF DBSCRIBBD AS FOLLOWS: BBGINNING
AT A POINT ON THE WESTERLY LIRE OF TBB ABOVE DBSCRIBBD PARCEL OF LAND, SAID
POINT BEING SOUTBBRLY 60 FBBT FROt! TBB NORTHEAST CORRBR OF SAID PARCBL; THENCE
NORTBBRLY 60 FBBT TO SAID NORTHWEST CORRBR; THENCE EASTERLY ALONG THE
NORTBBRLY LIRE OF SAID PARCEL 100 FBBT; THENCE SOUTBWBSTERLY IN A STRAIGHT
LIRE TO THE POINT OF BEGINNING. AREA AND DISTANCES ARB COMPUTED TO STREET
CENTERS.
Aft. 1 - Pace 1
DAD:paw:0319q
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ATTACHMENT NO. 2
SCOPE OF DEVELOPMENT
I.
GENERAL DESCRIPTION
The Site is specifically described in the Legal
Description (Attacluaent NO.1) pursuant to Section 103 of this
Aqreement.
II.
. Jl,JI ~. ;.I~'J4\~
Participent sball develop the Site by constructing twelve
(12) ho..s of approxiaately 1,640 square feet and four (4) haaes of
approxiaately 1,350 square feet in the floor plans attached bereto
as Exhibits A and B, respectively. Bach baae shall bave tile
countertops, oak cabineta, concrete tile roofs and siailar
amenities. Participant aqrees to expend a construction cost of
approxi_tely $35 per square foot for each residence, exclusive of
fees, off-site i.prov_ents, engineering or loan costs. In
addition, Participant aqrees to construct such off-site
improv-.nts as are required by the Tentative or Final Map on the
site or are otherwise required by City ordinance or requlation.
Expenditures by Participent sball generally be in the ..ounts and
for the purposes outlined in Exhibit C hereto.
All of the improvements to be provided by the Participant
on the Site constitute the "Participant Improvements."
The Participant shall commence and complete the
Participant Improvements by the respective tilles established
therefor in the Schedule of Perforaance (Attacluaent NO.3).
III. DEVELOPMENT STANDARDS
The PartiCipant Improvements shall be developed in
accordance with applicable building and safety codes.
IV. DEMOLITION AND SOILS
Participant assumes all responsibility for surface and
subsurface conditions at the Site, and the suitability of the Site
for the Participant Improveaents. If the surface and subsurface
conditions are not entirely suitable for such developaent and u.e,
Participent shall at it. co.t take all actions necessary to render
the Site entirely suitable for such developaent. Participent bas
undertaken all investigation of the Site it has de..ed necessary
and has not received or relied upon any representations of Agency,
the City, or their respective officers, agents and employee..
Participant shall undertake at its cost all demolition required in
connection with the development of Participant Improvements.
ATT. 2 - Page 1
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A _ LL
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to~cope of Development
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EXHIBIT lopment
Scope of Deve
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to Scope of Development
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PaUaItIIA (vi 1:h IDA Aadftancle)
(12).lan A
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na
con.truatlon coa~ (I" ....F)
Ir1mlc1pal F...
ott-'lu DIPS
'7,710
10,000
11,000
1,000
2,000
BanIl Fee8 . I"un.~
Civil 1:n91nMZ'1D9
lU.cellaneou . ~bt: 8UYloe
(BA LOan)
. COD8t;~101l LOan ~
z.aDd Coat
..1.. Coat
'1'oU1 coat; ~ .1an
....,7.0 . 12 .1.. A . '1,14',000
.
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t.~tl6 ......
47.250
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11,000
7,000
2,000
!la8ft6 S_ftftft
."1,710 .'U,210
2.,100 26,100
..888 -rMft
112.,110 tlU,710
.'12,210 . 4 .1an. - ~~..GGD
. '1'OUl acmevuc:t1on loan .v__~ 11,4'1,000
..1.. "ftfta..t.
12. .1.. A (16.0 I.F.) . '14','50 . '1,7",400
4 X Plan. (1210 I.F.) . '12',"0 - ....IAQ
.
Groas ..1.. ~.... '.,2'.,100
eaa~ 8' ..t..
12 X Plan A (1650 I.P.) X 112.,210 · 11,111,000
. X Pla" . (1350 I.P.) . $113,710 - '~~.ftftft
..ti..~.d ~oject Co.~ $2,00',000
latlaated ..t .roUt
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_2rGft'rftDO
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ATT. 2 - Page 7
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'0' .~... . G.V.W. EN~INEERlNG, I~ :
triA:) "'..52
. QVIL ENGINEENHG - SUIMYIHG - LAND PlANNING
.I 667 ~ DREA CANYON ACAD, SUTE 27. "ALNUT. CAIJFORNJA 91719
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CONmKrl. COST ESTIMATE
CI.... II f'Atatt,. Map)
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WTlllDRK
STREET IMPROVEMENTS
SEllER IMPROVEMENTS
IMTER IMPROVEMENTS
. . UTILITIES
HISCELLAIlEOUS
bllrctERlle;
. .
FEES
. .
. 17.87.10
73.041.11
1'.ZU.OO
1..100.00
21.110.00
la.410.00
U.4OO.00
...JZld!LIl
.
SUI TOTALJ
10S tONTINAlHCY:
S 110.021.11
--H.a.QttU
toTAL:
. I7t.021.U
.
· lalld... 1. Lots
.11-1101
11I1/11
act
M-17
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. 1.701.Of
4."1.31
1.202.11
1.150.00
1.513.7'
1.150.83
'.OU.OO
..lLZJLJ1
$31.101.71
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ATT. 2 - Page 8
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Substructure Exc.v.tfoll
Flltsll '.ds
'1111 'r.d. Lot.
.II!III..I!!I!B
, 'I Curb a Cutt.r
.. Cun 01111
J. A.C. Pawf",
.. AIa.....te ....
p.c.e: CrOll Cutter
P.C.C. Sidewalk (C. T~lck)
fOl seal
Drfv~ Appt'Olcll
Stop Sti"' ·
StNtt I fill .
ItMOve At l'I'Il/Curll . Cutt...
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C- Lat."l
IIYES
Mallhole
Llt.r.l Clelll Out
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(II. 011 Teatltf,. Nip)
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4.1 Ac.
7.S11 C.l.
2.000 e.l.
1. loti
11 Lot.
JIa.1.Uu1
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S 1.000.00
1.11
1.11
D.OO
400.00
S 4.100.00
'.417.10
1.100.00
C.IOO.00
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" l.f. 7.00 414.00
1I..31..f. 0.7' 11.471.2.
It.l.l I.f. 0.11 7.217.71
I.. ..f. 1.00 1.'18.00
'.131 I.f. 1.10 13.aU.1O
a.635 ..f D.DI 1.CJ1.75
17 II. 100.00 10.ZOO.00
1 h. 110.00 110.00
1 II. 100.00 300.00
110 1.f. 1.00 .,.-,t.It
4851.t.
4.7 1.f.
1. II.
I Ea.
11 EI.
ATT.
S 15.00
10.00
10.00
1.100.00
100.00
2 Pa~e 9
s , .215.00
....70.00
800.00
3.000.00
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(Ia.ed Oft Ttlltattv. Map)
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(...ter II '."uUyt ...,)
I!lWWal .DIIW.Ul JI41Uu1 .unt
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Stre.t IlfroYlll"t ,,." Cbeck IS of '''.ltl.11 2.768.7.
Stre.t l:rrove.nt III'Plction 2.51 of '12.211.21 2.307..
'r.e1i lit , 1ft Clltck LulpS_ 30.00
....c1f~ '''-CtiO'' . 11oS. 1'0.00
Il.ctr cal III~'" 3 E.. f .00 1.2~.OO
Traffic $1Ia. II 11 Loti 1I1.4t 1.111.40
Sewr Inspectfoll ."I.~ 15."
I StwIr COMlCtion 16 Lou 11.300."
sa.r Ca,lcttl 11 Loti S l.ao.OO 36.110.00
Sto,. Drain Sure"'r,. ," 4.1 Ac. I '..... 30.085.72
School Distrfct F.. II Lob 2.370.00 37.'20.00
Waur. ''In Clltcll ..... S. 100.00
Vlur IlIIpICtfon 100 1.f. I 1.00 100.00
Vlter ACJutsftiOft 0' Servic. 16 Ea. 2.700.00 43.200.00
Willi. Iln C~k I Inspection II of "1.110.00 nt:H
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ATT. 2 - Page 11
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111-1101
IIMI
At.
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=.. IlOl.
101 COST ESTIMATE
(.... 01 T_tatf" Map)
--
.tldS!1
1. Substructurl IxcnlUon . I' bund1ng Pld 7.' d.ptll .1 4S' width.
~
2. Stre.t Stct1on. . 3- A.C. ov.r ,- Cla.. 2 'a...
J. Mtn Strttt · "VI A.C. ."1'1 ancl jofl .dltfng pav..nt.
.
4. 'op1.r Street . ReIDy. Curb I Cu..r .nd $oin 'Xiltinl pa,lItftt.
.
I. Extlttftg I...r ..tn adJac.nt to tract 1. Popl.r Stre.t.
.. Existing wet.r ..ill IdJICIIlt to tract ill 'op11' StNlt.
I!w1!1!lIIl!1
,. .'uk Win along Intt... ..,t.ter 0' ,,111.
1.- L1ndlClp1ng and f,,1.a,1... tnsUnld on an 2:1 110ptl around pnt.
. .ttr of tract. Front III'd ""'lcap1.. . 1rrt,ltt.. ""ut,,d 111
tt~ not 1nclud.d fn I.tt.." . 24.111 ..f. I 4.00. "'.700.00
i. btatntnl wan 110nl welt property 11ni · 0 to 2.5' t. Might.
Datatlltftll wan at Hlr flf Lilli 1.\0 _ 0 tft 6' tll llIiaht. ATT. 2 - Paste 12 r;
m
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10.
0 11.
12.
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Retafning wall It rear aT LOts a.~u · U \0 D 111 IIClll"~'
Ie) 01'
Electrical EnerllY F.e of SUO.DO lI..ed an 1.100 11__ It~et HII"t.
Sewr Connection F.. 'lI.d on "..r of Mdl'OOllll.
J IltdrocWlIoul' a $135.42 · S7H.zt
School District F.. lI.sed on sq. ft. of lhilll ......
Sl.5I a 1100 I.f. (AVI. hous.) · $2.170.00
Idlblt -0-.-
ATT. 2 - Page 13
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ATTACHMENT NO. 3
SCHEDULE OF PERFORMANCE
1. Execution of AGree.ant bv
Aaencv. Aq.ncy sball approve
and ex.cut. thi. Aqr....nt, and
sball d.liv.r one (1) copy
ther.of to Participant.
2. CO.Dl.t. Con.truc'tion.
Participant sball coaplet.
construction of th. Participant
I.prov...nts and obtain
Certificat.s of OCcupancy on
.ach of the sixt..n (16)
residential units.
Not later than thirty (30) days
after th. dat. of .xecution and
.ubaission of two (2) copi.. of
this Aqr._.nt to Aq.ncy by
Participant.
Not lat.r than on. y.ar from the
.ff.ctiv. date of this
Aqr....nt.
ATT. 3 - paqe 1
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ATTACHMENT NO. 4
PROMISSORY NOTE SECUREn BY DEED OF TRUST
$431,375.00
Place:
Redevelopment Aqency
201 North "E" Street
Third Floor
San Bernardino, CA 92401
Date:
FOR VALUE RECEIVED, the undersi9ft.d prombes to pay to
the RedeveloPment Aqency of the City of San Bernardino (the
"Aqency") or its successors, the sua of Four Hundred Thirty One
Thousanci Three Hundred Seventy Five Dollars ($431,375.00), and to
pay interest on the unpaid principal amount of this Note from the
date bereof, at the rate per annua equal to two points over Bank of
America's publisbed prime rate, as adjusted from time to time,
until paid. Payment of interest and principal sball be made as
follows:
o
1. The Aqency sball be paid from the escrow for the
sale of each of the sixteen residential units to be constructed on
the Site [as defined in that certain OWner Participation Aqre8lllent
executed in connection berewith (the "Aqre8lllent")] the principal
sum of $26,960.94, plus accrued interest, plus any other SUIIIS
cominq due under this Note, the Aqre8lllent or the Deed of Trust
securinq this Note (the "Deed of Trust"), with such other SUIIIS
beinq equally allocated amonq any remaininq unused residential
units.
o
2. The Aqency sball deposit into the escrow for the
sale of any such residential unit a partial reconveyance of the
Deed of Trust, sufficient to release the Aqency's interest in said
residential unit anci its lot, wbich partial reconveyance sball be
beld in escrow by the .scrow bolder until the Agency bas been paid
the sums provided in Paraqrapb 1 above.
3. Regardless of the completion or sale of the
residential units, the full amount of all unpaid principal and
interest under this Note sball become due and payable three (3)
years from the date of the Aqre8lllent.
4. A failure to pay any sum provided for in this Note
wben due or a aaterial breach of this Note, the Aqre_ent or the
Deed of Trust, sball constitute a breach bereof and sball entitle
the Aqency to declare all SUIIIS due bereunder immediately due and
payable and to pursue all remedies available under this Note, the
Aqre8lllent or the Deed of Trust.
All payments due under this Note sball be made in lawful
money of tbe United States at the prinCipal office of the Aqency,
201 Nortb "E" Street, City Hall Annex, San Bernardino, CA 92401-
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1507, or at such other place as may froll tille to tille be desiqnated
by the Agency in writing.
Notwithstanding any language herein to the contrary, this
Note shall becOlle imaed.iately due and payable in the amount of all
unpaid principal, with interest, upon any transfer in violation of
the Agree.ent of title of the property described in the Deed of
Trust to any person, firm or corporation other than the undersiqned
and except as provided in said Deed of Trust, whether such transfer
of title be voluntary, inVOluntary, or by operation of law.
The undersiqned reserves the right to prepay at any tille
all or any part of the principal amount of this Note without the
payment of penal ties or pr..iUll8. All payments on this Note shall
be applied first to the interest due on the Note and then to the
principal due on the Note, and the remaining balance shall be
applied to late charges, if any.
IN '1'HE EVEN'!' the undersiqned shall fail to pay the
payments wben due, and if such failure be Subsisting thirty (30)
days thereafter, the unpaid principal amount of this Note, together
with accrued interest and late charges, shall becolle due and
payable, at the option of the Agency, without notice to the
undersiqned. Failure of the Agency to exercise such option sball
not constitute a waiver of such default. If the payments on this
Note are not paid within ten (10) days of the due date, the
undersiqned shall pay to the Agency a late charge of 4t on the
amount past due and remaining paid. If this Note be reduced to
jUdgment, such jUdgment sball bear the statutory interest rate on
jUd9llents.
In no event shall the total interest and late charge
payable bereunder exceed the maxillUII amount of interest permitted
under the usury laws of the state of California.
If suit is instituted by the Agency to recover on this
Note, the undersiqned agrees to pay all costs of such collection
including reasonable attorney's fees and court costs.
THIS NOTE is secured by a Deed of Trust of even date,
duly filed for record in the office of the County Recorder of the
County of San Bernardino, State of California.
DEMAND, protest and notice of demand and protest are
hereby waived and the undersigned bereby waives, to the extent
authorized by law, any and all hOllestead and other ex..ption rigbts
which otherwise would apply to the debt evidenced by this Note.
ATT. 4 - Page 2
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IN WITNESS WHEREOF, THIS NOTE has been duly executed by
the undersiqned, as of its date.
SUNLAC CORPORATION,
a California corporation
By:
Title:
By:
Title:
ATT. 4 - Page 3.
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ATTACHMENT NO. 5
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
)
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(Space Above
for Recorder's Use)
DEED OF TRUST WITH ASSIGNIIEN'l' OF RENTS
o
Deed of trust _de on , 1991, by SUNLAC
CORPORATION, a California corporation, hereinafter called
"Trustor," Whose address is to
FIRST AKERICAN TITLE COMPANY, hereinafter referred to a. "Trustee",
whose business address is 323 Court street, San Bernardino,
California 92401, in favor of the REDEVELoPMENT AGENCY OF THE CITY
OF SAN BERNARDINO, hereinafter referred to as "Beneficiary", whose
busine.s address is 201 North "E" Street, Third Floor, San
Bernardino, California 92401.
Trustor irrevocably grants, transfers, and assiqns to
Trustee in trust, with power of sale, all that property, including
all eas_ents and rights of way used in connection therewith or as
a .ean. of access thereto, in the City of San Bernardino, County of
San Bernardino, State of California, described as follows:
That certain property located in the City of
San Bernardino, County of San Bernardino, State of California, more
particularly described as:
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together with the rents, issues and profits thereof, subject
however to the right reserved by Trustor in Paragraph B-16 hereof
to collect and apply such rent., issue. and profit., prior to any
default hereunder;. for the purPO.e of securing perforaance in a
timely manner of all of Trustor's obligations under that certain
OWner Participation Agre_ent and payment of the indebtedness
evidenced by a proais.ory Note executed by Trustor in the principal
sua of Four Hundred Thirty One Thou_nd Three Hundred Seventy Five
Dollars ($431,375.00), payable to Beneficiary or order and each
extension thereof, both executed in connection with this Deed of
Trust; and perforaance of each agreement to Trustor incorporated
herein by reference or contained herein.
A. To protect the security of this Deed of Trust, Trustor agrees:
1. To maintain the property in good condition and
repair; not to remove or demolish any building or improvement
thereon; to complete promptly in workmanlike aanner any improvement
hereafter constructed thereon and to restore promptly in
workmanlike manner any improvement thereon that is daaaged or
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destroyed, and to pay when due all co.t. incurred therefor or in
connection therewith; to comply with all laws, ordinances,
regulations, cov.nant., conditions and r.strictions aff.ctinq the
prop.rty; not to co_it or perlIit any waste ther.of or any act upon
the property in violation of law or of covenant., condition. or
restrictions affectinq the property.
2. To appear in and defend any action or proceedinq
purportinq to affect the security her.of or the riqhts or powers of
Beneticiary or Tru.t.e; and al.o, it at any time Beneticiary or
Trust.. i. a party to or appear. in any .uch action or proceedinq,
or in any action or proceedinq to entorce any obliqation hereby
secured, to pay all co.t and expen... paid or incurred by th811 or
either ot th_ in connection th.r.with, includinq, but not limited
to, co.t of evidence ot title and attorn.y.' f.e. in a r.asonable
SUII.
3. To pay (a) at least ten (10) days betore
delinquency, all tax.. and a.....aents att.ctinq the property, all
asse..aent upon water company .tock, and all rents, asse.sments and
charq.. tor water appurtenant to or used in connection with the
property; (b) wh.n due, all .ncumbrance., charqes and liens, with
intere.t, on the property or any part thereof, which appear to be
prior or superior hereto; and (c) all co.ts, tees and expenses of
this trust.
4. If Trustor fails to aake any paym.nt or to do any
act as herein provided, then Beneficiary or Trustee (but without
obliqation .0 to do, and with or without notice to or d8lland upon
Trustor, and without rel.a.inq Trustor trom any obliqation hereot)
may (a) aake or do the .... in .uch manner and to such extent as
either d.... necessary to protect the s.curity hereot, Beneticiary
or Trustee beinq authorized to enter upon the property tor such
purpose; (b) appear in or commence any action or proceedinq
purportinq to attect the security hereot or the riqhts or powers of
Beneticiary or Tru.tee; (c) pay, purchase, contest, or compromise
any encumbrance, cherqe or lien that, in the judqllent ot either,
appear. to be superior hereto; and in axerci.inq any such power,
Beneticiary or Trustee may' incur necessary expenses, includinq
reasonable attorney.' tees.
5. To pay immediately and without demand all sums
expended hereunder by Beneficiary or Tru.te., with intere.t from
date of expenditure at the annual rate ot two percentaqe points
over Bank ot America's published prime rate.
B. It is mutually aqreed that:
1. Any award of damaqes made in connection with the
condemnation tor public use of or injury to the property or any
part ther.of is hereby assiqned and .hall be paid to Beneficiary,
who may apply or r.leas. such moneys r.ceived therefor upon any
indebtedness secured hereby in such order as Beneficiary
determines, or at the option of Beneficiary the entire amount so
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received or any part thereof may be released to Trustor. Such
application or release shall not cure or waive any default or
notice of default hereunder or invalidate any act done pursuant to
such notice.
2. The acceptance by Beneficiary of any payment less
than the ..ount then due shall be de_ed an acceptance on account
only and shall not constitute a waiver of the obligation of Trustor
to pay the entire sua then due or of Beneficiary's right either to
require prOllpt payment of all SUIIUI then due or to declare default.
The acceptance of payment of any sua secured hereby after its due
date will not waive the right of Beneficiary either to require
prompt payment when due of all other SUlla so secured or to declare
default for failure so to pay. No waiver of any default shall be
a waiver of any preceding or succeeding default of any kind.
3. At any time or from time to time, without liability
therefor and with or without notice, upon written request of
Beneficiary and presentation of this deed and the secured note for
endors_ent, and without effecting the personal liability of any
person for payment of the indebtedness secured hereby or the effect
of this deed upon the remainder of the property, Trustee may
reconvey any part of the property, consent to the making of any map
or plat thereof, join in granting any eas_ent or join in any
extension agre_ent or any agreement subordinating the lien or
charge thereof.
4. Upon written request of Beneficiary stating that all
SUIIS secured hereby have been paid, surrender of this deed and the
note to Trustee for cancellation and retention, and payment of its
fees, Trustee shall reconvey, without warranty the property then
held hereunder. The recitals in such reconveyance shall be
conclusive proof of the truthfulness thereof. The grantee may be
desiqnated in such reconveyance as "the person or persons legally
entitled thereto." In addition, Trustor will be making payments on
the Promissory Note from the sale of sixteen (16) residential units
to be constructed by Trustor or the lots pertaining thereto.
Beneficiary agrees to provide Trustor with partial reconveyances of
this Deed of Trust, or to instruct Trustee to do so, in connection
with the sale of such units or lots providing the conditions of
Section 322 of the Agre_ent are met. A partial reconveyance with
respect to any such unit or lot shall rel_se only the lien against
such unit or lot and shall not act to release or impair the lien of
this Deed of Trust against any units or lots as to which partial
reconveyances have not been issued.
5. Trustor may give such notice to Beneficiary at any
time before there is a Trustee's sale of the property. At any time
Trustor is in default in payments to be made to Beneficiary
hereunder, any amounts paid to and received by Beneficiary for
execution of releases pursuant to the terms of this paragraph after
notice of default and election to sell has been recorded shall not,
unless the requirements ot section 2924c of the Civil Code are
fully met by or on behalf. of Trustor, waive the right of
Beneficiary to continue its plans to have the property sold, nor
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shall they have any effect on the exerci.. by Beneficiary of the
acceleration privilege contained herein, except to entitle the
person effecting such paym.nt to the release of the property for
which the relea.e amount was paid, and insofar a. Ben.ficiary is
concerned, to con.titute a credit again.t the secured debt.
6. If Trustor or any .ubsequent owner of the property
covered hereby .hall occupy the property, or any part thereof,
after any default in paYJIent of any aaount .ecured by this deed of
trust, Tru.tor or .uch owner shall pay to Beneficiary in advance on
the fir.t day of _ch aonth a rea.onable rental for the pr_i.e. .0
occupied. On failure to pay such r_sonable rental, Trustor or
such owner ..y be r_oved froa the pr_i.e. by .WIIIllry
di.po.....ion proceeding. or by any other appropriate action of
proceeding.
7. If default is ..d. in payJleJlt of any indebtedness or
in performance of any agre_ent hereby .ecured, th.n Beneficiary,
with or without notice to Trustor, _y declare all suas secured
h.reby ~iately due and payable by instituting suit for the
recovery thereof or for the foreclo.ure of this deed, or by
d.livering to Trustee a written declaration of default and demand
for sale, as well a. a written notice of default and of el.ction to
caus. the property to be sold, which notice Trustee shall caus. to
be filed for record. If such d.claration is delivered to Trustee,
B.n.ficiary shall also deposit with Trustee this d..d, the secured
note, and all documents .vid.ncing eXPenditur.s s.cured her.by.
8. Should Trustor, without the consent in writing of
Beneficiary, voluntarily .ell, transfer or convey his inter.st in
the property or any part th.reof, or if by operation of law, it be
sold, tran.f.rred or conveyed, then Beneficiary _y, at its option,
declare all suas .ecured hereby ~ediat.ly due and payabl..
Cons.nt to one .uch transaction shall not be d.emed to be a waiv.r
of the right to require such cons.nt to future or succ.ssive
transactions.
9. Aft.r the ti.. th.n required by law has .lapsed
after recordation of such notice of d.fault, and notice of sale
having been giv.n as then required by law, Truste., with or without
d...nd on Tru.tor, .hall .ell the property at the time and place
fixed in the notic. of sale, eith.r a. a whole or in separate
parcel. and in .uch order a. Tru.tee determine., at public auction,
to the highe.t bidder, for cash in lawful money of the Unit.d
Stat.., payable at the time of sale. Tru.t....y po.tpone fro.
ti.e to time sale of all or any portion of the property by public
announcement at the ti.e and plac. of sale originally fixed or at
the la.t preceding postponed ti.e. Trustee .hall deliver to the
purcha..r it. deed conveying the property sold, but without any
covenant or warranty, expr.ss or i.plied. Th. r.citals in such
de.d of any _tters or facts .hall be conclu.iv. proof of the
truthfuln.s. th.reof. Trustor, Trust.., B.neficiary or any other
person .ay purchase at the sale.
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10. After deducting all costs, fees and expenses of
Trustee and of this trust, including cost of evidence of title and
reasonable attorney.' fees in connection with sale, Trustee shall
apply the proceed. of sale to payment of Ca) all SWlS expended
under the tenas hereof and not theretofore repaid, with accrued
interest .t two percentage points over Bank of Americ.'. published
priae r.te per annua, and Cb) all other .WIS then .ecured hereby in
such order .. Beneficiary, in the exerci.e of its .ole di.cretion,
direct.. The r...inder, if .ny, sh.ll be paid to the per.on or
persons leq.lly entitled thereto.
11. Before Trustee's s.le, Beneficiary aay rescind .uch
notices of def.ult .nd of election to cauae the property to be .old
by delivering to Tru.tee a written notice of rescission, which
notice, when recorded, .h.ll cancel any prior declar.tion of
def.ult, demand for s.le .nd acceler.tion of aaturity. The
exerci.e of such a right of resci..ion shall not constitute .
w.iver of .ny def.ult then existing or .ub.equently occurring, or
i.pair the right of Benefici.ry to deliver to Trustee other
decl.r.tions of def.ult .nd demands for ..le or notice. of def.ult
and of election to cause the property to be sold, or otherwise
affect any provision of the secured note or of this deed or any of
the rights, Obligations or remedies of Benefici.ry or Trustee
hereunder.
12. Beneficiary may, from time to time a. provided by
statute, or by a writing siqned and .cknowledged by him and
recorded in the office of the county recorder of the county in
which the land or .uch party thereof as is then .ffected by this
deed of truat is .ituated, .ppoint .nother tru.tee in stead .nd of
Trustee herein named; .nd thereupon, the Trustee herein n..ed .hall
be discharged, .nd the trustee so appointed sh.ll be substituted as
Tru.tee hereunder with the same effect .s if origin.lly named
Trustee herein.
13. If two or more persons are desiqnated as Trustee
herein, any or .11 powers gr.nted herein to Tru.tee aay be
exerci.ed by .ny of such per.ons if the other per.on or persons is
unable, for .ny re.son, to .ct. Any recital of such inability in
any instrument executed by any of such persons shall be conclusive
against Trustor, his heirs .nd assigns.
14. All lease. nor or hereafter affecting the property
are hereby ..signed .nd transferred to Benefici.ry by Tru.tor.
Trustor hereby covenant. that none of such le.... will be .edified
or terminated without the written consent of Beneficiary.
15. When requested to do so, Trustor shall give such
further written ...i9JUllent. of rents, royalties, i.sues and
profits; of .11 security for the performance of leases; and of all
money payable under any option to purchase, and shall give executed
originals of all leases, now or hereafter on or affecting the
property.
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16. Trustor reserves the right, prior to any default in
paYlllent of any indebtedness or perfonaance of any o))ligation
secured here))y, to collect all such rents, royalties, issues and
profits, as but not ):)efore they ):)ecome due. Upon any such default,
Trustor's right to collect such moneys shall cease, not only as to
..ount. accruing thereafter, ))ut also as to ..ounts then accrued
and unpaid. In the event of default, Beneficiary, with or without
notice and without regard to the adequacy of security for the
inde))tedn.S. here))y ..cured, either in person or ))y agent, or ))y a
rec.iver to ))e appointed ))y the court, (a) aay enter upon and take
po.....ion of the property at any tia. and -nag. and control it in
Ben.ficiary'. discr.tion, and ())) with or without taking
po.....ion, -y su. for or otherwise coll.ct the rents, is.u.s and
profits ther.of, whether past due or co.ing due thereafter, and
apply the ...., less costa and expens.s of operation and
coll.ction, inCluding reasona]:)le attorneys' fees, upon any
o))ligation .ecured here))y and in such order as Beneficiary
deterain... None of the aforesaid acts shall cure or waive any
d.fault hereunder or invalidate any act don. pursuant to such
notice. Beneficiary .hall not ))e required to act diligently in the
care or _nag_ent of the property or in collecting any rents,
royalti.s or other profits that it is here))y authorized to collect,
and shall ):)e accounta))le only for suas actually received.
17. Without affecting the lia))i1ity of Trustor or of any
other party now or hereafter ))ound ))y the tenaa hereof, from tille
to ti_ and with or without notice, aay release any person now or
hereafter lia))le for perfonaance of such o))ligation, and _y extend
the tiae for payaent or performance, accept additional security,
and alter, su))stitute or release any security.
18. In any jUdicial action ))rought to foreclose this
deed or to enforce any right of Beneficiary or of Trustee
hereunder, Trustor shall pay to Beneficiary and to Trustee
attorney.' fees in a reasona))le sua, to ):)e fixed ))y the court.
19. No remedy here))y given to Beneficiary or Trustee is
exclusive of any other remedy hereunder or under any present or
future law.
20. The pleading of any statute of lillitations as a
defense to any and all o))ligations secured ))y this deed is here))y
waived, to the full extent peraissi))le ))y law.
21. In the event of default in the payment of any
inde))tedness secured here))y, and if such inde))tedness is secured at
any tiae ))y any other instrument, Beneficiary shall not ))e
o))ligated to resort to any security in any partiCUlar order; and
the exercise by Beneficiary of any right or remedy with respect to
any security shall not ):)e a waiver of or lillitation on the right of
Beneficiary to exercise, at any tille or froll tille to time
thereafter, any right or remedy with respect to this deed.
ATT. 5 - Page 6
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22. Trustor shall, upon request _ele by Beneficiary,
furnish the Beneficiary with annual stat_ents covering the
operations of the property.
23. Beneficiary may collect a "late charge" not to
exceeel an _ount equal to four percent (4') on the _ount past elue
anel r...ining unpaid on any installllent that is not paiel within ten
(10) elays fro. the elue elate thereof, to cover the extra expense
involvecl in hanelling elelinquent payments.
24. This eleecl applies to, inures to the benefit of anel
binds all parties hereto, their heirs, legat_s, elevisees,
aciainistrators, executors, successors, successors in interest, anel
assigns. The tera "Beneficiary" .eans the owner anel holeler,
inclueling pleclgees, of the note securecl hereby, whether or not
nUlecl as Beneficiary herein. In this eleecl, whenever the context so
requires, the masculine geneler includes the f_inine ancl neuter,
anel the singular nuaber inclueles the plural, anel all obligations of
each Trustor hereuneler are joint anel several.
25. Trustee accepts this trust when this eleecl, eluly
executeel anel acknowleelgeel, is maele a public recorel as provieleel by
law. Trustee is not obligatecl to notify any party hereto of
peneling aale uncler any other deeel of trust or of any action or
proceecling in which Trustor, Beneficiary or Truatee is a party
unless brought;by Trustee.
Trustor requests that a copy of notice of elefault anel of
any notice of sale hereuneler shall be maileel to him at the adelress
set out opposite his nUle, ilDlDeeliately below.
MAILING ADDRESSES FOR NOTICES:
SUNLAC CORPORATION
Executecl at San Bernarelino, California, on the elate first
above written.
SUNLAC CORPORATION
By:
Title:
By:
Title:
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STATE OF CALIFORNIA
COUNTY OF
)
) ss.
)
On this day of , 1992, before .e, the
undersigneci, a Notary Public in and for the State of california,
personally appeareci and ,
known to ae (or proved to .e on the basis of satisfactory evidence)
to be the of SUNLAC CORPORATION, a california
corporation, and acknowleci9eci to .. that they executeci said
instrument on behalf of said corporation.
Signature of Notary Public
(SEAL)
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PROMISSORY NOTE SECUREn BY DEED OF TRUST
$431,375.00
Place: Redevelopment Aqency
201 North "E" Street
Thirl! Floor
San Bernardino, CA 92401
Date:
FOR VALUE RECEIVED, the underslqned promises to pay to the
Redevelopment Aqency of the City of San Bernarl!ino (the "Aqency")
or its successors, the sum of Four Hundred Thirty One Thousand
Three Hundred Seventy Five Dollars ($431,375.00), and to pay
interest on the unpaid principal amount of this Note from the date
hereof, at the rate per annum equal to two points over Bank of
America's published prime rate, as adjusted from time to time,
until paid. Payment of interest and principal shall be made as
follows:
1. The Aqency shall be paid from the escrow for the sale
of each of the sixteen residential units to be constructed on the
site [as defined in that certain owner Participation Aqreement
executed in connection herewith (the "Aqreement")] the principal
sum of $26,960.94, plus accru.d interest, plus any other sums
cominq due under this Note, the Aqr....nt or the D.ed of Trust
securinq this Note (the "Deed of Trust"), with such other sums
beinq equally al1ocatel! amonq any remaininq unused residential
units.
2. The Aqency shall deposit into the escrow for the sale
of any such residential unit a partial reconveyance of the Deed of
Trust, sufficient to r.1ease the Aqency's interest in said
r.sidentia1 unit and its lot, which partial reconveyance shall be
held in escrow by the escrow holder until the Aqency has been paid
the sums provided in Paraqraph 1 above.
3. Reqardle.. of the completion or sale of the residential
units, the full emount of all unpaid principal and interest under
this Note shall become due and payable three (3) years from the
date of the Aqreement.
4. A failure to pay any sum provided for in this Note when
due or a material breach of this Note, the Aqreement or the Deed of
Trust, shall constitute a breach hereof and shall entitle the
Aqency to d.c1are all sums due hereunder immediately due and
payable and to pursue all remedies available under this Not., the
Aqreement or the O..d of Trust.
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All payments due under this Note shall be made in lawful
money of the United States at the principal office of the Agency,
201 North -E- Street, City Hall Annex, San Bernardino, CA 92401-
1507, or at such other place as may from time to time be designated
by the Agency in writing.
Notwithstanding any language herein to the contrary, this
Note shall become immediately due and payable in the amount of all
unpaid principal, with interest, upon any transfer in violation of
the Agreement of title of the property described in the Deed of
Trust to any person, firm or corporation other than the undersigned
and except as provided in said Deed of Trust, whether such transfer
of title be voluntary, inVOluntary, or by operation of law.
The undersigned reserves the right to prepay at any time
all or any part of the principal amount of this Note without the
payment of penalties or premiums. All payments on this Note shall
be applied first to the interest due on the Note and then to the
principal due on the Note, and the remaining balance shall be
applied to late charges, if any.
IN THE EVENT the undersigned shall fail to pay the payments
when due, and if such failure be subsisting thirty (30) days
thereafter, the unpaid principal U10unt of this Note, together with
accrued interest and late charges, shall become due and payable, at
the option of the Agency, without notice to the undersigned.
Failure of the Agency to exercise such option shall no~ constitute
a waiver of such default. If the payments on this Note are not
paid within ten (10) days of the due date, the undersigned shall
pay to the Agency a late charge of 4' on the amount past due and
remaining paid. If this Note be reduced to judgment, such judgment
shall bear the statutory interest rate on judgments.
In no event shall the total interest and late charge
payable hereunder exceed the maximum U10unt of interest permitted
under the usury laws of the State of California.
If suit is instituted by the Agency to recover on this
Note, the undersigned agrees to pay all costs of such collection
including reasonable attorney's fees and court costs.
THIS NOTE is secured by a Deed of Trust of even date, duly
filed for record in the office of the County Recorder of the County
of San Bernardino, State of California.
DEMAND, protest and notice of demand and protest are hereby
waived and the undersigned hereby waives, to the extent authorized
by law, any and all homestead and other exemption rights which
otherwise would apply to the debt evidenced by this Note.
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IN WITNESS WHEREOF, THIS NOTE has been duly executed by the
undersigned, as of its date.
FIRST AMERICAN TITLE INSURANCE CO.
as Trustee under Holdinq Aqre_ent 71306A
By:
Title:
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RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
)
)
)
)
(Space Abov. for Recorder's Use)
DEED OF TRUST WITH ASSIGNMENT OF RENTS
Deed of trust mad. on , 1992, by FIRST
AMERICAN TITLE INSURANCE COMPANY, AS TRUSTEE UNDER HOLDING
AGREEMENT 71306A, her.inafter call.d "Trustor," whose address is
323 Court Street, San Bernardino, california 92401, to FIRST
AMERICAN TITLE COMPANY, her.inafter referred to as "Trustee", whose
business address is 323 Court Stre.t, San Bernardino, California
92401, in favor of the REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, hereinafter ref.rred to as "Beneficiary", whose
business address is 201 North "E" Stre.t, Third Floo!;', San
Bernardino, California 92401.
Trustor irrevocably grants, transfers, and assigns to
Trustee in trust, with power of sale, all that property, includinq
all easements and riqhts of way used in connection ther.with or as
a means of access ther.to, in the City of San Bernardino, County of
San Bernardino, State of california, described as follows:
That certain property located in the City of
San Bernardino, County of San Bernardino, State of California, more
particularly described as:
toqether with the rents, issues and profits thereof, subject
however to the riqht reserved by Trustor in Paragraph B-16 hereof
to collect and apply such rents, issues and prOfits, prior to any
default hereunder; for the purpose of s.curinq performance in a
timely manner of all of Trustor's obliqations under that certain
OWner Participation Agr....nt and payaent of the indebtedness
evidenced by a Promissory Note executed by Trustor in the principal
SUII of Four Hundred Thirty One Thousand Three Hundred Seventy Five
Dollars ($431,375.00), payable to Beneficiary or order and each
extension thereof, both executed in connection with this Deed of
Trust; and performance of each agreement to Trustor incorporated
herein by reference or contained herein.
A. To protect the security of this Deed of Trust, Trustor aqrees:
1. To maintain the property in qood condition and repair;
not to remove or demolish any buildinq or improvement thereon; to
complete promptly in workmanlike manner any improvement hereafter
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constructed thereon and to restore praaptly in workmanlike manner
any improv..ent thereon that is damaged or destroy.d, and to pay
when due all costs incurr.d therefor or in connection ther.with; to
comply with all law., ordinance., regulations, covenant.,
condition. and re.triction. affecting the property; not to commit
or penai t any wa.t. thereof or any act upon the property in
violation of law or of covenants, conditions or restrictions
affecting the property.
2. To appear in and defend any action or proceeding
purporting to affect the security hereof or the right. or powers of
Beneficiary or Trustee; and also, if at any time Beneficiary or
Trustee i. a party to or appears in any such action or proceeding,
or in any action or proceeding to enforce any Obligation hereby
secured, to pay all cost and expens.s paid or incurred by th_ or
either of th_ in connection therewith, inClUding, but not limited
to, cost of evidence of title and attorneys' fees in a reasonable
sum.
3. To pay Ca) at least ten Cl0) days before delinquency,
all taxes and assessments affecting the property, all asse.sment
upon water company stock, and all rent., a....sment. and charg.s
for wat.r appurtenant to or used in connection with the property;
Cb) when du., all encumbrances, charg.s and lien., with interest,
on the property or any part thereof, which appear to be prior or
superior her.to; and Cc) all costs, fe.s and expens.s of this
trust.
4. If Trustor fails to aske any payment or to do any act
a. herein provided, then Beneficiary or Trustee Cbut without
obligation so to do, and with or without notice to or demand upon
Trustor, and without releasing Tru.tor from any obligation her.of)
may Ca) make or do the same in such manner and to such extent as
either deems neces.ary to protect the security hereof, Beneficiary
or Trustee being authorized to enter upon the property for such
purpose; Cb) appear in or commence any action or proceeding
purporting to affect the security hereof or the rights or powers of
Ben.ficiary or Trustee; Cc) pay, purchase, contest, or compromise
any encumbrance, charge or lien that, in the judgment of either,
appears to be superior hereto; and in exerci.ing any such power,
Beneficiary or Trustee may incur necessary expenses, including
reasonable attorneys' fees.
5. To pay immediately and without demand all sums expended
hereunder by Beneficiary or Trustee, with interest from date of
expenditure at the annual rate of two percentage points over Bank
of America's published prime rate.
B. It is mutually agreed that:
1. Any award of damages made in connection with the
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condemnation for public use of or injury to the property or any
part th.reof is h.r.by assigned and shall be paid to Beneficiary,
who may apply or release such IIOn.ys received therefor upon any
indebtedness secured hereby in such order as Beneficiary
deteraines, or at the option of Beneficiary the entire aIIOunt so
r.cei ved or any part thereof aay be released to Trustor. Such
application or r.l.... shall not cure or waive any default or
notice of default hereunder or invalidate any act done pursuant to
such notic..
2. Th. acc.ptance by Ben.ficiary of any payaent l.ss than
the amount then due shall be de"ed an acc.ptanc. on account only
and shall not constitute a waiver of the obliqation of Trustor to
pay the entire sua then due or of Beneficiary's riqht either to
require prOllpt payaent of all suas then due or to declare default.
The acceptance of payaent of any sua secured hereby after : its due
date will not waive the riqht of Beneficiary either to require
pro.pt payaent when due of all other swu so secured or to d.clare
default for failure so to pay. No waiver of any default shall be
a waiver of any precedinq or succeedinq default of any kind.
3. At any ti.e or fro. ti.e to ti.e, without liability
th.refor and with or without notice, upon written request of
Ben.ficiary and presentation of this deed and the secured note for
endors..ent, and without effectinq the personal liability of any
person for payment of the indebtedness secur.d hereby or the eff.ct
of this d..d upon the remainder of the property, Trustee uy
reconvey any part of the property, consent to the -.kinq of any up
or plat thereof, join in qrantinq any eas..ent or join in any
extension aqre..ent or any aqre..ent subordinatinq the lien or
charqe thereof.
4. Upon written request of Beneficiary statinq that all
sums secured hereby have be.n paid, surrender of this deed and the
note to Trustee for cancellation and retention, and payaent of its
fees, Trustee shall reconvey, without warranty the property then
held hereunder. Th. recitals in such reconveyance shall be
conclusive proof of the truthfulness thereof. The qrantee aay be
designated in such reconveyance as "the person or persons legally
entitled thereto." In addition, Trustor will be aaking paya.nts on
the PrOllissory Note from the sale of sixteen (16) residential units
to be constructed by Trustor or the lots pertaininq thereto.
Beneficiary aqrees to provide Trustor with partial reconveyances of
this Deed of Trust, or to instruct Trustee to do so, in connection
with the sale of such units or lots providinq the conditions of
Section 322 of the Aqreement are met. A partial reconveyance with
respect to any such unit or lot shall release only the lien aqainst
such unit or lot and shall not act to release or impair the lien of
this Deed of Trust aqainst any units or lots as to which partial
reconveyances have not been issued.
5. Trustor may qive such notice to Beneficiary at any time
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before there is a Trustee' s sale of the property. At any tille
Trustor is in default in payments to be made to Beneficiary
her.under, any amount. paid to and r.ceived by B.n.ficiary for
execution of r.l..... pur.uant to the t.r1I8 of this paragraph after
notic. of d.fault and .l.ction to ..11 has been r.corded .hall not,
unless the requirement. of Section 2924c of the Civil Cod. are
fully aet by or on behalf of Tru.tor, waive the riqht of
B.neficiary to continu. it. plans to have the property .old, nor
shall th.y have any .ff.ct on the exarci.. by Beneficiary of the
acc.leration privileq. contained her.in, .xc.pt to .ntitl. the
per.on .ffectinq .uch payaent to the r.l.a.. of the property for
which the r.l.... amount was paid, and in.ofar a. Beneficiary is
concerned, to con.titute a credit aqainst the .ecured debt.
6. If Tru.tor or any sub.equ.nt owner of the property
covered h.r.by shall occupy the property, or any part th.r.of,
after any d.faul t in payaent of any amount ..cured by this d.ed of
tru.t, Tru.tor or .uch owner .hall pay to Ben.ficiary in advance on
the fir.t day of .ach aonth a r...onabl. rental for the pr_i.e. so
occupied. on failure to pay .uch rea.onable rental, Trustor or
.uch owner may be r~ved froll the pr_ise. by .Ullllary
di.po.....ion proceedinq. or by any other appropriate action of
proceedinq.
7. If default is made in payment of any ind.btedne.s or
in performance of any agreement hereby secured, then Beneficiary,
with or without notice to Trustor, may declare all .U11S secured
hereby i-.diately due and payable by institutinq suit for the
recovery th.r.of or for the for.closure of this deed, or by
de1iv.rinq to Tru.t.. a written declaration of d.fault and demand
for .al., a. w.ll a. a written notic. of d.fault and of election to
cause the property to be .old, which notice Tru.tee .hall cause to
be filed for r.cord. If .uch declaration is d.livered to Tru.tee,
Ben.ficiary .hall al.o deposit with Tru.te. this deed, the secured
note, and all dOClDlent. .vid.ncinq expenditures secured hereby.
8. Should Trustor, without the con.ent in writinq of
Beneficiary, VOluntarily sell, transfer or convey hi. interest in
the property or any part th.reof, or if by operation of law, it be
sold, tran.f.rred or conv.yed, then Ben.ficiary may, at it. option,
declare all .\BI. .ecured hereby imaediately due and payable.
Con.ent to one such tran.action shall not be deemed to be a waiver
of the riqht to require .uch consent to future or successive
transactions.
9. After the tille then required by law has elapsed after
recordation of .uch notice of default, and notice of sale havinq
been qiven a. then required by law, Tru.tee, with or without delland
on Trustor, shall .ell the property at the tille and place fixed in
the notice of .ale, either as a whole or in separate parcel. and in
such order a. Trustee determine., at public auction, to the hiqhest
bidder, for cash in lawful 1I0ney of the United States, payable at
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the time of sale. Trustee may postpone from time to time sale of
all or any portion of the property by public announcement at the
time and place of .al. originally fixed or at the last preceding
postponed ti... Trust.. .hall d.liv.r to the purchas.r it. deed
conv.ying the property .old, but without any covenant or warranty,
expre.s or implied. Th. r.cital. in such d.ed of any matters or
fact. shall be conclu.iv. proof of the truthfuln... th.reof.
Tru.tor, Tru.t.., Ben.ficiary or any other per.on may purchas. at
the sal..
10. After deducting all costs, fe.. and expenses of Trustee
and of this tru.t, including cost of .vidence of title and
reasonable attorneys' f.e. in connection with .ale, Trust.. shall
apply the proc.ed. of .ale to payment of ea) all .ums expend.d
under the t.rms hereof and not theretofore repaid, with accrued
int.re.t at two perc.ntag. point. over Bank of America'. publish.d
pri.. rate per annUJI, and eb) all other .ums then ..cured her.by in
such ord.r a. Ben.ficiary, in the .x.rci.. of its .01. di.cr.tion,
direct.. Th. remainder, if any, shall be paid to the per.on or
persons l.gally entitl.d thereto.
11. Before Tru.t.... .ale, Beneficiary may rescind such
notices of d.fault and of .l.ction to caus. the property to be sold
by delivering to Trustee a writt..n notice of re.ci..ion, which
notic., when r.corded, shall cancel any prior d.claration of
default, demand for sale and acceleration of maturity. The
exerci.e of such a right of resci.sion shall not const.itut.e a
waiver of any default then .xisting or sub.equently occurring, or
impair the right of Beneficiary to deliver to Truste. other
declarations of d.fault and demands for .ale or notices of default
and of election t.o cau.e the property to be .old, or otherwise
affect any provision of the .ecured note or of this deed or any of
the rights, obligations or remedies of Beneficiary or Trustee
hereunder.
12. Beneficiary may, from time to time as provided by
statute, or by a writ.ing signed and acknowledged by hi. and
recorded in the office of the county recorder of the county in
which the land or such party thereof as is then affected by this
deed of trust is .ituated, appoint another trustee in stead and of
Trust.. herein na.ed; and th.reupon, the Trustee herein named shall
be diScharged, and the t.rust.ee so appointed shall be .ubst.itut.ed as
Trustee hereunder with the same effect as if originally named
Trustee herein.
13. If two or more persons are designated as Trustee
herein, any or all powers granted herein to Trustee may be
exercised by any of such persons if the other person or persons is
unable, for any reason, to act. Any recital of such inability in
any instrum.nt. execut.d by any of such persons shall be conclusive
against Trustor, his heirs and assigns.
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14. All l.ases nor or h.r.after aff.cting the prop.rty are
hereby assigned and transf.rred to Ben.ficiary by Trustor. Trustor
hereby cov.nants that non. of such l.as.s will be modified or
terminat.d without the written consent of Ben.ficiary.
15. Wh.n r.qu.sted to do so, Trustor shall give such
further writt.n as.ignment. of rents, royalties, issues and
profit.; of all security for the perforJUlnc. of lea.e.; and of all
money payable under any option to purcha.e, and .hall give executed
originals of all lease., now or h.reafter on or affecting the
property.
16. Trustor re.erves the right, prior to any d.fault in
payment of any ind.btedne.s or perfonaance of any obligation
.ecured hereby, to coll.ct all .uch rent., royalti.., i..u.. and
profit., as but not before th.y become due. Upon any .uch default,
Trustor'. right to collect .uch moneys .hall cease, not only a. to
amount. accruing thereafter, but al.o a. to amounts then accrued
and unpaid. In the event of default, Beneficiary, with or without
notice and without regard to the adequacy of security for the
indebtedne.. h.reby .ecured, .ither in per.on or by agent, or by a
receiver to be appointed by the court, (a) may ent.r upon and take
po.ses.ion of the property at any time and manage and control it in
B.n.ficiary's discr.tion, and (b) with or without taking
po....sion, may .ue for or oth.rwise coll.ct the rent., issu.. and
prOfits thereof, whether pa.t due or coming due thereafter, and
apply the saae, le.. co.ts and expen.e. of operation and
collection, inclUding reasonable attorney.' fee., upon any
obligation secured hereby and in .uch order as Beneficiary
determines. None of the afore.aid act. shall cur. or waive any
default hereunder or invalidate any act done pur.uant to such
notice. Beneficiary .hall not be required to act diligently in the
care or management of the property or in collecting any rent.,
royalties or other profit. that it i. hereby authorized to collect,
and shall be accountable only for sums actually received.
17. Without affecting the liability of Trustor or of any
other party now or hereafter bound by the terms hereof, from time
to time and with or without notic., may release any person now or
hereafter liable for performance of such Obligation, and may extend
the time for payment or performance, accept additional security,
and alter, substitute or release any security.
18. In any jUdicial action brought to foreclose this deed
or to enforce any right of Beneficiary or of Trustee hereunder,
Trustor .hall pay to Ben.ficiary and to Trustee attorneys' fees in
a reasonable sum, to be fixed by the court.
19. No remedy hereby given to Beneficiary or Trustee is
exclusive of any other remedy hereunder or under any present or
future law.
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20. The pleading of any statute of limitations as a defense
to any and all obligations secured by this deed is hereby waived,
to the full extent permissible by law.
21. In the event of default in the payment of any
indebtedness secured hereby, and if such indebtedness is secured at
any time by any other instrument, Beneficiary shall not be
obligated to resort to any security in any particular order; and
the exercise by Beneficiary of any right or remedy with respect to
any security shall not be a waiver of or limitation on the right of
Beneficiary to exercise, at any time or from tillle to time
thereafter, any right or remedy with respect to this deed.
22. Trustor shall, upon request made by Beneficiary,
furnish the Beneficiary with annual statements covering the
operations of the property.
23. Beneficiary may collect a "late charge" not to exceed
an amount equal to four percent (4') on the amount past due and
remaining unpaid on any installment that is not paid within ten
(10) days from the due date thereof, to cover the extra expense
involved in handling delinquent payments.
24. This deed applies to, inures to the benefit of and
binds all parties hereto, their heirs, legatees, devisees,
administrators, executors, successors, successors in interest, and
assigns. The term "Beneficiary" means the owner and holder,
including pledgees, of the note secured hereby, whether or not
named as Beneficiary herein. In this deed, whenever the context so
requires, the masculine gender includes the feminine and neuter,
and the singular number includes the plural, and all obligations of
each Trustor hereunder are joint and several.
25. Trustee accepts this trust when this deed, duly
executed and acknowledged, is made a public record as provided by
law. Trustee is not obligated to notify any party hereto of
pending sale under any other deed of trust or of any action or
proceeding in which Trustor, Beneficiary or Trustee is a party
unless brought by Trustee.
Trustor requests that a copy of notice of default and of
any notice of sale hereunder shall be mailed to him at the address
set out opposite his name, immediately below.
MAILING ADDRESSES FOR NOTICES:
FIRST AMERICAN TITLE INSURANCE COMPANY
as Trustee under Holding Agreement 71306A
323 Court Street
San Bernardino, California 92401
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Executed at San Bernardino, California, on the date first
above written.
FIRST AMERICAN TITLE INSURANCE CO.
as Trustee under Holdinq Aqre_ent 71306A
By:
Title:
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STATE OF CALIFORNIA
)
) ss.
)
COUNTY OF
On this day of , 1992, before .e, the
undersigned, a Notary Public in and for the State of California,
personally appeared. and ,
known to me (or proved to me on the basis of satisfactory evidence)
to be the of FIRST AMERICAN TITLE INSURANCE
COMPANY, a California corporation, and acknowledqed to me that they
executed said instrument on behalf of said corporation.
Signature of Notary Public
(SEAL)
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