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2003-1097243RECORDING REQUESTED BY: • 725s DOC 0003-109724'-1 Fidelity National Title Company SEP 09, 2003 8:00 AM Escrow No. 15158494-NL Title Order No. 01638574 OFFICIAL RECORDS When Recorded Mail Document To: SAN DIEGO COUNTY RECORDER'S OFFICE THE CITY OF ENCINITAS 90DRY J. SMITH, COUNTY RECORDER n 505 SOUTH VULCAN AVENUE FEES: 19.00 ENCINITAS, CA. 92024 111111IIIIIIIIIININIIIIIIIIIN IINSIIIIII IIIINI z 3-10laarz4 APN: 258-240-58-02 ~~°'3 SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT, made August 11, 2003, by ROBERT M. RIEDEL owner of the land hereinafter described and hereinafter referred to as "Owner," and THE CITY OF ENCINITAS present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary"; WITNESSETH THAT WHEREAS, ROBERT M. RIEDEL, did execute a deed of trust, dated July 31, 1998, to FIRST AMERICAN TITLE, as trustee, covering SEE EXHIBIT ONE ATTACHED HERETO AND MADE A PART HEREOF to secure a note in the sum of $10,000.00, dated July 31, 1998, in favor of THE CITY OF ENCINITAS, which deed of trust was recorded as instrument no. 1 998-049 1 784, on August 5, 1998, in book , page , Official Records of said county; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $50,000.00 dated August 27 2003 , in favor of SAN DIEGO COUNTY CREDIT UNION, hereinafter referred to as "Lender," payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbef ore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and WHEREAS, lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender; and FD-46A CLTA SUBORDINATION "A" INITIALS: Y t - _ (Rev. 9/94) (EXISTING DEED OF TRUST TO NEW DEED OF TRUST) Pa No. 1 of 3 APN: 258-240-58-02 7259 WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the dead of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times alien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust above mentioned. (2) That Lender would not make its loan above described without this subordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination, specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. CLTA SUBORDINATION 'A' FD-46A (Rev. 9/94) (EXISTING DEED OF TRUST TO NEW DEED OF TRUST) INITIALS: em 0 Page No. 2 of 3 15 1 APN: 258-240-58-02 • 7260 • NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. fo ( w 04 -A THE CITY I A ROBERT M. RIEDEL Beneficiary Owner (ALL SIGNATURES MUST BE ACKNOWLEDGED) STATE OF CALIEORNIA COUNTY OF -)a f-~7 ON A-QC~,aS D pZbefore me, 1 )dL..orbin rvch o 6e~sonally appeared personally known tome ) to be the personal whose name W islarf subscribed to the within instrument and acknowledged to me that he/ehe4h" executed the same in his/ker/their authorized capacity(jW, and that by his/her/their signature(s) on the instrument the person(py or the entity upon behalf of which the personWacted, executed the instrument. "Lc Witness my hand and official seal _ Signature STATE OF CALIFORNIA S x 1 , C O COUNTY OF D ON S~vfe~tbrr "a f^1 M3 before me, _ fJ personally appeared Kob-((4- ,A1 RI edc l gy-kaeMrfl-te (or proved to me on the basis of satisfactory evidence) to be the personw whose name.(s'j Es subscribed to the within instrument and acknowledged to me that <@;sho/theyrexecuted the same in Is/ ter their-authorized capacityaW, and that bNoi WtbelrsignatureWon the instrument the persorLW, or the entity upon behalf of which the person(sYacted, executed the instrument. Witness my hand and official seal. DEREK BORGES Comm. LI 1401922 Signature Vl NOM PUBLIC-CA6PoRNU III San Olego County My Comm. Expires FN1. 27, 2007 CLTA SUBORDINATION "A" FD-46A (Rev. 9/94) (EXISTING DEED OF TRUST TO NEW DEED OF TRUST) Page No. 3 of 3 Escrow No. 15158494-NL • 7261 • Title Order No. 01638574 EXHIBIT ONE A Condominium Comprised Of: Parcel 1: All that portion of Lot 1 of Regal View, in the City of Encinitas, County of San Diego, State of California, according to Map thereof No. 7290, filed in the Office of the County Recorder of San Diego County, May 31, 1972, shown and defined as Unit H2 on the certain Condominium Plan recorded, January 31, 1973 as File/Page No. 73-027181 and re-recorded, June 14, 1973 as File/Page No. 73-162732 both of Official Records. Parcel 2: An undivided 1/1 14th interest in and to all that portion of Lot 1 of Regal View, in the City of Encinitas, County of San Diego, State of California, according to map thereof No. 7290, filed in the Office of the County Recorder of San Diego County, May 31, 1972 as shown as Common Areas on the certain Condominium Plan recorded January 31, 1973 as File/Page No. 73-027181 and re-recorded, June 14, 1973 as File/Page No. 73-162732 both of Official Records. Assessors Parcel No: 258-240-58-02 , . 0 7262 Order No. 03-1638574 EXHIBIT "ONE" A Condominium Comprised Of: Parcel 1: All that portion of Lot 1 of Regal View, in the City of Encinitas, County of San Diego, State of California, according to Map thereof No. 7290, filed in the Office of the County Recorder of San Diego County, May 31, 1972, shown and defined as Unit H2 on the certain Condominium Plan recorded, January 31, 1973 as File/Page No. 73-027181 and re-recorded, June 14, 1973 as File/Page No. 73-162732 both of Official Records. Parcel 2: An undivided 1/1 14th interest in and to all that portion of Lot 1 of Regal View, in the City of Encinitas, County of San Diego, State of California, according to Map thereof No. 7290, filed in the Office of the County Recorder of San Diego County, May 31, 1972 as shown as Common Areas on the certain Condominium Plan recorded January 31, 1973 as File/Page No. 73-0 27 1 8 1 and re-recorded, June 14, 1973 as File/Page No. 73-162732 both of Official Records. Assessors Parcel No: 258-240-58-02 2 n~ _,e '+RECO'ti AAG REQUESTED BY rtte t / MVICAN TITLE INSURANCE COMPAQ FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 WHEN RECORDED PLEASE MAIL TO: City of Encinitas Community Development Department 505 S. Vulcan Avenue CC Encinitas, CA 92024 t6 DOS # 1998-0491784 AUG 05 9 1998 2:49 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE GREGORY J. SMITH, COUNTY RECORDER FEES: Y3.00 --111111111111111111111111111111,111 ~aae-oa01784 DEED OF TRUST THIS DEED OF TRUST, is made this_31_day of July, 1998, among the Trustor(s), Robert M Riedel (herein called "BORROWER"), andFirst American Title (herein called "TRUSTEE"), and the Beneficiary, the City of Encinitas, (herein called "CITY") whose address is 505 S. Vulcan Avenue, Encinitas, CA 92024. BORROWER, in consideration of'the indebtedness herein recited and the trust herein created, irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the County of San Diego, State of California: SEE EXHIBIT "A" ATTACHED HERETO FOR LEGAL DESCRIPTION. SEE EXHIBIT "B" ATTACHED HERETO FOR ADDITIONAL PROVISIONS. The street address of the property is 405 Requeza St. #H-2, Encinitas, California 92024; TOGETHER with all the improvements now and hereafter erected on the above property, and all easements, rights, appurtenances and rents (subject however to the rights and authorities given herein to the City to collect and apply such rents), all of which shall be deemed to be and remain part of the property covered by this Deed of Trust; and all of the foregoing, together with said property (or the leasehold estate if this Deed of Trust is on a leasehold) are hereinafter referred to as the "Property"; TO SECUR t the City the payment of the sum of $10,000 according to the terms of a promissory note or notes dated July 1998, made by Borrower, payable to order of the City, and extensions or renewals thereof (herein called "Note") and the performance of the covenants and agreements of Borrower herein contained. THE LIEN OF THIS DEED OF TRUST IS SECOND AND SUBSEQUENT TO THE LIEN OF THAT CERTAIN FIRST DEED OF TRUST (HEREIN CALLED "FIRST TRUST DEED") IN FAVOR OF Bank of America, (HEREIN CALLED "PRIMARY LENDER") BEING FILED CONCURRENTLY HEREWITH. A. TO PROTECT THE SECURITY OF THIS DEED, Borrower covenants and agrees: 1. Title to the Property. Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that the Borrower is unencumbered except for encumbrances of record. Borrower covenants that Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record. 2. Payment of Principal. Borrower shall promptly pay when due the principal indebtedness evidenced by the Note. 3. Prior Mortgages and Deeds of Trust; Charges, Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over the City of Encinitas Deed of Trust Page 1 • 49 lien of this Deed of Trust, including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold payments or ground rents, if any. 4. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home rehabilitation, improvement, repair, or other loan agreement which Borrower enters into with the City. The City, at the City's option, may require Borrower to execute and deliver to the City, in a form acceptable to the City, an assignment of any rights, claims or defenses which Borrower may have against parties who supply labor, materials or services in connection with improvements made to the Property. 5. Hazard Insurance. Borrower shall keep the improvement(s) now existing or hereinafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as the City may require and in such amounts and for such periods as the City may require. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by the City; provided, that such approval will not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to the City and shall include a standard mortgage clause in favor of and in a form acceptable to the City. The City has the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust. In the event of loss, Borrower shall give prompt notice to the insurance carrier and the City. The City may make proof of loss if not made promptly by Borrower. If Property is abandoned by Borrower, or if Borrower fails to respond to the City within 30 days from the date notice is mailed by the City to Borrower that the insurance carrier offers to settle a claim for insurance benefits, the City is authorized to collect and apply the insurance proceeds at the City's option either to restoration or repair of the Property or to the sums secured by this Deed of Trust. 6. Preservation and Maintenance of Property, Condominium, Cooperatives, Planned Unit Developments. Borrower will keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a condominium, a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants, conditions and restrictions, creating or governing the condominium, planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. 7. Protection of the City Security. Should Borrower fail to make any payment or to do any act as herein provided, then the City or Trustee, but without obligation so to do and without releasing Borrower from any obligation hereof,- may, upon notice to Borrower, make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, the City or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the City or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel, and pay his or her reasonable fees. If the City required mortgage insurance as a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and the City's written agreement or applicable law. Any amounts disbursed by the City pursuant to this paragraph, will become additional indebtedness of Borrower secured by this Deed of Trust_ Unless Borrower and the City agree to other terms of payment, such amounts will be payable upon notice from the City to Borrower requesting payment thereof. Nothing contained in this paragraph will require the City to incur any expense or take any action hereunder. 8. Inspection. The City may make or cause to be made reasonable entries upon and inspections of the Property, provided that the City will give the Borrower written notice prior to any such inspection specifying reasonable cause therefor related to the City's interest in the property. City of Encinitas Deed of Trust Page 2 20 B. IT IS MUTUALLY AGREED: 1. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to the City subject to the terms of any mortgage, deed of trust or other security agreement with a Gen which has priority over this Deed of Trust. 2. Funds for Taxes and Insurance. The City will waive collection of impounds for taxes and assessments (including condominium and planned unit development assessments, if any). Borrower will make all payments for impounds to first trust deed holder. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by the City under the Note shall be applied by the City to the principal of the Note. 4. Borrower Not Released; Forbearance by the City Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Deed of Trust granted by the City to Borrower or to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. The City shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Deed of Trust by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by the City in exercising any right or remedy hereunder, of otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. 5. Successors and Assigns Bound, Joint and' Several Liability; Cosigners. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the City and Borrower, subject to, the provisions of Paragraph 16 hereof. All covenants and agreements of Borrower shall be joint and several. Any Borrower who co-signs this Deed of Trust, but does not execute the Note, (a) is co-signing this Deed of Trust only to grant and convey that Borrower's interest in the Property to Trustee under the terms of this Deed of Trust, (b) is not personally liable on the Note or under this Deed of Trust, and (c) agrees that the City and any other Borrower hereunder may agree to extend, modify, forbear, or make any other accommodation with regard to the terms of this Deed of Trust or the Note, without that Borrower's consent and without releasing that Borrower or modifying this Deed of Trust as to that Borrower's interest in the Property. 6. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing such notice by certified mail, return receipt requested, addressed to Borrower at the Property address or such other address.as Borrower may designate by notice to the City as provided herein, and (b) any notice to the City will be given by certified mail, return receipt requested, to the City address stated herein or to such other address as the City may designate by notice to Borrower as provided herein. Any Notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or the City when given in the manner designated herein. 7. Governing Law, Severability. The state and local laws applicable to this Deed of Trust shall be the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of Federal law to this Deed of Trust. In the event that any provision or clause of this Deed of Trust or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or the Note which can be given effect without the conflicting provision, and to this end the provisions of this Deed of Trust and the Note are declared to be severable. As used herein, "costs," "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein. 8. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and this Deed of Trust at the time of execution or after recordation hereof. 9. Acceleration, Remedies. If all or any part of the Property or any interest in it is sold, rented, refinanced or transferred within seven full years of this date, without the prior written consent of the City, the City of Encinitas Deed of Trust Page 3 21 principal amount of secured by this Deed of Trust shall be due and payable on or before the date provided by the City in the Notice of Acceleration, which shall not be less than thirty (30) days. Upon Borrower's breach of any covenant or agreement of Borrower in this Deed of Trust, the City, prior to acceleration, shall give Notice to Borrower specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, not less than 10 days from the date the Notice is mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or before the date specified in the Notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the Notice, the City, at the City's option, may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. The City shall be entitled to collect all reasonable costs and expenses incurred in pursuing these remedies, including, but not limited to, reasonable attorneys' fees. If the City invokes the power of sale, the City shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of the City's election to cause the Property to be sold and shall cause such notice to be recorded in each county in which the Property or some part thereof is located. The City or Trustee shall mail copies of such notice in the manner prescribed by applicable law. Trustee shall give public notice of sale to the persons and in the manner prescribed by applicable law. After the lapse of such time as may be required by applicable law, Trustee, without demand on Borrower, shall sell the Property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at the time and place of any previously scheduled sale. Any person, including the City or the City's designee, may purchase the Property at such sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property so sold without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be conclusive proof of the truthfulness thereof. Trustee shall apply the proceeds of the sale in the following order: (a) to all reasonable costs and expenses of the sale, including but not limited to, reasonable Trustee's and attorneys' fees and costs of title evidence; (b) to all sums secured by this Deed of Trust with accrued. interest; and (c) the excess, if any, to the person or persons legally entitled thereto. 10. Borrower's Right to Reinstate. Not withstanding the City's acceleration of the sums secured by this Deed of Trust due to Borrower's breach, Borrower shall have the right to have any proceedings begun by the City to enforce this Deed of Trust discontinued at any time prior to five days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if_ (a) Borrower pays the City all sums which would be then due under this Deed of Trust and the. Note had no acceleration occurred; (b) Borrower cures all breaches of any other covenants or agreements of Borrower contained in the Deed of Trust; (c) Borrower pays all reasonable expenses incurred by the City and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, and in enforcing the City's and Trustee's remedies as provided in paragraph 17 hereof, including, but not limited to, reasonable attorneys' fees; and (d) Borrower takes such action as the City may reasonably require to assure that the lien of this Deed of Trust, the City's interest in the Property and Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. 11. Assignment of Rents; Appointment of Receiver; the City in Possession. As additional security, Borrower hereby assigns to the City the rents of the Property, provided that Borrower shall, prior to any default by Borrower in payment of any indebtedness secured hereby or in performance of any agreement hereunder, have the right to collect and retain such rents as they become due and payable. Upon any such default, the City, in person, by agent or by judicially appointed receiver, shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. All rents collected by the City or the receiver shall be applied first to payment of the cost of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receivers bonds and reasonable attorneys' fees, and then to the sums secured by this Deed of Trust The City and the receiver shall be liable to account only for those rents actually received. The entering upon and taking City of Encinitas Deed of Trust Page 4 22 possession of said property and the collection of such rents and the application thereof as aforesaid shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 12. Reconveyance. Upon payment of all sums secured by this Deed of Trust or seven full years of owner occupancy, the City shall request Trustee to reconvey the Property and will surrender this Deed of Trust and all Notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. 13. Substitute Trustee. The City, or any successor in ownership of any indebtedness secured hereby, may from time to time appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by the City and recorded in the office of the Recorder of the county where the Property is located. The instrument shall contain the name of the original Beneficiary, Trustee and Borrower, the book and page where this Deed is recorded and the name and address of the successor trustee. The successor trustee shall, without conveyance of the Property, succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 14. Fee for Required Statements. The City may charge a fee not to exceed sixty dollars ($60) for furnishing a beneficiary statement or payoff demand statement as provided for in Section 2943 of the Civil Code of California. 15. Subordination. The City and Borrower acknowledge and agree that this Deed of Trust is subject and subordinate in all respects to the liens, terms, covenants and conditions of the First Trust Deed and to all advances heretofore made or which may hereafter be made pursuant to the First Trust Deed including all sums advanced for the purpose of (a) protecting or further securing the lien of the First Trust Deed, curing defaults by the Borrower under the First Trust Deed or for any other purpose expressly permitted by the First Trust Deed, and (b) constructing, renovating, repairing, furnishing, fixturing or equipping the Property. The terms and provisions of the First Trust Deed are paramount and controlling, and they supersede any other terms and provisions hereof in conflict therewith. In the event of a foreclosure or deed in lieu of foreclosure of the First Trust Deed, any provisions herein or any provision in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his/her successors or assigns (other than the Borrower or a related entity of the Borrower), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Trust Deed shall receive title to the Property free and clear from such restrictions. Further, if the Primary Lender acquires title to the Property pursuant to a deed in lieu of foreclosure, the lien of this Deed of Trust shall automatically terminate upon the Primary Lender's acquisition of title, provided that (i) the City has been given written notice of a default under the First Trust Deed, and (ii) the City shall not have cured the default under the First Trust Deed, or diligently pursued curing the default as determined by the Primary Lender, within the 60 day period provided in such notice sent to the City. City of Encinitas Deed of Trust Page 5 23 IN WITNESS WHEREOF, BORROWER HAS EXECUTED THIS DEED OF TRUST. 7rY~~~~ signa re date signature ACKNOWLEDGMENT: State of California, County of San Diego date _ U on before me a Notary Public personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person' whose name subscribed to the within instrument, and acknowledged to me that he/shel#wy executed the same in his/hedtlueir; authorized capacitWes), and that by his/ber/t ii signaturs) on the instrument the person}, or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. ~ GLENNA CHA$! COMM. sF ++92+40 0TARYPUZ91CALIFORNIA SAN DIEGO COUNTY co>NM. EXP. MAY 2, 2002 4 Signature of Notary City of Encinitas Deed of Trust Page 6 24 EXHIBIT "A" Legal Description of the Property [to be attached] of San , State Undivided 1/1 14th interest t ereof No of 2REGAL 90, filed in the tOffice uof the Cou oy F ecorder of California, according to Map of San Diego County, May 31, 1972. EXCEPTING THEREFROM all units shown and defined upon that certain Condominium Plan of i Regal View recorded January 31, 1973 as File No. 73-027181 and re-recorded June 14, 197 as File No. 73-162732, both of Official Records. PARCEL 2: Filer no. Unit H-2 as shown and FeeinNo upon Q[27181 certain June o14,e1973eas reco January 31, 1973 a 73-162732, both of Official Records. Assessor's Parcel No: 258-240-58-02 City of Encinitas Decd of Trust Page 7 w EXHIBIT "B" RIDER ATTACHED TO AND MADE A PART OF DEED OF TRUST DATED AS OF _ ':Z - 3 ( , 7998, AMONG Robert Riedel, TRUSTOR/BORROWER, and First American Title, TRUSTEE, and THE CITY OF ENCINITAS, BENEFICIARY This Rider amends and supplements the Deed of Trust to which it is attached. Unless otherwise specified, capitalized terms shall have the meanings assigned by the Deed of Trust, the Note referred to therein, or the related Loan Documents (as defined in the Note). Borrower agrees to the provisions of this Rider in addition to those. of the Deed of Trust. The language of this Rider prevails over any provision or term of the Deed of Trust in the event of a conflict. 7. Due on Transfer Clause. If all or any part of the Property or any interest in it is sold, rented, or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without the written consent of the City (herein called "Transfer'), the City may, at its option, require immediate payment in full of all sums secured by the Deed of Trust (herein called "Acceleration"). The City shall not exercise this option if prohibited by federal law as of the date of the Deed of Trust or if the City has executed a separate written waiver of this option. The following limited instances do not constitute a Transfer: a) A transfer of the Property from a deceased Borrower to the surviving spouse of the Borrower if the surviving spouse is also a Borrower; b) A transfer of the Property by a Borrower to his or her spouse pursuant to which the spouse becomes a co-owner of the Property. C) A transfer of the Property resulting from a decree of dissolution of the marriage or legal separation or from a property settlement agreement incidental to such a decree which requires the Borrower to continue to make payments on the Note and by which a spouse who is already a Borrower becomes the sole owner of the Property. d) A transfer of the Property by a Borrower to an inter vivos trust in which the Borrower is the sole beneficiary. e) A transfer by means of encumbering the Property with a lien which is a junior lien to the lien securing the loan to Borrower evidenced by the Deed of Trust. If the City exercises this option, the City shall give Borrower Notice of Acceleration. The Notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which the Borrower must pay all sums secured by the Deed of Trust. If Borrower fails to pay these sums prior to the expiration of this period, the City may invoke any remedies permitted by this Deed of Trust without further notice or demand on Borrower. NOTICE TO BORROWER: Do not sign this Rider if it contains blank spaces. All spaces should be completed before you sign. ¢7 -X/- signature date signature date City of Encinitas Deed of Trust Page 8 Recording requested-by D O C# 2005-0769001 • Order No. OR-178739-M First American Title 111111111 Escrow No RIEDEL/ENCUMAS IN Loan No. WHEN RECORDED MAIL TO: ROBERT M. RIEDEL P.O. BOX 230426 ENCINITAS, CA 92024 P// SEP 01, 2005 2:54 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE GREGORYJ. StdITH,COON TYRECORDER FEES: 9.00 PAGES: 1 DA 1 24 g 3 i 110111 Bill Bill 11111111 Hill Bill oil pill Bill 1111 oil oil Hill N 101 _ _,20o5-0759091 . SPACE ABOVE THIS 1_11VE FOR RECORDER'S USE FULL RECONVEYANCE FIRST AMERICAN TITLE INSURANCE COMPANY, a Corporation, Trustee under Deed of Trust executed by ROBERT M. RIEDEL, Trustor, and recorded on August 5, 1998 as Instrument No. 1998-0491784 -of Official-Records in the Office of the County Recorder of SAN DIEGO County, CALIFORNIA, having been requested in writing by the holder of the obligation secured by said Deed of Trust, to reconvey the estate granted to Trustee under said Deed of Trust, does hereby reconvey to the person or persons legally entitled thereto, without warranty, all the estate, title and interest acquired by Trustee under said Deed of Trust. IN WITNESS WHEREOF, said FIRST AMERICAN TITLE INSURANCE COMPANY, Trustee, has caused its corporate name and seal to be hereto affixed by its Assistant Vice President, thereunto duly authorized. Dated: August 26, 2005 STATE OF CALIFORNIA } )ss. COUNTY OF ORANGE } On August 26, 2005 before me, Victoria L. Barber, the undersigned notary public, personally appeared Jeff Murdock, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and offiet ( Signature V lctoria L. r Recon No. 49854 First American Title Insurance Company By 12411 A,oUU_ Jeff Murdock, Assistant Vice President M i sl fills It a '~°rrrrlN~*~ VICTORIA L BARBER Commission # 1,354528 4,, Notary Public - California Orange County My Comm. Expires May 29.2006 (This area for official notarial seal) A-1323 (1/91)