1999-524131
t Recorded é. e request of 9481DOC 1999-0524131
Chicago Title .
3UL 29. 1999 3:19 PM
FREE RECORDING REQUESTED IfFICIIlIfDIIŒ
PURSUANT TO GOV. CODE SECTION , lit la aum IIDÐ . S /JF1Œ
27383 t1IIJIY J . 9I.ffi, aJJITY REIDÐ
FEES: 0.00
Recording Requested By: 1111/11 III/I 11111/1111 II! 111111 IIII/Ifill IIIIII/ii/Ifill 11/11/1111111
City of Encinitas
Community Development 1999-0624131
505 S. Vulcan Avenue
Encinitas, CA 92024
And When Recorded Mail To:
City of Encinitas
Community Development
Vll 505 S. Vulcan Avenue
Encinitas, CA 92024
\~
\~~ 73367<171} DEED OF TRUST
(This is a Second Deed of Trust)
THIS DEED OF TRUST is made this 24th day of July, 1999, among the Trustor,
William J. Wilson (herein "Borrower"), and CHICAGO TITLE COMPANY (herein "Trustee"), and
the Beneficiary, CITY OF ENCINITAS (herein "CITY"), whose address is 505 S. Vulcan Avenue,
Encinitas, California 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 and incorporated herein by this reference
which has the address of 590 Sweet Pea Place, Encinitas, California 92024 herein "Property
Address");
TOGETHER with all the improvements now and hereafter erected on the Property,
and all easements, rights, appurtenances and rents (subject, however, to the rights and authorities
given herein to CITY to collect and apply such rents), all of which shall be deemed to be and remain
9482
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 SECURE to CITY the repayment of the indebtedness evidenced by Borrower's
Promissory Note dated July 23, 1999, and Note Rider, and extensions and renewals thereof (herein
collectively referred to as the "Note"), in the principal sum of Eighteen Thousand Six Hundred Fifty-
Two U.S. Dollars ($18,652) with interest thereon, fully deferred with the total indebtedness, if not
sooner paid, due and payable upon default by Borrower, a Prohibited Transfer as defined in the Deed
of Trust. This Note will be forgiven on the date which is fifty-five (55) years after the recordation
date hereof, if Borrower has not defaulted or made a Prohibited Transfer of the Property, or any
portion thereof; CITY has received the payment of all other sums, with interest thereon, advanced in
accordance herewith to protect the security of this Deed of Trust; and CITY has received the full
performance of the covenants and agreements of Borrower herein contained.
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 Property 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.
UNIFORM COVENANTS
Borrower and CITY covenant and agrees as follows:
1. Payment of Principal and Interest. Borrower shall promptly pay when due
the principal and interest indebtedness evidenced by the Note.
2. Payment of Taxes and Insuranc~. To protect the security of the Deed of
Trust, Trustor agrees to pay, at least ten (10) days before delinquency, all taxes and assessments
affecting said property, including assessments on appurtenant water stock; when due, all
encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to
be prior or superior hereto; and all costs, fees and expenses of this Trust.
Should Trustor fail to make any payment or to do any act as herein provided,
then Beneficiary or Trustee, without obligation to do so and without notice to or demand upon
Trustor and without releasing Trustor from any obligation hereof, may make or do the same in such
manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary 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 Beneficiary 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 reasonable fees.
3. Application of Payments. Unless applicable law provides otherwise, all
payments received by CITY under the Note shall be applied by CITY first in payment of amounts
Nancy\GencralITDFORM.doc Page 2 of 16
9483
advanced by CITY to CITY by Borrower, then to interest payable on the Note, and then to the
principal of the Note.
4. Prior Mortgages and Deeds of Trust; Char¡:es. 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 this Deed of Trust, including Borrower's covenants to make
payments when due. Borrower shall payor 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, if any.
S. 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 terms
"extended coverage", and such other hazards as CITY may require and in such amounts and for such
periods as CITY may require.
The insurance carrier providing the insurance shall be chosen by Borrower
subject to approval by CITY, provided that such approval will not be unreasonably withheld. All
insurance policies and renewals thereof shall be in a form acceptable to CITY and shall include a
standard mortgage clause in favor of and in a form acceptable to CITY. 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 CITY. 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 CITY
within thirty (30) days from the date notice is mailed by CITY to Borrower that the insurance carrier
offers to settle a claim for insurance benefits, CITY is authorized to collect and apply the insurance
proceeds at 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. 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. Borrower shall
perform all of Borrower's obligations under the declaration of covenants, conditions and restrictions
creating or governing the condominium, the bylaws and regulations of the condominium, and
constituent documents.
7. Protection of CITY Security. If Borrower fails to perform the covenants and
agreements contained in this Deed of Trust, or if any action or proceeding is commenced which
materially affects CITY's interest in the Property, the CITY, at CITY's option, upon notice to
Borrower, may make such appearances, disburse such sums including reasonable attorneys' fees, and
take such action as is necessary to protect CITY's interest. If CITY's required mortgage insurance is
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 CITY's written agreement or applicable law.
NancylGenerallTDFORM.doc Page 3 of 16
9481
Any amounts disbursed by CITY pursuant to this paragraph, with interest
thereon, at the Note rate, will become additional indebtedness of Borrower secured by this Deed of
Trust. Unless Borrower and CITY agree to other terms of payment, such amounts will be payable
upon notice from CITY to Borrower requesting payment thereof. Nothing contained in this
paragraph will require CITY to incur any expense or take any action hereunder.
8. Inspection. CITY may make or cause to be made reasonable entries upon and
inspections of the Property, provided that CITY will give the Borrower notice prior to any such
inspection, specifying reasonable cause therefor related to CITY's interest in the property.
9. Condemnation. The proceeds of any award of 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 CITY 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.
10. Borrower Not Released: Forbearance by 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 CITY 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. 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 CITY in
exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a
waiver of or preclude the exercise of any such right or remedy.
11. Successors and Assigns Bound, Joint and Several Liability: Co-Signor~.
The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the
respective successors and assigns of 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 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.
12. ~. Except for any notice required under applicable law to be given in
another manner:
Nancy\GcneralITDFORM.doc Page 4 of 16
9485
(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, addressed to
Borrower at the Property address or such other address as Borrower may designate by
notice to CITY as provided herein; and,
(b) any notice to CITY will be given by certified mail, return receipt
requested, to CITY's address stated herein or to such other address as 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
CITY when given in the manner designated herein.
13. 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.
14. 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.
15. Notice to CIT~. Borrower agrees that it will give the CITY notice of any
prospective transfer, sale, conveyance, rental or subletting not less than forty five (45) days before the
proposed sale, transfer, conveyance, rental or subletting by personal delivery of a notice at the
address set forth for the CITY on Page 1 of this Deed of Trust. Time is of the essence.
16. Lease of Property Prohibited. During the term of the affordability
restrictions as set forth in Paragraph 17(e) of this Deed of Trust, the Borrower shall not rent or sublet
the Property, or any part thereof, to any person and/or entity, unless the person is an income
"Eligible Household". As used herein, an income "Eligible Household" shall mean a household
whose eligible income does not exceed eighty percent (80%) of the Area Median Income for San
Diego, as determined from time to time by the U.S. Department of Housing & Urban Development.
Further, the rent charged to the Eligible Household shall not exceed thirty percent (30%) of eighty
percent (80%) of the Median Income, minus a utility allowance. For purposes of this restriction,
rents shall be based upon a household size of three (3). Leasing of the Property to a household that is
not an Eligible Household or at rents that exceed the restricted rental rates set forth herein shall be
deemed a prohibited transfer of the Property, within the meaning of Paragraph 18, and shall trigger
the right of the CITY to foreclose and/or exercise its First Right of Refusal.
17. Transfer. Conveyance of Property Restricted for Fifty Five (55) Years..
The sale, transfer and/or conveyance of the Property is restricted as follows:
Nancy\General\TDFORM.doc Page 5 of 16
9486
If Borrower sells, transfers or conveys the Property less than fifty five (55)
years after the date of recordation of this Deed of Trust, then said sale, conveyance and/or transfer
shall be subject to the following:
(a) The Property may only be sold, transferred or conveyed to a
subsequent purchaser whose income is less than eighty percent (80%) of the median
income as derIDed by HUD from time to time for the San Diego metropolitan area, as
adjusted for family size and as verified and approved by CITY.
(b) Except as provided in Paragraph 17(d) hereof, the Property must be
used only as the principal residence of the subsequent purchaser during the term of the
Declaration, i.e, fifty five (55) years from the recordation date hereof.
(c) The sale price to the subsequent purchaser must be at a price that is
"affordable to the subsequent purchaser(s)". "Affordable to the subsequent
purchaser(s)" is achieved if the monthly payments for principal, interest, property
taxes, insurance and a utility allowance determined by CITY do not exceed thirty
percent (30%) of the gross income of a family with an income that is eighty percent
(80%) of the median income for the area, adjusted for a family size of three.
(d) In the event that a Transferor is unable to find, despite diligent efforts to
do so, an Eligible Person or Family to purchase a Housing Unit, the Transferor may
sell the Housing Unit to a person other than an Eligible Person or Family by first
offering to sell the Housing Unit to the CITY for a purchase price equal to highest
purchase price at which an Eligible Person or Family could qualify to purchase the
Housing Unit at an Affordable Housing Cost. The CITY shall accept or reject the
offer to sell the Housing Unit to the CITY within thirty (30) days of the date of receipt
of the offer to sell. In the event that the CITY declines to purchase the Housing Unit,
the Transferor may proceed to market and sell the Housing Unit to any purchaser
without regard to the resale conditions set forth in this Agreement; provided that upon
or prior to the close of escrow the Transferor shall pay to the CITY the greater of: 1)
the amount of the Second Deed of Trust, or 2) "Equity Sharing Amount", hereinafter
defined.
The "Equity Sharing Amount" means an amount equal to the appreciation in
the value of the Property determined by the difference between the Sales Price
and the Affordable Housing Price (as derIDed below).
The "Affordable Housing Price" is the purchase price that could be paid by an
Eligible Person or Family at an Affordable Housing Cost.
The "Sales Price" is the price to be paid by the buyer of the Property (the
"Buyer") to the Transferor for Transferor's interest in the Property, exclusive
of escrow fees, title insurance costs, broker's commissions, loan fees or any
other closing or transaction costs.
Nancy\GeneraIlTDFORM.doc Page 6 of 16
9487
Upon a showing of hardship by the Transferor to the CITY in writing, the CITY may waive
anyone or combination of the following: the resale restrictions, the Transferor's obligation to sell to
the CITY, the Transferor's obligation to pay the CITY the Equity Sharing Amount and/or the
Transferor's obligation to pay the CITY the amount of the Second Deed of Trust.
(e) The affordability requirement shall remain in effect for a total of fifty-
five (55) years, measured from the date of recordation of this Deed of Trust. This
requirement shall remain in full force and effect against all subsequent purchasers
during the restricted term. This restriction shall also apply to sales of the Property
from the subsequent purchaser to other purchaser(s) during the restricted term.
(t) If the Borrower fails, refuses or is unable to convey, sell, rent or
transfer the Property to a person or persons meeting the requirements of paragraphs
16, 17a through 17e, inclusive, before the end of the affordability term as defined in
paragraph 17e, then such transfer shall be deemed a Prohibited Transfer as defined in
Paragraph 18 hereof.
These provisions of paragraph 17 shall bind the heirs, successors and assigns
of the Borrower.
18. Prohibited Transfer. If Borrower sells, agrees to sell, conveys, rents and/or
transfers the Property in violation of the terms of Paragraphs 16 and 17 hereof, then CITY may, at its
option, in addition to any and all other remedies available to it, require immediate payment in full of
all sums secured by the Second Deed of Trust. In the instance of a prohibited transfer, the Transferor
shall pay to the CITY the greater of: 1) the amount of the Second Deed of Trust, including any
interest, as described in the Note, or 2) "Equity Sharing Amount", as defined above.
As an alternative, CITY may, at its option, purchase the Property for a
purchase price equal to the highest purchase price at which an Eligible Person or Family could qualify
to purchase the Housing Unit at an Affordable Housing Cost. However, these options shall not be
exercised by CITY if such exercise is prohibited by federal law as of the date of the Deed of Trust or
if the CITY has executed a separate written waiver of these options.
If CITY exercises any of these options, CITY shall give Borrower Notice of
Acceleration or, in the alternative, Notice of Exercise of First Right of Refusal Option. The notice
shall provide a period of not less than thirty (30) days from the date that the notice is delivered or
mailed within which Borrower must pay all sums secured by the Deed of Trust or must enter into an
escrow to convey the Property to CITY, depending upon the option exercised by CITY. If Borrower
fails to pay these sums or enter into an escrow prior to the expiration of this period, CITY may
invoke any remedies permitted by the Deed of Trust without further notice or demand on Borrower.
The escrow contemplated by this Paragraph 18 must close not more than ninety (90) days after CITY
receives notice of such sale, agreement to sell, conveyance, rental or transfer of the Property in
violation hereof.
Na"cyIGc""raIITOPORM.doc Page 7 of 16
9488
NON-UNIFORM COVENANTS
Borrower and CITY further covenant and agree as follows:
19. Acceleration. Remedies. Upon Borrower's breach of any covenant or
agreement of Borrower in this Deed of Trust, including the covenants to pay when due any sums
secured by this Deed of Trust, and those contained in paragraphs 16, 17 and 18 hereof, CITY, prior
to acceleration, shall give notice to Borrower as provided in paragraph 12 hereof specifying:
(a) the breach;
(b) the action required to cure such breach;
(c) a date, not less than ten (10) days from the date the notice is mailed to
Borrower, by which such breach must be cured; and,
(d) 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, CITY, at 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. CITY shall be entitled to collect all reasonable
costs and expenses incurred in pursuing the remedies provided in this paragraph 19, including, but
not limited to, reasonable attorneys' fees.
If CITY invokes power of sale, CITY shall execute or cause Trustee to execute
a written notice of the occurrence of an event of default and of 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. 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 law. After the lapse of such time as may be required by applicable law, Trustee, without demand
on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and
under the terms designated in the notice of sale in one or more parcels and in such order as Trustee
may determine. Trustee may postpone sale of all or any parcel of the Property by public
announcement at the time and place of any previously scheduled sale. CITY or CITY's designee may
purchase the Property at any 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 prima.fillje evidence of the truth of the statements made therein. Trustee shall apply the proceeds
of the sale in the following order:
NancylGenerdll'rofoRM ,doc Page 8 of 16
9489
(1) 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;
(2) to all sums secured by this Deed of Trust; and,
(3) the excess, if any, to the person or persons legally entitled thereto.
20. Borrower's Right to Reinstate. Notwithstanding 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 CITY to enforce this Deed of Trust discontinued at any time prior to five
(5) days before the 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 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 this Deed of Trust;
(c) Borrower pays all reasonable expenses incurred by CITY and Trustee
in enforcing the covenants and agreements of Borrower continued in this Deed of
Trust and in enforcing Trustee's remedies as provided in paragraph 19 hereof,
including, but not limited to, reasonable attorneys' fees; and,
(d) Borrower takes such action as CITY may reasonably require to assure
that the lien of this Deed of Trust, 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.
21. Assignment of Rents: Appointment of Receiver: CITY in Possessioll. As
additional security hereunder, Borrower hereby assigns to CITY the rents of the Property,provided
that Borrower shall, prior to acceleration under paragraph 19 hereof or abandonment of the Property,
have the right to collect and retain such rents as they become due and payable.
Upon acceleration under paragraph 19 hereof or abandonment of the Property,
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 CITY or the receiver shall be applied first to payment of the cost of
management of the Property and collection or rents, including, but not limited to, receiver's fees,
premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this
Deed of Trust. CITY and the receiver shall be liable to account only for those rents actually
received.
Nancy\General\TDFORM.doc Page 9 of 16
9490
22. Reconveyance. Upon payment of all sums secured by this Deed of Trust,
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.
23. Substitute Truste~. CITY, at CITY's option, may from time to time appoint a
successor trustee to any Trustee appointment hereunder by an instrument executed and acknowledged
by 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 lender, Trustee and Borrower, the book and page
where this instrument 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.
24. Request for Notices. Borrower requests that copies of the notice of sale be
sent to Borrower's address which is the Property Address.
25. Statement of Obligatioll. CITY may charge a fee not to exceed Sixty Dollars
($60.00) for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of
California.
26. Deed of Trust Rider. The Deed of Trust Rider executed by Borrower is
attached hereto and made part of this Deed of Trust.
27. Covenants. Conditions and Restriction:ì. The Property is subject to
Covenants, Conditions and Restrictions [Affordability Restrictions] ("Restrictions") between CITY
and Borrower, which are not attached hereto but are incorporated by reference. Borrower
acknowledges receipt of said Restrictions and agrees, for himself, his heirs, successors and assigns to
be bound by the same.
28. Warranties of Borrowet:. Borrower warrants to CITY as follows:
(a) That Borrower's household annual gross income does not exceed eighty
percent (80%) of the median income for the San Diego metropolitan area, as adjusted
for family size, as said median income is determined by HUD, on the latter of:
(1) the date of initial occupancy of the Property; or,
(2) the date of the recordation of this Deed of Trust.
(b) Except as provided in Paragraph 16 of this Deed of Trust, for so long
as Borrower owns the Property, Borrower will reside in the Property as Borrower's
principal place of residence and will not to sublet, lease or rent out the Property during
the term of this Deed of Trust.
Nancy\GeneraIITDFORM.doc Page 10 of 16
9491
29. Foreclosure by Holder of Senior Deed of Trust. This Deed of Trust is
subordinate to any deed of trust or mortgage on the Property made by or held by an institutional
lender or investor. Any party, and its successors and assigns, receiving title to the Property through
a trustee's sale, a judicial foreclosure sale or deed in lieu of foreclosure of such deed of trust or
mortgage, and any conveyance or transfer thereafter, shall receive title free and clear of the
provisions of this Deed of Trust and any and all affordability restrictions.
REQUEST FOR NOTICE OF DEFAULT
AND FORECLOSURE UNDER SUPERIOR
MORTGAGES OR DEEDS OF TRUST
CITY will request that copies of notices of foreclosure from the holder of any lien
which has priority over this Deed of Trust be sent to CITY's address, as set forth on page 1 of this
Deed of Trust, as provided by Section 2924b of the Civil Code of California.
IN WITNESS WHEREOF, Borrower has executed this Deed of Trust.
Date: l/J7 fq ~ l2J -- (íÀJ ct '
¿,,) , -
William J. Wilson, Borrower
Nancy\General\TDFORM.doc Page 11 of 16
9492
DEED OF TRUST RIDER
THIS DEED OF TRUST RIDER (herein "Rider") is attached to and made a part of
the Deed of Trust dated July 23, 1999 made between the CITY OF ENCINITAS, a municipal
corporation (herein "CITY") and executed by William J. Wilson as Borrower.
Borrower agrees to the provisions of this Deed of Trust Rider in addition to those of
the Deed of Trust. THE LANGUAGE OF TillS RIDER PREVAILS OVER THE DEED OF
TRUST IN THE EVENT OF A CONFLICT.
1. Borrower agrees that the Property being purchased is affordable as thereafter
described in the CITY's Affordable Housing Compliance Plan ("the Plan") dated August 14, 1996,
and that the continued use of the Property must be in accordance with the Plan and the Declaration of
Covenants, Conditions and Restrictions dated July 23, 1999, and that no transfer of the Property will
be permitted and no successor-in-interest to the Borrower(s) will be permitted to assume the loan of
Borrower( s) evidenced by the Note secured by this Deed of Trust Rider, unless the written consent of
CITY to the transfer has been first obtained. No such consent will be given by CITY except in the
following limited circumstances:
(a) the transfer results from the death of a Borrower and the transfer is to
the surviving spouse of the Borrower and the surviving spouse is also a Borrower;
(b) a transfer by a Borrower to his or her spouse when the spouse becomes,
by such a transfer, 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 by a Borrower to an inter vivos trust in which the Borrower
is the sole beneficiary; and/or,
a transfer or rental in accordance with the ownership restrictions contained in
paragraphs 16, 17 and 18 of the Deed of Trust.
[remainder of page intentionally left blank]
Nancy\General\TDFORM.dnc Page 12 of 16
9493
2. This Deed of Trust is subordinate to any deed of trust or mortgage on the
Property made by or held by an institutional lender or investor. Any party, and its successors and
assigns, receiving title to the Property through a trustee's sale, a judicial foreclosure sale or deed in
lieu of foreclosure of such prior deed of trust or mortgage, and any conveyance or transfer thereafter,
shall receive title free and clear of the provisions of this Deed of Trust and any and all affordability
restrictions.
NOTICE TO BORROWER:
Do not sign this Deed of Trust Rider if it contains blank spaces. All spaces should be
completed before you sign.
Date)Þl!? "1 !¡~) 1t~{ ~ }{\ --" -
~
William J. Wilson, Borrower
NancylGcncrallTDFORM.doc Page 13 of 16
949.1
ACKNOWLEDGMENt
State of California )
)
County of San Diego )
~ '\ A~
- o~ .. ~Cf-, 199P, before me,Cþ . '. ao-- personally appeared, -
-h1.J I (C¡. ¡'î/) J . tv I r )(V 'V) - 13pr~ot:'ally kRoWH t.o ~ proved to me on the
basis of satisfactory evidence) to be the perso~ whose name(~ is~ subscribed to the within
instrument "DEED OF TRUST" and "DEED OF TRUST RIDER" and acknowledged to me that
he/~executed the same in his*ht:1/'thdr authorized capacity(~ and that by his~
signature¥-on the instrument the person~ or the entity on behalf of which the person.í'Q. acted,
executed the instrument.
8 P.A._-
~. NDr.:,~f
. SAN DIEGO 00UNTy
. M'f COMM. EXP JUt.V'+,2C01
Signature
(Seal)
NançylGcneral1 TDFORM .doc Page 14 of 16
9495
ACKNOWLEDGMENT
State of California )
)
County of San Diego )
On , 1998, before me, personally appeared, -
- 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 "DEED OF TRUST" and "DEED OF TRUST RIDER" 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 on behalf of which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal.
Signature
(Seal)
NancyIGoncra1ITOI'ORM.doc Page 15 of 16
9496
REQUEST FOR RECONVEYANCE
TO TRUSTEE:
The undersigned is the holder of the note or notes secured by this Deed of Trust. Said
note or notes, together with all other indebtedness secured by this Deed of Trust, have been paid in
full. You are hereby directed to cancel said note or notes and this Deed of Trust, which are delivered
hereby, and to reconvey, without warranty, all the estate now held by you under this Deed of Trust to
the person or persons legally entitled thereto.
Dated: By: -
Nancy\GcncraIITDrORM.doc Page 16 of 16
949'(
EXHIBIT "A"
A CONDOMINIUM COMPRISED OF::
PARCEL A:
AN UNDIVIDED 1/21TH FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE
PORTION OF THE COMMON AREA OF MODULE G OF LOT 5 OF CITY OF ENCINITAS TRACT NO.
96-170, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
ACCORDING TO MAP THEREOF NO. 13481, FILED IN THE OFFICE OF THE COUNTY RECORDER
OF SAN DIEGO COUNTY, OCTOBER 9, 1997, AS SHOWN ON THE CONDOMINIUM PLAN FOR
SAXONY, PHASE 6, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY ON MARCH 2, 1998 AS FILE NO. 1998-0109284, OFFICIAL RECORDS (" CONDOMINIUM
PLAN").
PARCEL B:
RESIDENTIAL UNIT NO. 100 AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN.
RESERVING THEREFROM NON-EXCLUSIVE EASEMENTS FOR MAINTENANCE, ENCROACHMENT,
SUPPORT, REPAIR, DRAINAGE AND ALL OTHER PURPOSES AS DESCRIBED IN THE
DECLARATION.
PARCEL C:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR INGRESS AND EGRESS,
USE AND ENJOYMENT, OVER, IN, TO, AND THROUGHOUT THE ASSOCIATION PROPERTY SHOWN
ON THE CONDOMINIUM PLAN REFERRED TO IN PARCEL "A" ABOVE AND OVER, IN, TO AND
THROUGHOUT, OTHER PHASES OF THE PROPERTY DESCRIBED IN THE DECARATION WHICH
EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED ABOVE. THIS EASEMENT
SHALL BECOME EFFECTIVE AS TO EACH OF SAID PHASES, RESPECTIVELY, UPON (1)
RECORDATION OF A DECLARATION OF ANNEXATION, DECLARING SUCH PHASES, RESPECTIVELY,
TO BE SUBJECT TO THE DECLARATION, AND (II) CONVEYANCE OF THE FIRST CONDOMINIUM
IN EACH RESPECTIVE PHASE, ALL AS MORE FULLY SET FORTH IN THE DECLARATION. THE
ASSOCIATION PROPERTY REFERRED TO HEREIN AS TO EACH OF SUCH PHASES SHALL BE AS
SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN COVERING EACH SUCH PHASE RECORDED IN
THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, EXCEPTING
THEREFROM THE COMMON AREA AND RESIDENTIAL UNITS THEREON.
PARCEL D:
AN EXCLUSIVE EASEMENT OVER THE PORTION OF THE ASSOCIATION PROPERTY (AS DEFINED
IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR SAXONY AT
ENCINITAS RANCH RECORDED IN THE OFFICE RECORDS OF THE COUNTY RECORDER OF SAN
DIEGO COUNTY, CALIFORNIA ON DECEMBER 2, 1997 AS INSTRUMENT NO. 1997-0608422, AND
ANY AMENDMENTS THERETO) DESIGNATED IN THE CONDOMINIUM PLAN OR IN ANOTHER
CONDOMINIUM PLAN FOR ANOTHER PHASE OF THE SAXONY AT ENCINITAS RANCH PROJECT AS
AN EXCLUSIVE USE PARKING SPACE APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN
PARCEL "B" ABOVE.
NOTICE: This Note may require payment of principal and interest upon the sale or
transfer of the property or upon a prepayment.
NOTE
July 23, 1999 San Diego, California
590 Sweet Pea Place, Encinitas, California 92024
1. Borrower's Promise to Pay. In return for a loan that I have received, I
promise to pay Eighteen Thousand Six Hundred Fifty-Two U.S. Dollars ($18,652) (herein
"principal") to the order of the CITY OF ENCINITAS, a Municipal Corporation (herein
"Lender"). I understand that Lender may transfer this Note. Lender or anyone who takes this
Note by transfer and who is entitled to receive payments under this Note may be called "Note
Holder".
2. No Interest. This Note will bear no interest unless I default under the
terms of this Note, the Deed of Trust securing it and/or the Covenants, Conditions and
Restrictions affecting the Property. In the event of default, interest from the date of recordation
of the Deed of Trust securing this Note shall be calculated at the greater of the following
amounts:
(a) ten percent (10 %) per annum; or,
(b) two points over the 11th District Federal Reserve Bank index.
Provided, however, if such rate would violate the usury laws of the
State of California, then the rate shall be at set forth in Paragraph
2(a) hereof.
3. Payments. I will make any payments at Lender's offices located at 505 S.
Vulcan A venue, Encinitas, California 92024.
This Note is due and payable, including the principal and interest thereon, if any,
upon default by me, or when a Prohibited Transfer occurs as defined in the Deed of Trust. This
Note will be forgiven on the date which is fifty-five (55) years after the recordation of the Deed
of Trust securing this Note, if the Borrower has not defaulted or made a Prohibited Transfer of
the Property, or any portion thereof.
4. This Note Secured by a Deed of Trust. In addition to the protection
given to Note Holder under this Note, a Deed of Trust dated the same day as this Note protects
Note Holder from possible losses which might result if I do not keep the promises which I make
in this Note. That Deed of Trust describes how and under what conditions I may be required to
make immediate payment in full of all amounts that I owe under this Note.
5. Borrower's Waiver. I waive my rights to require Note Holder to do
certain things. Those things are:
(a) to demand payment of amounts due (known as "presentment");
(b) to give notice that amounts due have not been paid (known as
"notice of dishonor"); and,
(c) to obtain any official certification of nonpayment (known as
"protest").
Anyone else who agrees to keep the promises made in this Note, or who agrees to
make payments to Note Holder if I fail to keep my promises under this Note, or who signs this
Note to transfer it to someone else also waives these rights. These persons are known as
"guarantors, sureties and endorsers".
6. Givin¡: of Notices. Any notice that must be given to me under this Note
will be given by delivering it or by mailing it by certified mail addressed to me at the Property
Address above. A notice will be delivered or mailed to me at a different address if I give a
notice of that different address.
Any notice that must be given to the Note Holder under this Note will be given by
mailing it by certified mail to Note Holder at the address stated in paragraph 3 above. A notice
will be mailed to Note Holder at a different address if I am given a notice of that different
address.
[remainder of page intentionally left blank]
\ \FS2\ WP\Nancy\General\ wilsonnote.doc Page 2 of 8
7. Responsibility of Persons Under This Not~. If more than one person
signs this Note, each of us is fully and personally obligated to pay the full amount owed and to
keep all promises made in this Note. Any guarantor, surety or endorser of this Note (as
described in paragraph 5 above) is also obligated to do these things. Note Holder may enforce
its rights under this Note against each of us individually or against all of us together. This means
that anyone of us may be required to pay all of the amounts owed under this Note. Any person
who takes over my rights or obligations under this Note will have all of my rights and must keep
all of my promises made in this note. Any person who takes over the rights and obligations of a
guarantor, surety or endorser of this Note (as described in paragraph 5 above) is also obligated to
keep all of the promises made in this Note.
8. Attorneys' Fee:¡. Upon the breach of the terms of this Note, the Deed of
Trust securing it, and/or the Covenants, Conditions and Restrictions encumbering the Property, I
agree to pay Lender any and all attorneys' fees, court costs, trustee fees, and any and all other
fees and costs incurred by Lender as a result of said breach and/or default.
NOTICE TO BORROWER:
Do not sign this Note if it contains blank spaces. All spaces should be completed
before you sign.
The Note Rider executed by Borrower is attached hereto and made a part of this
Note.
Date:7/l7 Iff ! ~~7?~d..- -
William J. Wilson, Borrower
(SIGN ORIGINAL ONLY)
\ \FS2\ WP\Nancy\General\wilsonnote.doc Page 3 of 8
NOTE RIDER
THIS NOTE RIDER is attached to and made a part of the Note dated July 23,
1999 made payable to the CITY OF ENCINITAS ("CITY") as Lender and executed by
Borrower.
1. Borrower agrees to the provisions of this Note Rider in addition to those
of the Note. THE LANGUAGE OF THIS RIDER PREVAILS OVER THE PROMISSORY
NOTE IN THE EVENT OF A CONFLICT.
2. Transfer, Conveyance of Property Restricted for Fifty Five (55) Year~.
The sale, transfer and/or conveyance of the Property is restricted as follows:
If Borrower sells, transfers or conveys the Property less than fifty five
(55) years after the date of recordation of the Deed of Trust securing this Note Rider, then said
sale, conveyance and/or transfer shall be subject to the following:
(a) The Property may only be sold, transferred or conveyed to a
subsequent purchaser whose income is less than eighty percent
(80 %) of the median income as defined by HUD from time to time
for the San Diego metropolitan area, as adjusted for family size,
and verified by CITY.
(b) Except as provided in Paragraph 2(d) hereof, the Property must be
used only as the principal residence of the subsequent purchaser
during the time of ownership.
(c) The sale price to the subsequent purchaser must be at a price that is
"affordable to the subsequent purchaser(s)". "Affordable to the
subsequent purchaser(s)" is achieved if the monthly payments for
principal, interest, property taxes, insurance and a utility allowance
do not exceed thirty percent (30 %) of the gross income of a family
with an income that is eighty percent (80%) of the median income
for the area, for a family of three.
/ / /
/ / /
\ \FS2\ WP\Nancy\General\wilsonnote.doc Page 4 of 8
(d) In the event that a Transferor is unable to find, despite diligent
efforts to do so, an Eligible Person or Family to purchase a
Housing Unit, the Transferor may sell the Housing Unit to a
person other than an Eligible Person or Family by first offering to
sell the Housing Unit to the CITY for a purchase price equal to
highest purchase price at which an Eligible Person or Family could
qualify to purchase the Housing Unit at an Affordable Housing
Cost. The CITY shall accept or reject the offer to sell the Housing
Unit to the CITY within thirty (30) days of the date of receipt of
the offer to sell. In the event that the CITY declines to purchase
the Housing Unit, the Transferor may proceed to market and sell
the Housing Unit to any purchaser without regard to the resale
conditions set forth in this Agreement; provided that upon or prior
to the close of escrow the Transferor shall pay to the CITY the
greater of: 1) the amount of the Second Deed of Trust, or 2)
"Equity Sharing Amount", hereinafter derIDed.
The "Equity Sharing Amount" means an amount equal to the appreciation
in the value of the Property determined by the difference between the
Sales Price and the Affordable Housing Price (as defined below).
The "Affordable Housing Price" is the purchase price that could be paid
by an Eligible Person or Family at an Affordable Housing Cost.
The "Sales Price" is the price to be paid by the buyer of the Property (the
"Buyer") to the Transferor for Transferor's interest in the Property,
exclusive of escrow fees, title insurance costs, broker's commissions, loan
fees or any other closing or transaction costs.
Upon a showing of hardship by the Transferor to the CITY in writing, the CITY may
waive anyone or combination of the following: the resale restrictions, the Transferor's
obligation to sell to the CITY, the Transferor's obligation to pay the CITY the Equity Sharing
Amount and/or the Transferor's obligation to pay the CITY the amount of the Second Deed of
Trust.
(e) The affordability requirement shall remain in effect for a
total of fifty five (55) years, measured from the date of
recordation of the Deed of Trust securing this Note Rider.
This requirement shall remain in full force and effect
against all subsequent purchasers during the restricted term.
This restriction shall also apply to sales of the Property
from the subsequent purchaser to other purchaser(s) during
the restricted term.
\ \FS2\ WP\Nancy\GeneraJ\ wilsonnote.doc Page 5 of 8
(f) If the Borrower fails, refuses or is unable to convey, sell,
rent or transfer the Property to a person or persons meeting
the requirements of paragraphs 16, 17a through 17e,
inclusive, before the end of the affordability term as
defined in paragraph 17e, then such transfer shall be
deemed a Prohibited Transfer as defined in Paragraph 18
hereof.
These provisions of paragraph 17 shall bind the heirs, succes sors and
assigns of the Borrower.
3. Prohibited Transfer. If Borrower sells, agrees to sell, conveys, rents
and/or transfers the Property in violation of the terms of Paragraph 2 hereof and Paragraphs 16
and 17 of the Second Deed of Trust, then CITY may, at its option, in addition to any and all
other remedies available to it, require immediate payment in full of all sums secured by the
Second Deed of Trust. In the instance of a prohibited transfer, the Transferor shall pay to the
CITY the greater of: 1) the amount of the Second Deed of Trust, including any interest, as
described in the Note, or 2) "Equity Sharing Amount", as defined above.
As an alternative, CITY may, at its option, purchase the Property for a
purchase price equal to the highest purchase price at which an Eligible Person or Family could
quality to purchase the Housing Unit at an Affordable Housing Cost. However, these options
shall not be exercised by CITY if such exercise is prohibited by federal law as of the date of the
Deed of Trust or if the CITY has executed a separate written waiver of these options.
If CITY exercises any of these options, CITY shall give Borrower Notice
of Acceleration or, in the alternative, Notice of Exercise of First Right of Refusal Option. The
notice shall provide a period of not less than thirty (30) days from the date that the notice is
delivered or mailed within which Borrower must pay all sums secured by the Deed of Trust or
must enter into an escrow to convey the Property to CITY, depending upon the option exercised
by CITY. If Borrower fails to pay these sums or enter into an escrow prior to the expiration of
this period, CITY may invoke any remedies pem1itted by the Deed of Trust without further
notice or demand on Borrower. The escrow contemplated by this Paragraph 3 must close not
more than ninety (90) days after CITY receives notice of such sale, agreement to sell,
conveyance, rental or transfer of the Property in violation hereof.
4. Warranties of Borrower. Borrower warrants to CITY as follows:
(a) Borrower's household annual gross income does not exceed eighty
percent (80%) of the median income for the San Diego metropolitan area, as
adjusted for family size, as said median income is determined by HUD, on the
latter of:
\ \FS2\ WP\Nancy\General\ wilsonnote .doc Page 6 of 8
(1) the date of occupancy of the Property; or,
(2) the date of the recordation of the Deed of Trust.
(b) Except as provided in Paragraph 16 of the Deed of Trust for so
long as Borrower owns the Property, Borrower will reside in the Property as
Borrower's principal place of residence and will not rent, lease or sublet the
Property during the term of the Declaration, i.e., fifty five (55) years after the
date if recordation of the Deed of Trust securing this Note Rider.
NOTICE TO BORROWER:
Do not sign this Note Rider if it contains blank spaces. All spaces should be
completed before you sign.
Date: 7/17 /99 r \ ,
tJcJL~ 7?'.-k{.,-- -
William J. Wilson, Borrower
(SIGN ORIGINAL ONLY)
\ \FS2\ WP\Nancy\General\wilsonnote.doc Page 7 of 8
ACKNOWLEDGMENT
State of California )
)
County of San Diego )
. . on~. 199~ be,"" me:j7. tJ.. "'he'j-- - personally appe,,"'.
W t t \, lt1..o/V1j' tv l \ ')/OVì - pcf3BHally kHOH(1l tg me (Of pflJyed ta-
me on the basis of satisfactory evidence) to be the perso~whose nameoQ is/~ subscribed to
the within instrument "NOTE" AND "NOTE RIDER" and acknowledged to me that he/~
executed the same in his/~ authorized capacity~ and that by his/her/th€ir signature~
on the instrument the person(M, or the entity on behalf of which the person~ acted, executed the
instrument.
P. A. SKAY
CIOf¡¡8. t# 114B1B1 ì!
NOfM'( ~ .
SAN CII!OO OOUNTY -
!III' COMM. EXP JUly 4.2001
Signatur
(Seal)
\ \FS2\ WP\Nancy\General\ wilsonnote.doc Page 8 of 8
. Recorded. request of 9481DOC'
' .
~ .
Chicago Title 1999-0524131
JUL 29, 1999 3:19 PM
FREE RECORDING REQUESTED OFFICIAl RECORDS
PURSUANT TO GOV. CODE SECTION , SAN DIEGO COONTY RECORDER'S OFFICE
27383 ~GORV l SMITH, COUNTY RECORDER
FEES: 0.00
Recording Requested By: 111111111 III II IIn In
City of Encinitas
Community Development 1999-0524131
505 S. Vulcan A venue
Encinitas, CA 92024
And When Recorded Mail To:
City of Encinitas
Community Development
Vll 505 S. Vulcan Avenue
. Encinitas, CA 92024
\~
\ ~ ~ 7 ? ) 6 7'/711 DEED OF TRUST
(This is a Second Deed of Trust)
THIS DEED OF TRUST is made this 24th day of July, 1999, among the Trustor,
William J. Wilson (herein "Borrower"), and CHICAGO TITLE COMPANY (herein "Trustee"), and
the Beneficiary, CITY OF ENCINIT AS (herein "CITY"), whose address is 505 S. Vulcan A venue,
Encinitas, California 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 and incorporated herein by this reference
which has the address of 590 Sweet Pea Place, Encinitas, California 92024 herein "Property
Address");
TOGETHER with all the improvements now and hereafter erected on the Property,
and all easements, rights, appurtenances and rents (subject, however, to the rights and authorities
given herein to CITY to collect and apply such rents), all of which shall be deemed to be and remain
. 9482 .
,
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 SECURE to CITY the repayment of the indebtedness evidenced by Borrower's
Promissory Note dated July 23, 1999, and Note Rider, and extensions and renewals thereof (herein
collectively referred to as the "Note"), in the principal sum of Eighteen Thousand Six Hundred Fifty-
Two U.S. Dollars ($18,652) with interest thereon, fully deferred with the total indebtedness, if not
sooner paid, due and payable upon default by Borrower, a Prohibited Transfer as defined in the Deed
of Trust. This Note will be forgiven on the date which is fifty-five (55) years after the recordation
date hereof, if Borrower has not defaulted or made a Prohibited Transfer of the Property, or any
portion thereof; CITY has received the payment of all other sums, with interest thereon, advanced in
accordance herewith to protect the security of this Deed of Trust; and CITY has received the full
performance of the covenants and agreements of Borrower herein contained.
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 Property 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.
UNIFORM COVENANTS
Borrower and CITY covenant and agrees as follows:
1. Payment of Principal and Interest. Borrower shall promptly pay when due
the principal and interest indebtedness evidenced by the Note.
2. Payment of Taxes and Insuranc~. To protect the security of the Deed of
Trust, Trustor agrees to pay, at least ten (10) days before delinquency, all taxes and assessments
affecting said property, including assessments on appurtenant water stock; when due, all
encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to
be prior or superior hereto; and all costs, fees and expenses of this Trust.
Should Trustor fail to make any payment or to do any act as herein provided,
then Beneficiary or Trustee, without obligation to do so and without notice to or demand upon
Trustor and without releasing Trustor from any obligation hereof, may make or do the same in such
manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary 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 Beneficiary 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 reasonable fees.
3. Application of Payment~. Unless applicable law provides otherwise, all
payments received by CITY under the Note shall be applied by CITY first in payment of amounts
N ancy\General\ TDFORM .doc Page 2 of 16
. 9483 .
advanced by CITY to CITY by Borrower, then to interest payable on the Note, and then to the
principal of the Note.
4. Prior Mortgages and Deeds of Trust; Charges, Lien~. 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 this Deed of Trust, including Borrower's covenants to make
payments when due. Borrower shall payor 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, if any.
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 terms
"extended coverage", and such other hazards as CITY may require and in such amounts and for such
periods as CITY may require.
The insurance carrier providing the insurance shall be chosen by Borrower
subject to approval by CITY, provided that such approval will not be unreasonably withheld. All
insurance policies and renewals thereof shall be in a form acceptable to CITY and shall include a
standard mortgage clause in favor of and in a form acceptable to CITY. 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 CITY. 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 CITY
within thirty (30) days from the date notice is mailed by CITY to Borrower that the insurance carrier
offers to settle a claim for insurance benefits, CITY is authorized to collect and apply the insurance
proceeds at 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 Propertx. 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. Borrower shall
perform all of Borrower's obligations under the declaration of covenants, conditions and restrictions
creating or governing the condominium, the bylaws and regulations of the condominium, and
constituent documents.
7. Protection of CITY Security. If Borrower fails to perform the covenants and
agreements contained in this Deed of Trust, or if any action or proceeding is commenced which
materially affects CITY's interest in the Property, the CITY, at CITY's option, upon notice to
Borrower, may make such appearances, disburse such sums including reasonable attorneys' fees, and
take such action as is necessary to protect CITY's interest. If CITY's required mortgage insurance is
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 CITY's written agreement or applicable law.
Nancy\General\TDFORM.doc Page 3 of 16
8 94818
Any amounts disbursed by CITY pursuant to this paragraph, with interest
thereon, at the Note rate, will become additional indebtedness of Borrower secured by this Deed of
Trust. Unless Borrower and CITY agree to other terms of payment, such amounts will be payable
upon notice from CITY to Borrower requesting payment thereof. Nothing contained in this
paragraph will require CITY to incur any expense or take any action hereunder.
8. Inspection. CITY may make or cause to be made reasonable entries upon and
inspections of the Property, provided that CITY will give the Borrower notice prior to any such
inspection, specifying reasonable cause therefor related to CITY's interest in the property.
9. Condemnatiol!. The proceeds of any award of 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 CITY 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.
10. Borrower Not Released; Forbearance by 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 CITY 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. 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 CITY in
exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a
waiver of or preclude the exercise of any such right or remedy.
11. Successors and Assigns Bound. Joint and Several Liability: Co-Signor~.
The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the
respective successors and assigns of 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 1 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 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.
12. Notice. Except for any notice required under applicable law to be given in
another manner:
Nancy\General\ TDFORM. doc Page 4 of 16
. .
94'"' -
ð;)
(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, addressed to
Borrower at the Property address or such other address as Borrower may designate by
notice to CITY as provided herein; and,
(b) any notice to CITY will be given by certified mail, return receipt
requested, to CITY's address stated herein or to such other address as 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
CITY when given in the manner designated herein.
13. Governing Law. Severabilit~. 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.
14. 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.
15. Notice to CIT~. Borrower agrees that it will give the CITY notice of any
prospective transfer, sale, conveyance, rental or subletting not less than forty five (45) days before the
proposed sale, transfer, conveyance, rental or subletting by personal delivery of a notice at the
address set forth for the CITY on Page 1 of this Deed of Trust. Time is of the essence.
16. Lease of Property Prohibited. During the term of the affordability
restrictions as set forth in Paragraph 17(e) of this Deed of Trust, the Borrower shall not rent or sublet
the Property, or any part thereof, to any person and/or entity, unless the person is an income
"Eligible Household". As used herein, an income "Eligible Household" shall mean a household
whose eligible income does not exceed eighty percent (80 %) of the Area Median Income for San
Diego, as determined from time to time by the U.S. Department of Housing & Urban Development.
Further, the rent charged to the Eligible Household shall not exceed thirty percent (30 %) of eighty
percent (80%) of the Median Income, minus a utility allowance. For purposes of this restriction,
rents shall be based upon a household size of three (3). Leasing of the Property to a household that is
not an Eligible Household or at rents that exceed the restricted rental rates set forth herein shall be
deemed a prohibited transfer of the Property, within the meaning of Paragraph 18, and shall trigger
the right of the CITY to foreclose and/or exercise its First Right of Refusal.
17. Transfer. Conveyance of Property Restricted for Fifty Five (55) Year~.
The sale, transfer and/or conveyance of the Property is restricted as follows:
Nancy\General\TDFORM.doc Page 5 of 16
. .
9486
If Borrower sells, transfers or conveys the Property less than fifty five (55)
years after the date of recordation of this Deed of Trust, then said sale, conveyance and/or transfer
shall be subject to the following:
(a) The Property may only be sold, transferred or conveyed to a
subsequent purchaser whose income is less than eighty percent (80 %) of the median
income as defined by HUD from time to time for the San Diego metropolitan area, as
adjusted for family size and as verified and approved by CITY.
(b) Except as provided in Paragraph 17(d) hereof, the Property must be
used only as the principal residence of the subsequent purchaser during the term of the
Declaration, i.e, fifty five (55) years from the recordation date hereof.
(c) The sale price to the subsequent purchaser must be at a price that is
"affordable to the subsequent purchaser( s ) " . "Affordable to the subsequent
purchaser(s)" is achieved if the monthly payments for principal, interest, property
taxes, insurance and a utility allowance determined by CITY do not exceed thirty
percent (30%) of the gross income of a family with an income that is eighty percent
(80 %) of the median income for the area, adjusted for a family size of three.
(d) In the event that a Transferor is unable to find, despite diligent efforts to
do so, an Eligible Person or Family to purchase a Housing Unit, the Transferor may
sell the Housing Unit to a person other than an Eligible Person or Family by first
offering to sell the Housing Unit to the CITY for a purchase price equal to highest
purchase price at which an Eligible Person or Family could qualify to purchase the
Housing Unit at an Affordable Housing Cost. The CITY shall accept or reject the
offer to sell the Housing Unit to the CITY within thirty (30) days of the date of receipt
of the offer to sell. In the event that the CITY declines to purchase the Housing Unit,
the Transferor may proceed to market and sell the Housing Unit to any purchaser
without regard to the resale conditions set forth in this Agreement; provided that upon
or prior to the close of escrow the Transferor shall pay to the CITY the greater of: 1)
the amount of the Second Deed of Trust, or 2) "Equity Sharing Amount", hereinafter
defined.
The" Equity Sharing Amount" means an amount equal to the appreciation in
the value of the Property determined by the difference between the Sales Price
and the Affordable Housing Price (as defined below).
The "Affordable Housing Price" is the purchase price that could be paid by an
Eligible Person or Family at an Affordable Housing Cost.
The "Sales Price" is the price to be paid by the buyer of the Property (the
"Buyer") to the Transferor for Transferor's interest in the Property, exclusive
of escrow fees, title insurance costs, broker's commissions, loan fees or any
other closing or transaction costs.
Nancy\General\ TO FORM. doc Page 6 of 16
8 94878
Upon a showing of hardship by the Transferor to the CITY in writing, the CITY may waive
anyone or combination of the following: the resale restrictions, the Transferor's obligation to sell to
the CITY, the Transferor's obligation to pay the CITY the Equity Sharing Amount and/or the
Transferor's obligation to pay the CITY the amount of the Second Deed of Trust.
(e) The affordability requirement shall remain in effect for a total of fifty-
five (55) years, measured from the date of recordation of this Deed of Trust. This
requirement shall remain in full force and effect against all subsequent purchasers
during the restricted term. This restriction shall also apply to sales of the Property
from the subsequent purchaser to other purchaser(s) during the restricted term.
(t) If the Borrower fails, refuses or is unable to convey, sell, rent or
transfer the Property to a person or persons meeting the requirements of paragraphs
16, 17a through 17e, inclusive, before the end of the affordability term as defined in
paragraph 17e, then such transfer shall be deemed a Prohibited Transfer as defined in
Paragraph 18 hereof.
These provisions of paragraph 17 shall bind the heirs, successors and assigns
of the Borrower.
18. Prohibited Transfer. If Borrower sells, agrees to sell, conveys, rents and/or
transfers the Property in violation of the terms of Paragraphs 16 and 17 hereof, then CITY may, at its
option, in addition to any and all other remedies available to it, require immediate payment in full of
all sums secured by the Second Deed of Trust. In the instance of a prohibited transfer, the Transferor
shall pay to the CITY the greater of: 1) the amount of the Second Deed of Trust, including any
interest, as described in the Note, or 2) "Equity Sharing Amount", as defined above.
As an alternative, CITY may, at its option, purchase the Property for a
purchase price equal to the highest purchase price at which an Eligible Person or Family could qualify
to purchase the Housing Unit at an Affordable Housing Cost. However, these options shall not be
exercised by CITY if such exercise is prohibited by federal law as of the date of the Deed of Trust or
if the CITY has executed a separate written waiver of these options.
If CITY exercises any of these options, CITY shall give Borrower Notice of
Acceleration or, in the alternative, Notice of Exercise of First Right of Refusal Option. The notice
shall provide a period of not less than thirty (30) days from the date that the notice is delivered or
mailed within which Borrower must pay all sums secured by the Deed of Trust or must enter into an
escrow to convey the Property to CITY, depending upon the option exercised by CITY. If Borrower
fails to pay these sums or enter into an escrow prior to the expiration of this period, CITY may
invoke any remedies permitted by the Deed of Trust without further notice or demand on Borrower.
The escrow contemplated by this Paragraph 18 must close not more than ninety (90) days after CITY
receives notice of such sale, agreement to sell, conveyance, rental or transfer of the Property in
violation hereof.
Nancy\General\ TDFORM .doc Page 7 of 16
. 9488 .
NON-UNIFORM COVENANTS
Borrower and CITY further covenant and agree as follows:
19. Acceleration, Remedies. Upon Borrower's breach of any covenant or
agreement of Borrower in this Deed of Trust, including the covenants to pay when due any sums
secured by this Deed of Trust, and those contained in paragraphs 16, 17 and 18 hereof, CITY, prior
to acceleration, shall give notice to Borrower as provided in paragraph 12 hereof specifying:
(a) the breach;
(b) the action required to cure such breach;
(c) a date, not less than ten (10) days from the date the notice is mailed to
Borrower, by which such breach must be cured; and,
(d) 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, CITY, at 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. CITY shall be entitled to collect all reasonable
costs and expenses incurred in pursuing the remedies provided in this paragraph 19, including, but
not limited to, reasonable attorneys' fees.
If CITY invokes power of sale, CITY shall execute or cause Trustee to execute
a written notice of the occurrence of an event of default and of 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. 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 law. After the lapse of such time as may be required by applicable law, Trustee, without demand
on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and
under the terms designated in the notice of sale in one or more parcels and in such order as Trustee
may determine. Trustee may postpone sale of all or any parcel of the Property by public
announcement at the time and place of any previously scheduled sale. CITY or CITY's designee may
purchase the Property at any 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 prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds
of the sale in the following order:
N ancy\General\ TDFORM .doc Page 8 of 16
. 9489 .
(1) 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;
(2) to all sums secured by this Deed of Trust; and,
(3) the excess, if any, to the person or persons legally entitled thereto.
20. Borrower's Right to Reinstat~. Notwithstanding 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 CITY to enforce this Deed of Trust discontinued at any time prior to five
(5) days before the 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 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 this Deed of Trust;
(c) Borrower pays all reasonable expenses incurred by CITY and Trustee
in enforcing the covenants and agreements of Borrower continued in this Deed of
Trust and in enforcing Trustee's remedies as provided in paragraph 19 hereof,
including, but not limited to, reasonable attorneys' fees; and,
(d) Borrower takes such action as CITY may reasonably require to assure
that the lien of this Deed of Trust, 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.
21. Assignment of Rents; Appointment of Receiver; CITY in Possessioll. As
additional security hereunder, Borrower hereby assigns to CITY the rents of the Property ,provided
that Borrower shall, prior to acceleration under paragraph 19 hereof or abandonment of the Property,
have the right to collect and retain such rents as they become due and payable.
Upon acceleration under paragraph 19 hereof or abandonment of the Property,
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 CITY or the receiver shall be applied first to payment of the cost of
management of the Property and collection or rents, including, but not limited to, receiver's fees,
premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this
Deed of Trust. CITY and the receiver shall be liable to account only for those rents actually
received.
Nancy\General\ TDFORM. doc Page 9 of 16
. 9490 .
22. Reconveyance. Upon payment of all sums secured by this Deed of Trust,
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.
23. Substitute Trustee. CITY, at CITY's option, may from time to time appoint a
successor trustee to any Trustee appointment hereunder by an instrument executed and acknowledged
by 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 lender, Trustee and Borrower, the book and page
where this instrument 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.
24. Request for Notices. Borrower requests that copies of the notice of sale be
sent to Borrower's address which is the Property Address.
25. Statement of Obligatiol!. CITY may charge a fee not to exceed Sixty Dollars
($60.00) for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of
California.
26. Deed of Trust Rider. The Deed of Trust Rider executed by Borrower is
attached hereto and made part of this Deed of Trust.
27. Covenants, Conditions and Restriction~. The Property is subject to
Covenants, Conditions and Restrictions [Affordability Restrictions] ("Restrictions") between CITY
and Borrower, which are not attached hereto but are incorporated by reference. Borrower
acknowledges receipt of said Restrictions and agrees, for himself, his heirs, successors and assigns to
be bound by the same.
28. Warranties of Borrower. Borrower warrants to CITY as follows:
(a) That Borrower's household annual gross income does not exceed eighty
percent (80 %) of the median income for the San Diego metropolitan area, as adjusted
for family size, as said median income is determined by HUD, on the latter of:
(1) the date of initial occupancy of the Property; or,
(2) the date of the recordation of this Deed of Trust.
(b) Except as provided in Paragraph 16 of this Deed of Trust, for so long
as Borrower owns the Property, Borrower will reside in the Property as Borrower's
principal place of residence and will not to sublet, lease or rent out the Property during
the term of this Deed of Trust.
Nancy\General\ TDFORM .doc Page 10 of 16
8 94918
29. Foreclosure by Holder of Senior Deed of Trust. This Deed of Trust is
subordinate to any deed of trust or mortgage on the Property made by or held by an institutional
lender or investor. Any party, and its successors and assigns, receiving title to the Property through
a trustee's sale, a judicial foreclosure sale or deed in lieu of foreclosure of such deed of trust or
mortgage, and any conveyance or transfer thereafter, shall receive title free and clear of the
provisions of this Deed of Trust and any and all affordability restrictions.
REQUEST FOR NOTICE OF DEFAULT
AND FORECLOSURE UNDER SUPER! 0 R
MORTGAGES OR DEEDS OF TRUST
CITY will request that copies of notices of foreclosure from the holder of any lien
which has priority over this Deed of Trust be sent to CITY's address, as set forth on page 1 of this
Deed of Trust, as provided by Section 2924b of the Civil Code of California.
IN WITNESS WHEREOF, Borrower has executed this Deed of Trust.
Date:ì II / I \ (( (, ,Ji, ) '¡ \
./v'-,/"'/...... -
William J. Wilson, Borrower
N ancy\General\ TO FORM .doc Page 11 of 16
. 9492 .
DEED OF TRUST RIDER
THIS DEED OF TRUST RIDER (herein "Rider") is attached to and made a part of
the Deed of Trust dated Ju]y 23, 1999 made between the CITY OF ENCINITAS, a municipal
corporation (herein "CITY") and executed by William J. Wilson as Borrower.
Borrower agrees to the provisions of this Deed of Trust Rider in addition to those of
the Deed of Trust. THE LANGUAGE OF THIS RIDER PREVAILS OVER THE DEED OF
TRUST IN THE EVENT OF A CONFLICT.
1. Borrower agrees that the Property being purchased is affordable as thereafter
described in the CITY's Affordable Housing Compliance Plan ("the Plan") dated August 14, 1996,
and that the continued use of the Property must be in accordance with the Plan and the Declaration of
Covenants, Conditions and Restrictions dated July 23, 1999, and that no transfer of the Property will
be permitted and no successor-in-interest to the Borrower(s) will be pennitted to assume the loan of
Borrower(s) evidenced by the Note secured by this Deed of Trust Rider, unless the written consent of
CITY to the transfer has been first obtained. No such consent will be given by CITY except in the
following limited circumstances:
(a) the transfer results from the death of a Borrower and the transfer is to
the surviving spouse of the Borrower and the surviving spouse is also a Borrower;
(b) a transfer by a Borrower to his or her spouse when the spouse becomes,
by such a transfer, 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 by a Borrower to an inter vivos trust in which the Borrower
is the sole beneficiary; and/or,
a transfer or rental in accordance with the ownership restrictions contained in
paragraphs 16, 17 and 18 of the Deed of Trust.
[remainder of page intentionally left blank]
Nancy\General\ TO FORM .doc Page 12 of 16
. 9493 .
2. This Deed of Trust is subordinate to any deed of trust or mortgage on the
Property made by or held by an institutional lender or investor. Any party, and its successors and
assigns, receiving title to the Property through a trustee's sale, a judicial foreclosure sale or deed in
lieu of foreclosure of such prior deed of trust or mortgage, and any conveyance or transfer thereafter,
shall receive title free and clear of the provisions of this Deed of Trust and any and all affordability
restrictions.
NOTICE TO BORROWER:
Do not sign this Deed of Trust Rider if it contains blank spaces. All spaces should be
completed before you sign.
-;/1 /! c t1 ,,-;) i'
! 't " I I
Date: / ;/ " r i I ,,~lc,~C,_-, /;l ;....ll, -
~
William J. Wilson, Borrower
N ancy\General\ TDFORM. doc Page 13 of 16
. .
949.1
ACKNOWLEDGMENT
State of California )
)
County of San Diego )
. - O~\)' ¡~ ,1:~ , 19~\ before me.:f t1 . ~)[:\¿L~F- personally appeared. -
--ÌwÌJ ({, ~ ì,\ <) . tlJ ~)L ~) - personally known--tG-me-{-er proved to me on the
basis of satisfactory evidence) to be the person~ whose name(~ isLal:@. subscribed to the within
instrument "DEED OF TRUST" and "DEED OF TRUST RIDER" and acknowledged to me that
he/~executed the same in hisRn:dtheìrauthorized capacity(~] and that by histhcr/tOOiJ:-
signature~ on the instrument the person<A-, or the entity on behalf of which the person~ acted,
executed the instrument.
. p. A SHAY
-:' . . COI'iaI. # 11«i582 F1
~ IIOrMV PlIBt.ICCAUFoRN r'
liS SAN DIEGO COUNTY :
'. . M'fCOMM.EXP JUlY....,2CG',
Signature
(Seal)
Nancy\General\TDFORM.doc Page 14 of 16
. .
9435
ACKNOWLEDGMENt
State of California )
)
County of San Diego )
On , 1998, before me, - personally appeared, -
- 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 "DEED OF TRUST" and "DEED OF TRUST RIDER" 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 on behalf of which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal.
Signature
(Seal)
N ancy\General\ TDFORM. doc Page 15 of 16
.
. .
9496
REQUEST FOR RECONVEYANCE
TO TRUSTEE:
The undersigned is the holder of the note or notes secured by this Deed of Trust. Said
note or notes, together with all other indebtedness secured by this Deed of Trust, have been paid in
full. You are hereby directed to cancel said note or notes and this Deed of Trust, which are delivered
hereby, and to reconvey, without warranty, all the estate now held by you under this Deed of Trust to
the person or persons legally entitled thereto.
Dated: By: -
N ancy\General\ TO FORM .doc Page 16 of 16
. . g49~
EXHIBIT "A"
A CONDOMINIUM COMPRISED OF::
PARCEL A:
AN UNDIVIDED 1/21TH FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE
PORTION OF THE COMMON AREA OF MODULE G OF LOT 5 OF CITY OF ENCINITAS TRACT NO.
96-170, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
ACCORDING TO MAP THEREOF NO. 13481, FILED IN THE OFFICE OF THE COUNTY RECORDER
OF SAN DIEGO COUNTY, OCTOBER 9, 1997, AS SHOWN ON THE CONDOMINIUM PLAN FOR
SAXONY, PHASE 6, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY ON MARCH 2, 1998 AS FILE NO. 1998-0109284, OFFICIAL RECORDS ( "CONDOMINIUM
PLAN").
PARCEL B:
RESIDENTIAL UNIT NO. 100 AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN.
RESERVING THEREFROM NON-EXCLUSIVE EASEMENTS FOR MAINTENANCE, ENCROACHMENT,
SUPPORT, REPAIR, DRAINAGE AND ALL OTHER PURPOSES AS DESCRIBED IN THE
DECLARATION.
PARCEL C:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR INGRESS AND EGRESS,
USE AND ENJOYMENT, OVER, IN, TO, AND THROUGHOUT THE ASSOCIATION PROPERTY SHOWN
ON THE CONDOMINIUM PLAN REFERRED TO IN PARCEL "A" ABOVE AND OVER, IN, TO AND
THROUGHOUT, OTHER PHASES OF THE PROPERTY DESCRIBED IN THE DECARATION WHICH
EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED ABOVE. THIS EASEMENT
SHALL BECOME EFFECTIVE AS TO EACH OF SAID PHASES, RESPECTIVELY, UPON (1)
RECORDATION OF A DECLARATION OF ANNEXATION, DECLARING SUCH PHASES, RESPECTIVELY,
TO BE SUBJECT TO THE DECLARATION, AND (II) CONVEYANCE OF THE FIRST CONDOMINIUM
IN EACH RESPECTIVE PHASE, ALL AS MORE FULLY SET FORTH IN THE DECLARATION. THE
ASSOCIATION PROPERTY REFERRED TO HEREIN AS TO EACH OF SUCH PHASES SHALL BE AS
SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN COVERING EACH SUCH PHASE RECORDED IN
THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, EXCEPTING
THEREFROM THE COMMON AREA AND RESIDENTIAL UNITS THEREON.
PARCEL D:
AN EXCLUSIVE EASEMENT OVER THE PORTION OF THE ASSOCIATION PROPERTY (AS DEFINED
IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR SAXONY AT
ENCINITAS RANCH RECORDED IN THE OFFICE RECORDS OF THE COUNTY RECORDER OF SAN
DIEGO COUNTY, CALIFORNIA ON DECEMBER 2, 1997 AS INSTRUMENT NO. 1997-0608422, AND
ANY AMENDMENTS THERETO) DESIGNATED IN THE CONDOMINIUM PLAN OR IN ANOTHER
CONDOMINIUM PLAN FOR ANOTHER PHASE OF THE SAXONY AT ENCINITAS RANCH PROJECT AS
AN EXCLUSIVE USE PARKING SPACE APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN
PARCEL "B" ABOVE.
, . .
NOTICE: This Note may require payment of principal and interest upon the sale or
transfer of the property or upon a prepayment.
NOTE
July 23, 1999 San Diego, California
590 Sweet Pea Place, Encinitas, California 92024
1. Borrower's Promise to Pay. In return for a loan that I have received, I
promise to pay Eighteen Thousand Six Hundred Fifty-Two U.S. Dollars ($18,652) (herein
"principal ") to the order of the CITY OF ENCINIT AS, a Municipal Corporation (herein
"Lender"). I understand that Lender may transfer this Note. Lender or anyone who takes this
Note by transfer and who is entitled to receive payments under this Note may be called "Note
Holder".
2. No Interest. This Note will bear no interest unless I default under the
terms of this Note, the Deed of Trust securing it and/or the Covenants, Conditions and
Restrictions affecting the Property. In the event of default, interest from the date of recordation
of the Deed of Trust securing this Note shall be calculated at the greater of the following
amounts:
(a) ten percent (10%) per annum; or,
(b) two points over the 11th District Federal Reserve Bank index.
Provided, however, if such rate would violate the usury laws of the
State of California, then the rate shall be at set forth in Paragraph
2(a) hereof.
3. Payments. I will make any payments at Lender's offices located at 505 S.
Vulcan A venue, Encinitas, California 92024.
This Note is due and payable, including the principal and interest thereon, if any,
upon default by me, or when a Prohibited Transfer occurs as defined in the Deed of Trust. This
Note will be forgiven on the date which is fifty-five (55) years after the recordation of the Deed
of Trust securing this Note, if the Borrower has not defaulted or made a Prohibited Transfer of
the Property, or any portion thereof.
4. This Note Secured by a Deed of Trust. In addition to the protection
given to Note Holder under this Note, a Deed of Trust dated the same day as this Note protects
Note Holder from possible losses which might result if I do not keep the promises which I make
. .
in this Note. That Deed of Trust describes how and under what conditions I may be required to
make immediate payment in full of all amounts that I owe under this Note.
5. Borrower's Waiver. I waive my rights to require Note Holder to do
certain things. Those things are:
(a) to demand payment of amounts due (known as "presentment");
(b) to give notice that amounts due have not been paid (known as
"notice of dishonor"); and,
(c) to obtain any official certification of nonpayment (known as
"protest").
Anyone else who agrees to keep the promises made in this Note, or who agrees to
make payments to Note Holder if I fail to keep my promises under this Note, or who signs this
Note to transfer it to someone else also waives these rights. These persons are known as
"guarantors, sureties and endorsers".
6. Giving of Notices. Any notice that must be given to me under this Note
will be given by delivering it or by mailing it by certified mail addressed to me at the Property
Address above. A notice will be delivered or mailed to me at a different address if I give a
notice of that different address.
Any notice that must be given to the Note Holder under this Note will be given by
mailing it by certified mail to Note Holder at the address stated in paragraph 3 above. A notice
will be mailed to Note Holder at a different address if I am given a notice of that different
address.
[remainder of page intentionally left blank]
\ \FS2\ WP\Nancy\General\ wilsonnote.doc Page 2 of 8
. .
7. Responsibility of Persons Under This Not~. If more than one person
signs this Note, each of us is fully and personally obligated to pay the full amount owed and to
keep all promises made in this Note. Any guarantor, surety or endorser of this Note (as
described in paragraph 5 above) is also obligated to do these things. Note Holder may enforce
its rights under this Note against each of us individually or against all of us together. This means
that anyone of us may be required to pay all of the amounts owed under this Note. Any person
who takes over my rights or obligations under this Note will have all of my rights and must keep
all of my promises made in this note. Any person who takes over the rights and obligations of a
guarantor, surety or endorser of this Note (as described in paragraph 5 above) is also obligated to
keep all of the promises made in this Note.
8. Attorneys' Fe~. Upon the breach of the terms of this Note, the Deed of
Trust securing it, and/or the Covenants, Conditions and Restrictions encumbering the Property, I
agree to pay Lender any and all attorneys' fees, court costs, trustee fees, and any and all other
fees and costs incurred by Lender as a result of said breach and/or default.
NOTICE TO BORROWER:
Do not sign this Note if it contains blank spaces. All spaces should be completed
before you sign.
The Note Rider executed by Borrower is attached hereto and made a part of this
Note.
-7 /? -) /1!! " J, '.." . l?
Date: i /1 . , . /~ ~tl~( y ,,--/......t-- - -
William J. Wilson, Borrower
(SIGN ORIGINAL ONLY)
\\FS2\WP\Nancy\General\wilsonnote.doc Page 3 of 8
. .
NOTE RIDER
THIS NOTE RIDER is attached to and made a part of the Note dated July 23,
1999 made payable to the CITY OF ENCINITAS ("CITY") as Lender and executed by
Borrower.
1. Borrower agrees to the provisions of this Note Rider in addition to those
of the Note. THE LANGUAGE OF TillS RIDER PREVAILS OVER THE PROMISSORY
NOTE IN THE EVENT OF A CONFLICT.
2. Transfer, Conveyance of Property Restricted for Fifty Five (55) Year~.
The sale, transfer and/or conveyance of the Property is restricted as follows:
If Borrower sells, transfers or conveys the Property less than fifty five
(55) years after the date of recordation of the Deed of Trust securing this Note Rider, then said
sale, conveyance and/or transfer shall be subject to the following:
(a) The Property may only be sold, transferred or conveyed to a
subsequent purchaser whose income is less than eighty percent
(80%) of the median income as defined by HUD from time to time
for the San Diego metropolitan area, as adjusted for family size,
and verified by CITY.
(b) Except as provided in Paragraph 2(d) hereof, the Property must be
used only as the principal residence of the subsequent purchaser
during the time of ownership.
(c) The sale price to the subsequent purchaser must be at a price that is
"affordable to the subsequent purchaser(s)". "Affordable to the
subsequent purchaser( s)" is achieved if the monthly payments for
principal, interest, property taxes, insurance and a utility allowance
do not exceed thirty percent (30 %) of the gross income of a family
with an income that is eighty percent (80 %) of the median income
for the area, for a family of three.
III
I I I
\ \FS2\ WP\Nancy\General\ wilsonnote.doc Page 4 of 8
. .
(d) In the event that a Transferor is unable to find, despite diligent
efforts to do so, an Eligible Person or Family to purchase a
Housing Unit, the Transferor may sell the Housing Unit to a
person other than an Eligible Person or Family by first offering to
sell the Housing Unit to the CITY for a purchase price equal to
highest purchase price at which an Eligible Person or Family could
qualify to purchase the Housing Unit at an Affordable Housing
Cost. The CITY shall accept or reject the offer to sell the Housing
Unit to the CITY within thirty (30) days of the date of receipt of
the offer to sell. In the event that the CITY declines to purchase
the Housing Unit, the Transferor may proceed to market and sell
the Housing Unit to any purchaser without regard to the resale
conditions set forth in this Agreement; provided that upon or prior
to the close of escrow the Transferor shall pay to the CITY the
greater of: 1) the amount of the Second Deed of Trust, or 2)
"Equity Sharing Amount", hereinafter defined.
The "Equity Sharing Amount" means an amount equal to the appreciation
in the value of the Property determined by the difference between the
Sales Price and the Affordable Housing Price (as defined below).
The" Affordable Housing Price" is the purchase price that could be paid
by an Eligible Person or Family at an Affordable Housing Cost.
The "Sales Price" is the price to be paid by the buyer of the Property (the
"Buyer") to the Transferor for Transferor's interest in the Property,
exclusive of escrow fees, title insurance costs, broker's commissions, loan
fees or any other closing or transaction costs.
Upon a showing of hardship by the Transferor to the CITY in writing, the CITY may
waive anyone or combination of the following: the resale restrictions, the Transferor's
obligation to sell to the CITY, the Transferor's obligation to pay the CITY the Equity Sharing
Amount and/or the Transferor's obligation to pay the CITY the amount of the Second Deed of
Trust.
(e) The affordability requirement shall remain in effect for a
total of fifty five (55) years, measured from the date of
recordation of the Deed of Trust securing this Note Rider.
This requirement shall remain in full force and effect
against all subsequent purchasers during the restricted term.
This restriction shall also apply to sales of the Property
from the subsequent purchaser to other purchaser(s) during
the restricted term.
\ \FS2\ WP\Nancy\General\ wilsonnote.doc Page 5 of 8
. .
(f) If the Borrower fails, refuses or is unable to convey, sell,
rent or transfer the Property to a person or persons meeting
the requirements of paragraphs 16, 17a through 17e,
inclusive, before the end of the affordability term as
defined in paragraph 17e, then such transfer shall be
deemed a Prohibited Transfer as defined in Paragraph 18
hereof.
These provisions of paragraph 17 shall bind the heirs, succes sors and
assigns of the Borrower.
3. Prohibited Transfer. If Borrower sells, agrees to sell, conveys, rents
and/or transfers the Property in violation of the terms of Paragraph 2 hereof and Paragraphs 16
and 17 of the Second Deed of Trust, then CITY may, at its option, in addition to any and all
other remedies available to it, require immediate payment in full of all sums secured by the
Second Deed of Trust. In the instance of a prohibited transfer, the Transferor shall pay to the
CITY the greater of: 1) the amount of the Second Deed of Trust, including any interest, as
described in the Note, or 2) "Equity Sharing Amount", as defined above.
As an alternative, CITY may, at its option, purchase the Property for a
purchase price equal to the highest purchase price at which an Eligible Person or Family could
quality to purchase the Housing Unit at an Affordable Housing Cost. However, these options
shall not be exercised by CITY if such exercise is prohibited by federal law as of the date of the
Deed of Trust or if the CITY has executed a separate written waiver of these options.
If CITY exercises any of these options, CITY shall give Borrower Notice
of Acceleration or, in the alternative, Notice of Exercise of First Right of Refusal Option. The
notice shall provide a period of not less than thirty (30) days from the date that the notice is
delivered or mailed within which Borrower must pay all sums secured by the Deed of Trust or
must enter into an escrow to convey the Property to CITY, depending upon the option exercised
by CITY. If Borrower fails to pay these sums or enter into an escrow prior to the expiration of
this period, CITY may invoke any remedies permitted by the Deed of Trust without further
notice or demand on Borrower. The escrow contemplated by this Paragraph 3 must close not
more than ninety (90) days after CITY receives notice of such sale, agreement to sell,
conveyance, rental or transfer of the Property in violation hereof.
4. Warranties of Borrower. Borrower warrants to CITY as follows:
(a) Borrower's household annual gross income does not exceed eighty
percent (80%) of the median income for the San Diego metropolitan area, as
adjusted for family size, as said median income is determined by HUD, on the
latter of:
\ \FS2\ WP\Nancy\General\ wilsonnote.doc Page 6 of 8
>, . .
(1) the date of occupancy of the Property; or,
(2) the date of the recordation of the Deed of Trust.
(b) Except as provided in Paragraph 16 of the Deed of Trust for so
long as Borrower owns the Property, Borrower will reside in the Property as
Borrower's principal place of residence and will not rent, lease or sublet the
Property during the term of the Declaration, i.e., fifty five (55) years after the
date if recordation of the Deed of Trust securing this Note Rider.
NOTICE TO BORROWER:
Do not sign this Note Rider if it contains blank spaces. All spaces should be
completed before you sign.
Date: "/ /~/i '"I (r :~ , "L\ -, j( I
, \. -
William J. Wilson, Borrower
(SIGN ORIGINAL ONLY)
\ \FS2\ WP\Nancy\General\wilsonnote.doc Page 7 of 8
. .
ACKNOWLEDGMENt
State of California )
)
County of San Diego )
, on,~. ,199~~ before me; V JJ . ')ht~j-- - personally appeared, -
~ 'Iv' t l \. I Ci. ~ ~) ~\ ') c ~ ì - pcf3ÐBally knü\JTn to me (or proved te-
me on the basis of satisfactory evidence) to be the person~whose nameoQ. isl~ subscribed to
the within instrument "NOTE" AND "NOTE RIDER" and acknowledged to me that he/~
executed the same in his/h&/their authorized capacity(i~, and that by his/her/their -signature~
on the instrument the person('~, or the entity on behalf of which the personçiz acted, executed the
instrument.
. P. A. SMAY
- . .. CICt8. /1 tMBB112 Ii
, NOMfW PUBLJC.CAUFORNI ~
~ SAN DI!GO 00Utm -
. tilt COMM. EXP JULY 4,2001
(Seal)
/
i
\\FS2\WP\Nancy\General\wilsonnote.doc Page 8 of 8
j"
I DOC' 2004-0650676
': jjHl. ,18
. "'
I ,1[=C,
Recorded at the request of: r lillI/II 1/1111111111111111111111111111111 11/1/1111111111/111111111111
Old Republic Title Company JUL 14, 2004 8:00 AM
2513001646-CC C)~D)
!~ APN: 256-330-59-16 OFFICI.6.L RECORD::;
.J J ':~6,N ~IIEGO COWJT',' RECORDER'::; OFFICE
bREbOF:','.J '3MITH COUNTY F:ECORDER
/; WHEN RECORDED MAIL TO: FEES 1900
\ City of Encinitas F'ACiES 5
505 S. Vulcan Ave. I lalll 11II alll.lllml.~~~~~!~~¿Mllœ II all III
Encinita, Ca. 92024
ATTN: Planning & Buidling Department
MAIL TAX STATEMENTS TO: nla ;{a- ;;~- rc-¿b
.-<. ~ -<~ (z:/('; ¡t/'{, . . 0, 7c
A SUBORDINATION AGREEMENT
~M NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE
, I" PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER
Y LU]f
"i' OR LATER SECURITY INSTRUMENT.
THIS AGREEMENT, made this 25th day of June, 2004 ,by William J. Wilson
, owner of the
land hereinafter described and hereinafter referred to as "Owner", and 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, William J. Wilson
did execute a Deed of Trust, dated July 24, 1999 ,
to Chicago Title Cœpany
, as Trustee, covering;
* * * See "Exhibit A" attached hereto and Trade a part hereof. * * *
, to secure a Note in the sum of $ 18,652.00 , dated July 24, 1999 , in favor of City
of Encinitas
which Deed of Trust was recorded on July 29, 1999 , in Book/Reel
, at Page/Image , Series Number 1999-0524131 ,of 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 $ 112,000.00 , datedl- l- Ö'f ' in favor of Union Bank
,
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 hereinbefore
described, prior and superior to the lien or charge of the Deed of Trust first above mentioned; and
SUBORDINATION, RECORDED DEED OF TRUST TO DEED OF TRUST TO RECORD.
ORTIC-950 6/2003 - Subordination Agreement - A, Page' of 3
5303 8 8
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
WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner;
and Beneficiary is willing that the Deed 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 a lien or charge on the property
therein described, prior and superior to the lien or charge of the Deed of Trust first 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
agreements as to such subordination, including, but not limited to, 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/she 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/she 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.
SUBORDINATION, RECORDED DEED OF TRUST TO DEED OF TRUST TO RECORD.
ORTIC-951 6/2003 - Subordination Agreement - A, Page 2 of 3
á304 8 8
~
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.
Sign.ptur~~f 'B~.?eficiary (s) Signature of Own~r(s)
/ . I . ~ ÍÎ'" ) ~J
-.. .", (/'
.'{ /-{, ',. ---J
William J. Wilson
Kerry L. Miller
{."o, -\..\ \Ç- (l -\ ~ "'" ¡~-:- [lj(\I\,-tC,-S
STATE OF CALIFORNIA.
County of 51 Y"- \) \ e û Ò } ss.
~
On y 0 before me, the undersigned, a Notary Public in and for said State,
personally appeared
personally known to me to be the person{sf'
whose name~ is/are subscribed to the within instrument and acknowledged to me that het5h'i/they-
executed the same in his/hel/their authorized capacity(jes), and that by his/her/their signatureW""on the
instrument the perso~, or the entity upon behalf of which the persorlkaY acted, executed the
instrument.
WITNESS my hand and official seal.
JU L 0
) t ./ f:.-.t -ð- Í\ Q ~ /1 /LPlf\.-Q
Notary Public in and for saìd County and State
(NOTARY STAMP OR SEAL)
STATE OF CA.,LIFORNIA /-". .. "'"
County of~L '--r\ ~..e Ctf-l- } ss.
'.
On .. -7 ~- ~-< 'o'--l . . beforê.JI1e, the undersigned, a Notary Public in and for said State,
personally appeared l/v I ! ¡ I a. r:r7) , l/I.. l I '-7C--}/)
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.
rrfS;fZ;ttì)~~ 0 C. MORRISON
G COMM. # 1367$76 .
No'táry Public in and for said County and State . . OTAAY PUBtIC..('..AUFOrlNtA fJ
~ "'" CONTRA tOSTA COUNiY 0
(1, rllc r £' I Y,'\-'~ì J....;~. - COMM. EX? AUG. 1, 2006 ~
~<::'>-~'i:loc:.o..:;..t:Þ'~..(
(Notary's name must be typed or legibly printed) (NOTARY STAMP OR SEAL)
IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE
PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. (CLTA SUBORDINATION FORM "A")
ORTIC-952 6/2003 - Subordination Agreement - A, Page 3 of 3
5305 8 8
ORDER NO. : 2513001646-2
EXHIBIT A
The land referred to is situated in the County of San Diego¡ City of Encinitas¡ State of California¡
and is described as follows:
A CONDOMINIUM COMPRISED OF:
PARCEL A:
AN UNDIVIDED 1/21TH FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE
PORTION OF THE COMMON AREA OF MODULE G OF LOT 5 OF CI1Y OF ENCINITAS TRACT NO.
96-170¡ IN THE CITY OF ENCINITAS¡ COUN1Y OF SAN DIEGO¡ STATE OF CALIFORNIA¡
ACCORDING TO MAP THEREOF NO. 13481¡ FILED IN THE OFFICE OF THE COUN1Y RECORDER
OF SAN DIEGO COUN1Y¡ OCTOBER 9¡ 1997¡ AS SHOWN ON THE CONDOMINIUM PLAN FOR
SAXONY¡ PHASE 6¡ RECORDED IN THE OFFICE OF THE COUN1Y RECORDER OF SAN DIEGO
COUN1Y ON MARCH 2¡ 1998 AS FILE NO. 1998-01O9284¡ OFFICIAL RECORDS
('CONDOMINIUM PLAW').
PARCEL B:
RESIDENTIAL UNIT NO. 100 AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN.
EXCEPTING THEREFROM NON-EXCLUSIVE EASEMENTS FOR MAINTENANCE¡ ENCROACHMENT¡
SUPPORT¡ REPAIR¡ DRAINAGE AND ALL OTHER PURPOSES AS DESCRIBED IN THE
DECLARATION.
PARCEL C:
A NON-EXCLUSIVE EASEMENT¡ IN COMMON WITH OTHER OWNERS¡ FOR INGRESS AND
EGRESS, USE AND ENJOYMENT¡ OVERt IN¡ TO¡ AND THROUGHOUT THE ASSOCIATION
PROPER1Y SHOWN ON THE CONDOMINIUM PLAN REFERRED TO IN PARCEL "A" ABOVE AND
OVERt IN, TO AND THROUGHOUT, OTHER PHASES OF THE PROPER1Y DESCRIBED IN THE
DECLARATION WHICH EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED
ABOVE. THIS EASEMENT SHALL BECOME EFFECTIVE AS TO EACH OF SAID PHASES¡
RESPECTIVELY, UPON (I) RECORDATION OF A DECLARATION OF ANNEXATION¡ DECLARING
SUCH PHASES, RESPECTIVELY, TO BE SUBJECT TO THE DECLARATION¡ AND (II)
CONVEYANCE OF THE FIRST CONDOMINIUM IN EACH RESPECTIVE PHASE¡ ALL AS MORE
FULLY SET FORTH IN THE DECLARATION. THE ASSOCIATION PROPER1Y REFERRED TO
HEREIN AS TO EACH OF SUCH PHASES SHALL BE AS SHOWN AND DESCRIBED ON THE
CONDOMINIUM PLAN COVERING EACH SUCH PHASE RECORDED IN THE OFFICE OF THE
COUN1Y RECORDER OF SAN DIEGO COUN1Y, CALIFORNIA, EXCEPTING THEREFROM THE
COMMON AREA AND RESIDENTIAL UNITS THEREON.
PARCEL D:
AN EXCLUSIVE EASEMENT OVER THE PORTION OF THE ASSOCIATION PROPER1Y (AS
DEFINED IN THE DECLARATION OF COVENANTS, CONDmONS AND RESTRICTIONS FOR
II .'.
. , . . . . ,.. . .
. .
,
. . . . .
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. . . . : . :