HomeMy WebLinkAbout2007 CON CDC Constellation Property Group - Deed of TrustSTE.WART TITS
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RECORDING REQUESTED BY: )
STEWAR'I TITLE OF CALIFORNIA, INC. /1\ )
AND WHEN RECORDED MAIL TO: ,14,11) )
J ,;i )
FOLEY & LARDNER LLP �� )
Attn: Richard L. Moskitis, Esq. )
402 W. Broadway, Suite 2100 l` )
San Diego, Califo a 92101f"36U I)(l )
APN 556-554-16 JJ Space above for Recorder's Use
EXEMPT FROM RECORDING FEES PURSUANT TO GOVERNMENT CODE SECTION 27383.
DOC It 2007--0789163
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DEC 24, 2007 10:58 AM
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Atd D!F.:C C;UJilT's RELJRDEF,', OFFICE
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PAGES: 23
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DEED OF TRUST
WITH ASSIGNMENT OF RENTS, SECURITY. AGREEMENT
AND FIXTURE FILING
(CALIFORNIA)
THIS DEED OF TRUST WITH ASSIGNMENT OF RENTS, SECURITY
AGREEMENT AND FIXTURE FILING (CALIFORNIA) (this "Deed of Trust") is made as
of December 13, 2007 by Constellation Property Group (A Avenue) LP, a Delaware limited
partnership, as trustor ("Trustor"), to S I'EWART TITLE OF CALIFORNIA, INC., as trustee
("Trustee"), for the benefit of the Community Development Commission of the City of
National City, a public body, corporate and politic, as beneficiary and secured party
("Beneficiary").
TIIIS DEED OF TRUST ALSO CONSTITUTES A FIXTURE FILING UNDER
DIVISION 9 OF THE CALIFORNIA UNIFORM COMMERCIAL CODE AND COVERS
GOODS WHICH ARE OR ARE TO BECOME FIXTURES ON THE REAL PROPERTY
DESCRIBED ON EXHIBIT "A" ATTACI-IED HERETO AND MADE A PART HEREOF.
TRUSTOR IS A RECORD OWNER OF AN INTEREST IN SAID REAL PROPERTY.
1. Grant in Trust and Secured Obligations.
1.1 Grant in Trust. For the purpose of securing payment and performance of the
Secured Obligations defined and described in Section 1.2, Trustor hereby irrevocably and
unconditionally grants, conveys, transfers and assigns to Trustee, in trust for the benefit of
Beneficiary, with power of sale and right of entry and possession, all estate, right, title and
interest which Trustor now has or may later acquire in and to the following property (all or any
part of such property, or any interest in all or any part of it, as the context may require, the
"Property"):
SDCA_348085.5
(a)
The real property located in the City of National City, County of San
Diego, State of California, as described in Exhibit A, together with all existing and future
easements and rights affording access to it (the "Land"); together with
1 THIS DEED OF TRUST IS 2ND & SUBJECT
TO A 1ST DEED OF TRUST RECORDING
CONCURRENTLY HEREWITH
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(b) All buildings, structures and improvements now located or later to be
constructed on the Land (the "Improvements"); together with
(c) All existing and future appurtenances, privileges, easements, franchises
and tenements of the Land, including all development rights and credits, air rights, water, water
rights (whether riparian, appropriative or otherwise, and whether or not appurtenant) and water
stock, and any land lying in the streets, roads or avenues, open or proposed, in front of or
adjoining the Land and Improvements; together with
(d) All existing and future leases, subleases, subtenancies, licenses, occupancy
agreements and concessions ("Leases") relating to the use and enjoyment of all or any part of
the Land and Improvements, and any and all guaranties and other agreements relating to or made
in connection with any of such Leases; together with
(e) All other property and interests of any kind or character, whether
described in Exhibit A or not, which may be reasonably necessary or desirable to promote the
present and any reasonable -future beneficial use and enjoyment of the Land and Improvements;
together with
(f) All goods, materials, supplies, chattels, furniture, fixtures, equipment and
machinery now or later to be attached to, placed in or on, or used in connection with the use,
enjoyment, occupancy or operation of all or any part of the Land and Improvements, whether
stored on the Land or elsewhere, including all pumping plants, engines, pipes, ditches and
flumes, and also all gas, electric, cooking, heating, cooling, air conditioning, lighting,
refrigeration and plumbing fixtures and equipment, all of which shall be considered to the fullest
extent of the law to be real property for purposes of this Deed of Trust; together with
(g) All building materials, equipment, work in process or other personal
property of any kind, whether stored on the Land or elsewhere, which have been or later will be
acquired for the purpose of being delivered to, incorporated into or installed in or about the Land
or Improvements; together with
(h) All rights to the payment of money, accounts, accounts receivable,
reserves, deferred payments, refunds, cost savings, payments and deposits, whether now or later
to be received from third parties (including all earnest money sales deposits) or deposited by
Trustor with third parties (including all utility deposits), contract rights, development and use
rights, governmental permits and licenses, applications, architectural and engineering plans,
specifications and drawings, as -built drawings, chattel paper, instruments, documents, notes,
drafts and letters of credit (other than letters of credit in favor of Beneficiary), which arise from
or relate to construction on the Land or to any business now or later to he conducted on it, or to
the Land and Improvements generally; together with
(i) All proceeds, including all claims to and demands for them, of the
voluntary or involuntary conversion of any of the Land, Improvements or the other property
described above into cash or liquidated claims, including all proceeds of any insurance policies,
present and future, payable because of loss sustained to all or part of any Property, whether or
not such insurance policies are required by Beneficiary, and all condemnation awards or
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payments now or later to be made by any public body or decree by any court of competent
jurisdiction for any taking or in connection with any condemnation or eminent domain
proceeding, and all causes of action and their proceeds for any damage or injury to the Land,
Improvements or the other property described above or any part of them, or breach of warranty
in connection with the construction of the Improvements, including causes of action arising in
tort, contract, fraud or concealment of a material fact; together with
(j) All books and records pertaining to any and all of the property described
above, including computer -readable memory and any computer hardware or software necessary
to access and process such memory ("Books and Records"); together with
(k) All proceeds of, additions and accretions to, substitutions and
replacements for, and changes in any of the property described above.
Capitalized teens used above and elsewhere in this Decd of Trust without definition have the
meanings given them in the Loan Agreement referred to in subsection 1.2(a) below.
1.2 Secured Obligations.
(a) Trustor makes the grant, conveyance, transfer and assignment set forth in
Section 1.1 and grants the security interest set forth in Article 3 for the purpose of securing the
following obligations (the "Secured Obligations") in any order of priority that Beneficiary may
choose:
(i) Payment of all obligations at any time owing under a promissory
note (the "Note") dated of even date herewith, payable by Trustor as maker in the stated
principal amount of Two Million Five Hundred Thousand Dollars (S2,500,000) to the
order of Beneficiary as holder; and
(ii) Payment and performance of all obligations of Trustor under this
Deed of Trust; and
(iii) Payment and performance of all obligations of Trustor under a
Loan Agreement dated of even date herewith, by Trustor as "Borrower" and Beneficiary
as "Lender" (the "Loan Agreement"); and
(iv) payment and performance of all future advances and other
obligations that Trustor or any successor in ownership of all or part of the Property may
agree to pay and/or perform (whether as principal, surety or guarantor) for the benefit of
Beneficiary, when a writing evidences the parties' agreement that, the advance or
obligation be secured by this Deed of Trust.
(h) All persons who may have or acquire an interest in all or any part of the
Property will be considered to have notice of, and will be bound by, the terms of the Secured
Obligations and each other agreement or instrument made or entered into in connection with
each of the Secured Obligations. Such terms include any provisions in the Note or the Loan
Agreement which permit borrowing, repayment and reborrowing.
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SDCA_348085.5
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Assignment of Rents.
2.1 Assignment. Trustor hereby irrevocably, absolutely, presently and unconditionally
assigns to Beneficiary all rents, royalties, issues, profits, revenue, income and proceeds of the
Property, whether now due, past due or to become due, including all prepaid rents and security
deposits (some or all collectively, as the context may require, "Rents"). This is an absolute
assignment, not an assignment for security only.
2.2 Grant of License. Beneficiary hereby confers upon Trustor a license ("License")
to collect and retain the Rents as they become due and payable, so long as no Event of Default,
as defined in Section 6.2, shall exist and he continuing. If an Event of Default has occurred and
is continuing, Beneficiary shall have the right, which it may choose to exercise in its sole
discretion, to terminate this License without notice to or demand upon Trustor, and without
regard to the adequacy of Beneficiary's security under this Deed of Trust.
2.3 Collection and Application of Rents. Subject to the License granted to Trustor
under Section 2.2, Beneficiary has the right, power and authority to collect any and all Rents.
Trustor hereby appoints Beneficiary its attorney -in -fact to perform any and all of the following
acts, if and at the times when Beneficiary in its sole discretion may so choose:
(a) Demand, receive and enforce payment of any and all Rents; or
(b) Give receipts, releases and satisfactions for any and all Rents; or
(c) Sue either in the name of Trustor or in the name of Beneficiary for any
and all Rents.
Beneficiary's right to the Rents does not depend on whether or not Beneficiary takes possession
of the Property as permitted under subsection 6.3(c). In Beneficiary's sole discretion,
Beneficiary may choose to collect Rents either with or without taking possession of the Property.
Beneficiary shall apply all Rents collected by it in the manner provided under Section 6.6. If an
Event of Default occurs while Beneficiary is in possession of all or part of the Property and is
collecting and applying Rents as permitted under this Deed of Trust, Beneficiary, Trustee and
any receiver shall nevertheless be entitled to exercise and invoke every right and remedy
afforded any of them under this Deed of Trust and at law or in equity, including the right to
exercise the power of sale granted under Section 1.1 and subsection 6.3(g).
2.4 Beneficiary Not Responsible. Under no circumstances shall Beneficiary have any
duty to produce Rents from the Property. Regardless of whether or not Beneficiary, in person or
by agent, takes actual possession of the Land and Improvements, Beneficiary is not and shall not
be deemed to be:
(a) A "mortgagee in possession" for any purpose; or
(h) Responsible for performing any of the obligations of the Trustor under any
lease; or
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(c) Responsible for any waste committed by lessees or any other parties, any
dangerous or defective condition of the Property, or any negligence in the management, upkeep,
repair or control of the Property; or
(i) Liable in any manner for the Property or the use, occupancy,
enjoyment or operation of all or any part of it.
3. Grant of Security Interest.
3.1 Security Agreement. The parties intend for this Deed of Trust to create a lien on
the Property, and an absolute assignment of the Rents, all in favor of Beneficiary. The parties
acknowledge that some of the Property and some or all of the Rents may be determined under
applicable law to be personal property or fixtures. To the extent that any Property or Rents may
be or be determined to be personal property, Trustor as debtor hereby grants Beneficiary as
secured party a security interest in all such Property and Rents, to secure payment and
performance of the Secured Obligations. This Deed of Trust constitutes a security agreement
under the California Uniform Commercial Code, covering all such Property and Rents,
3.2 Financing Statements. Trustor hereby authorizes Beneficiary to file one or more
financing statements and such other documents as Beneficiary may from time to time require to
perfect or continue the perfection of Beneficiary's security interest in any Property or Rents. As
provided in Section 5.10, Trustor shall pay all fees and costs that Beneficiary may incur in filing
such documents in public offices and in obtaining such record searches as Beneficiary may
reasonably require. In case Trustor fails to execute any financing statements or other documents
for the perfection or continuation of any security interest, Trustor hereby appoints Beneficiary as
its true and lawful attorney -in -fact to execute any such documents on its behalf. if any financing
statement or other document is filed in the records normally pertaining to personal property, that
Tiling shall never be construed as in any way derogating from or impairing this Deed of Trust or
the rights or obligations of the parties under it. Trustor hereby irrevocably authorizes
Beneficiary to file any initial financing statement and amendments thereto describing the
collateral to be secured hereunder as all assets of the Trustor or words of similar effect,
regardless of whether any particular asset comprised in the collateral to be secured hereunder
falls within the scope of the Uniform Commercial Code of the jurisdiction in question.
4. Fixture Filing.
The recording of this Deed of Trust constitutes the filing of a financing statement filed as
a fixture filing under Section 9502(b) of the California Uniform Commercial Code, as amended
or recodified from time to time, covering any Property which now is or later may become
fixtures attached to the Land or Improvements. The "debtor" is the Trustor and the "secured
party" is the Beneficiary. The Trustor's address in the address specified in Section 7.12 below.
The Beneficiary's address is the address set forth in Section 7.12 below. The organizational
identification number of Trustor is DE 3858155.
5. Rights and Duties of the Parties.
5.1 Representations and Warranties. Trustor represents and warrants that, except as
previously disclosed to Beneficiary in a writing making reference to this Section 5.1:
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(a) Trustor lawfully possesses and holds fee simple title to all of the Land and
Improvements described in Exhibit A;
(b) 'Trustor has or will have good title to all Property other than the Land and
Improvements;
(c) Trustor has the full and unlimited power, right and authority to encumber
the Property and assign the Rents;
(d) This Deed of Trust creates a second priority lien on the Property; subject
only to the deed of trust being recorded concurrently herewith in favor of United Commercial
Bank securing a loan in the amount of Twenty Million Three Hundred Forty Thousand Dollars
(S20,340,000) (the "UCB Loan");
(e) The Property includes all property and rights which may be reasonably
necessary or desirable to promote the present and any reasonable future beneficial use and
enjoyment of the Land and Improvements;
(f) Except for the UCB Loan, Trustor owns any Property which is personal
property lice and clear of any security agreements, reservations of title or conditional sales
contracts, and there is no financing statement affecting such personal property on file in any
public office; and
(g) Trustor's place of business, or its chief executive office if it has more than
one place of business, is located at the address specified in Section 7.12 below.
5.2 faxes and Assessments. Trustor shall pay prior to delinquency all taxes, levies,
charges and assessments, including assessments on appurtenant water stock, imposed by any
public or quasi -public authority or utility company which arc (or if not paid, may become) a lien
on all or part of the Property or any interest in it, or which may cause any decrease in the value
of the Property or any part of it. If any such taxes, levies, charges or assessments become
delinquent, Beneficiary may require Trustor to present evidence that they have been paid in full,
on ten (10) days' written notice by Beneficiary to Trustor.
5.3 Performance of Secured Obligations. Trustor shall promptly pay and perform
each Secured Obligation in accordance with its terms.
5.4 Liens, Charges and Encumbrances. Trustor shall immediately discharge any lien
on the Property which Beneficiary has not consented to in writing. Trustor shall pay when due
each obligation secured by or reducible to a lien, charge or encumbrance which now does or later
may encumber or appear to encumber all or part of the Property or any interest in it, whether the
lien, charge or encumbrance is or would be senior or subordinate to this Deed of Trust. This
Section 5.4 is subject to any right granted to Trustor in the Loan Agreement to contest in good
faith claims and liens for labor done and materials and services furnished in connection with
construction of the Improvements.
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5.5 Damages and Insurance and Condemnation Proceeds.
(a) Trustor hereby absolutely and irrevocably assigns to Beneficiary, and
authorizes the payor to pay to Beneficiary, the following claims, causes of action, awards,
payments and rights to payment:
(i) All awards of damages and all other compensation payable directly
or indirectly because of a condemnation, proposed condemnation or taking for public or
private use which affects all or part of the Property or any interest in it; and
(ii) All other awards, claims and causes of action, arising out of any
warranty affecting all or any part of the Property, or for damage or injury to or decrease
in value of all or part of the Property or any interest in it; and
(iii) All proceeds of any insurance policies payable because of loss
sustained to all or part of the Property; and
(iv) All interest which may accrue on any of the foregoing.
(b) Trustor shall immediately notify Beneficiary in writing
(i) Any damage occurs or any injury or loss is sustained in the amount
of S 10,000 or more to all or part of the Property, or any action or proceeding relating to
any such damage, injury or loss is commenced; or
(ii) Any oiler is made, or any action or proceeding is commenced,
which relates to any actual or proposed condemnation or taking of all or part of the
Property.
(c) if Beneficiary chooses to do so, Beneficiary may in its own name appear
in or prosecute any action or proceeding to enforce any cause of action based on warranty, or for
damage, injury or loss to all or part of the Property, and Beneficiary may make any compromise
or settlement of the action or proceeding. Beneficiary, if it so chooses, may participate in any
action or proceeding relating to condemnation or taking of all or part of the Property, and may
join Trustor in adjusting any loss covered by insurance.
(d) All proceeds of these assigned claims, other property and rights which
Trustor may receive or be entitled to shall be paid to Beneficiary. In each instance, Beneficiary
shall apply such proceeds first toward reimbursement of all of Beneficiary's costs and expenses
of recovering the proceeds, including attorneys' fees. If, in any instance, each and all of the
following conditions arc satisfied in Beneficiary's reasonable judgment, Beneficiary shall permit
Trustor to use the balance of such proceeds ("Net Claims Proceeds") to pay costs of repairing
or reconstructing the Property in the manner described below:
(i) The plans and specifications, cost breakdown, construction
contract, construction schedule, contractor and payment and performance bond for the
work of repair or reconstruction must all he acceptable to Beneficiary.
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(ii) Beneficiary must receive evidence satisfactory to it that alter repair
or reconstruction, the Property would be at least as valuable as it was immediately before
the damage or condemnation occurred.
(iii) The Net Claims Proceeds must be sufficient in Beneficiary's
determination to pay for the total cost of repair or reconstruction, including all associated
development costs and interest and other sums projected to be payable on the Secured
Obligations until the repair or reconstruction is complete; or Trustor must provide its own
funds in an amount equal to the difference between the Net Claims Proceeds and a
reasonable estimate, made by Trustor and found acceptable by Beneficiary, of the total
cost of repair or reconstruction.
(iv) No Event of Default shall have occurred and be continuing.
if Beneficiary finds that such conditions have been met, Beneficiary shall hold the Net Claims
Proceeds and any funds which Trustor is required to provide in a non -interest -bearing account
and shall disburse them to Trustor to pay costs of repair or reconstruction upon presentation of
evidence reasonably satisfactory to Beneficiary that repair or reconstruction has been completed
satisfactorily and Lien -free. However, if Beneficiary finds that one or more of such conditions
have not been satisfied, Beneficiary may apply the Net Claims Proceeds to pay or prepay some
or all of the Secured Obligations in such order and proportions as Beneficiary in its sole
discretion may choose.
(e) Trustor hereby specifically, unconditionally and irrevocably waives all
rights of a property owner granted under California Code of Civil Procedure Section
1265.225(a), which provides for allocation of condemnation proceeds between a property owner
and a lienholder, and any other law or successor statute of similar import.
5.6 Maintenance and Preservation of Property.
(a) Trustor shall insure the Property as required by the Loan Agreement and
keep the Property in good condition and repair.
(b) Trustor shall not remove or demolish the Property or any part of it, or
alter, restore or add to the Property, or initiate or allow any change in any zoning or other land
use classification which affects the Property or any part of it, except as permitted or required by
the Loan Agreement or with Beneficiary's express prior written consent in each instance.
(c) If all or part of the Property becomes damaged or destroyed, Trustor shall
promptly and completely repair and/or restore the Property in a good and workmanlike manner
in accordance with sound building practices, regardless of whether or not Beneficiary agrees to
disburse insurance proceeds or other sums to pay costs of the work of repair or reconstruction
under Section 5.5.
(d) Trustor shall not commit or allow any act upon or use of the Property
which would violate: (i) any applicable law or order of any governmental authority, whether
now existing or later to be enacted and whether foreseen or unforeseen; or (ii) any public or
private covenant, condition, restriction or equitable servitude affecting the Property. Trustor
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shall not bring or keep any article on the Property or cause or allow any condition to exist on it,
if that could invalidate or would be prohibited by any insurance coverage required to be
maintained by Trustor on the Property or any part of it under the Loan Agreement.
(c) Trustor shall not commit or allow waste of the Property.
(f) 'Trustor shall cause any and all hazardous substances and hazardous
materials (as defined under any federal, state, county or city law or regulation) to he removed
from the Property.
(g) Trustor shall perform all other acts which from the character or use of the
Property may he reasonably necessary to maintain and preserve its value.
5.7
is recorded.
Trustee's Acceptance of Trust. Trustee accepts this trust when this Deed of Trust
5.8 Releases. Extensions. Modifications and Additional Security.
(a) From time to time, Beneficiary may perform any of the following acts
without incurring any liability or giving notice to any person:
(i)
Release any person liable for payment of any Secured Obligation;
(ii) Extend the time for payment, or otherwise alter the terms of
payment, of any Secured Obligation;
(iii) Accept additional real or personal property of any kind as security
for any Secured Obligation, whether evidenced by deeds of trust, mortgages, security
agreements or any other instruments of security; or
(iv) Alter, substitute or release any property securing the Secured
Obligations.
(b) From time to time when requested to do so by Beneficiary in writing,
Trustee may perform any of the following acts without incurring any liability or giving notice to
any person:
(i) Consent to the making of any plat or map of the Property or any
part of it;
(ii) Join in granting any easement or creating any restriction affecting
the Property;
(iii) Join in any subordination or other agreement affecting this Deed of
Trust or the lien of it; or
(iv) Reconvey the Property or any part of it without any warranty.
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5.9 Rcconveyance. When all of the Secured Obligations have been paid in full.
Beneficiary shall request Trustee in writing to reconvey the Property, and shall surrender this
Deed of Trust and all notes and instruments evidencing the Secured Obligations to Trustee.
When Trustee receives Beneficiary's written request for reconveyance and all fees and other
sums owing to Trustee by Trustor under Section 5.10, Trustee shall reconvey the Property, or so
much of it as is then held under this Deed of Trust, without warranty to the person or persons
legally entitled to it. Such person or persons shall pay any costs of recordation. In the
reconveyance, the grantee may be described as "the person or persons legally entitled thereto,"
and the recitals of any matters or facts shall be conclusive proof of their truthfulness. Neither
Beneficiary nor Trustee shall have any duty to determine the rights of persons claiming to be
rightful grantees of any reconveyance.
5.10 Compensation, Exculpation, Indemnification.
(a) Trustor agrees to pay Ices in the maximum amounts legally permitted, or
reasonable fees as may be charged by Beneficiary and Trustee when the law provides no
maximum limit, for any services that Beneficiary or Trustee may render in connection with this
Deed of Trust, including Beneficiary's providing a statement of the Secured Obligations or
Trustee's rendering of services in connection with a reconveyance. Trustor shall also pay or
reimburse all of Beneficiary's and Trustee's costs and expenses which may he incurred in
rendering any such services. Trustor further agrees to pay or reimburse Beneficiary for all costs,
expenses and other advances which may be incurred or made by Beneficiary or Trustee in any
efforts to enforce any terms of this Deed of "Trust, including any rights or remedies afforded to
Beneficiary or Trustee or both of them under Section 6.3, whether any lawsuit is filed or not, or
in defending any action or proceeding arising under or relating to this Deed of Trust, including
attorneys' fees and other legal costs, costs of any Foreclosure Sale (as defined in subsection
6.3(h)) and any cost of evidence of title. If Beneficiary chooses to dispose of Property through
more than one Foreclosure Sale, Trustor shall pay all costs, expenses or other advances that may
be incurred or made by Trustee or Beneficiary in each of such Foreclosure Sales.
(b) Beneficiary shall not be directly or indirectly liable to Trustor or any other
person as a consequence of any of the following:
(i) Beneficiary's exercise of or failure to exercise any rights, remedies
or powers granted to Beneficiary in this Deed of Trust;
(ii) Beneficiary's failure or refusal to perform or discharge any
obligation or liability of Trustor under any agreement related to the Property or under this
Deed of Trust; or
(iii) Any loss sustained by Trustor or any third party resulting from
Beneficiary's failure to lease the Property, or from any other act or omission of
Beneficiary in managing the Property, after an Event of Default, unless the loss is caused
by the willful misconduct and bad faith of Beneficiary.
Trustor hereby expressly waives and releases all liability of the types described above, and
agrees that no such liability shall be asserted against or imposed upon Beneficiary.
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(c) Trustor agrees to indemnity Trustee and Beneficiary against and hold them
harmless from all losses, damages, liabilities, claims, causes of action, judgments, court costs,
attorneys' fees and other legal expenses, cost of evidence of title, cost of evidence of value, and
other costs and expenses which either may suffer or incur:
(i) In performing any act required or permitted by this Deed of Trust
or any of the other Loan Documents or by law;
(ii) Because of any failure of Trustor to perform any of Trustor's
obligations; or
(iii) Because of any alleged obligation of or undertaking by Beneficiary
to perform or discharge any of the representations, warranties, conditions, covenants or
other obligations in any document relating to the Property other than the Loan
Documents.
This agreement by "Trustor to indemnify 'Trustee and Beneficiary shall survive the release and
cancellation of any or all of the Secured Obligations and the full or partial release and/or
reconveyance of this Deed of Trust.
(d) Trustor shall pay all obligations to pay or reimburse Beneficiary arising
under this Section 5.1(1 immediately upon demand by Trustee or Beneficiary. While the Secured
Obligations remain outstanding, each such obligation shall be added to, and considered to be part
of, the principal of the Note, and shall bear interest from the date the obligation arises at the
interest rate set forth in the Note.
5.11 Defense and Notice of Claims and Actions. At Trustor' s sole expense, Trustor
shall protect, preserve and defend the Property and title to and right of possession of the
Property, and the security of this Dccd of Trust and the rights and powers of Beneficiary and
Trustee created under it, against all adverse claims. Trustor shall give Beneficiary and Trustee
prompt notice in writing if any claim is asserted which does or could affect any of such matters,
or if any action or proceeding is commenced which alleges or relates to any such claim.
5.12 Substitution of Trustee. From time to time, Beneficiary may substitute a
successor to any Trustee named in or acting under this Deed of Trust in any manner now or later
to be provided at law, or by a written instrument executed and acknowledged by Beneficiary and
recorded in the office(s) of the recorder(s) of the county or counties where the Land and
Improvements are situated. Any such instrument shall be conclusive proof of the proper
substitution of the successor Trustee, who shall automatically upon recordation of the instrument
succeed to all estate, title, rights, powers and duties of the predecessor Trustee, without
conveyance from it.
5.13 Subrogation. Beneficiary shall be subrogated to the liens of all encumbrances,
whether released of record or not, which are discharged in whole or in part by Beneficiary in
accordance with this Deed of Trust or with the proceeds of any loan secured by this Deed of
Trust.
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5.14 Site Visits. Observation and Testing. Beneficiary and its agents and
representatives shall have the right at any reasonable time to enter and visit the Property for the
purpose of performing appraisals and for the purposes of observing the Property, taking and
removing soil or groundwater samples, and conducting tests on any part of the Property. The
Beneficiary shall have no duty, however, to visit or observe the Property or to conduct tests, and
no site visit, observation or testing by Beneficiary shall impose any liability on any Indemnified
Party. In no event shall any site visit, observation or testing by Beneficiary be a representation
that hazardous substances are or are not present in, on or under the Property, or that there has
been or shall be compliance with any law, regulation or ordinance pertaining to hazardous
substances or any other applicable governmental law. Neither Trustor nor any other party is
entitled to rely on any site visit, observation or testing by Beneficiary. Beneficiary shall owe no
duty of care to protect Trustor or any other party against, or to inform Trustor or any other party
of, any hazardous substances or any other adverse condition affecting the Property. Beneficiary
may in their discretion disclose to Trustor or any other party any report or findings made as a
result of, or in connection with, any site visit, observation or testing by the Beneficiary. Trustor
understands and agrees that Beneficiary makes no representation or warranty to Trustor or any
other party regarding the truth, accuracy or completeness of any such report or findings that may
be disclosed. Trustor also understands that, depending on the results of any site visit,
observation or testing by Beneficiary which are disclosed to Trustor, Trustor may have a legal
obligation to notify one or more environmental agencies of the results and that such reporting
requirements are site -specific and are to be evaluated by Trustor without advice or assistance
from the Beneficiary.
5.15 Notice of Change. Trustor shall give Beneficiary prior written notice of any
change in: (a) the location of Trustor's place of business or its chief executive office if it has
more than one place of business; (b) the location of any of the Property, including the Books and
Records; and (e) Trustor's name or business structure. Unless otherwise approved by
Beneficiary in writing, all Property that consists of personal property (other than the Books and
Records) will be located on the Land and all Books and Records will be located at Trustor's
place of business or chief executive office if Trustor has more than one place of business.
6. Accelerating Transfers, Default and Remedies.
6.1 Accelerating Transfers.
(a) "Accelerating Transfer" means any sale, contract to sell, conveyance,
encumbrance, lease not expressly pennitted under the Loan Agreement, or other transfer of all or
any material part of the Property or any interest in it, whether voluntary, involuntary, by
operation of law or otherwise. If Trustor is a corporation, "Accelerating Transfer" also means
any transfer or transfers of shares possessing, in the aggregate, more than fifty percent (50%) of
the voting power. If Trustor is a partnership, "Accelerating Transfer" also means withdrawal or
removal of any general partner, dissolution of the partnership under California law, or any
transfer or transfers of, in the aggregate, more than fifty percent (50%) of the partnership
interests. If Trustor is a limited liability company, "Accelerating Transfer" also means
withdrawal or removal of any managing member, termination of the limited liability company or
any transfer or transfers of, in the aggregate, more than fifty percent (50%) of the voting power
or in the aggregate more than fifty percent (50%) of the ownership of the interest in the Trustor.
12
SDCA_348085.5
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(b) Trustor acknowledges that Beneficiary is making one or more advances
under the Loan Agreement in reliance on the expertise, skill and experience of Trustor; thus, the
Secured Obligations include material elements similar in nature to a personal service contract. In
consideration of Beneficiary's reliance, Trustor agrees that Trustor shall not make any
Accelerating Transfer, unless the transfer is preceded by Beneficiary's express written conscnt to
the particular transaction and transferee. Beneficiary may withhold such consent in its sole
discretion. if any Accelerating Transfer occurs, Beneficiary in its sole discretion may declare all
of the Secured Obligations to be immediately due and payable, and Beneficiary and Trustee may
invoke any rights and remedies provided by Section 6.3 of this Deed of Trust. Trustor
acknowledges the materiality of the provisions of this Section 6.1 as a covenant of Trustor, given
individual weight and consideration by Beneficiary in entering into the Secured Obligations; and
that any Accelerating Transfer in violation of the prohibited transfer provisions herein set forth
shall result in a material impairment of Beneficiary's interest in the Property and be deemed a
breach of the foregoing covenant.
6.2 Events of Default. Trustor will be in default under this Deed of Trust upon the
occurrence of any one or more of the following events (some or all collectively "Events of
Default;" any one singly, an "Event of Default"):
(a) Trustor fails to perform any obligation to pay money which arises under
this Deed of Trust, and does not cure that failure within thirty (30) days after written notice from
Beneficiary or Trustee; or
(b) Trustor fails to perform any obligation arising under this Deed of Trust
other than one to pay money, and does not cure that failure either within thirty (30) days ("Initial
Cure Period") after written notice from Beneficiary or Trustee, or within ninety (90) days after
such written notice, so long as Trustor begins within the Initial Cure Period and diligently
continues to cure the failure, and Beneficiary, exercising reasonable judgment, determines that
the cure cannot reasonably be completed at or before expiration of the Initial Cure Period; or
(c)
Obligations; or
A default or Event of Default occurs under any of the Secured
(d) The occurrence of a "Default" or an "Event of Default" under any of the
loan documents in connection with the 11CB Loan.
6.3 Remedies. At any time after an Event of Default, Beneficiary and Trustee shall
be entitled to invoke any and all of the rights and remedies described below. To the maximum
extent permitted by law, all of such rights and remedies shall he cumulative, and the exercise of
any one or more of them shall not constitute an election of remedies.
(a) Acceleration. Beneficiary may declare any or all of the Secured
Obligations to be due and payable immediately and may terminate any other Loan Document in
accordance with its terms.
(h) Receiver. Beneficiary may apply to any court of competent jurisdiction
for, and obtain appointment of, a receiver for the Property.
13
SDCA_348085.5
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(c) Entry. Beneficiary, in person, by agent or by court -appointed receiver,
may enter, take possession of, manage and operate all or any part of the Property, and may also
do any and all other things in connection with those actions that Beneficiary may in its sole
discretion consider necessary and appropriate to protect the security of this Deed of Trust. Such
other things may include: taking and possessing all of Trustor's or the then owner's Books and
Records; entering into, enforcing, modifying, or canceling leases on such terms and conditions as
Beneficiary may consider proper; obtaining and evicting tenants; fixing or modifying Rents;
collecting and receiving any payment of money owing to Trustor; completing any unfinished
construction; and/or contracting for and making repairs and alterations. If Beneficiary so
requests, Trustor shall assemble all of the Property that has been removed from the Land and
make all of it available to Beneficiary at the site of the Land. Trustor hereby irrevocably
constitutes and appoints Beneficiary as Trustor's attorney -in -fact to perform such acts and
execute such documents as Beneficiary in its sole discretion may consider to he appropriate in
connection with taking these measures, including endorsement of Trustor's name on any
instruments. Regardless of any provision of this Deed of Trust, or any other Loan Document,
Beneficiary shall not be considered to have accepted any property other than cash or immediately
available funds in satisfaction of any obligation of Trustor to Beneficiary, unless Beneficiary has
given express written notice of Beneficiary's election of that remedy in accordance with
California Uniform Commercial Code Section 9505, as it may he amended or recodified from
time to time.
(d) Cure; Protection of Security. Either Beneficiary or Trustee may cure any
breach or default of Trustor, and if it chooses to do so in connection with any such curt,
Beneficiary or Trustee may also enter the Property and/or do any and all other things which it
may in its sole discretion consider necessary and appropriate to protect the security of this Decd
of Trust. Such other things may include: appearing in and/or defending any action or
proceeding which purports to affect the security of, or the rights or powers of Beneficiary or
Trustee under, this Decd of Trust; paying, purchasing, contesting or compromising any
encumbrance, charge, lien or claim of lien which in Beneficiary's or Trustee's sole judgment is
or may be senior in priority to this Deed of Trust, such judgment of Beneficiary or "Trustee to be
conclusive as among the parties to this Deed of Trust; obtaining insurance and/or paying any
premiums or charges for insurance required to he carried under the Loan Agreement; otherwise
caring for and protecting any and all of the Property; and/or employing counsel, accountants,
contractors and other appropriate persons to assist Beneficiary or Trustee. Beneficiary and
Trustee may take any of the actions permitted under this subsection 6.3(d) either with or without
giving notice to any person.
(e) Uniform Commercial Code Remedies. Beneficiary may exercise any or
all of the remedies granted to a secured party under the California Uniform Commercial Code.
(1) Judicial Action. Beneficiary may bring an action in any court of
competent jurisdiction to foreclose this instrument or to obtain specific enforcement of any of the
covenants or agreements of this Deed of Trust.
(g) Power of Sale. Under the power of sale hereby granted, Beneficiary shall
have the discretionary right to cause some or all of the Property, including any Property which
14
SDCA_348085.5
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constitutes personal property, to be sold or otherwise disposed of in any combination and in any
manner permitted by applicable law.
(i) Sales of Personal Property.
(A) For purposes of this power of sale, Beneficiary may elect to
treat as personal property any Property which is intangible or which can be
severed from the Land or improvements without causing structural damage. If it
chooses to do so, Beneficiary may dispose of any personal property separately
from the sale of real property, in any manner permitted by Division 9 of the
California Uniform Commercial Code, including any public or private sale, or in
any manner permitted by any other applicable law. Any proceeds of any such
disposition shall not cure any Event of Default or reinstate any Secured
Obligation for purposes of Section 2924c of the California Civil Code.
(B) In connection with any sale or other disposition of such
Property, Trustor agrees that the following procedures constitute a commercially
reasonable sale: Beneficiary shall mail writtcn notice of the sale to Trustor not
later than thirty (30) days prior to such sale. Once per week during the four
weeks immediately preceding such sale, Beneficiary will publish notice of the
sale in a local daily newspaper of general circulation. Upon receipt of any written
request, Beneficiary will make the Property available to any bona fide prospective
purchaser for inspection during reasonable business hours. Notwithstanding,
Beneficiary shall he under no obligation to consummate a sale if, in its judgment,
none of the offers received by it equals the fair value of the Property offered for
sale. The foregoing procedures do not constitute the only procedures that may be
commercially reasonable.
(ii) Trustee's Sales of Real Property or Mixed Collateral.
(A) Beneficiary may choose to dispose of some or all of the
Property which consists solely of real property in any manner then permitted by
applicable law. In its discretion, Beneficiary may also or alternatively choose to
dispose of some or all of the Property, in any combination consisting of both real
and personal property, together in one sale to he held in accordance with the law
and procedures applicable to real property, as permitted by Section 9501(4) of the
California Uniform Commercial Code. Trustor agrees that such a sale of personal
property together with real property constitutes a commercially reasonable sale of
the personal property. For purposes of this power of sale, either a sale of real
property alone, or a sale of both real and personal property together in accordance
with California Uniform Commercial Code Section 9501(4), will sometimes be
referred to as a "Trustee's Sale."
(B) Before any Trustee's Sale, Beneficiary or Trustee shall give
such notice of default and election to sell as may then be required by law. When
all time periods then legally mandated have expired, and after such notice of sale
as may then be legally required has been given, Trustee shall sell the property
15
SDCA 348085.5
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being sold at a public auction to be held at the time and place specified in the
notice of sale. Neither Trustee nor Beneficiary shall have any obligation to make
demand on Trustor before any Trustee's Sale. From time to time in accordance
with then applicable law, Trustee may, and in any event at Beneficiary's request
shall, postpone any Trustee's Sale by public announcement at the time and place
noticed for that sale.
(C) At any Trustee's Sale, Trustee shall sell to the highest
bidder at public auction for cash in lawful money of the United States. Trustee
shall execute and deliver to the purchaser(s) a deed or deeds conveying the
property being sold without any covenant or warranty whatsoever, express or
implied. The recitals in any such deed of any matters or facts, including any facts
bearing upon the regularity or validity of any Trustee's Sale, shall be conclusive
proof of their truthfulness. Any such deed shall be conclusive against all persons
as to the facts recited in it.
(h) Single or Multiple Foreclosure Sales. If the Property consists of more
than one lot, parcel or item of property, Beneficiary may:
(i) Designate the order in which thc lots, parcels and/or items shall be
sold or disposed of or offered for sale or disposition; and
(ii) Elect to dispose of the lots, parcels and/or items through a single
consolidated sale or disposition to be held or made under the power of sale granted in
subsection 6.3(g), or in connection with judicial proceedings, or by virtue of a judgment
and decree of foreclosure and sale; or through two or more such sales or dispositions; or
in any other manner Beneficiary may deem to be in its hest interests (any such sale or
disposition, a "Foreclosure Sale;" any two or more, "Foreclosure Sales").
If Beneficiary chooses to have more than one Foreclosure Sale, Beneficiary at its option may
cause the Foreclosure Sales to be held simultaneously or successively, on the same day, or on
such different days and at such different times and in such order as Beneficiary may deem to be
in its best interests. No Foreclosure Sale shall terminate or affect the lien of this Deed of Trust
on any part of thc Property which has not been sold, until all of the Secured Obligations have
been paid and performed in full.
6.4 Credit Bids. At any Foreclosure Sale, any person, including Trustor, Trustee or
Beneficiary, may bid for and acquire the Property or any part of it to the extent permitted by then
applicable law. Instead of paying cash for such property, Beneficiary may settle for the purchase
price by crediting the sales price of the property against the following obligations:
(a) First, the portion of the Secured Obligations attributable to the expenses of
sale, costs of any action and any other sums for which Trustor is obligated to pay or reimburse
Beneficiary or Trustee under Section 5.10; and
(b) Second, all other Secured Obligations in any order and proportions as
Beneficiary in its sole discretion may choose.
16
SDCA_348085.5
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6.5 Application of Foreclosure Sale Proceeds. Beneficiary and Trustee shall apply
the proceeds of any Foreclosure Sale in the following manner:
(a) First, to pay the portion of the Secured Obligations attributable to the
expenses of sale, costs of any action and any other sums for which Trustor is obligated to
reimburse Beneficiary or Trustee under Section 5.10;
(b) Second, to pay the portion of the Secured Obligations attributable to any
sums expended or advanced by Beneficiary or Trustee under the terms of this Deed of Trust
which then remain unpaid;
(c) Third, to pay all other Secured Obligations in any order and proportions as
Beneficiary in its sole discretion may choose; and
(d) Fourth, to remit the remainder, if any, to the person or persons entitled to
it.
6.6 Application of Rents and Other Sums. Beneficiary shall apply any and all Rents
collected by it, and any and all sums other than proceeds of a Foreclosure Sale which Beneficiary
may receive or collect under Section 6.3, in the following manner:
(a) First, to pay the portion of the Secured Obligations attributable to the costs
and expenses of operation and collection that may he incurred by Trustee, Beneficiary or any
receiver;
(b) Second, to pay all other Secured Obligations in any order and proportions
as Beneficiary in its sole discretion may choose; and
(c) Third, to remit the remainder, if any, to the person or persons entitled to it.
Beneficiary shall have no liability for any funds which it does not actually receive.
7. Miscellaneous Provisions.
7.1 Additional Provisions. The Loan Documents fully state all of the terms and
conditions of the parties' agreement regarding the matters mentioned in or incidental to this Deed
of Trust. The Loan Documents also grant further rights to Beneficiary and certain of them
contain further agreements and affirmative and negative covenants by Trustor which apply to
this Deed of Trust and to the Property.
7.2 No Waiver or Cure.
(a) Each waiver by Beneficiary or Trustee must be in writing, and no waiver
shall be construed as a continuing waiver. No waiver shall be implied from any delay or failure
by Beneficiary or Trustee to take action on account of any default of Trustor. Consent by
Beneficiary or Trustee to any act or omission by Trustor shall not be construed as a consent to
any other or subsequent act or omission or to waive the requirement for Beneficiary's or
Trustee's consent to be obtained in any future or other instance.
17
SDCA_348085.5
4133
(b) If any of the events described below occurs, that event alone shall not:
cure or waive any breach, Event of Default or notice of default under this Deed of Trust or
invalidate any act performed pursuant to any such default or notice; or nullify the effect of any
notice of default or sale (unless all Secured Obligations then due have been paid and performed
and all other defaults under the Loan Documents have been cured); or impair the security of this
Deed of Trust; or prejudice Beneficiary, Trustee or any receiver in the exercise of any right or
remedy afforded any of them under this Deed of "Trust; or be construcd as an affirmation by
Beneficiary of any tenancy, lease or option, or a subordination of the lien of this Deed of Trust.
(i) Beneficiary, its agent or a receiver takes possession of all or any
part of the Property in the manner provided in subsection 6.3(c).
(ii) Beneficiary collects and applies Rents as permitted under Sections
2.3 and 6.6, either with or without taking possession of all or any part of the Property.
(iii) Beneficiary receives and applies to any Secured Obligation any
proceeds of any Property, including any proceeds of insurance policies, condemnation
awards, or other claims, property or rights assigned to Beneficiary under Section 5.5.
(iv) Bcncficiary makes a site visit, observes the Property and/or
conducts tests as permitted under Section 5.14.
(v) Beneficiary receives any sums under this Deed of Trust or any
proceeds of any collateral held for any of the Secured Obligations, and applies them to
one or more Secured Obligations.
(vi) Beneficiary, Trustee or any receiver invokes any right or remedy
provided under this Deed of Trust.
7.3 Powers of Beneficiary and Trustee.
(a) Trustee shall have no obligation to perform any act which it is empowered
to perform under this Deed of Trust unless it is requested to do so in writing and is reasonably
indemnified against loss, cost, liability and expense.
(b) if either Beneficiary or Trustee performs any act which it is empowered or
authorized to perform under this Deed of Trust, including any act permitted by Section 5.8 or
subsection 6.3(d), that act alone shall not release or change the personal liability of any person
for the payment and performance of the Secured Obligations then outstanding, or the lien of this
Deed of Trust on all or the remainder of the Property for full payment and performance of all
outstanding Secured Obligations. The liability of the original Trustor shall not be released or
changed if Beneficiary grants any successor in interest to Trustor any extension of time for
payment, or modification of the terms of payment, of any Secured Obligation. Beneficiary shall
not be required to comply with any demand by the original Trustor that Beneficiary refuse to
grant such an extension or modification to, or commence proceedings against, any such
successor in interest.
18
SDCA_348085.5
4134
(c) Beneficiary may take any of the actions permitted under subsections
6.3(b) and/or 6.3(e) regardless of the adequacy of the security for the Secured Obligations, or
whether any or all of the Secured Obligations have been declared to be immediately due and
payable, or whether notice of default and election to sell has been given under this Deed of Trust.
(d) From time to time, Beneficiary or Trustee may apply to any court of
competent jurisdiction for aid and direction in executing the trust and enforcing the rights and
remedies created under this Deed of Trust. Beneficiary or Trustee may from time to time obtain
orders or decrees directing, confirming or approving acts in executing this trust and enforcing
such rights and remedies.
7.4 Merger. No merger shall occur as a result of Beneficiary's acquiring any other
estate in or any other lien on the Property unless Beneficiary consents to a merger in writing.
7.5 Joint and Several Liability. If Trustor consists of more than one person, each
shall be jointly and severally liable for the faithful performance of all of Trustor's obligations
under this Deed of Trust.
7.6 Applicable Law. This Deed of Trust shall be governed by California law.
7.7 Successors in Interest. The terms, covenants and conditions of this Deed of Trust
shall be binding upon and inure to thc benefit of the heirs, successors and assigns of the parties.
However, this Section 7.7 does not waive the provisions of Section 6.1.
7.8 Interpretation.
(a) Whenever the context requires, all words used in thc singular will be
construed to have been used in the plural, and vice versa, and each gender will include any other
gender. The captions of the sections of this Deed of Trust arc for convenience only and do not
define or limit any terms or provisions. The word "include(s)" means "include(s), without
limitation," and the word "including" means "including, but not limited to."
(b) The word "obligations" is used in its broadest and most comprehensive
sense, and includes all primary, secondary, direct, indirect, fixed and contingent obligations. It
further includes all principal, interest, prepayment tees, late charges, loan fees and any other fees
and charges accruing or assessed at any time, as well as all obligations to perform acts or satisfy
conditions.
(c) No listing of specific instances, items or matters in any way limits the
scope or generality of any language of this Deed of Trust. The Exhibits to this Deed of Trust are
hereby incorporated in this Deed of Trust.
7.9 In -House Counsel Fees. Whenever Trustor is obligated to pay or reimburse
Beneficiary or Trustee for any attorneys' fees, those fees shall include the allocated costs for
services of in-house counsel.
7.10 Waiver of Marshalling. Trustor waives all rights, legal and equitable, it may now
or hereafter have to require marshalling of assets or to require upon foreclosure sales of assets in
19
SDCA_348085.5
4135
a particular order, including any rights provided by California Civil Code Sections 2899 and
3433, as such Sections may be amended from time to time. Each successor and assign of
Trustor, including any holder of a lien subordinate to this Deed of 'Trust, by acceptance of its
interest or lien agrees that it shall be bound by the above waiver, as if it had given the waiver
itself.
7.11 Severability. If any provision of this Deed of Trust should he held unenforceable
or void, that provision shall be deemed severable from the remaining provisions and shall in no
way affect the validity of this Deed of Trust, except that if such provision relates to the payment
of any monetary sum, then Beneficiary may, at its option, declare all Secured Obligations
immediately due and payable.
7.12 Notices. Trustor hereby requests that a copy of notice of default and notice of
sale be mailed to it at the address set forth below. That address is also the mailing address of
Trustor as debtor under the California Uniform Commercial Code. Beneficiary's address given
below is - the address for Beneficiary as secured party under the California Uniform Commercial
Code.
To Beneficiary: Community Development Commission of National City
1243 National City Boulevard
National City, CA 91950-4301
Attn: Executive Director
With a copy to: Foley & Lardner LLP
402 West Broadway, Suite 2100
San Diego, CA 92101
Attn: Richard L. Moskitis, Esq.
To Trustor: Constellation Property Group (A Avenue) LP
1133 Columbia Street, Suite 101
San Diego, CA 92I01
Attn: Eugene Marchese
7.13 Waiver of Statute of Limitations and Rights to Trial by Jury. The pleading of any
statute of limitations as a defense to any and all obligation secured by this Deed of Trust and the
right to a jury trial in any action under or relating to the Loan Documents is hereby waived, to
the fullest extent allowed by law.
7.14 Copies. Trustor will promptly give to Beneficiary copies of all (a) notices of
violation relating to the Property that Trustor receives from any governmental agency or
authority, and (b) notices of default that Trustor shall give or receive under any agreement that
Trustor covenants to perform hereunder, including, without limitation, notices of default relating
to the Property that Trustor receives under any agreement relating to the borrowing of money by
Trustor or from any Person.
20
SDCA_348085.5
4136
7.15 Usury. In the event that Beneficiary determines than any charge, fee or interest
paid or agreed to he paid in connection with the Loan may, under the applicable usury laws,
cause the interest rate on the Loan to exceed the maximum permitted by law, then such charges,
fees or interest shall he reduced and any amounts actually paid in excess of the maximum interest
permitted by such laws shall he applied by Beneficiary to reduce the outstanding principal
balance of the Loan. The parties intend that Trustor shall not be required to pay, and Beneficiary
shall not he entitled to collect, interest in excess of the maximum legal rate permitted under the
applicable usury laws.
7.16 Destruction of Note. Trustor shall, if the Note is mutilated or destroyed by any
cause whatsoever, or otherwise lost or stolen and regardless of whether due to the act or neglect
of Beneficiary or Trustee, execute and deliver to Beneficiary in substitution therefor a duplicate
promissory note containing the same teens and conditions as the Note, within thirty (30) days
after Beneficiary notifies Trustor of any such mutilation, destruction, loss or theft of the Note.
Any new promissory note executed and delivered hereunder shall be in full substitution for the
Note, shall not constitute any new or additional indebtedness of Trustor to Beneficiary, shall
constitute solely a substitute evidence of the Indebtedness evidenced by the original Note, and
shall not affect in any manner the priority of this Deed of Trust, or any other document or
instrument executed in connection with or evidencing or securing the Indebtedness under the
Note. Failure or delay by Beneficiary to notify Trustor hereunder shall not affect in any manner
Trustor's liability for the Indebtedness under the Note or Trustor's obligation to execute a new
promissory note hereunder; and Trustor's failure to execute a new promissory note on
Beneficiary's request hereunder shall likewise not affect Trustor's liability for the Indebtedness
under the Note.
IN WITNESS WHEREOF, Trustor has caused this Deed of Trust to be executed as of the
day and year first above written.
1'RUSTOR:
Constellation Property Group (A Avenue) LP, a
Delaware limited partnership
By: ConstcllatioProperty Management, Inc., a
Delawarejrporation, I 1 Partner
By:
Naive: ' Eu
Its: Pre •
By:
Name: Stephen Scotchmer
Its: Secretary
21
SDCA_348085.5
4137
EXHIBIT A
PROPERTY DESCRI PTION
PARCEL 2 OF PARCEL MAP NO. 10377, IN THE CITY OF NATIONAL CITY, COUNTY
OF SAN DIEGO, STATE OF CALIFORNIA FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY, AUGUST 27, 1980 AS FILE NO. 80-275023 OF
THE OFFICIAL RECORDS.
APN: 556-554-16
SDCA_348085.5
4138
•
ACKNOWLEDGEMENT
STATE OF CALIFORNIA )
)ss.
COUNTY OFF' Say,
�
On `���.r,., C3 ,H
200 before me, 2A-2 Notary Public,
personally appeared , personally known to me (nr-pfavcd-to
idence) to he the person whose name ) is/(• subscribed to
the within instrument and acknowledged to me that he/sth( executed the same in
his /t r authorized capacity(i4, and that by hisi/tl�ir signatures') on the instrument the
person(. , or the entity upon behalf of which the person acted, executed the instrument.
WITNESS iny hand and official seal.
ACKNOWLEDGEMENT
REBECCA LEE
CTA r►1.# 17AI.WO
A
i NOT SIJI D�F00 COUNTY
Caws. Exr .PR. 6, 2011 !
(SEAL)
STATE OF CALIFORNIA )
)ss.
COUNTY OF San d . )
On w4)ey `� , 20(} before me, L ra L�e_. , Notary Public,
personally appeared - e On.e)(\ Sc c-Cc_Vm, personally known to me (or--preved-to
n}c..ctn the basis of satisfactory -evidence) to be the person (4 whose name is/( subscribed to
the within instrument and acknowledged to me that he//thy executed the same in
his, t(r authorized capacity(, and that by his/ r/ttAr signature on the instrument the
person(4,, or the entity upon behalf of which the person(, acted, execut d the instrument.
WITN SS my hand and official seal.
REBECCA LEE k
NOTARY CALFO�
S,w DIEeo COUNTY
Mr Co.wEXP. IN, 8, 2011 t
(SEAL)
SDCA_348085.5