HomeMy WebLinkAbout1996 CON (DEED OF TRUST) Jose and Marivel Rico- 2504 "D" AveRECORDING REQUESTED BY
CALIFORNM C04ST T.T,
LF
WHEN RECORDED MAIL TO:
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
140 EAST 12TH STREET
NATIONAL CITY, CA 91950
DO.0 # 1996-0102307
01—MAR-1996 08=00 AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
808 GREGORY SnITH, COUNTY RECORDER
RF: 13.00 FEES: 58.00
AF: 17.00
NF: 1.00
11ISC: 27.00
(Space above for Recorder's Use)
.O.Y9 23
DEED OF TRUST
THIS DEED OF TRUST, is made this 23rd day of February
1996 , among the Trustor, JOSE RICO and MARIVEL RICO,
husband and wife (herein "Borrower"), and
CALIFQRNIA COAST TITLE COMPANY
(herein "Trustee"), and the Beneficiary, the Community Development
Commission of the City of National City, a corporation organized
and existing under the laws of the State of California, (herein
"CDC") whose address is 140 East 12th Street, National City, CA
91950.
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 City of National City, County of San Diego,
State of California [which has the address of2504 "D" Avenue
National City, California 91950 (herein "Property Address")]:
The Easterly 260 feet of 10 Acre Lot 2, in Quarter Section 152 of
Rancho dela Nacion, in the City of National City, County of San
Diego, State of California, according to Map thereof No. 166, made
by Morrill, filed in the office of the County Recorder of San Diego
County, May 11, 1869; EXCEPTING THEREFROM the Southerly 266 feet
thereof; ALSO EXCEPTING THEREFROM the Easterly 40 feet thereof
as conveyed to the City of National City for street purposes by
deed dated July 30, 1928 and recorded in Book 1511, page 215 of
Deeds.
Said Deed of Trust is second and subsequent in lien to a First Deed
of Trust recording concurrently herewith in favor of UNION BANK in
the amount of ONE HUNDRED THREE THOUSAND, SEVEN HUNDRED FIFTY AND,
NO/100 dollars
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 CDC
to collect and apply such rents), all of which shall be deemed to
be and remain part of the property covered by this Deed of Trust;
and all of the foregoing, together with said property (or the
leasehold estate if this Deed of Trust is on a leasehold) are
hereinafter referred to as the "Property";
TO SECURE to CDC the repayment of the indebtednessevidencedby Borrower's promissory note, dated _February , 19
and extensions and renewals thereof (herein "Note"
principal sum of U.S. FIFTEEN THOUSAND AND NO/100 dollars` in the
Dollars ($ 15,000.00 ),
with interest thereon, fully deferred with the total indebtedness,
if not sooner paid, due and payable on March 1, 2026
20 ; the payment of all other sums, with interest thereon,
advanced in accordance herewith to protect the security of this
Deed of Trust; and the performance of the covenants and agreements
of Borrower herein contained.
Page 1 of 9
8 ,9
Borrower covenants that Borrower is lawfully seized of the
estate hereby conveyed and has the right to grant and convey the
Property, and that the Borrower is unencumbered except for
encumbrances of record. Borrower covenants that Borrower warrants
and will defend generally the title to the Property against all
claims and demands, subject to encumbrances of record.
UNIFORM COVENANTS: Borrower and CDC covenant and agree as
follows:
1. Payment of Principal and Interest: Borrower shall
promptly pay when due the principal and interest indebtedness
evidenced by the Note.
If payment of the indebtedness is required due to a Sale of
the Property where the purchase price is equal to or less than the
Acquisition Cost of the Property, then repayment shall be made in
the following order and amount:
a. Outstanding principal and interest balance of the
primary lender's loan;
b. Borrower's initial down -payment investment;
c. Accrued simple interest on the principal amount of
the CDC's loan at the rate applicable at time of
sale;
d. The principal amount of the CDC's loan; and
e. Any remainder to borrower.
2. Funds for Taxes and Insurance: CDC will waive collection
of impounds for taxes and assessments (including condominium and
planned unit development assessments, if any). Borrower will make
all payments for impounds to first trust deed holder.
3. Application of Payments: Unless applicable law provides
otherwise, all payments received by CDC under the Note shall be
applied by CDC first to interest payable on the Note, and then to
the principal of the Note.
4. Prior Mortgages and Deeds of Trust; Charges; Liens:
Borrower shall perform all of Borrower's obligations under any
mortgage, deed of trust or other security agreement with a lien
which has priority over this Deed of Trust, including Borrower's
covenants to make payments when due. Borrower shall pay or cause
to be paid all taxes, assessments and other charges, fines and
impositions attributable to the Property which may attain a
priority over this Deed of Trust, and leasehold payments or ground
rents, if any.
5. Hazard Insurance: Borrower shall keep the improvement(s)
now existing or hereinafter erected on the Property insured against
loss by fire, hazards included within the term "extended coverage",
and such other hazards as CDC may require and in such amounts and
for such periods as CDC may require.
The insurance carrier providing the insurance shall be chosen
by Borrower subject to approval by CDC; provided, that such
approval will not be unreasonably withheld. All insurance policies
and renewals thereof shall be in a form acceptable to CDC and shall
include a standard mortgage clause in favor of and in a form
acceptable to CDC. CDC 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.
Page 2 of 9
In the event of loss, Borrower shall give prompt notice to the
insurance carrier and CDC. CDC may make proof of loss if not made
promptly by Borrower.
If Property is abandoned by Borrower, or if Borrower fails to
respond to CDC within 30 days from the date notice is mailed by CDC
to Borrower that the insurance carrier offers to settle a claim for
insurance benefits, CDC is authorized to collect and apply the
insurance proceeds at CDC's option either to restoration or repair
of the Property or to the sums secured by this Deed of Trust.
6. Preservation and Maintenance of Property, Condominium,
Cooperatives, Planned Unit Developments: Borrower will keep the
Property in good repair and shall not commit waste or permit
impairment or deterioration of the Property and shall maintain
property including the principle house, garage, and out buildings
as well as lawn maintenance, and shall comply with the provisions
of any lease if this Deed of Trust is on a leasehold. If this Deed
of Trust is on a unit in a condominium or a planned unit
development, Borrower shall perform all of Borrower's obligations
under the declaration or covenants, conditions and restrictions,
creating or governing the condominium, planned unit development,
the by-laws and regulations of the condominium or planned unit
development, and constituent documents.
7. Protection of CDC 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
CDC's interest in the Property, then CDC, at CDC'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 CDC's interest. If CDC required mortgage
insurance as a condition of making the loan secured by this Deed of
Trust, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such
insurance terminates in accordance with Borrower's and CDC's
written agreement or applicable law.
Any amounts disbursed by CDC pursuant to this Paragraph, with
interest thereon, at the original Note rate, will become additional
indebtedness of Borrower secured by this Deed of Trust. Unless
Borrower and CDC agree to other terms of payment, such amounts will
be payable upon notice from CDC to Borrower requesting payment
thereof. Nothing contained in this Paragraph will require CDC to
incur any expense or take any action hereunder.
8. Inspection: CDC may make or cause to be made reasonable
entries upon and inspections of the Property, provided that CDC
will give the Borrower notice prior to any such inspection
specifying reasonable cause therefor related to CDC's interest in
the Property.
9. Condemnation: The proceeds of any award or claim for
damages, direct or consequential, in connection with any
condemnation or other taking the Property, or part thereof, or for
conveyance in lieu of condemnation, are hereby assigned and shall
be paid to CDC 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 CDC Not a Waiver:
Extension of the time for payment or modification of payment of the
sums secured by this Deed of Trust granted by CDC 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. CDC shall not be required to commence
proceedings against such successor or refuse to extend time for
payment or otherwise modify payment 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 CDC in
Page 3 of 9
811
exercising any right or remedy hereunder, of otherwise afforded by
applicable law, shall not be a waiver of or preclude the exercise
of any such right or remedy.
11. Successors and Assigns Bound, Joint and Several
Liability; Co-signers: The covenants and agreements herein
contained shall bind, and the rights hereunder shall inure to, the
respective successors and assigns of CDC 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 executed the Note,
(a) is co-signing this Deed of Trust only to grant and convey that
Borrower's interest in the Property of 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 CDC and any other
Borrower hereunder may agree to extend, modify, forbear, or make
any other accommodations 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, (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 CDC as provided herein, and (b) any notice
to CDC will be given by certified mail, return receipt requested,
to CDC address stated herein or to such other address as CDC 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 CDC 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. Rehabilitation Loan Agreement: Borrower shall fulfill
all of Borrower's obligations under any home rehabilitation,
improvement, repair, or other loan agreement which Borrower enters
into with CDC. CDC, at CDC's option, may require Borrower to
execute and deliver to CDC, in a form acceptable to CDC, an
assignment of any rights, claims or defenses which Borrower may
have against parties who supply labor, materials or services in
connection with improvements made to the Property.
16. Transfer of the Property or a Beneficial Interest in
Borrower: If all or any part of the Property or any interest in it
is sold or transferred (or if a beneficial interest in Borrower is
sold or transferred whether or not Borrower is a natural person),
or if property is rented, leased, or otherwise no longer owner -
occupied. CDC may, at its option, require immediate payment in
full of all sums secured by this Deed of Trust. However, this
option shall not be exercised by CDC if exercise is prohibited by
federal law as of the date of this Deed of Trust, or if CDC has
executed a separate written waiver of this option.
Page 4 of 9
812
If CDC exercises this option, CDC shall give Borrower notice
of acceleration. The notice shall provide a period of not less
than 30 days from the date the notice is delivered or mailed within
which Borrower must pay all sums secured by this Deed of Trust. If
Borrower fails to pay these sums prior to the expiration of this
period, CDC may invoke any remedies permitted by this Deed of Trust
without further notice or demand on Borrower.
Upon such sale, lease, or transfer, Borrower will also be
required to pay a simple interest as described in the Deed of Trust
Rider, and the Note Rider.
NON -UNIFORM COVENANTS: Borrower and CDC further covenant and
agree as follows:
17. Acceleration, Remedies: Except as provided in Paragraph
16 hereof, 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, CDC prior to
acceleration shall give notice to Borrower as provided in Paragraph
12 hereof specifying: (1) the breach; (2) the action required to
cure such breach; (3) a date, not less than 10 days from the date
the notice is mailed to Borrower, by which such breach must be
cured; and (4) that failure to cure such breach on or before the
date specified in the notice may result in acceleration of the sums
secured by this Deed of Trust and sale of the Property. The notice
shall further inform Borrower of the right to reinstate after
acceleration and the right to bring a court action to assert the
nonexistence of a default or any other defense of Borrower to
acceleration of sale. If the breach is not cured on or before the
date specified in the notice, CDC, at CDC'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. CDC shall be
entitled to collect all reasonable costs and expenses incurred in
pursuing the remedies provided in this Paragraph 17, including, but
not limited to, reasonable attorneys' fees.
If CDC invokes power of sale, CDC shall execute or cause
Trustee to execute a written notice of the occurrence of an event
of default and of CDC'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. CDC or Trustee shall
mail copies of such notice in the manner prescribed by applicable
law. Trustee shall give public notice of sale to the persons and
in the manner prescribed by applicable law. After the lapse of
such time as may be required by applicable law, Trustee, without
demand on Borrower, shall sell the Property at 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. CDC or CDC'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: (a) to all reasonable costs and expenses of the sale,
including, but not limited to, reasonable Trustee's and attorneys'
fees and costs of title evidence; (b) to all sums secured by this
Deed of Trust; and (c) the excess, if any, to the person or persons
legally entitled thereto.
18. Borrower's Right to Reinstate: Not withstanding CDC'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 CDC to enforce this Deed of Trust discontinued
Page 5 of 9
813
at any time prior to five days before sale of the Property pursuant
to the power of sale contained in this Deed of Trust or at any time
prior to entry of a judgement enforcing this Deed of Trust if: (a)
Borrower pays CDC all sums which would be then due under this Deed
of Trust and the Note had no acceleration occurred; (b) Borrower
cures all breaches of any other covenants or agreements of Borrower
contained in the Deed of Trust; (c) Borrower pays all reasonable
expenses incurred by CDC and Trustee in enforcing the covenants and
agreements of Borrower contained in this Deed of Trust, and in
enforcing CDC's and Trustee's remedies as provided in Paragraph 17
hereof, including, but not limited to, reasonable attorneys' fees;
and (d) Borrower takes such action as CDC may reasonably require to
assure that the lien of this Deed of Trust, CDC'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.
19. Assignment of Rents; Appointment of Receiver; CDC in
Possession: As additional security hereunder, Borrower hereby
assigns to CDC the rents of the Property, provided that Borrower
shall, prior to acceleration under Paragraph 17 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 17 hereof or abandonment of
the Property, CDC, 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 CDC or the
receiver shall be applied first to payment of the cost of
management of the Property and collection of rents, including, but
not limited to, receiver's fees, premiums on receiver's bonds and
reasonable attorneys' fees, and then to the sums secured by this
Deed of Trust. CDC and the receiver shall be liable to account
only for those rents actually received.
20. Reconveyance: Upon payment of all sums secured by this
Deed of Trust, CDC 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.
21. Substitute Trustee: CDC, at CDC's option, may from time
to time appoint a successor trustee to any Trustee appointed
hereunder by an instrument executed and acknowledged by CDC 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.
22. Request for Notices: Borrower requests that copies of
the Notice of Default and Notice of Sale be sent to Borrower's
address which is the Property Address. CDC requests that copies of
notices of foreclosure from the holder of any lien which has
priority over this Deed of Trust be sent to CDC's address, as set
forth on Page One of this Deed of Trust as provided by Section
2924b of the Civil Code of California.
23. Statement of Obligation: CDC may charge a fee not to
exceed Fifty Dollars ($50.00) for furnishing the statement of
Page 6 of 9
814
obligation as provided in Section 2943 of the Civil Code of
California.
24. Deed of Trust Rider: The Deed of Trust Rider executed by
Borrower is attached and made part of this Deed of Trust.
REQUEST FOR NOTICE OF DEFAULT
AND FORECLOSURE UNDER SUPERIOR
MORTGAGES OR DEEDS OF TRUST
Borrower and CDC request the holder of any mortgage, deed of
trust or other encumbrance with a lien which has priority over this
Deed of Trust to give Notice to CDC, at CDC's address set forth on
Page One of this Deed of Trust, of any default under the superior
encumbrance and of any sale or other foreclosure action, as
provided by Section 2924b of the Civil Code of California, which
requires, among other things, that a "Notice of Default" be filed
with the County Recorder.
IN WITNESS WHEREOF, BORROWER HAS EXECUTE
State of California
County of San Diego
On FEBRUARY 23, 1996
ROBIN COTE-SPRONG
Jos- Rico BORROWER
8- DEE I OF TRUST.
.L4
Marivel Rico
ACKNOWLEDGEMENT:
personally appeared JOSE RICO AND MARIVEL RICO
BORROWER
before me,
Notary,
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, rument.
WITNESS my hand and (offric
Signature:
U
•,., � ROBIN COTE.SPRONG
COMM. #983871 n
NOTARY PUBLIGCALFOPNIA
SAN DIEGO COUNTY CI
MY COMMISSION EXPIRES Y (This area for official notarial seal)
JANUARY 3t 195a t
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:
Page 7 of 9
DEED OF TRUST RIDER
815
This Deed of Trust Rider is attached to and made a part of the
Deed of Trust, dated February 23, , 19 96, and made payable
to the Community Development Commission of the City of National
City (hereinafter called CDC) as lender and executed by Borrower.
1. 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.
2. Borrower agrees that where CDC administered funds
continue to be used in financing the purchase or continued use of
the Property, no transfer of the Property will be permitted, and no
successor in interest to the Borrower(s) will be permitted to
assume the Borrower's (s') loan evidenced by this Note, unless the
written consent of the CDC to the transfer has been first obtained.
No such consent will be given by CDC 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; or
e. A transfer by means of encumbering the Property
with a lien which is a junior to the lien securing
the loan to Borrower evidenced by this Deed of
Trust.
3. Borrower will also owe the CDC interest if Borrower makes
a full prepayment or a partial prepayment within the first ten-year
period following the date of the Note.
4. The simple interest which Borrower will pay, if required
by Paragraphs 2 or 3 above, will be as follows:
Within years one through five (1-5) from the date
the Deed of Trust is executed, the annual simple
interest rate at payback will be one -eighth percent
(1/8%) less than the interest rate contained in the
first mortgage. The interest rate will float in
the case of an adjustable rate mortgage at 1/8%
less than the present existing interest rate.
Starting at the end of year six (6), the annual
simple interest rate will decrease 20% per year
through year ten (10). All interest and principal
will be due and payable in one lump sum at the time
of sale or transfer. After ten (10) years of
continuous occupancy of this borrower, no interest
shall be due.
Page 8 of 9
t8 i sb
5. Interest due as a result of prepayment will be due with
the prepayment.
6. 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 which occurred prior to or simultaneously with this
Note and Deed of Trust. 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.
NOTICE TO BORROWER:
Do not sign this Deed of Trust Rider if it contains blank spaces.
All spaces shoul• be completted before you sign.
BORROWER, Jose Ric- 'DA OF SIGNATURE
BORROWER
DEEDTRST.FM
Revised: 09/09/93
%kW 61,1 41e0
Marivel Rico
Page 9 of 9
DA E OF SIGNATURE