Loading...
Deed of Trust and Security Agreement 2011-0007751City of Poway 13325 Civic Center Drive Poway, CA 92064 Attn: Redevelopment Agency Housing- Manager JAN 05, 2011 8:00 AM 8340 OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg, Jr , COUNTY RECORDER FEES: 000 WAYS. 2 DA t PAGES: 13 DEED O_ F TRUST AND SECURITY AGREEMENT CITY OF POWAY (BEGIN PROGRAM) NOTICE TO BORROWER THIS DEED OF TRUST CONTAINS PROVISIONS RESTRICTING ASSUMPTIONS THIS DEED OF TRUST AND SECURITY AGREEMENT ( "Deed of Trust ") made this day of 20 {>,, among the trustor, Andrew Lane and Amy Lane ('Borrower "), whose address is 12827 Dakota Street, Poway, CA 92064, and Chicago Title ( "Trustee "), the City of Poway (the "City ") as Beneficiary. The Borrower, in consideration of and as security for the loan of funds to the Borrower by Agency, irrevocably grants, transfers, conveys and assigns to Trustee, in trust, with power of sale, the property located in the and commonly known as: 12827 Dakota Street,.Poway, CA 92064 (the "Property "). I. BORROWER, IN CONSIDERATION OF THE.INDEBTEDNESS HEREIN RECITED AND THE TRUST HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND'ASSIGNS'to Trustee in trust-, with power of sale and right of entry and possession, all of Borrower's right, title and interest now held or hereafter acquired:in andjo the following: (a) all of that certain real property,(the "Property ") located at 12827 Dakota Street, in the City of Poway, County of San Diego, State of California, which is more particularly described in the attached Exhibit A which is incorporated herein by this reference; and (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property now or hereafter affixed to, placed upon or used in connection with the Property, together with all additions to, substitutions for, changes in or replacements of the ,whole or any part of said articles of property; all of which are hereby pledged and assigned, transferred, and seLover onto Trustee, and for purposes of this Deed of Trust declared to be part ofthe; realty; provided, however, that furniture and other personal property of Borrower now or hereafter situated on said real property are not intended to be included as part of the Property. D O C 2011 - 0007751 11 111111111111111111111111111111111111111111111111111111111111111111 1552\03\701460.3 FIB RECORDER AT THE REQUEST OF w OHICQGO TITLE COMPANY 13P „ SUB©IVISIOM,DFPT. Z�J COMPLIMEN17ARY RECORDING �� REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 City of Poway 13325 Civic Center Drive Poway, CA 92064 Attn: Redevelopment Agency Housing- Manager JAN 05, 2011 8:00 AM 8340 OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg, Jr , COUNTY RECORDER FEES: 000 WAYS. 2 DA t PAGES: 13 DEED O_ F TRUST AND SECURITY AGREEMENT CITY OF POWAY (BEGIN PROGRAM) NOTICE TO BORROWER THIS DEED OF TRUST CONTAINS PROVISIONS RESTRICTING ASSUMPTIONS THIS DEED OF TRUST AND SECURITY AGREEMENT ( "Deed of Trust ") made this day of 20 {>,, among the trustor, Andrew Lane and Amy Lane ('Borrower "), whose address is 12827 Dakota Street, Poway, CA 92064, and Chicago Title ( "Trustee "), the City of Poway (the "City ") as Beneficiary. The Borrower, in consideration of and as security for the loan of funds to the Borrower by Agency, irrevocably grants, transfers, conveys and assigns to Trustee, in trust, with power of sale, the property located in the and commonly known as: 12827 Dakota Street,.Poway, CA 92064 (the "Property "). I. BORROWER, IN CONSIDERATION OF THE.INDEBTEDNESS HEREIN RECITED AND THE TRUST HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND'ASSIGNS'to Trustee in trust-, with power of sale and right of entry and possession, all of Borrower's right, title and interest now held or hereafter acquired:in andjo the following: (a) all of that certain real property,(the "Property ") located at 12827 Dakota Street, in the City of Poway, County of San Diego, State of California, which is more particularly described in the attached Exhibit A which is incorporated herein by this reference; and (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property now or hereafter affixed to, placed upon or used in connection with the Property, together with all additions to, substitutions for, changes in or replacements of the ,whole or any part of said articles of property; all of which are hereby pledged and assigned, transferred, and seLover onto Trustee, and for purposes of this Deed of Trust declared to be part ofthe; realty; provided, however, that furniture and other personal property of Borrower now or hereafter situated on said real property are not intended to be included as part of the Property. D O C 2011 - 0007751 11 111111111111111111111111111111111111111111111111111111111111111111 1552\03\701460.3 ' r 8341 2. FOR THE PURPOSE'OF SECURING 21 Repayment of the indebtedness evidenced by that certain Promissory Note of the Borrower dated as of "o r\oc l S 20 \ , to the benefit of the City of Poway.and'entitled BEGIN Program Promissory Note (the "Note ") of the Borrower in the principal amount Fifty -Eight Thousand Eight Hundred Fifty-Six Dollars (558,856), together with simple interest on such indebtedness according to the terms of the Note, and any and all amendments, modifications, extensions or renewals of the Note. The Note and this Deed of Trust are subject to the terms, conditions, and restrictions of the' State of California BEGIN Program as set for the'in the Health and Safety Code section 50860 et sue. and implementing guidelines adopted by the California Department of Housing and Community Development, all of which are hereby incorporated by reference. 2.2 Payment of such additional sums, with interest thereon: (a) As:may hereafter be borrowed from Lender by the then - record owner of the Property and evidenced by a promissory note or notes reciting that it or they are so secured and all modifications, extensions, or renewals of the Note; and (b) As may be incurred, paid, or advanced by Lender, or as may otherwise be due to Trustee or Lender, under any provision of this Deed of Trust and any modification, extension, or renewal of this Deed of Trust; and (c) As may otherwise be paid or advanced by Lender to protect the security or priority of this Deed.of Trust. 2.3 Performance of each obligation, covenant, and agreement of Borrower contained in this Deed.of Trust, the Note, or any other document executed by Borrower in connection with the loan(s) secured by this Deed of Trust, and.all amendments to these documents whether set forth in this Deed of Trust or incorporated in this Deed of Trust by reference. BORROWER COVENANTS Borrower hereby covenants to maintain and protect the security of this Deed of Trust, to secure the full- and.timely performance by Borrower of each'.and every obligation, covenant, and agreement of Borrower under the Note and this Deed of Trust, and as additional consideration for the obligation(s) evidenced by the Note, Borrower covenants as follows: 3.1 Title. That Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the ;title ,of the Property, against all claims and subject to any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in title insurance policy insuring Lender's interest in the Property. 1552 \03 \701460 3 8342 3.2 Payment of Principal and Interest That Borrower shall promptly pay, when due, the principal and interest on the Note, and such other charges as are provided in the Note, and such other amounts as are provided under this Deed of Trust. 3.3 Maintenance of the Property (a) To keep the Property in a decent, safe, sanitary, tenantable condition and repair.and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about the Property any condition causing the Property to become less valuable; (c) remove, demolish or structurally alter any buildings and improvements now or hereinafter located on the, Property; (d) to repair, restore or rebuild promptly any buildings or improvements on the Property that may become damaged or be destroyed while subject to the lien of this Deed of Trust; (e) to comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; (f) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the Lender's written consent; and (g) not to alter the use of all or any part of the Property without the prior written consent of the Lender. 3.4 Appear and Defend Borrower shall appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the Lender or Trustee; and to pay all costs and expenses, including cost of evidence of title, and attorney's fees in a reasonable sum, in any such action or proceeding in which the Lender or Trustee may appear, and in any suit brought by the Lender to foreclose this deed. 3.5 Payment of Taxes and Utility Charges Borrower shall pay, at least ten (10) days before delinquency all taxes and assessments affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, fines and impositions attributable to the Property, leasehold payments or ground rents, if any, and any interest on the Property or any part thereof; all costs, fees and expenses of this trust. Borrower . shall make such payments when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and Borrower shall promptly furnish to Lender receipts evidencing all such payments made. 3.6 Insurance To keep the Property insured with loss payable to the Lender, against loss or damage by fire and such other hazards, casualties and contingencies and by such companies on such forms and in the amount of the cost of the Property, and to deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender evidencing payment of the premiums. All such policies provide that the Lender shall be given thirty (30) days advance written notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it. Renewal policies and any replacement policies, together with premium receipts satisfactory to the Lender, shall be delivered to the Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses. All insurance proceeds for such losses must be utilized for the repair or restoration of the insured property. 1552\031701460 3 8343 3.7 Payments and Discharge of Liens Borrower will pay, when due, all claims of every kind and, nature which might or could become a lien on the Property or any part thereof, provided, however, that the following are excepted from this prohibition: (a) liens for taxes and assessments which are not delinquent although by law are given the status of a lien, and (b) such of the above claims are, and only during.the time they are, being contested by Borrower in.good faith and by appropriate legal proceedings, and Borrower shall post security for the payment of these contested claims as may be requested by the Lender. Borrower shall not default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is superior to this Deed of Trust. 3.8 Assumption of Loan Borrower acknowledges that this Note is given in connection with the purchase of the Property as part of a program of the City of Poway to assist in the purchase of homes by low and moderate income households. Consequently, the principal and interest due under this Note are assumable only by (i) income - qualifying households as approved by the City and (ii) only after five years from the recordation of the Deed of Trust securing this Note. The Note is due in full upon all other Transfers, except those permitted under- Section 4.11 below. 4. IT IS MUTUALLY AGREED THAT 4.1 Application of Payments Unless applicable.law provides otherwise, all payments received by Lender under the Note and Section 2.1 shall be applied by Lender first to interest payable on the Note and then to the principal due on the Note. 4.2 Future Advances Upon request by Borrower, Lender, at Lender's option, may make future advanceslo Borrower. All such future advances, with interest thereon, shall be added to and become a part of the indebtedness secured by this Deed of Trust when evidenced by promissory note(s) reciting that such note(s) are secured by this Deed of Trust. 4.3 Disbursements to Protect Lender's Security All sums disbursed by Lender to protect and preserve the Property, this Deed of Trust, or Lender's security for the performance of Borrower's obligations under the Note shall be and be deemed to be an indebtedness of Borrower secured by this Deed of Trust. 4.4 Protection of Lender's 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 Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent, foreclosure of any mortgage secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Lender, at Lender's option, upon notice to Borrower, may'make such appearance, disburse such sums and take such action as is necessary to protect Lender's interest. including, but not limited to, disbursement.of reasonable attorney's fees and entry upon the Property to make repairs. Any amounts disbursed by Lender pursuant to this Section 4.4, with interest thereon, shall become additional indebtedness of Borrower secured by this Deed of Trust. 4 1552 \03 \701460.3 MM Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon.notice from Lender to,Borrower requesting payment thereof, and shall bear interest from the date of: disbursement at the highest rate permissible under, applicable law: Nothing contained in this Section 4.4 shall require Lender to incur any expense or take any hereunder. 4.5 Inspection Lender or its agent may make or cause to be made reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to any such inspection specifying reasonable cause for the inspection. 4.6 Awards aml.Damages All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking, of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any-damage to or destruction of the Property or any part thereof by insured casualty, and (c) any other injury or damage to all or any part of the Property, are hereby assigned to and,shall be paid to the Lender. The Lender is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Lender shall determine at its option. The Lender shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such'insurance the amount'of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recoveredby the Lender may be released to Borrower upon such conditions as the Lender may impose for its disposition. Application of all or any part of the amounts collected and received by the Lender or the release thereof shall not cure or waive any default under this Deed of Trust. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages Borrower fails to respond to Lender within thirty (30) days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender's option, either to restoration or repair of the Property or to the sum secured by this Deed of Trust. 4.7 Prohibition on Transfers of Interest With the exception of the transfers permitted in Section 4.11 below, if all or any part of the Property or an interest therein is sold or transferred by Borrower without_ Lender's prior written consent, Lender may, at Lender's option, declare all the sums secured by this Security Instrument to be immediately due and payable. If Lender exercises such option to accelerate,, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 hereof. Such notices shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums declared due. If borrower fails to pay, such , sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof. 4.8 Sale or Forbearance No sale of the Property, forbearances on the part of the Lender or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Borrower either in whole or in part. 4.9 The�Lender's Rights to Release Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant 1552 \03 \701460 3 8345 hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: (a) The Lender may, at its sole discretion, (i) release any person now or hereafter liable for payment of any or all such indebtedness. (ii) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (iii) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant to the written request of the Lender, may reconvey all or any part of the Property, consent to the making of any map or plot thereof, join in granting any assessment thereon, or join in any such agreement of extension or subordination. 4.10 Reconveyance Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Security Instrument and all notes evidencing indebtedness secured by this Security Instrument 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. The recitals in the reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. 4.11 Requirement of Owner-occupancy and Permitted Transfers Borrower shall occupy the Property as Borrower's principal place of residence during the term as described in the Note. Notwithstanding any other provision of the Note or this Deed of Trust, the following transfers shall not be deemed to be a default under the Note or this Deed of Trust and shall not cause acceleration of payment of the BEGIN Loan: (a) A transfer to another income - qualifying household after five years from the recordation of the deed of trust securing the BEGIN - loan. (b) The transfer of the Properly to the surviving joint tenant by devise, descent or operation of the law, on the death of a joint tenant. (c) A transfer of the Property where the spouse becomes an owner of the Property; (d) A transfer of the Property resulting from a decree of dissolution of marriage or domestic partnership, legal separation or from an incidental property settlement agreement by which the spouse or domestic partner becomes an owner of the Property. (e) A transfer by Borrower to an inter vivos trust in which the Borrower is and remains the sole beneficiary and Borrower continues to occupy the Property. 4.12 Subordination Notwithstanding any other provision hereof, the provisions of this Deed of Trust shall be subordinate to the lien of Bank of America (the "Senior Lender ") and shall not impair the rights of Senior Lender, the Senior Lender's successors or assigns, to exercise its remedies under the Senior Lender Deed of Trust in the event of default under the Senior Lender Deed of Trust (defined below) by the Borrower. Such remedies under the Senior Lender Deed of Trust include the right of foreclosure or acceptance of a deed or 6 1552 \03 \701460.3 MM assignment in lieu foreclosure. After such foreclosure or acceptance a deed or assignment in lieu of foreclosure, this Deed of Trust shall be forever terminated and shall have no further effect as to the Property, or any transferee thereafter; provided, however, if the holder of such Senior Lender Deed of Trust acquires title to the Property pursuant to a deed.or assignment in lieu of foreclosure, this Deed of Trust shall automatically terminate upon such acquisition of title, only if either a notice of,defauli was recorded under the applicable Senior Lender Deed of Trust or, if no notice of default was,recorded, (i) the Borrower has been given written notice of default under such Senior Lender Deed of Trust (which requirement may be satisfied by recordation of a notice of default under California Civil Code Section 2924), (ii) the Lender has been provided with written notice of Borrower's default, provided Lender records a request for notice under Civil Code Section 2924b, and (iii) Borrower or its designee shall not have cured the default within sixty (60) days of such notice. As used in this Deed of Trust, Senior Lender Deed of Trust shall mean the deed or deeds of trust securing the loan or loans from the Senior Lender to Borrower. 5. EVENTS OF'DEFAULT 5.1 Events of Default Any one or more of the following events shall constitute a default under this Deed of Trust (a) failure of the Borrower to pay the indebtedness secured hereby or any installment thereof, whether principal, interest or otherwise, when and as the. same become due and payable, whether at maturity or by acceleration or otherwise; or (b) failure of Borrower to observe or to perform any covenant condition or agreement to be observed or performed by Borrower pursuant to the Note or this Deed of Trust including but not limited to the occupancy of property by Borrower provision; or (c) the occurrence of any event which, under the terms of the Note, shall entitle the Lender to exercise the rights or remedies thereunder; or (d) the occurrence of any event which, under the terms of the First Note and First Deed of Trust shall entitle the Lender to exercise the rights or remedies thereunder. 5.2 Acceleration and Sale (a) Acceleration Except as provided in Section 4.7, upon Borrower's breach of any covenant or agreement o_ f Borrower in this Deed of Trust, including the covenants to pay when due any sums, secured by this Deed of Trust, upon Borrower's failure to make any payment onto perform any of its'obligations, covenants and.agreements pursuant to the Note, Lender shall mail notice to Borrower as.provided in Section 6:9 hereof specifying: (i) the breach; (ii) the action required to cure such breach; (iii) a date, no less than 30 days from the date the notice,is mailed to Borrower, by which such breach must.be cured; and (iv) that failure to cure such breach on or'before thedate 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, Lender at Lender'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. Lender shall be.entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expensessincurred'in'pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees. 1552 \03 \701460.3 8847 (b) Borrower's Right to Reinstate Notwithstanding Lender's acceleration of the sums secured by this Deed of Trust,. Borrower will have the right to have any proceedings begun.by Lender to enforce this Deed of Trust 'di scontinued at any time prior to five (5) 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 the judgment enforcing this Deed of Trust if. (i) Borrower pays Lender all sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (ii) Borrower pays all reasonable expenses, incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, remedies including, but not limited to. reasonable attorneys' fees; and (iii) Borrower takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender'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 will remain in full force and effect as if no acceleration had occurred. (c) Sale After delivery to Trustee of a Notice of Default.and Demand for Sale and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Borrower Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, at public auction to the highest bidder for cash in lawful money - of the United States of America, payable at time of sale. Trustee may postpone sale of all or any portion,of the Property by public announcement at such time and place of sale.and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Borrower, Trustee or the Lender, may purchase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty expressed or implied. The recitals in such deed of any matters•or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee and of this Deed of Trust, Trustee shall apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced 'by the Note or otherwise, or representing advances, made or costs or expenses paid or incurred by the Lender under this Deed of Trust, or the secured obligations or any other instrument evidencing or securing any indebtedness hereby secured and to the payment of all other sums then secured thereby, including interest as provided in this Deed of Trust, the secured, obligations or any other such instrument,:iu such.order as'the Lender shall direct; and then the remainder, if any, shall be paid' to the person or persons legally entitled thereto. (d) Assignment of Rents; Appointment of Receiver ; Lender in Possession Upon, acceleration under Section 5.2(a) hereof or abandonment of the Property, Lender (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 rents of the Property (if any) including those past due. All rents collected by tender or the Receiver shall be applied first to payment of the costs of management of the Property and collection of rents including, but not limited to, receiver's fees, premiums,on receiver's bonds and reasonable attorney's fees, and then to the sums secured by this °Security Instrument. Lender and the receiver shall be liable to account only for those rents actuallyreceived. The provisions of this paragraph and Section 5.2(a) shall operate subject to the claims of prior lien holders. 1552\03\7014e0.3 ME 5.3 Exercise of Remedies; Delay. No exercise of any right or remedy by the Lender or Trustee her shall constitute a waiver of any other right:or remedy herein contained or provided by law, and no delay by the Lender or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder. 5.4 Trustee Substitution The irrevocable power to appoint a substitute trustee or trusteesi hereunder is hereby expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefore by filing for record in the office where this Deed of Trust is recorded a deed of appointment, and said power of appointment of successor trustee or trustees maybe exercised as often as and whenever the Lender deems advisable. The exercise of said power of appointment, no matter how often, shall not be deemed an exhaustion thereof; and upon recording of such deed or deeds of appointment, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with identically the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts. and duties of the predecessor in the trust hereunder, with the like effect as if originally names as trustee or as one of the trustees. 5.5 Remedies Cumulative No remedy herein contained or conferred upon the Lender or Trustee is intended to be exclusive of any other remedy or remedies afforded by law or by the terms hereof to the Lender or Trustee but each and every such remedy be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. 6. MISCELLANEOUS PROVISIONS 6.1 Successors, Assigns, Gender, Number The covenants and.agreements contained-in this Deed of Trust shall bind, and the benefit and advantages under it shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders. 6.2 Headings 'The headings are inserted only for convenience of reference and in no way define, limit, or describe the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof. 6.3 Actions on Behalf of the Lender Except as otherwise specifically provided herein, whenever any approval, notice. direction,. consent, request or other action by the Lender is required or permitted under this Deed of Trust, such action shall be in writing. 6.4 Terms The words "the Lender" means the present Lender, or any future owner or holder, including, pledgee of the indebtedness secured hereby. 6.5 Obligations of Borrower If more than one person has executed this Deed of Trust as "Borrower," the obligations of all such persons hereunder shall be joint and several. 1552 \03 \701460 3 A • 6.6 Incorporation by References The provisions of the BEGIN Program security instruments and the documents, relating to that program are incorporated by reference as though set out verbatim. 6.7 Severability If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. 6.8 Indemnification Borrower will indemnify and hold the Lender, its officers and agents harmless against any and all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of anything done or omitted in good faith pursuant to or in connection with this Deed of Trust and not assert any claim against the Lender, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower's expense,, defend, indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, damages (general; punitive or otherwise), causes of action (whether legal or equitable in nature) asserted by any person, firm, corporation or other entity arising out of this Deed of Trust and Borrower shall pay the Lender upon demand all claims, judgments, damages, losses or expenses (including reasonable legal expense) "incurred by the Lender as a result of any legal action arising out of this Deed of Trust. 6.9 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 mailing such notice by certified mail directed to the Property Address or any other address Borrower designates by notice to Lender as provided herein; and,,.(b) any notice to Lender shall be given by certified mail, return receipt requested, to Lender's mailing address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Borrower or Lender when given in the manner designated herein. 6.10 Beneficiary Statement Lender may collect a fee for furnishing the beneficiary statement in an amount not to exceed the amount as provided by Section 2943 of the Civil Code of California. 6.11 Use of Property Borrower shall not permit.or suffer the use of any of the Property for any purpose other than as a single family residential dwelling. [Signatures on following page] 10 1552103\701460.3 8350 IN WITNESS WHEREOF, Borrower has executed this Deed of "Crust on the day and year set forth above. By signing below, Borrower agrees to,the terms and conditions as set forth above. MAILING ADDRESS FOR NOTICES Andrew Lane and Amy Lane 12827 Dakota Street Poway, California 92064 SIGNATURE OF BORROWER(s): By: ajv�� � (Print Name) By: Q (Print N e) Acknowledgements 15521031701460.3 8351 STATE OF CALIFORNIA personally appeared Notary Public, proved to me on the basis of satisfactory evidence to be the person(s) hi s) whose name(�re subscribed to the within instrument and acknowledged to me th he /they executed the same her /their authorized capacity(ies), and that by i er /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. m � PATTY N. SMITH COMM. #1745493 V ' n NOTARY PUBLIC- CAUR)RNIA 1` SAN DIEGO COUNTY My Commission Expires - N otary Pub c - JUNE 13,2011 STATE OF CALIFORNIA COUNTY OF SAN DIEGO personally appeared before , Notary Public, proved to me on the basis of satisfactory evidence to be ttt� person(s) whose name(are subscribed to the within instrument and acknowledged to me that h hey executed the same in t i�S Oheir authorized capacity(ies), and that by hi er heir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. PATTY N. SMITH COMM. #1745493 w ` w NOTARY PUBUC-CAUFORNIA y o SAN DIEGO COUNTY My Com E Expires Notary Pub c 12 1552 \03 \701460 3 Exhibit "A" Order No.: PS I 751017-U 12 LEGAL DESCRIPTION LOT 17 OF CITY OF POWA_Y TRACT NO. 06 -06 THE MEADOWS, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15743, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY MARCH 5, 2009. END OF LEGAL DESCRIPTION END OF LEGAL DESCRIPTION COCA Preliminary Report Form - Modified (11 -17 -06) Page 3 8352