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Agency Deed of Trust with Assignment of Rents and Security Agreement 2009-0704719T i t DOC # 2009-0704719 F �' 1111111111111111111111111111111111111111111111111 G u III VIII VIII IIII IN RECORDING REQUESTED BY DEC 22, coos 8: AM AND WHEN RECORDED MAIL TO: 3 OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE 60 N DAVID L. BUTLER, COUNTY RECORDER The Poway Redevelopment Agency FEES: 0.00 WAYS: 3 13325 Civic Center Drive PAGES: 26 Poway, CA 92064 p u NN N Attn: Executive Director I IIIIII VIII VIII VIII VIII VIII VIII VIII VIII nlll VIII VIII VIII VIII IIII IIII NO FEE FOR RECORDING PURSUANT TO GOVERNMENT CODE SECTION 27383 �r 30,> 3,6- u 50 AGENCY DEED OF TRUST WITH ASSIGNMENT OF RENTS AND SECURITY AGREEMENT (Orange Gardens — 12510 Oak Knoll Road) THIS AGENCY DEED OF TRUST WITH ASSIGNMENT OF RENTS AND SECURITY AGREEMENT ( "Deed of Trust ") is made as of this ze tay of December 2009, by and among Poway Family Housing. QA WCPS, L.P., a California limited partnership ( "Trustor "), Chicago Title Company, a California corporation ( "Trustee "), and the Poway Redevelopment Agency, a public body corporate and politic ( "Beneficiary"). FOR GOOD AND VALUABLE CONSIDERATION, including the indebtedness herein recited and the trust herein created, the receipt of which is hereby acknowledged, Trustor hereby irrevocably grants, transfers, conveys and assigns to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit and security of Beneficiary, under and subject to the terms and conditions hereinafter set forth, Trustor's fee interest in the property located in the City of Poway, County of San Diego, State of California, that is described in the attached Exhibit A, incorporated herein by this reference (the "Property"). TOGETHER WITH all interest, estates or other claims, both in law and in equity which Trustor now has or may hereafter acquire in the Property and the rents; TOGETHER WITH all easements, rights -of -way and rights used in connection therewith or as a means of access thereto, including (without limiting the generality of the foregoing) all tenements, hereditaments and appurtenances thereof and thereto; TOGETHER WITH any and all buildings and improvements of every kind and description now or hereafter erected thereon, and all property of the Trustor now or hereafter affixed to or placed upon the Property; TOGETHER WITH all building materials and equipment now or hereafter delivered to said property and intended to be installed therein; TOGETHER WITH all right, title and interest of Trustor, now owned or hereafter acquired, in and to any land lying within the right -of -way of any street, open or proposed, 155D)9' +764781.1 adjoining the Property, and any and all sidewalks, alleys and strips and areas of land 6024 adjacent to or used in connection with the Property; TOGETHER WITH all estate, interest, right, title, other claim or demand, of every nature, in and to such property, including the Property, both in law and in equity, including, but not limited to, all deposits made with or other security given by Trustor to utility companies, the proceeds from any or all of such property, including the Property, claims or demands with respect to the proceeds of insurance in effect with respect thereto, which Trustor now has or may hereafter acquire, any and all awards made for the taking by eminent domain or by any proceeding or purchase in lieu thereof of the whole or any part of such property, including without limitation, any awards resulting from a change of grade of streets and awards for severance damages to the extent Beneficiary has an interest in such awards for taking as provided in Paragraph 4.1 herein; TOGETHER WITH all of Trustor's interest in all articles of personal property or fixtures now or hereafter attached to or used in and about the building or buildings now erected or hereafter to be erected on the Property which are necessary to the complete and comfortable use and occupancy of such building or buildings for the purposes for which they were or are to be erected, including all other goods and chattels and personal property as are ever used or furnished in operating a building, or the activities conducted therein, similar to the one herein described and referred to, and all renewals or replacements thereof or articles in substitution therefor, whether or not the same are, or shall be attached to said building or buildings in any manner; and TOGETHER WITH all of Trustor's interest in all building materials, fixtures, equipment, work in process and other personal property to be incorporated into the Property; all goods, materials, supplies, fixtures, equipment, machinery, furniture and furnishings, signs and other personal property now or hereafter appropriated for use on the Property, whether stored on the Property or elsewhere, and used or to be used in connection with the Property; all rents, issues and profits, and all inventory, accounts, accounts receivable, contract rights, general intangibles, chattel paper, instruments, documents, notes drafts, letters of credit, insurance policies, insurance and condemnation awards and proceeds, trade names, trademarks and service marks arising from or related to the Property and any business conducted thereon by Trustor; all replacements, additions, accessions and proceeds; and all books, records and files relating to any of the foregoing. All of the foregoing, together with the Property, is herein referred to as the "Security." To have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever. FOR THE PURPOSE OF SECURING THE FOLLOWING OBLIGATIONS (the "Secured Obligations "): (a) Payment to Beneficiary of all sums at any time owing under or in connection with the Agency Note (defined in Article 1 below) until paid or cancelled and any other amounts owing under the Agency Loan Documents. Said principal and other 2 1552 \09 \764781.1 r 6025 payments shall be due and payable as provided in the Agency Note or other Agency Loan Documents, as applicable. The Agency Note and all its terms are incorporated herein by reference, and this conveyance shall secure any and all extensions thereof, however evidenced; and (b) Payment of any sums advanced by Beneficiary to protect the Security pursuant to the terms and provisions of this Deed of Trust following a breach of Trustor's obligation to advance said sums and the expiration of any applicable cure period, with interest thereon as provided herein; and (c) Performance of every obligation, covenant or agreement of Trustor contained herein and in the Agency Loan Documents (defined in Section 1.2 below). AND TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR COVENANTS AND AGREES: ARTICLE 1. DEFINITIONS In addition to the terms defined elsewhere in this Deed of Trust, the following terms shall have the following meanings in this Deed of Trust: Section 1.1 The term "Assignment Agreement" means that certain Assignment and Assumption Agreement, dated as of December _, 2009, between Foundation for Affordable Housing V, Inc. ( "Foundation ") and the Trustor evidencing Foundation's assignment of the rights, duties, and obligations under the Agency Note to the Trustor, and the Trustor's assumption of Foundation's rights, duties, and obligations under the Agency Note. Section 1.2 The term "Loan Agreement" means that certain Acquisition and Predevelopment Loan Agreement and Option to Purchase, between Trustor and Beneficiary and Foundation for Affordable Housing V, Inc., of even date herewith, providing for the Beneficiary to loan to the Trustor One Million Two Hundred Ninety - Six Thousand Dollars ($1,296,000) for the acquisition and of the Property. Section 1.3 The term "Agency Loan Documents" means this Deed of Trust, the Agency Note, the Loan Agreement, the Agency Regulatory Agreement, Notice of Restriction on Transfer of Property, the Assignment of Plans, the Assignment Agreement, and any other debt, loan or security instruments between Trustor and the Beneficiary relating to the Property. Section 1.4 The term "Agency Note" means the promissory note in the principal amount of One Million Two Hundred. Ninety -Six Thousand Dollars ($1,296,000) of even date herewith executed by Foundation to the Beneficiary, and assigned by Foundation to the Trustor pursuant to the Assignment Agreement, the payment of which is secured by this Deed of Trust. (A copy of the Agency Note is on 15521%.09A764781.1 / , y file with the Beneficiary and terms and provisions of the Agency Note are incorporated herein by reference.). Section 1.5 The term "Principal" means the amount required to be paid under the Agency Note. Section 1.6 The term "Notice of Affordability Restrictions" means the Notice of Affordability Restrictions on Transfer of Property between the Trustor and the Beneficiary to be recorded against the Property. Section 1.7 The term "Regulatory Agreement" means that certain Regulatory Agreement and Declaration of Restrictive Covenants of even date herewith by and between the Beneficiary and the Trustor. Section 1.8 The term "Senior Lenders" means lenders making loans under the Approved Financing as defined in Section 1.1(m) of the Loan Agreement. ARTICLE 2. MAINTENANCE AND MODIFICATION OF THE PROPERTY AND SECURITY Section 2.1 Maintenance and Modification of the Property by Trustor. The Trustor agrees that at all times prior to full payment and performance of the Secured Obligations, the Trustor will, at the Trustor's own expense, maintain, preserve and keep the Security or cause the Security to be maintained and preserved in good condition. The Trustor will from time to time make or cause to be made all repairs, replacements and renewals deemed proper and necessary by it. The Beneficiary shall have no responsibility in any of these matters or for the making of improvements or additions to the Security. Trustor agrees to pay fully and discharge (or cause to be paid fully and discharged) all claims for labor done and for material and services furnished in connection with the Security, diligently to file or procure the filing of a valid notice of cessation upon the event of a cessation of labor on the work or construction on the Security for a continuous period of thirty (30) days or more, and to take all other reasonable steps to forestall the assertion of claims of lien against the Security of any part thereof. Trustor irrevocably appoints, designates and authorizes Beneficiary as its agent (said agency being coupled with an interest) with the authority, but without any obligation, to file for record any notices of completion or cessation of labor or any other notice that Beneficiary deems necessary or desirable to protect its interest in and to the Security or the Loan Documents; provided, however, that Beneficiary shall exercise its rights as agent of Trustor only in the event that Trustor shall fail to take, or shall fail to diligently continue to take, those actions as hereinbefore provided. Upon demand by Beneficiary, Trustor shall make or cause to be made such demands or claims as Beneficiary shall specify upon laborers, materialmen, 4 1552"W76478 1.1 6027 subcontractors or other persons who have furnished or claim to have furnished labor, services or materials in connection with the Security. Nothing herein contained shall require Trustor to pay any claims for labor, materials or services which Trustor in good faith disputes and is diligently contesting provided that Trustor shall, within thirty (30) days after the filing of any claim of lien, record in the Office of the Recorder of San Diego Count, a surety bond in an amount 1 and 1/2 times the amount of such claim item to protect against a claim of lien. Section 2.2 Granting of Easements. Trustor may not grant easements, licenses, rights -of -way or other rights or privileges in the nature of easements with respect to any property or rights included in the Security except those required or desirable for installation and maintenance of public utilities including, without limitation, water, gas, electricity, sewer, cable, telephone and telegraph, or those required by law, and as approved, in writing, by Beneficiary. Section 2.3 Assignment of Rents. As part of the consideration for the indebtedness evidenced by the Agency Note, Trustor hereby absolutely and unconditionally assigns and transfers to Beneficiary all the rents and revenues of the Property including those now due, past due, or to become due by virtue of any lease or other agreement for the occupancy or use of all or any part of the Property, regardless of to whom the rents and revenues of the Property are payable. Trustor hereby authorizes Beneficiary or Beneficiary's agents to collect the aforesaid rents and revenues and hereby directs each resident of the Property to pay such rents to Beneficiary or Beneficiary's agents; provided, however, that prior to written notice given by Beneficiary to Trustor of the breach by Trustor of any covenant or agreement of Trustor in the Loan Documents, Trustor shall collect and receive all rents and revenues of the Property as trustee for the benefit of Beneficiary and Trustor to apply the rents and revenues so collected to the Secured Obligations with the balance, so long as no such breach has occurred, to the account of Trustor, it being intended by Trustor and Beneficiary that this assigmment of rents constitutes an absolute assignment and not an assignment for additional security only. Upon delivery of written notice by Beneficiary to Trustor of the breach by Trustor of any covenant or agreement of Trustor in the Loan Documents, and without the necessity of Beneficiary entering upon and taking and maintaining full control of the Property in person, by agent or by a court- appointed receiver, Beneficiary shall immediately be entitled to possession of all rents and revenues of the Property as specified in this Section 2.3 as the same becomes due and payable, including but not limited to rents then due and unpaid, and all such rents shall immediately upon delivery of such notice be held by Trustor as trustee for the benefit of Beneficiary only; provided, however, that the written notice by Beneficiary to Trustor of the breach by Trustor shall contain a statement that Beneficiary exercises its rights to such rents. Trustor agrees that commencing upon delivery of such written notice of Trustor's breach by Beneficiary to Trustor, each resident of the Property shall make such rents payable to and pay such rents to Beneficiary or Beneficiary's agents on 1552 \09`:764781. I Beneficiary's written demand to each resident therefor, delivered to each resident 6028 personally, by mail or by delivering such demand to each rental unit, without any liability on the part of said resident to inquire further as to the existence of a default by Trustor. Trustor hereby covenants that, except to senior mortgage lenders, Trustor has not executed any prior assignment of said rents, that Trustor has not performed, and will not perform, any acts or has not executed and will not execute, any instrument which would prevent Beneficiary from exercising its rights under this Section 2.3, and that at the time of execution of this Deed of Trust, there has been no anticipation or prepayment of any of the rents of the Property for more than two (2) months prior to the due dates of such rents. Trustor covenants that Trustor will not hereafter collect or accept payment of any rents of the Property more than two (2) months prior to the due dates of such rents. Trustor further covenant that Trustor will execute and deliver to Beneficiary such further assignments of rents and revenues of the Property as Beneficiary may from time to time request. Upon Trustor's breach of any covenant or agreement of Trustor in the Loan Documents, Beneficiary may in person, by agent or by a court- appointed receiver, regardless of the adequacy of Beneficiary's security, enter upon and take and maintain full control of the Property in order to perform all acts necessary and appropriate for the operation and maintenance thereof including, but not limited to, the execution, cancellation or modification of leases, the collection of all rents and revenues of the Property, the making of repairs to the Property and the execution or termination of contracts providing for the management or maintenance of the Property, all on such terms as are deemed best to protect the security of this Deed of Trust. In the event Beneficiary elects to seek the appointment of a receiver for the Property upon Trustor's breach of any covenant or agreement of Trustor in this Deed of Trust, Trustor hereby expressly consents to the appointment of such receiver. Beneficiary or the receiver shall be entitled to receive a reasonable fee for so managing the Property. All rents and revenues collected subsequent to delivery of written notice by Beneficiary to Trustor of the breach by Trustor of any covenant or agreement of Trustor in the Loan Documents shall be applied first to the costs, if any, of taking control of and managing the Property and collecting the rents, including, but not limited to, attorney's fees, receiver's fees, premiums on receiver's bonds, costs of repairs to the Property, premiums on insurance policies, taxes, assessments and other charges on the Property, and the costs of discharging any obligation or liability of Trustor as lessor or landlord of the Property and then to the sums secured by this deed of Trust. Beneficiary or the receiver shall have access to the books and records used in the operation and maintenance of the Property and shall be liable to account only for those rents actually received. Beneficiary shall not be liable to Trustor, anyone claiming under or through Trustor or anyone having an interest in the Property by reason of anything done or left undone by Beneficiary under this Section 2.3. If the rents of the Property are not sufficient to meet the costs, if any, of taking control of and managing the Property and collecting the rents, any funds expended by 6 1592 \09 \764781.1 6029 Beneficiary for such purposes shall become part of the Secured Obligations secured by this Deed of Trust pursuant to Section 3.3 hereof. Unless Beneficiary and Trustor agree in writing to other terms of payment, such amounts shall be payable upon notice from Beneficiary to Trustor requesting payment thereof and shall bear interest from the date of disbursement at the rate stated in Section 3.3. Any entering upon and taking and maintaining of control of the Property by Beneficiary or the receiver and any application of rents as provided herein shall not cure or waive any default hereunder or invalidate any other right or remedy of Beneficiary under applicable law or provided herein. This assignment of rents of the Property shall terminate at such time as this Deed of Trust ceases to secure the Secured Obligations. ARTICLE 3. TAXES AND INSURANCE; ADVANCES Section 3.1 Taxes, Other Governmental Charges and Utility Charges. Trustor shall pay, or cause to be paid, at least fifteen (15) days prior to the date of delinquency, all taxes, assessments, charges and levies imposed by any public authority or utility company which are or may become a lien affecting the Security or any part thereof; provided, however, that Trustor shall not be required to pay and discharge any such tax, assessment, charge or levy so long as (a) the legality thereof shall be promptly and actively contested in good faith and by appropriate proceedings, and (b) Trustor maintains reserves adequate to pay any liabilities contested pursuant to this Section 3.1. With respect to taxes, special assessments or other similar governmental charges, Trustor shall pay such amount in full prior to the attachment of any lien therefor on any part of the Security; provided, however, if such taxes, assessments or charges may be paid in installments, Trustor may pay in such installments. Except as provided in clause (b) of the first sentence of this paragraph, the provisions of this Section 3.1 shall not be construed to require that Trustor maintain a reserve account, escrow account, impound account or other similar account for the payment of future taxes, assessments, charges and levies. In the event that Trustor shall fail to pay any of the foregoing items required by this Section to be paid by Trustor, Beneficiary may (but shall be under no obligation to) pay the same, after the Beneficiary has notified the Trustor of such failure to pay and the Trustor fails to fully pay such items within seven (7) business days after receipt of such notice. Any amount so advanced therefor by Beneficiary, together with interest thereon from the date of such advance at the maximum rate permitted by law, shall become part of the Secured Obligations secured hereby, and Trustor agrees to pay all such amounts. Section 3.2 Provisions Respecting Insurance. Trustor agrees to provide insurance conforming in all respects to that required under the Loan Documents during the course of construction and following completion, 1552 \09 \764781.1 and at all times until all amounts secured by this Deed of Trust have been paid and all 6030 Secured Obligations secured hereunder fulfilled, and this Deed of Trust reconveyed. All such insurance policies and coverages shall be maintained at Trustor's sole cost and expense. Certificates of insurance for all of the above insurance policies, showing the same to be in full force and effect, shall be delivered to the Beneficiary upon demand therefor at any time prior to Trustor's satisfaction of the Secured Obligations. Section 3.3 Advances. In the event the Trustor shall fail to maintain the full insurance coverage required by this Deed of Trust or shall fail to keep the Security in accordance with the Loan Documents, the Beneficiary, after at least seven (7) days prior notice to Beneficiary, may (but shall be under no obligation to) take out the required policies of insurance and pay the premiums on the same or may make such repairs or replacements as are necessary and provide for payment thereof, and all amounts so advanced therefor by the Beneficiary shall become part of the Secured Obligations (together with interest as set forth below) and shall be secured hereby, which amounts the Trustor agrees to pay on the demand of the Beneficiary, and if not so paid, shall bear interest from the date of the advance at the lesser of ten percent (10 %) per annum or the maximum rate permitted by law. ARTICLE 4. DAMAGE, DESTRUCTION OR CONDEMNATION Section 4.1 Awards and Damages. Subject to the rights of senior lenders, all judgments, awards of damages, settlements and compensation made in connection with or in lieu of (1) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (2) any damage to or destruction of the Property or in any part thereof by insured casualty, and (3) any other injury or damage to all or any part of the Property ( "Funds ") are hereby assigned to and shall be paid to the Beneficiary by a check made payable to the Beneficiary. The Beneficiary is authorized and empowered (but not required) to collect and receive any Funds 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 Beneficiary shall determine at its sole option. The Beneficiary 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 recovered by the Beneficiary may be released to Trustor upon such conditions as the Beneficiary may impose for its disposition including repair or restoration in accordance with Section 5.6(b) of the Loan Agreement. Application of all or any part of the Funds collected and received by the Beneficiary or the release thereof shall not cure or waive any default under this Deed of Trust. The rights of the Beneficiary under this Section 4.1 are subject to the rights of any senior mortgage lender. 1552V09'y764781. I 6031 ARTICLE 5. AGREEMENTS AFFECTING THE PROPERTY; FURTHER ASSURANCES; PAYMENT OF PRINCIPAL AND INTEREST Section 5.1 Other Agreements Affecting Property. The Trustor shall duly and punctually perform all terms, covenants, conditions and agreements binding upon it under the Loan Documents and any other agreement of any nature whatsoever now or hereafter involving or affecting the Security or any part thereof. Section 5.2 Agreement to Pay Attorneys' Fees and Expenses. In the event of any Event of Default (as defined below) hereunder, and if the Beneficiary should employ attorneys or incur other expenses for the collection of amounts due or the enforcement of performance or observance of an obligation or agreement on the part of the Trustor in this Deed of Trust, the Trustor agrees that it will, on demand therefor, pay to the Beneficiary the reasonable fees of such attorneys and such other reasonable expenses so incurred by the Beneficiary; and any such amounts paid by the Beneficiary shall be added to the Secured Obligations, and shall bear interest from the date such expenses are incurred at the lesser of ten percent (10 %) per annum or the maximum rate permitted by law. Section 5.3 Payment of the Principal. The Trustor shall pay to the Beneficiary the Principal and any other payments as set forth in the Agency Note in the amounts and by the times set out therein. Section 5.4 Personal Property. To the maximum extent permitted by law, the personal property subject to this Deed of Trust shall be deemed to be fixtures and part of the real property and this Deed of Trust shall constitute a fixtures filing under the California Commercial Code. As to any personal property not deemed or permitted to be fixtures, this Deed of Trust shall constitute a security agreement under the California Commercial Code. Section 5.5 Financing Statement. The Trustor shall execute and deliver to the Beneficiary such financing statements pursuant to the appropriate statutes, and any other documents or instruments as are required to convey to the Beneficiary a valid perfected security interest in the Security. The Trustor agrees to perform all acts which the Beneficiary may reasonably request so as to enable the Beneficiary to maintain such valid perfected security interest in the Security in order to secure the payment of the Agency Note in accordance with its terms. 9 1 552'.09 \764781.1 The Beneficiary is authorized to file a copy of any such financing statement in any 6032 jurisdiction(s) as it shall deem appropriate from time to time in order to protect the security interest established pursuant to this instrument. Section 5.6 Operation of the Security. The Trustor shall operate the Security (and, in case of a transfer of a portion of the Security subject to this Deed of Trust, the transferee shall operate such portion of the Security) in full compliance with the Loan Documents. Section 5.7 Inspection of the Security. At any and all reasonable times upon seventy -two (72) hours' notice, the Beneficiary and its duly authorized agents, attorneys, experts, engineers, accountants and representatives, shall have the right, without payment of charges or fees, to inspect the Security. Section 5.8 Nondiscrimination. The Trustor herein covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through then, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, age, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Security, nor shall the Trustor itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of residents, lessees, subtenants, sublessees or vendees in the Security. The foregoing covenants shall run with the land. ARTICLE 6. HAZARDOUS WASTE Trustor shall keep and maintain the Property in compliance with, and shall not cause or permit the Property to be in violation of any federal, state or local laws, ordinances or regulations relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and ground water conditions. Trustor shall not use, generate, manufacture, store or dispose of on, under, or about the Property or transport to or from the Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including without limitation, any substances defined as or included in the definition of "hazardous substances," hazardous wastes," "hazardous materials," or "toxic substances" under any applicable federal or state laws or regulations (collectively referred to hereinafter as "Hazardous Materials ") except such of the foregoing as may be customarily kept and used in and about multifamily residential property. 10 1552 \09 \764781.1 Trustor shall immediately advise Beneficiary in writing if at any time it receives 6033 written notice of (i) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against Trustor or the Property pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Materials, ( "Hazardous Materials Law "); (ii) all claims made or threatened by any third party against Trustor or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (i) and (ii) above hereinafter referred to a "Hazardous Materials Claims "); and (iii) Trustor's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be classified as "border -zone property" under the provision of California Health and Safety Code, Sections 25220 et sec ., or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any Hazardous Materials Law. Beneficiary shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys' fees in connection therewith paid by Trustor. Trustor shall indemnify and hold harmless Beneficiary and its board members, supervisors, directors, officers, employees, agents, successors and assigns from and against any loss, damage, cost, expense or liability directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, under, or about the Property including without limitation: (a) all foreseeable consequential damages; (b) the costs of any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of any closure, remedial or other required plans; and (c) all reasonable costs and expenses incurred by Beneficiary in connection with clauses (a) and (b), including but not limited to reasonable attorneys' fees. Without Beneficiary's prior written consent, which shall not be unreasonably withheld, Trustor shall not take any remedial action in response to the presence of any Hazardous Materials on, under or about the Property, nor enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Material Claims, which remedial action, settlement, consent decree or compromise might, in Beneficiary's reasonable judgment, impair the value of the Beneficiary's security hereunder; provided, however, that Beneficiary's prior consent shall not be necessary in the event that the presence of Hazardous Materials on, under, or about the Property either poses an immediate threat to the health, safety or welfare of any individual or is of such a nature that an immediate remedial response is necessary and it is not reasonably possible to obtain Beneficiary's consent before taking such action, provided that in such event Trustor shall notify Beneficiary as soon as practicable of any action so taken Beneficiary agrees not to withhold its consent, where such consent is required hereunder, if either (i) a particular remedial action is ordered by a court of competent jurisdiction, (ii) Trustor will or may be subjected to civil or criminal sanctions or 11 1552',09ya64781.1 penalties if it fails to take a required action; (iii) Trustor establishes to the reasonable 6034 satisfaction of Beneficiary that there is no reasonable alternative to such remedial action which would result in less impairment of Beneficiary's security hereunder; or (iv) the action has been agreed to by Beneficiary. The Trustor hereby acknowledges and agrees that (i) this Article is intended as the Beneficiary's written request for information (and the Trustor's response) concerning the environmental condition of the Property as required by California Code of Civil Procedure Section 726.5, and (ii) each representation and warranty in this Deed of Trust or any of the other Loan Documents (together with any indemnity applicable to a breach of any such representation and warranty) with respect to the environmental condition of the property is intended by the Beneficiary and the Trustor to be an "environmental provision" for purposes of California Code of Civil Procedure Section 736. In the event that any portion of the Property is determined to be "environmentally impaired" (as that term is defined in California Code of Civil Procedure Section 726.5(e)(3)) or to be an "affected parcel" (as that term is defined in California Code of Civil Procedure Section 726.5(e)(1)), then, without otherwise limiting or in any way affecting the Beneficiary's or the Trustee's rights and remedies under this Deed of Trust, the Beneficiary may elect to exercise its rights under California Code of Civil Procedure Section 726.5(a) to (1) waive its lien on such environmentally impaired or affected . portion of the Property and (2) exercise (a) the rights and remedies of an unsecured creditor, including reduction of its claim against the Trustor to judgment, and (b) any other rights and remedies permitted by law. For purposes of determining the Beneficiary's right to proceed as an unsecured creditor under California Code of Civil Procedure Section 726.5(a), the Trustor shall be deemed to have willfully permitted or acquiesced in a release or threatened release of hazardous materials, within the meaning of California Code of Civil Procedure Section 726.5(d)(1), if the release or threatened release of hazardous materials was knowingly or negligently caused or contributed to by any lessee, occupant, or user of any portion of the Property and the Trustor knew or should have known of the activity by such lessee, occupant, or user which caused or contributed to the release or threatened release. All costs and expenses, including (but not limited to) attorneys' fees, incurred by the Beneficiary in connection with any action commenced under this paragraph, including any action required by California Code of Civil Procedure Section 726.5(b) to determine the degree to which the Property is environmentally impaired, plus interest thereon at the rate specified in the Agency Note until paid, shall be added to the indebtedness secured by this Deed of Trust and shall be due and payable to the Beneficiary upon its demand made at any time following the conclusion of such action. ARTICLE 7. EVENTS OF DEFAULT AND REMEDIES Section 7.1 Events of Default. 12 1552109\764781.1 The following shall constitute events of default ( "Events of Default ") following 6035 the expiration of any applicable notice and cure periods: (1) failure to make any payment to be paid by Trustor under the Loan Documents; (2) failure to observe or perform any of Trustor's other covenants, agreements or obligations under the Loan Documents, including, without limitation, the provisions concerning discrimination; or (3) failure to make any payment or perform any of Trustor's other covenants, agreements, or obligations under any other debt instruments or regulatory agreement secured by the Property, which default shall not be cured within the times and in the manner provided therein. Section 7.2 Acceleration of Maturity. If an Event of Default shall have occurred and be continuing, then at the option of the Beneficiary, the amount of any payment related to the Event of Default and the unpaid Secured Obligation shall immediately become due and payable, upon written notice by the Beneficiary to the Trustor (or automatically where so specified in the Loan Documents), and no omission on the part of the Beneficiary to exercise such option when entitled to do so shall be construed as a waiver of such right. Section 7.3 The Beneficiary's Right to Enter and Take Possession. If an Event of Default shall have occurred and be continuing, the Beneficiary may: (a) Either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any Event of Default or Notice of Sale (as defined below) hereunder or invalidate any act done in response to such Default or pursuant to such Notice of Sale and, notwithstanding the continuance in possession of the Security, Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any Event of Default, including the right to exercise the power of sale; (b) Commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof, (c) Deliver to Trustee a written declaration of default and demand for sale, and a written notice of default and election to cause Trustor's interest in the Security to be sold ( "Notice of Sale "), which notice Trustee or Beneficiary shall cause to be duly filed for record in the Official Records of San Diego County; or 13 1 552 \09 \764781.1 (d) Exercise all other rights and remedies provided herein, in the 60 instruments by which the Trustor acquires title to any Security, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the Secured Obligations. Section 7.4 Foreclosure By Power of Sale. Should the Beneficiary elect to foreclose by exercise of the power of sale herein contained, the Beneficiary shall give notice to the Trustee (the "Notice of Sale ") and shall deposit with Trustee this Deed of Trust which is secured hereby (and the deposit of which shall be deemed to constitute evidence that the Secured Obligations are immediately due and payable), and such receipts and evidence of any expenditures made that are additionally secured hereby as Trustee may require. (a) Upon receipt of such Notice of Sale from the Beneficiary, Trustee shall cause to be recorded, published and delivered to Trustor such Notice of Sale as then required by law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time as may then be required by law and after recordation of such Notice of Sale having been given as required by law, sell the Security, at the time and place of sale fixed by it in said Notice of Sale, whether as a whole or in separate lots or parcels or items as Trustee shall deem expedient and in such order as it may determine unless specified otherwise by the Trustor according to California Civil Code Section 2924g(b), at public auction to the highest bidder, for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to such purchaser or purchasers thereof its good and sufficient deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed or any matters of facts shall be conclusive proof of the truthfulness thereof. Any person, including, without limitation, Trustor, Trustee or Beneficiary, may purchase at such sale, and Trustor hereby covenants to warrant and defend the title of such purchaser or purchasers. (b) After deducting all reasonable costs, fees and expenses of Trustee, including costs of evidence of title in connection with such sale, Trustee shall apply the proceeds of sale to payment of: (i) the unpaid Principal amount of the Agency Note; (ii) all other Secured Obligations owed to Beneficiary under the Loan Documents; (iii) all other sums then secured hereby; and (iv) the remainder, if any, to Trustor. (c) 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, and without further notice make such sale at the time fixed by the last postponement, or may, in its discretion, give a new Notice of Sale. Section 7.5 Receiver. If an Event of Default shall have occurred and be continuing, Beneficiary, as a matter of right and without further notice to Trustor or anyone claiming under the Security, and without regard to the then value of the Security or the interest of Trustor 14 15521)9�764781.1 therein, shall have the right to apply to any court having jurisdiction to appoint a receiver 6037 or receivers of the Security (or a part thereof), and Trustor hereby irrevocably consents to such appointment and waives further notice of any application therefor. Any such receiver or receivers shall have all the usual powers and duties of receivers in like or similar cases, and all the powers and duties of Beneficiary in case of entry as provided herein, and shall continue as such and exercise all such powers until the date of confirmation of sale of the Security, unless such receivership is sooner terminated. Section 7.6 Remedies Cumulative. No right, power or remedy conferred upon or reserved to the Beneficiary by this Deed of Trust is intended to be exclusive of any other right, power or remedy, but each and every such right, power and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy given hereunder or now or hereafter existing at law or in equity. Section 7.7 No Waiver. (a) No delay or omission of the Beneficiary to exercise any right, power or remedy accruing upon any Event of Default shall exhaust or impair any such right, power or remedy, or shall be construed to be a waiver of any such Event of Default or acquiescence therein; and every right, power and remedy given by this Deed of Trust to the Beneficiary may be exercised from time to time and as often as may be deemed expeditious by the Beneficiary. Beneficiary's express or implied consent to a breach by Trustor, or a waiver of any obligation of the Trustor hereunder shall not be deemed or construed to be a consent to any subsequent breach, or further waiver, of such obligation or of any other obligations of the Trustor hereunder. Failure on the part of the Beneficiary to complain of any act or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Beneficiary of its right hereunder or impair any rights, power or remedies consequent on any Event of Default by the Trustor. (b) If the Beneficiary (i) grants forbearance or an extension of time for the payment or performance of any Secured Obligation, (ii) takes other or additional security or the payment of any sums secured hereby, (iii) waives or does not exercise any right granted in the Loan Documents, (iv) releases any part of the Security from the lien of this Deed of Trust, or otherwise changes any of the terms, covenants, conditions or agreements in the Loan Documents, (v) consents to the granting of any easement or other right affecting the Security, or (vi) makes or consents to any agreement subordinating the lien hereof, any such act or omission shall not release, discharge, modify, change or affect the original liability under this Deed of Trust, or any other obligation of the Trustor or any subsequent purchaser of the Security or any part thereof, or any maker, co- signer, endorser, surety or guarantor (unless expressly released); nor shall any such act or omission preclude the Beneficiary from exercising any right, power or privilege herein granted or intended to be granted in any Event of Default then made or of any subsequent Event of Default, nor, except as otherwise expressly provided in an instrument or 15 1552\09 \764781.1 instruments executed by the Beneficiary shall the lien of this Deed of Trust be altered 6038 thereby. Section 7.8 Suits to Protect the Security. The Beneficiary shall have power to (a) institute and maintain such suits and proceedings as it may deem expedient to prevent any impairment of the Security and the rights of the Beneficiary as may be unlawful or any violation of this Deed of Trust, (b) preserve or protect its interest (as described in this Deed of Trust) in the Security, and (c) restrain the enforcement of or compliance with any legislation or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement for compliance with such enactment, rule or order would impair the Security thereunder or be prejudicial to the interest of the Beneficiary. Section 7.9 Trustee May File Proofs of Claim. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting the Trustor, its creditors or its property, the Beneficiary, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of the Beneficiary allowed in such proceedings and for any additional amount which may become due and payable by the Trustor hereunder after such date. Section 7.10 Waiver. The Trustor waives presentment, demand for payment, notice of dishonor, notice of protest and nonpayment, protest, notice of interest on interest and late charges, and diligence in taking any action to collect any Secured Obligations or in proceedings against the Security, in connection with the delivery, acceptance, performance, default, endorsement or guaranty of this Deed of Trust. ARTICLE 8. MISCELLANEOUS Section 8.1 Amendments. This Deed of Trust cannot be waived, changed, discharged or terminated orally, but only by an instrument in writing signed by Beneficiary and Trustor. Section 8.2 Reconveyance by Trustee. Upon written request of Beneficiary stating that all Secured Obligations have been paid or forgiven, and all obligations under the Agency Loan Documents have been performed in full upon expiration of the term of the Regulatory Agreement, and upon 16 1552\09\764781.1 surrender of this Deed of Trust to Trustee for cancellation and retention, and upon payment by Trustor of Trustee's reasonable fees, Trustee shall reconvey the Security to 6039 Trustor, or to the person or persons legally entitled thereto. Section 8.3 Notices. If at any time after the execution of this Deed of Trust it shall become necessary or convenient for one of the parties hereto to serve any notice, demand or communication upon the other parry, such notice, demand or communication shall be in writing and shall be served personally or by depositing the same in the registered United States mail, return receipt requested, postage prepaid and (1) if intended for Beneficiary shall be addressed to: The Poway Redevelopment Agency 13325 Civic Center Drive Poway, CA 92064 Attn: Executive Director and (2) if intended for Trustor shall be addressed to: Poway Family Housing Partners, L.P. 30950 Rancho Viejo Road, Suite 100 San Juan Capistrano, CA 92675 Attn: Executive Director Any notice, demand or communication shall be deemed given, received, made or communicated on the date personal delivery is effected or, if mailed in the manner herein specified, on the delivery date or date delivery is refused by the addressee, as shown on the return receipt. A copy of any notice sent to Agency must also be sent to the Office of the City Clerk at the above address. Either party may change its address at any time by giving written notice of such change to Beneficiary or Trustor as the case may be, in the manner provided herein, at least ten (10) days prior to the date such change is desired to be effective. Section 8.4 Successors and Joint Trustors. Where an obligation created herein is binding upon Trustor, the obligation shall also apply to and bind any transferee or successors in interest. Where the terms of the Deed of Trust have the effect of creating an obligation of the Trustor and a transferee, such obligation shall be deemed to be a joint and several obligation of the Trustor and such transferee. Where Trustor is more than one entity or person, all obligations of Trustor shall be deemed to be a joint and several obligation of each and every entity and person comprising Trustor. Section 8.5 Captions. 17 1552109'064781.1 The captions or headings at the beginning of each Section hereof are for the 6040 convenience of the parties and are not a part of this Deed of Trust. Section 8.6 Invalidity of Certain Provisions. Every provision of this Deed of Trust is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever by a court or other body of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable. If the lien of this Deed of Trust is invalid or unenforceable as to any part of the debt, or if the lien is invalid or unenforceable as to any part of the Security, the unsecured or partially secured portion of the debt, and all payments made on the debt, whether voluntary or under foreclosure or other enforcement action or procedure, shall be considered to have been first paid or applied to the full payment of that portion of the debt which is not secured or partially secured by the lien of this Deed of Trust. Section 8.7 Governing Law. This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California. Section 8.8 Gender and Number. In this Deed of Trust the singular shall include the plural and the masculine shall include the feminine and neuter and vice versa, if the context so requires. Section 8.9 Deed of Trust, Mortgage. Any reference in this Deed of Trust to a mortgage shall also refer to a deed of trust and any reference to a deed of trust shall also refer to a mortgage. Section 8.10 Actions. Trustor agrees to appear in and defend any action or proceeding purporting to affect the Security. Section 8.11 Substitution of Trustee. Beneficiary may from tune to time substitute a successor or successors to any Trustee named herein or acting hereunder to execute this Trust. Upon such appointment, and without conveyance to the successor trustee, the latter shall be vested with all title, powers, and duties conferred upon any Trustee herein named or acting hereunder. Each such appointment and substitution shall be made by written instrument executed by Beneficiary, containing reference to this Deed of Trust and its place of record, which, 18 1552 \09 \764781.1 when duly recorded in the proper office of the county or counties in which the Property is 6041 situated, shall be conclusive proof of proper appointment of the successor trustee. Section 8.12 Statute of Limitations. The pleading of any statute of limitations as a defense to any and all obligations secured by this Deed of Trust is hereby waived to the full extent permissible by law. Section 8.13 Acceptance by Trustee. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made public record as provided by law. Except as otherwise provided by law the Trustee is not obligated to notify any party hereto of pending sale under this Deed of Trust or of any action of proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. Section 8.14 Tax Credit Provisions Notwithstanding anything to the contrary contained herein or in any documents secured by this Deed of Trust or contained in any subordination agreement, the Beneficiary acknowledges and agrees that in the event of a foreclosure or deed -in -lieu of foreclosure (collectively, "Foreclosure ") with respect to the Property encumbered by this Deed of Trust, the following rule contained in 26 U.S.C. Section 42(h)(6)(E)(11), as amended, shall apply: For a period of three (3) years from the date of Foreclosure, with respect to any unit that had been regulated by the Regulatory Agreement with the California Tax Credit Allocation Committee, (1) none of the tenants occupying those units at the time of Foreclosure may be evicted or their tenancy terminated (other than for good cause), (ii) nor may any rent be increased except as otherwise permitted under Section 42 of the Internal Revenue Code. [Remainder of Page Left Intentionally Blank] 19 1552\09\764781.1 IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day 6042 and year first above written. TRUSTOR: POWAY FAMILY HOUSING PARTNERS, L.P., a California limited partnership By: Foundation for Affordable Housing V, Inc., a California nonprofit public benefit corporation Its: Managing General Partner By: Its: prv5►C\2"" C\- P - "" - B y: Affirmed Housing Group, Inc., a Delaware corporation Its: Administrative General Partner C Its: 1552 \09`1764781.1 IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day 604 and year first above written. TRUSTOR: POWAY FAMILY HOUSING PARTNERS, L.P., a California limited partnership By: Foundation for Affordable Housing V, Inc., a California nonprofit public benefit corporation Its: Managing General Partner B 1lCr� Its: ?ce- 1 6RX\t7 By: Affirmed Housing Group, Inc., a Delaware corporation Its: Administrative General Pamper By: Its: I i >' 01) 764 Nx 1. 1 STATE OF CALIFORNIA ) 6 COUNTY OF 0MV\ =t Q-. } On DeCp—w � to , 2QLfibefore me, Gay-'4 ?CV`C -e— Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name 4 is/.we subscribed to the within instrument and acknowledged to me that-he /she /lhey executed the same in his/her /thak authorized capacity(ioR), and that by his/her /tbei� signature(%�on the instrument the person(; 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. GAR Y PONCE Commission # 1716604 .s Notary Public - California Signature (Seal) _ W� "9��3 2011 t L552VW764781.1 CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of CALIFORNIA County of SAN DIEGO On December 18, 2009 before me, Kelli J. Elliott , No t a r y p u 1 i c , Date Name and Title of Officer, (e.g., "Jane Doe, Notary Public ") personally appeared James Silverwood , Name(s) of Signer(s) Who provided to me on basis of satisfactory evidence to be the persons} whose name* is /are subscribed to the within instrument and acknowledged to me that he /shefteq executed the same in his /tier tl"O authorized capacityo*, and that by his /weir signatureW on the instrument the personal, or the entity upon behalf of which the persons) acted, executed KELLI J. ELLIOTT the instrument. COMM. # NOTARYPUBM0CIWFOMM WITNESS my hand An ial seal. SAN DIEGO COUNTY + Comm. Exp. JAN. 16, 2011 ** I certify under penalty i of perjury under the laws of the State of Calfornia that the foregoing paragraph is true and correct. OPTIONAL of Notary Public Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and re- attachment of this form to another document. De�ription of Attached Document Title or Type,of Document: Document Date: mi N Signer(s) Other Than RWed Above: Capacity(tes) Claimed by Signer's Name: ❑ Attorney -in -Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: ❑ Partner — ❑ Limited ❑ General Individual Corporate Officer Title(s): Signer is Representing: Number of Pages: Signer's Name: ❑ Individual ❑ Corporate Officer Title(s): ❑ ner — ❑ Limited ❑ General ❑ Attorn -Fact ❑ Trustee ❑ Guardian or Conse or RIGHT THUMBPRINT OF SIGNER ❑ Other: -Top of thumb here Signer is Representing: EXHIBIT A (Legal Description) The land is situated in the City of Poway, County of San Diego, State of California, and is described as follows: THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: 17:\:161 "al THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 14, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT WHICH IS 30.00 FEET DISTANT NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF THE 40 FOOT COUNTY ROAD TO POWAY, SAID POINT OF BEGINNING BEARING NORTH 70 0 02'46" EAST 1005.15 FEET FROM THE POINT OF INTERSECTION OF THE SOUTH LINE OF SAID SECTION 14 WITH THE CENTER LINE OF MISSION ROAD 1 -A AT STATION 378 + 70.9 THEREON, AS SHOWN ON MAP THEREOF ON FILE IN THE OFFICE OF COUNTY SURVEYOR OF SAID SAN DIEGO COUNTY, AND BEING ALSO THE SOUTHWEST CORNER OF LAND DESCRIBED IN THE DEED FROM R. T. CREMER, ET UX, TO EVERETT DANIELSON, ET UX, DATED OCTOBER 4, 1940, RECORDED OCTOBER 16, 1940 IN BOOK 1085, PAGE 127 OF OFFICIAL RECORDS; RUNNING THENCE PARALLEL WITH AND 30.00 FEET NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF SAID POWAY ROAD SOUTH 83 0 20'00" WEST, 133.69 FEET; THENCE PARALLEL WITH THE WEST LINE OF SAID DANIELSON'S LAND, NORTH 00 °43'00" EAST TO THE SOUTH LINE OF THE NORTH 162.65 FEET (MEASURED ALONG THE EAST AND WEST LINES) OF THE LAND DESCRIBED IN THE DEED TO KENNETH C. SNYDER, ET UX, RECORDED JUNE 10, 1968 AS DOCUMENT NO. 96618: THENCE EAST ALONG SAID SOUTH LINE TO THE WEST LINE OF THE HEREINABOVE REFERRED TO DANIELSON'S LAND; THENCE ALONG SAID WEST LINE SOUTH 00 0 43'00" WEST, 321.97 FEET TO THE POINT OF BEGINNING. PARCEL 2: THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 14, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT WHICH IS 30.00 FEET DISTANT NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF THE 40 FOOT COUNTY ROAD TO POWAY, SAID POINT OF BEGINNING BEARING NORTH 70 0 02'46" EAST 1005.15 FEET FROM THE POINT OF INTERSECTION OF THE SOUTH LINE OF SAID SECTION 14 WITH THE CENTER LINE OF MISSION ROAD 1 -A AT STATION 378 + 70.9 THEREON, AS SHOWN ON MAP THEREOF ON FILE IN THE OFFICE OF COUNTY SURVEYOR OF SAID SAN DIEGO COUNTY, AND BEING ALSO THE SOUTHWEST CORNER OF LAND DESCRIBED IN THE DEED FROM R. T. CREMER, ET UX, TO EVERETT DANIELSON, ET UX, DATED OCTOBER 4, 1940, RECORDED OCTOBER 16, 1940 IN BOOK 1085, PAGE 127 OF OFFICIAL RECORDS; RUNNING THENCE PARALLEL WITH AND 30.00 FEET NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF SAID POWAY ROAD SOUTH 83 0 20'00" WEST, 133.69 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID PARALLEL LINE SOUTH 83 0 20'00" WEST, 133.68 FEET 6046 LEGAL DESCRIPTION (continued) TO THE EAST LINE OF LAND AS DESCRIBED IN PARCEL 2 OF THE DEED TO J. FRANK ZITTELL AND CHARLOTTE G. ZITTELL, RECORDED MARCH 26, 1947, IN BOOK 2374, PAGE 80 OF OFFICIAL RECORDS; THENCE ALONG THE EAST LINE OF LAND AS DESCRIBED IN SAID PARCEL 2, NORTH 00 °43'00" EAST TO THE SOUTHWEST CORNER OF THE NORTH 162.65 FEET (MEASURED ALONG THE EAST AND WEST LINES) OF THE LAND DESCRIBED IN DEED TO KENNETH C. SNYDER, ET US, RECORDED JUNE 10, 1968 AS DOCUMENT NO. 96618; THENCE EAST ALONG THE SOUTH LINE OF SAID NORTH 162.65 FEET TO A LINE WHICH BEARS NORTH 00 0 43'00" EAST, PARALLEL WITH THE WEST LINE OF SAID DANIELSON'S LANDS, FROM THE TRUE POINT OF BEGINNING; THENCE SOUTH 00 °43'00" WEST TO THE TRUE POINT OF BEGINNING. PARCEL 3: AN EASEMENT FOR INGRESS AND EGRESS AND FOR ALL UTILITY PURPOSES AND INCIDENTS THERETO OVER, UNDER, ALONG AND ACROSS THE WEST 20.00 FEET OF THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 14, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT WHICH IS 30.00 FEET DISTANT NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF THE 40 FOOT COUNTY ROAD TO POWAY, SAID POINT OF BEGINNING BEARING NORTH 70 0 02'46" EAST 1005.15 FEET FROM THE POINT OF INTERSECTION OF THE SOUTH LINE OF SAID SECTION 14 WITH THE CENTER LINE OF MISSION ROAD 1 -A AT STATION 378 + 70.9 THEREON, AS SHOWN ON MAP THEREOF ON FILE IN THE OFFICE OF COUNTY SURVEYOR OF SAID SAN DIEGO COUNTY, AND BEING ALSO THE SOUTHWEST CORNER OF LAND DESCRIBED IN THE DEED FROM R. T. CREMER, ET UX, TO EVERETT DANIELSON, ET UX, DATED OCTOBER 4, 1940, RECORDED OCTOBER 16, 1940 IN BOOK 1085, PAGE 127 OF OFFICIAL RECORDS; RUNNING THENCE PARALLEL WITH AND 30.00 FEET NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF SAID POWAY ROAD SOUTH 83 0 20'00" WEST 267.37 FEET TO THE EAST LINE OF LAND AS DESCRIBED IN PARCEL 2 OF DEED TO J. FRANK ZITTELL AND CHARLOTTE G. ZITTELL, RECORDED MARCH 26, 1947, IN BOOK 2374, PAGE 80 OF OFFICIAL RECORDS; THENCE ALONG THE EAST LINE OF LAND AS DESCRIBED IN SAID PARCEL 2, NORTH 00 °43'00" EAST TO THE SOUTH LINE OF LAND AS DESCRIBED IN PARCEL 1 OF SAID DEED TO THE ZITTELLS; THENCE ALONG THE SOUTH LINE OF LAND AS DESCRIBED IN SAID PARCEL 1, EASTERLY TO THE WEST LINE OF DANIELSON'S LAND HEREINABOVE REFERRED TO; THENCE ALONG THE WEST LINE OF SAID DANIELSON'S LAND SOUTH 00 0 43'00" WEST 483.72 FEET TO THE POINT OF BEGINNING. PARCEL 4: AN EASEMENT FOR INGRESS AND EGRESS AND FOR ALL UTILITY PURPOSES AND INCIDENTS THERETO OVER, UNDER, ALONG AND ACROSS A STRIP OF LAND 30.00 FEET IN WIDTH LYING WITHIN THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 14, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, THE WEST LINE OF SAID STRIP BEING DESCRIBED AS FOLLOWS: 6047 LEGAL DESCRIPTION (continued) BEGINNING AT A POINT WHICH IS 30.00 FEET DISTANT NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF THE 40 FOOT COUNTY ROAD TO POWAY, SAID POINT OF BEGINNING BEARING NORTH 70 0 02'46" EAST 1005.15 FEET FROM THE POINT OF INTERSECTION OF THE SOUTH LINE OF SAID SECTION 14 WITH THE CENTER LINE OF MISSION ROAD 1 -A AT STATION 378 + 70.9 THEREON, AS SHOWN ON MAP THEREOF ON FILE IN THE OFFICE OF COUNTY SURVEYOR OF SAID SAN DIEGO COUNTY, AND BEING ALSO THE SOUTHWEST CORNER OF LAND DESCRIBED IN THE DEED FROM R. T. CREMER, ET UX, TO EVERETT DANIELSON, ET UX, DATED OCTOBER 4, 1940, RECORDED OCTOBER 16, 1940 IN BOOK 1085, PAGE 127 OF OFFICIAL RECORDS; RUNNING THENCE PARALLEL WITH AND 30.00 FEET NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF SAID POWAY ROAD SOUTH 83 0 20'00" WEST 277.46 FEET; THENCE NORTH 00 °43'00" EAST, 505.00 FEET, MORE OR LESS, TO THE SOUTH LINE OF LAND DESCRIBED IN PARCEL 1 IN THE DEED TO J. FRANK ZITTELL, ET UX, RECORDED MARCH 26, 1947, IN BOOK 2374, PAGE 80 OF OFFICIAL RECORDS, BEING THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 00 0 43'00" EAST TO THE SOUTH LINE OF THAT CERTAIN EASEMENT FOR PUBLIC ROAD PURPOSES DESCRIBED IN THE DEED OF THE COUNTY OF SAN DIEGO RECORDED MAY 2, 1963 AS DOCUMENT NO. 76105 OFFICIAL RECORDS. SAID STRIP TO TERMINATE ON THE NORTH IN THE SOUTH LINE OF SAID PUBLIC ROAD AND ON THE SOUTH IN THE SOUTH LINE OF SAID PARCEL 1 OF ZITTELL'S LAND. END OF LEGAL DESCRIPTION its 1552;09v764781.1