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HomeMy WebLinkAboutDeeds & Easements_21B-1996EApproved: 9/3/96 Trust Deed California West Construction AKA AWARE Development Company Financing of impact fees for construction of 11 single family homes on Magnolia Avenue See Finance Agreement this date under "Agreements"� o` JkSA RECORDING REQUESTED BY WHEN RECORDED MAIL TO: City Clerk City oi'Redlands P. O. Box 300� Redlands. CA 92373 n Recorded in official Records, County of San Bernardino, Errol J. Mackzum, Recorder Doc No. 19960463537 3:00pm 12/18/96 Chicago iitl¢ # 01 i 2 3 4 5 6 I 9 PG FEE APF Gtms I Ph Coy -CRT CPY AOD NM PEW PR PCOR S 5— NON ST I LN SVY CIT--CO TRANS TAX OA CNRG EXAM (SPACE ABOVE LINE FOR RECORDER'S USE) TRUST DEED THIS TRUST DEED ("Trust Deed"), dated December 17, 1996, is made by Aware Development Company, Incorporated ("Trustor") a California corporation whose address is 1500 West Sixth Street, Suite "A," Corona, California 91720, in favor of Chicago Title Company, a California corporation ("Trustee"), and the City of Redlands, a California municipal corporation whose address is 35 Cajon Street, Redlands, California 92373 ("Beneficiary"), and is executed to secure, among other things, that certain Security Agreement dated as of December 17, 1996 and executed by Trustor in favor of Beneficiary (such Security Agreement, as it may from time to time be supplemented, amended, extended, renewed or otherwise modified from time to time being referred to in this Trust Deed as the "Security Agreement"), the provisions of which are incorporated in this Trust Deed by reference. 1,00 Grant in Trust and Security Agreement. For valuable consideration, Trustor irrevocably grants, transfers and assigns to Trustee, in trust, with power of sale, for the benefit of Beneficiary, the following property (the "Trust Estate"): (a) the real property described in Exhibit "A" attached to this Trust Deed and DJM2036LE incorporated in this Trust Deed by reference (the "Land"); (b) all buildings, structures and other improvements no«- or in the future located or to be constructed on the Land (the "Improvements"): (c) all tenements, hereditament, appurtenances, privileges and other rights and interests now or in the future benefiting or otherwise relating to the Land or the Improvements, including easements, rights-of-xva)% devclopment rights. mineral rights, water rights and water stock (the "Appurtenances," and together with the Land and the Improvements, the "Real Property (d) all rents, issues, income, revenues, royalties and profits now or in the future payable with respect to or otherwise derived from the Real Property or the ownership, use, management, operation, leasing or occupancy of the Real Property, including those past due and unpaid (the "Rents"); 2.00 Obliszations Secured. This Trust Deed is given for the purpose of securing payment and performance of the following (the "Secured Obligations") (a) all present and future indebtedness evidenced by the Security Agreement, including principal, interest and all other amounts payable under the terms of the Security Agreement; (b) all present and future obligations of Trustor to Beneficiary under this Trust Deed, and (c) al I additional present and future obligations of Trustor to Beneficiary under any other agreement or instrument (whether existing now or in the future states that it is, or such obligations are, secured by this Trust Deed; in each case as such indebtedness and other obligation may from time to time be supplemented, modified, amended, renewed and extended, whether evidenced by new or additional documents or resulting in a change in the interest rate on any indebtedness or otherwise). DJM2036LE 2 3.00 Trustor's Covenants. To protect the security of this Trust Deed, Trustor agrees as follows: ,).01 Pavnnent and Performance of Secured Obligations: Purchase Agreement. Trustor shall pay and perform all Secured Obligations in accordance with the respective terms of such Secured Obligations, whether evidenced by or arising under this Trust Deed, the Security Agreement or otherwise. .3.02 Maintenance of Trust Estate. Unless Beneficiary otherwise consents in writing.. Trustor shall (a) keep the Property in good condition and repair, and promptly and in a good and workmanlike manner (and with new materials of good quality) complete any Improvements to be constructed on the Land, repair or restore any part of the Real Property that may be injured, damaged or destroyed, and repair, restore or replace any goods that may be injured, damaged, destroyed or lost or t hat may be or become obsolete, defective or worn out (except that Trustor shall not be required to repair, restore or replace any such goods of insignificant value which are not reasonably necessary or appropriate to the efficient operation of the Real Property), and in each case pay when due all valid claims for labor, service, equipment and material and any other costs incurred in connection with any such action, (b) not remove, demolish or materially alter any Improvements, (c) not commit or permit any waste of any part of the Real Property, (d) not permit or consent to any restriction that would prevent or otherwise impair the use or development of the Real Property for the purposes contemplated by the Security Agreement, (e) comply in all material respects with all laws and other requirements, and not commit or permit any material violation of any laws or other requirements, ,vhich affect any part of the Trust Estate or require any alterations or improvements to be made to any part of the Real Property, (f) take such action from time to time as may be reasonably necessary or appropriate, or as Beneficiary may reasonably require, to protect the DJN12036LE physical security of the Real Property, (g) not part with possession of or abandon any part of the Trust Estate or cause or permit any interest in any part of the Trust Estate to be sold, transferred, leased, encumbered. released, relinquished. terminated or otherwise disposed of (whether voluntarily. by operation of la,�N' or othe5vise), and (h) take all other action ~Which may be reasonably necessary or appropriate to preserve, maintain and protect the Trust Estate, including the enforcement or performance of any rights or obligations of Trustor. Any change in ownership of a controlling interest in Trustor shall be deemed to constitute a transfer of the Trust Estate in violation of the covenant contained in (g) above. 3.03 Insurance. Trustor shall maintain property "all risk" insurance (including earthquake coverage) covering the Real Property and any collateral consisting of personal property in such forms and amounts and with such insurance companies as are commercially reasonable. Additionally, Trustor shall at all times maintain comprehensive general liability insurance in an amount not less than $1,000,000. 3.04 Liens and Taxes. Trustor shall pay, prior to delinquency, all taxes which are or may become a lien affecting any part of the Trust Estate (including assessments on appurtenant water stock) and Trustor shall pay and perform when due all other obligations secured by or constituting a lien affecting any part of the Trust Estate. 3.05 Actions. Trustor shall appear in and defend any claim or any action or other proceeding purporting to affect title or other interests relating to any part of the Trust Estate, the security of this Trust Deed or the rights or powers of Beneficiary or Trustee, and give Beneficiary prompt written notice of any such claim, action or proceeding. Beneficiary and Trustee may, at the expense of Trustor, appear in and defend any such claim, action or proceeding and any claim, action 4 MNIN1bi.r or other proceeding asserted or brought against Beneficiary or Trustee in connection with or relating to any part of the Trust Estate or this Trust Deed. 3.06 Action By Beneficiary or Trustee. If Trustor fails to perform any of its obligations under this Trust Deed, Beneficiary or Trustee may, but without any obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligations under this Trust Deed, and at the expense of Trustor; (a) perform such obligations in such manner and to such extent and make such payment and take such other action as either may deem necessary in order to protect the security of this Trust Deed, Beneficiary or Trustee being authorized to enter upon the property for such purposes, (b) appear in and defend any claim or any action or other proceeding purporting to affect title or other interests relating to any part of the Trust Estate, the security of this Trust Deed or the rights or powers of Beneficiary of Trustee. If Beneficiary or Trustee shall elect to pay any such lien or right of others of any taxes which are or may become a lien affecting any part of the Trust Estate or make any other payments to protect the security of this Trust Deed, Beneficiary or Trustee may do so without inquiring into the validity or enforceability of any apparent or threatened lien, right of others or taxes, and may pay any such taxes in reliance on information from the appropriate taxing authority or public office without further inquiry. 3.07 Obligations with Respect to Trust Estate. Neither Beneficiary nor Trustee shall be under any obligation to preserve, maintain or protect the Trust Estate or any of Trustor's rights or interests in the Trust Estate, or make or give any presentments, demands for performance, protests, notices of nonperformance, protest or dishonor or other notices of any kind in connection with any rights, or take any other action with respect to any other matters relating to the Trust Estate. Beneficiary and Trustee do not assume and shall have no liability for, and shall not be obligated to perform any of Trustor's obligations with respect to any rights or any other matters relating to the 5 DJM2036LE Trust Estate, and nothing contained in this Trust Deed shall release Trustor from any such obligations. 3.08 Default. Upon the occurrence of any event of default: (a) Trustor shall be ill default under this Trust Deed, and upon acceleration or the maturity of any Secured Obligation in accordance with the terms of the Security Agreement, all Secured Obligations shall immediately become due and payable without further notice to Trustor; and (b) Beneficiary may, without notice to or demand upon Trustor, which are expressly waived by Trustor (except for notices or demands otherwise required by applicable laws to the extent not effectively waived by Trustor and any notices or demands specified below), and without releasing Trustor from any of its obligations, exercise any one or more of the following remedies as beneficiary may determine: Beneficiary may, either directly or through an agent or court -appointed receiver, and without regard to the adequacy of any security for the Secured Obligations: (A) enter, take possession of, manage, operate, protect, preserve and maintain, and exercise any other rights or an owner of the Trust Estate, and use any other properties or facilities of Trustor relating to the Trust Estate, all without payment of rent or other compensation to Trustor; (B) enter into such contracts and take such other action as Beneficiary deems appropriate to complete all or any part of any construction which may have commenced on the Land, subject to such modifications and other changes in the plan of development as Beneficiary may deem appropriate; (C) make, cancel. enforce or modify leases, obtain and evict tenants, fix or modify rents DJM2036LE 6 and, in its own narne or in the name of Trustor, otherwise conduct any business of Trustor in relation to the Trust Estate and deal with Trustor's creditors, debtors, tenants, agents and employees and any other persons having any relationship with Trustor in relation to the Trust Estate. and amend any contracts between them. in any manner Beneficiary may determine; (D) either with or without taking possession of the Trust Estate, notify obligors on any rights that all payments and other performance are to be made and rendered directly and exclusively to Beneficiary, and in its own name supplement, modify, amend, renew, extend. accelerate, accept partial payments or performance on.. make allowances and adjustments and issue credit with respect to, give approvals, waiver and consents under, release, settle, compromise, compound, sue for, collect or otherwise liquidate, enforce or deal with any rights, including collection of amounts past due and unpaid (Trustor agreeing not to take any such action after the occurrence of an Event of Default without prior written authorization from Beneficiary); (E) endorse, in the name of Trustor, all checks, drafts and other evidences of payment relating to the Trust Estate, and receive, open and dispose of all mail addressed Trustor and notify the postal authorities to change the address for delivery of such mail to such address as beneficiary may designate; and (F) take such other action as Beneficiary deems appropriate to protect the security of this Trust Deed. Beneficiary may execute and deliver to Trustee written declaration of default and demand for sale and written notice of default and of election to cause all or any part of the Trust Estate to be sold, which notice Trustee shall cause to be filed for record; and after the lapse of such time as may 7 then be required by law following the recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell such property at the time and place fixed by it in such notice of sale, either as a whole or in separate parcels and in such order as Beneficiary may direct (Trustor waiving any right to direct the order of- sale), at public auction to the highest bidder for cash in lawful money of the United States (or cash equivalents acceptable to Trustee to the extent permitted by applicable law), payable at the time of sale. Trustee may postpone the sale of all or any part of the Trust Estate by public announcement at such time and place of sale, and from time to time after any such postponement may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to the purchaser at such sale its deed conveying the property so sold, but without any covenant or warranty, express or implied, and the recital in person, including Trustee or Beneficiary, may purchase at such sale, and any bid by Beneficiary may be, in whole or in part, in the form of cancellation of all or any part of the Secured Obligations. Any such sale shall be free and clear of any interest of Trustor and any lease, encumbrance or other matter affecting the property the property so sold which is subject to subordinate to this Trust Deed, except that any such sale shall not result in the termination of any such lease (A) if and to the extent otherwise provided in any estoppel or other agreement executed by the tenant and Beneficiary (or executed by the tenant in favor of, and accepted by, Beneficiary), or (B) if the purchaser at such sale gives written notice to the tenant, within 30 days after date of sale, that the lease will continue in effect. (iii) Beneficiary may proceed to protect, exercise and enforce any and all other remedies provided under any loan documents or by applicable laws. All proceeds of collection, sale or other liquidation of the Trust Estate shall be applied first to all costs, fees, expenses and other amounts (including interest) payable by Trustor under Section DJM2036LE 3.09 of this Trust Deed and to all other Secured Obligations not otherwise repaid in such order and manner as Beneficiary may determine, and the remainder, if any, to the person or persons legally entitled thereto. Each of the remedies provided in this Trust Deed is cumulative and not exclusive of, and shall not prejudice, any other remedy provided in this Trust Deed or by applicable laws or under any other loan document. Each remedy may be exercised from time to time as often as deemed necessary by Trustee and Beneficiary, and in such order and manner as Beneficiary may determine. This Trust Deed is independent of any other security for the Secured Obligations, and upon the occurrence of an event of default, Trustee or Beneficiary may proceed in the enforcement of this Trust Deed independently of any other remedy that Trustee or Beneficiary may at any time hold with respect to the Trust Estate or the Secured Obligations or any other security. Trustor, for itself and for any other person claiming by or through Trustor, waives, to the fullest extent permitted by applicable laws, all rights to require a marshaling of assets by Trustee or Beneficiary or to require Trustee or Beneficiary to first resort to any particular portion of the Trust Estate or any other security (whether such portion shall have been retained or conveyed by Trustor) before resorting to any other portion, and all rights of redemption, stay and appraisal. 3.09 Costs Fees and Expenses. Trustor shall pay, on demand, all costs, fees, expenses, advances, charges, losses and liabilities of Trustee and Beneficiary under or in connection with this Trust Deed or the enforcement of, or the exercise of any remedy or any other action taken by Trustee or Beneficiary under, this Trust Deed or the collection of the Secured Obligations, in each case including (a) reconveyance and foreclosure fees of Trustee, (b) costs and expenses of Beneficiary or Trustee or any receiver appointed under this Trust Deed in connection with the operation, 9 DJN12 6LF maintenance. management, protection, preservation, collection, sale or other liquidation of the Trust Estate or foreclosure of this Trust Deed, (c) advances made by Beneficiary to complete or partially construct all or any part of any construction which may have commenced on the Land or otherwise to protect the security of this Trust Deed, (d) cost of evidence of title. and (e) the reasonable fees and disbursements of Trustee;'s and Beneficiary's legal counsel and other out-of-pocket expenses, and the reasonable charge of Beneficiary's internal legal counsel; together ,vith interest on all such amounts until paid. 3.10 Late Payments. By accepting payment of any part of the Secured Obligations after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other Secured Obligations or to declare a default for failure to so pay. 3.11 Action by Trustee. At any time and from time to time upon written request of Beneficiary and presentation of this Trust Deed for endorsement, and without affecting the personal liability of any person for payment of the Secured Obligations or the security of this Trust Deed for the full amount of the Secured Obligations on all property remaining subject to this Trust Deed, Trustee may, without notice and without liability for such action, and notwithstanding the absence of any payment on the Secured Obligations or any other consideration: (a) reconvey all or any part of the Trust Estate, (b) consent to the making and recording, or either, of any map or plat of the land, (c) join in granting any easement affecting the Land, or (d) join in or consent to any extension agreement or any agreement subordinating the lien of this Trust Deed. Trustee is not obligated to notify Trustor or Beneficiary of any pending sale under any other deed of trust or of any action or other proceeding in which Trustor, Beneficiary or Trustee is a party unless brought by Trustee. 3.12 Reconvevance. Upon written request of Beneficiary and surrender of this Trust Deed 10 DIM?03GLE and the Note to Trustee for cancellation or endorsement, and upon payment of its fees and charges, Trustee shall reconvey, without warranty, all or any part of the property then subject to this Trust Deed. Any reconveyance, whether full or partial, may be made in terms to the person or persons le,-,al1v entitled thereto.. and the recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. Beneficiary shall not be required to cause any property to be released from this Trust Deed until final payment and performance in full of all secured obligations and termination of all obligations of Beneficiary under or in connection with the Note. 3.13 Partial Reconve rance. See Exhibit "B" attached hereto. 3.14 Substitution of Trustee. Beneficiary may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named in or acting under this Trust Deed, which instrument, when executed by Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where the Land is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees who shall, without conveyance from the predecessor Trustee, succeed to all of its title, estate, rights, powers and duties. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary, the book and page where this Trust Deed is recorded (or the date of recording and instrument number) and the name and address of the Trustee. 3.15 Attorney -in -Fact. Trustor appoints Beneficiary as Trustor s attorney -in -fact, with full authority in the place of Trustor and in the name of Trustor or Beneficiary, to take such action and execute such documents as Beneficiary may reasonably deem necessary or advisable in connection with the exercise of any remedies or any other action taken by Beneficiary or Trustee under this Trust Deed. DIM203GLE 3.16 Successors and Assign*. This Trust Deed applies to and shall be binding on and inure to the benefit of all parties to this Trust Deed and their respective successors and assigns. 1,17 ,acceptance. Notice of acceptance of this Trust Deed by Beneficiary or Trustee is waived by Trustor. Trustee accepts this Trust Deed when this Trust Deed, duly executed and acknowledged, is made a public record as provided by law. )AS Beneficiary's Statements: For any statement regarding, file Secured Obligations, Beneficiary may charge the maximum amount permitted by la-w at the time of the request for such statement. 3.19 Rules of Construction. For purposes of this Trust Deed: (a) any reference to "days" or months shall mean calendar days or months, (ii) the word "including" shall mean "including without limitation," (iii) any reference to any loan document or other document or exhibit shall mean such loan document or document or exhibit as it may from time to time be supplemented, modified, amended and extended in accordance with the terms hereof or thereof, (iv) defined terms shall be equally applicable to the singular and plural forms, and (v) all existing and future exhibits to this Trust Deed are incorporated herein by this reference. The provisions of this Trust Deed are declared to be severable. 3.20 Goveming Law. This Trust Deed shall be governed by, and construed and enforced in accordance with, the laws of California. 3.21 Request for Notice. Trustor requests that a copy of any notice of default and a copy of any notice of sale be mailed to Trustor at Trustor`s address set forth below. 12 DJM203GLE TRUSTOR: By Address: DJM2036LE 13 Exhibit "A" to Trust Deed LEGAL DESCRIPTION OF LAND (that certain land situated in the County of San Bernardino. State of California, described as follows): 14 DJM?03GLr Exhibit "B" to Trust Deed PARTIAL RELEASE Supplement to Deed of Trust This supplement is attached to and made a part of the Deed of Trust dated December _, 1996, between Aware Development Company, Inc., a California corporation, as Trustor, the City of Redlands. a California municipal corporation. as Beneficiary. and CHICAGO TITLE INSURANCE COMPANY. as Trustee and describing certain property (the "Real Property") and securing a certain security agreement (the "Security Agreement") dated December 10, 1996 from Trustor to Beneficiary. The Deed of Trust is hereby supplemented as follows: 1. Parcel Mus. Subdivision maps and development approvals. Beneficiary consents to the recordation of subdivision maps, parcel maps, and other documents reasonably necessary and customary for development of the Real Property as single family residences, and other permitted uses; provided that (i) no notice of default has been filed of record and no condition or event has occurred which would constitute a default upon the passage of time or the giving of notice; (ii) recordation of the maps and compliance with any conditions imposed on them shall not reduce materially the value of the Real Property; and (iii) recordation of the maps and compliance with any conditions imposed on it, does not hinder or obstruct access to streets or the furnishing of utility service to the Property. Beneficiary shall sign the plan or map when requested by Trustor if required for an effective filing of governmental approval of the subdivision map or parcel map. 2. Pgnial Release in Connection with Subdivision Maps. Parcel maps and development approval. Provided no notice of default has been recorded, and no condition or event has occurred that would constitute a default upon the passage of time or the giving of notice, and provided that Beneficiary- approves the particular plan of release and development reflected in the request for release, which approval will not be unreasonably withheld, Beneficiary shall give Trustor partial reconveyance, without payment to Beneficiary (whether on account of principal of the Security Agreement or otherwise), of any portion of the Property required to be dedicated or conveyed by way r C casennent or fee to any public authority or public utility in connection with the processing, approval and recordation of a subdivision map, parcel map or as a condition upon the granting of a use permit, zoning variance or other approval to which Beneficiary is required to consent under the terms of this Supplement, or as required for above -or below -ground utility lines, including water, sewer, gas, and electricity, reasonably required to serve improvements and legal uses of the Property. 3. Partial Release - Par_gel�_ Provided no notice of default has been recorded, and no condition or event has occurred that would constitute a default upon the passage of time or the giving of notice, Beneficiary shall give Trustor partial reconveyances from the lien of the Deed of Trust, on Trustor's written request, of any portion of the Property constituting a lot or parcel shown on a recorded subdivision or parcel map covering all or any portion of the Property. Reconveyance shall be conditioned on payment to Beneficiary of the principal of the Security Agreement in the amount of at least $4,204.55 for every lot or parcel to be so released or reconveyed. 4. Procedure for Trustee Action. a. Subject to Section 4b below, Trustee shall execute any subdivision or parcel maps within seven days after receipt from Trustor of a written request therefore, together with: (i) a 16 DJM2D36LE written statement signed by Beneficiary verifying that copies of the map and such requests have been delivered to Beneficiary and that Beneficiary has approved and consented to same; (ii) a certified check for payment of any amount required by this Supplement for the requested action of Trustor: and (iii) a statement from a California licensed land surveyor certifying the amount of area in that portion of the Property for which release is requested. b. Beneficiary's consent to the subdivision or parcel maps shall not be unreasonably withheld or delayed. Trustor shall pay, in addition the release price and any payments due on the Note, all costs of effecting the release, including, without limitation, recording fees, document preparation fees and title or escrow company fees. d. Upon the recording of the partial reconveyance, Beneficiary's security interest, if any, in any personal property on or in the released property shall be considered fully released without further consideration or action by Trustee or Beneficiary. TRUSTOR: AWARE DEVELOPMENT COMPANY By: 4er es W. Ware Title: Presiden 17 EXHIBIT A LOTS 1 THROUGH 11, INCLUSIVE, OF TRACT NO. 13700, IN THE CITY OF REDLANDS, AS PER MAP RECORDED IN BOOR 247, PAGES 12 AND 13 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. BENEFICIARY: CITY OF REDLANDS, CALIFORNIA, a California municipal corporation Tit e: Mayor of the City of Redlands Attest: ';it v �erk 18 DJM2036LE ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) SS CITY OF REDLANDS ) By the authority granted under Chapter 4, Article 3, Section 1181, of the California Civil Code, and Chapter 2, Division 3, Section 40814, of the California Government Code, on December 17, 1996, before me, Beatrice Sanchez, Deputy City Clerk, on behalf of Lorrie Poyzer, City Clerk of the City of Redlands, California, personally appeared Swen Larson and Lorrie Poyzer { X} personally known to me - or - { } proved to me on the basis of satisfactory evidence to be the persons whose names) are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. (SEAL) WITNESS my hand and official seal. LORRIE POYZER, CITY CLERK X By: Beatrice Sanchez, Deputy City Clerk (909)798-7531 CAPACITY CLAIMED BY SIGNER(S) { } Individual(s) signing for oneself/themselves { } Corporate Officer(s) Title(s) Company { } Partner(s) Partnership { } Attorney -In -Fact Principal(s) { } Trustee(s) Trust {x } Other Title(s) Ma or and Cit Clerk Entity Represented City of Redlands THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW: Title or Type of Document: Trust Number of Pages 20 Date of Document December 17, 1996 Signer(s) Other Than Named Above Charles W. Ware ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) SS CITY OF REDLANDS ) By the authority granted under Chapter 4, Article 3, Section I181, of the California Civil Code, and Chapter 2, Division 3, Section 40814, of the California Government Code, on December 17 1996 before me, Beatrice Sanchez, Deputy City Clerk, on behalf of Lorrie Poyzer, City Clerk of the City of Redlands, California, personally appeared Charles W. Ware { } personally known to me - or - Jx} proved to me on the basis of satisfactory evidence to be the person(t) whose name(si is&= subscribed to the within instrument and acknowledged to me that helsheftgT executed the same in his&zrAhairl authorized capacity(ius) and that by his/km:�,r signature(s) on the instrument the person(z), or the entity upon behalf of which the person" acted, executed the instrument. (SEAL) WITNESS my hand and official seal. LORRIE POYZER, CITY CLERK By: Beatrice Sanchez, Deputy City Clerk (909)798-7531 CAPACITY CLAIMED BY SIGNERS) { } Individual(s) signing for oneself/themselves {xx} Corporate Officer(s) Title(s) President Company Aware Develo ment Company__ { } Partner(s) Partnership Attorney -In -Fact Principal(s) Trust ee(s) Trust Other Title(s) Entity Represented THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW: Title or Type of Document: Trust Deed Number of Pages 20 Date of Document December Signer(s) Other Than Named Above Swen aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa8a� Recorded in Official Records, County of o San Bernardino, Errol J. Mackzun, Recorder RECORDING REQUESTED BY AFTER RECORDING MAIL TO CITY CLERK CITY OF REDLANDS P. 0. BOX 3005 REDLANDS, CA 92373 0 Doc No. 19970135118 0 0 08:00am 04 18/97 0 o Chicago Iftle 0 W 0 0 0 0 aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaeaa RECON NO. 001931-R ORDER NO. 7200807 z 3 s s F 7 F s 9 17 a PG FEE APF GIMS PH CPY CRT CPY AID NM PEN PR PCGR 5_ 6_ NON ST LN SYY CIT-CO TRABS TAX OA CRRG EXAM PARTIAL RECONVEYANCE LOAN NO. N/A CHICAGO TITLE COMPANY as duly appointed Trustee under Deed of Trust dated 12/17/96 made by AWARE DEVELOPMENT COMPANY, INCORPORATED, a California corporation as Trustor, and Recorded on 12/18/96 as Document no. 96-463537 Book Page Of Official Records in the office of the Recorder of SAN BERNARDINO County, California, has received from Beneficiary thereunder said deed of trust and note secured thereby for endorsement and a written request to reconvey and in accordance with said request and the provisions of said of trust, does hereby reconvey, without warranty, to the person or persons legally entitled thereto, the estate now held by it thereunder in and to that portion of the property described in said deed of trust situated in the County of SAN BERNARDINO , California, described as: LOT 8 OF TRACT NO. 13700, IN THE CITY OF REDLANDS, AS PER MAP RECORDED IN BOOK 247, PAGES 12 AND 13 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. DATE: 4/17/97 CHICAGO TITLE COMPANY Teresa M. Drake Asst. Vice President STATE OF CALIFORNIA ) ss COUNTY OF RIVERSIDE ) On 4/17/97 , before me, the undersigned, a Notary Public in and for said State, personally appeared Teresa M. Drake, Asst. Vice President, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entities upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal JOHN G. HORN COMM41MI N9 Rotary PubNc — CcNfo n LOS ANVGELES COUNN Not ry' s Signature MY Comm. *x;*m OCT 16.1"8 Fecordirig, Raquesi�d By CHICAGO i ITI EM CUiViPANv RECORDING REQUESTED BY AFTER RECORDING MAIL TO City Clerk City of Redlands P. O. Box 3005 Redlands, CA 92373 Recorded in Official Records, County of San Bernardino, Errol J. Mackzum, Recorder Doc No. 19970182204 08:00am 05/22/97 Chicago iitla # W 1 2F 3 4 5 6 F 7 6 9 p PG FEE APF GIMS PH CPY I CRT CPY ADO NM PER PR PCOR 1 60 7 Z_ NON ST LN SYY CIT-CO TRANS TAX I DA CH R-G-7 EXAM RECON NO. 001947-R ORDER NO. 6036636 LOAN NO. N/A PARTIAL RECONVEYANCE CHICAGO TITLE COMPANY as duly appointed Trustee under Deed of Trust dated 12/1.7/96 made by AWARE DEVELOPMENT COMPANY, INCORPORATED, a California corporation p as Trustor, and Recorded �i on 12/18/96 as Document no. 96-463537 Book Page Of Official Records in the office of the Recorder of SAN BERNARDINO County, California, has received from Beneficiary thereunder said deed of trust and note secured thereby for endorsement and a written request to reconvey and in accordance with said request and the provisions of said of trust, does hereby reconvey, without warranty, to the person or persons legally entitled thereto, the estate now held by it thereunder in and to that portion of the property described in said deed of trust situated in the County of SAN BERNARDINO , California, described as: LOTS 5 AND 11 OF TRACT NO. 13700, IN THE CITY OF REDLANDS, AS PER MAP RECORDED IN BOOK 247, PAGES 12 AND 13 OF MAPS, INTO OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. DATE: 5/21/97 STATE OF CALIFORNIA COUNTY OF RIVERSIDE CHICAGO TITLE COMPANY Teresa M. Drake Asst. Vice President ss } On 5/21/97 , before me, the undersigned, a Notary Public in and for said State, personally appeared Teresa M. Drake, Asst. Vice President, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entities upon behalf of which the person(s) acted, executed the instrument. W ESS my hand and official seal EILEEN YOUNG comet. # 103W70 z y '• Notory PU:41C — Calgomia > ' RNIEMDE CoumY iMy Comm. bVies AUG 7,19% A' s Zee REQUEST FOR PARTIAL RECONVEYANCE `� .5-��-�� A Partial Reconveyance will be made only upon presentation to CHICAGO TITLE COMPANY of the original notes for endorsement and the Deed of Trust securing same, and upon presentation of this Request properly signed, together with the Partial Reconveyance fee. CHICAGO TITLE COMPANY, Trustee, Register No. The undersigned is the legal owner and holder of the Security Agreement/ _ promissory note(s) for the total sum of $ 4 6 , 2 5 0 • 0 0 and of all other indebtedness secured by Deed of Trust dated 12/18/96 made by City of Redlands Trustor, to CHICAGO TITLE COMPANY, Trustee, and recorded Document No. 19960463537 in Book/Reel , Page/image , of Official Records in the office of the recorder of San Bernardino County, California. You are hereby requested, in accordance with the terms of said Deed of Trust, to reconvey, without warranty, to "the person or persons legally entitled thereto, the estate now held by you thereunder in and to that portion of the property described in said Deed of Trust, situated in the City of Redlands County of San Bernardino California, described as: Lots 5 and 11 of Tract No. 13700, in the City of Redlands, as per map recorded in Book 247, Pages 12 and 13 of maps, into office of the County Recorder of said County. The making of such partial reconveyance shall be endorsed by you upon said note(s) and Deed of Trust which are herewith presented to you for that purpose. Dated May 12 1997 Corporation or Partnership Request Individual(s) Request City of Redlands EST• y arso gdeo(sr)to 8 oyzey er Return ed of Trust a Cit Clerk, Cityof Redlands Address 35 Cajon Street, Suite 4, Redlands, CA 92373 Mail Reconveyance to City Cler City of Redlands Address P.O. Box 3005, Redlands, CA 92373 T 390 CTC LEGAL (4.94) aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa8� Recorded in official Records, County of San Bernardino, Errol J. Mackzum, Recorder RECORDING REQUESTED BY �y CHICAGO TiTLE AFTER RECORDING MAIL TO City Clerk City of Redlands P. O. Box 3005 Redlands, CA 92373 0 Doc No. 19970176161 0 0 08:00am 05/19/97 Chicago title 0 W 0 aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa�aa RECON NO. 001947-R ORDER NO. 6036636 2 3 F7 4 5 6 7 i 4 M 8 _LE PG FEE APF GIMS PH CPY CRT CPY A00 NM PEN PH POOR 5_ N01Y ST IN SVY CIT-CO I TRANS TAX 0 CHRG EXAM PARTIAL RECON`TEYANCE LOAN NO. N/A CHICAGO TITLE COMPANY as duly appointed Trustee under Deed of Trust dated 12/17/96 made by AWARE DEVELOPMENT COMPANY, INCORPORATED, a California corporation as Trustor, and Recorded on 12/18/96 as Document no. 96-463537 Book Page Of Official Records in the office of the Recorder of SAN BERNARDINO County, California, has received from Beneficiary thereunder said deed of trust and note secured thereby for endorsement and a written request to reconvey and in accordance with said request and the provisions of said of trust, does hereby reconvey, without warranty, to the person or persons legally entitled thereto, the estate now held by it thereunder in and to that portion of the property described in said deed of trust situated in the County of SAN BERNARDINO , California, described as: LOTS 5 AND 11 OF TRACT NO. 13700, IN THE CITY OF REDLANDS, AS PER MAP RECORDED IN BOOK 247, PAGES 12 AND 13 OF MAPS, INTO OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. DATE: 5/15/97 CHICAGO TITLE COMPANY Xy' Teresa M. Drake Asst. Vice President STATE OF CALIFORNIA } ss COUNTY OF RIVERSIDE } On 5/15/97 , before me, the undersigned, a Notary Public in and for said State, personally appeared Teresa_ M. Drake, Asst. Vice President, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument the person s), or entities upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal JOHN G. HORN Q COMM. #10318" Notary Puble — Cadlf mla LOS ANGELES COUNN PMVC0rnM-9X;*W0CT16,1990 REQUEST FOR PARTIAL" RECONVEYANCE A Partial Reconveyance will be made only upon presentation to CHICAGO TITLE COMPANY of the original notes for endorsement and the Deed of Trust securing same, and upon presentation of this Request properly signed, together with the Partial Reconveyance fee. CHICAGO TITLE COMPANY, Trustee, Register No. The undersigned is the legal owner and holder of the promissory note(s) for the total sum of $ and of all other indebtedness secured by Deed of Trust dated ne c emlae—,I.7 , 1 A 9 6 made by Awa-rc, Development Company Trustor, to CHICAGO TITLE COMPANY, Trustee, and recorded in Book/Reel 19 A 6j2.4 6 3 5 2,Tagellmage , of Official Records in the office of the recorder of Sang rppr_in�— County, California. You are hereby requested, in accordance with the terms of said Deed of Trust, to reconvey, without warranty, to "the person or persons legally entitled thereto," the estate now held by you thereunder in and to that portion of the property described in said Deed of Trust, situated in the Cit of RedlandsCounty of San Bernardino , California, described as -.- Lot 6 of Tract No. 13700, in the City of Redlands, as per map recorded in Book 247, Pages 12 and 13 of maps, into office of the County Recorder of said County. The making of such partial reconveyance shall be endorsed by you upon said note(s) and Deed of Trust which are herewith presented to you for that purpose. Corporation or partnership Request Individual(s) Request CITY REDLANDS CALIFORNIA w n �rs�,ayor r ATTEST - By L rie -Po/Ile , City Clerk Return Deed of Tru and note(s) to Address Mail Reconveyance to Address T 390 CTC LEGAL (4-94) aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa8 Recorded in Official Records, County of a San Bernardino, Errol J. Mackzum, Recorder RECORDING REQUESTED BY Aecord;nq Requested By CHICAGO TITLE Co iMp NY AFTER RECORDING MAIL TO CITY CLERK CITY OF REDLANDS P. 0. BOX 3005 REDLANDS, CA 92373 Doc No. 19970352141 0 08.00am 09/25/97 a ohingo 0 aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa� RECON NO. 002029-R ORDER NO. 6036636 PARTIAL RECONVEYANCE If7 Z 3 4 5 6 7 B 9 0 PG FEE APF GIMS I PH CPY CRT CPY ADD NM PEN PR PCOR ON ST Lk SVY CIT-CO TRANS TAX DA CHRG EXAM LOAN NO. N/A CHICAGO TITLE COMPANY as duly appointed Trustee under Deed of Trust dated 12/17/96 made by AWARE DEVELOPMENT COMPANY, INCORPORATED, A CALIFORNIA CORPORATION as Trustor, and Recorded on 12/18/96 as Document no. 96-463537 Book Page Of Official Records in the office of the Recorder of SAN BERNARDINO County, California, has received from Beneficiary thereunder said deed of trust and note secured thereby for endorsement and a written request to reconvey and in accordance with said request and the provisions of said of trust, does hereby reconvey, without warranty, to the person or persons legally entitled thereto, the estate now held by it thereunder in and to that portion of the property described in said deed of trust situated in the County of SAN BERNARDINO , California, described as: LOTS 9 AND 10 OF TRACT NO. 13700, IN THE CITY OF REDLANDS, AS PER MAP RECORDED IN BOOK 247, PAGES 12 AND 13 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. DATE: 9/23/97 CHICAGO TITLE COMPANY Teresa M. Drake Asst. Vice President STATE OF CALIFORNIA ) ss COUNTY OF RIVERSIDE ) On 9/23/97 , before me, the undersigned, a Notary Public in and for said State, personally appeared Teresa M. Drake, Asst. Vice President, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entities upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal JOHNG,HORN COMM. i1031899 W" Pubic —CaRfm is � �EM C 1OUNTY s Notar 's Signature ey Comm,�IrmOCT16.1998 REQUEST FOR PARTIAL RECONVEYANCI q_11__g 7 A Partial Reconveyance will be made only upon presentation to CHICAGO TITLE COMPANY of the original notes for endorsement and the Deed of Trust securing same, and upon presentation of this Request properly signed, together with the Partial Reconveyance fee. CHICAGO TITLE COMPANY, Trustee, Register No. The undersigned is the legal owner and holder of the promissory note(s) for the total sum of $ NOT SHOWN and of all other indebtedness secured by Deed of Trust dated DEMBER 17, 1996 made by AWARE. DEVELOPMENT COMPANY _ Trustor, to CHICAGO TITLE COMPANY, Trustee, and recorded DECEMB R T R 1996 , in Book/Reel 1996046'1537 Page/Image , of Official Records in the office of the recorder of County, California. You are hereby requested, in accordance with the terms of said Deed of Trust, to reconvey, without warranty, to "the person or persons legally entitled thereto," the estate now held by you thereunder in and to that portion of the property described in said Deed of Trust, situated in the CT.JY OF REDLANDS County of AN RERNARDTNO _, California, described as: LOTS 9 AND 10 OF TRACT NO. 13700, IN THE CITY OF REDLANDS, AS PER MAP RECORDED IN BOOK 247, PAGES 12 AND 13 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY The making of such partial reconveyance shall be endorsed by you upon said note(s) and Deed of Trust which are herewith presented to you for that purpose. Dated SEPTEMBER $ 1997 Corporatio, Partnership Request Individual(s) Request CITY OF REDLANDS SWell hCason, Mayul By AT ByLorr e Poyz ity Clerk Retur eed of Trust an note(s) to Address P. 0. Box 3005, Redlands CA 92373 Mail Reconveyance to Address T 390 CTC LEGAL (4-94) CHICAGO TITLE COMPANY 560 E. HOSPITALITY LANE, SAN BERNARDINO, CALIFORNIA, 92408 (909)884-0448 Date: SEPTEMBER 8, 1997 ATTN: TINA CITY OF REDLANDS P.O. BOX 3005 REDLANDS, CALIFORNIA 92373 Your Ref: 1/27756 Order No. 007203424 K10 PER OUR CONVERSATION ENCLOSED PLEASE FIND THE PREPARED REQUEST FOR PARTIAL RECDNVEYANCE FOR AWARE DEVELOPMENT, PLEASE SIGN AND RETURN TO ME ALONG WITH THE ORIGINAL NOTE AND DEED OF TRUST SO WE MAY ISSUE THE PARTIAL RECDNVEYANCE. We appreci�tc this opportunity to serve you. Title Officer YNN STONE J TITRAN1 -- 10/28/95AA REQUEST FOR PARTIAL RECONVEYANCE A Partial Reconveyance will be made only upon presentation to CHICAGO TITLE COMPANY of the original notes for endorsement and the Deed of Trust securing same. and upon presentation of this Request properly signed, together with the Partial Reconveyance fee. CHICAGO TITLE COMPANY, Trustee, Register No. The undersigned is the legal owner and holder of the Security Agreement/ promissory note(s) for the total sum of $ 46 ► 250. 00 and of all othgr indebtedness secured by Deed of Trust dated 12/18/96 , made by City of Redlands Trustor, to CHICAGO TITLE COMPANY, Trustee, and recorded DoZ�u-ment No. in Book/Reel Pageflmage of Official Records in the office of the recorder of San Bernardino County, California. You are hereby requested, in accordance with the terms of said Deed of Trust, to reconvey, without warranty, to "the person or persons legally entitled thereto," the estate now held by you thereunder in and to that portion of the property described in said Deed of Trust, situated in the City of Redlands County of San Bernardino , California, described as: Lot 8 of Tract No. 13700, in the City of Redlands, as per map recorded in Book 247, Pages 12 and 13 of maps, into office of the County'Recorder of said County. The making of such partial reconveyance shall be endorsed by you upon said note(s) and Deed of Trust which are herewith presented to you for that purpose. Dated February 13 1997 Corporation or Partnership Request Individual(s) Request City of Redlands *Rleturneed so ay r TTEoy y er ust an ote(s) to City Clerk City of Redlands Address 35 Cajon Street, Suite 4, Redlands,. CA 92373 Mail Reconveyance to City Clerk, City of Redlands Address P.O. Box 3005, Redlands, CA 92373 T 390 CTC LEGAL (4-94) REQUEST FOR FULL RECONVEYANCE To Chicago Title Company, Trustee. The undersigned is the legal owner and holder of the Note or Notes for the total original sum of $ and of all other indebtedness secured by Deed of Trust dated .De-cernber 17.c.. 19 9 6 made by-----�lware...Devel opment. Company -,....Inc ... •--•................. Trustor, ---------------------------------- ----- to Chicago Title Company, Trustee, and recorded on December 18, 1996 19960463537 ...... as Instrument No.................in Book --- 2 4----------------- , Page---s) 12 , 13 of Official Records, in the office of the County Recorder of .----SAn-..Bernardino California. Said Note or Notes, together with all other indebtedness secured by said Deed of Trust, have been fully paid and satisfied; and you are hereby requested and directed, upon payment to you of any sums owing to you under the terms of said Deed of Trust, to cancel said Note or Notes above mentioned, and all other evidences of indebtedness secured, by said Deed of Trust delivered to you herewith, together with the said Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same. Dated . rune -1.. �...1998 ....... 1-- ----..... William E. Cunningham Mayor City of ands ATTEST: Lcr e Poy ity Clerk Mail Reconveyanceto---------------------------------------------------------------- .'..y... (:>f Red3anc�e; Ea1i1=tarn a...... C**CAGo m%Z r-orw s-,v CHICAGO TITLE COMPANY 3880 Lemon Street Riverside, CA 92501 (909) 686-4180 /(800) 442-4970 Facsimile (909) 782-2722 June 16, 1998 TINA KUNDIG City of Redlands P. O. Box 305 Redlands, CA 92373 Re: Full Reconveyance Dear Ms. Kundig: Enclosed please find a Request for Full Reconveyance pursuant to our phone conversation yesterday. If you have any questions, please contact the undersigned. Sincerely, Teresa Drake, Foreclosure Manager Asst. Vice President ,fir Ukil[ iO TITLE COMPANY 560 E. HOSPITALITY LANE, SAN BERNARDINO, CALIFORNIA, 92408 (909}884-0448 Date: SEPTEMBER 8, 1997 AS N: TI 10 CIT RE4."'m P.p B 3005 �DLANDS, IFORNIA 92373 Your Ref: 1/27756 COrderNo. 007203424 K10 PER OUR CONVERSATION ENCLOSED PLEASE FIND THE PREPARED REQUEST-'FOR--PA-RTI RECONVEYANCE FOR AWARE DEVELOPMENT, PLEASE SIGN AND RETURN TO ME ALONG WITH THE ORIGINAL NOTE AND DEED OF TRUST SO WE MAY ISSUE THE PARTIAL RECONVEYANCE. -To We appreciate this opportunity to serve you. ` AN f Title Officer YNN STONE f TITRAN 1 -- 10/28/95 ALA � PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: C,k I j- Ti+/- AND WHEN RECORDED, RETURN TO City Clerk's Office City of Redlands Post Office Box 3005 Redlands, CA 92373 Official Records, County o Recorded in Errol J. Mackzum, Recorder San Bernardino �, 19960463�36 poC N`. 12/iS/96 3 h'Ao lMe a 661 z 37 471 5 4 T 9 0 PG FEE APF G1MS PH CPY CRT CPY ADD NM PEN PR PCOR 5— 6-01 NON Sr LN SYY CIT•CO TRANS TAX OA CHRG EXAM SECURITY AGREEMENT Title of Document Documents/Recorder's 1197 SECURITY AGREEMENT This agreement is made and entered into this 171h day of December, 1996 by and between the City of Redlands, a municipal corporation ("City"), and Aware Development Company, Incorporated ("Applicant"). RECITALS Whereas, Applicant desires to obtain building permits for lots nos. 1 through 5, inclusive, for tract no. 13700, located on Magnolia Avenue between Bellevue and Lakeside Avenues in Redlands, California; and Whereas, as a condition of issuance of building permits for lot nos. 1 through 5, Applicant is required to pay to City the sum of $60,230 as capital improvement fees associated with the development of said lots; and Whereas, for the purposes of stimulating economic growth within the City and providing housing for City's citizens, it is in Applicant's and City's best interests to process Applicant's request for building permits in as timely a manner as practical; and Whereas, Applicant has requested and City has agreed to defer and amortize $46,250 of the capital improvement fees associated with Applicant's development of lot nos. 1 through 5 of tract no. 13700 in accordance with the terms and conditions of this Agreement; Now, therefore, in consideration of the mutual covenants contained herein, and for such other good and valuable consideration, the receipt of which is hereby acknowledged, the City of Redlands and Aware Construction Company, Incorporated agree as follows: AGREEMENT 1. Deferral and Amortization of Fees. City shall defer and amortize Applicant's payment of the capital improvement fees as more particularly identified in Exhibit "A" which is attached hereto and incorporated herein by this reference, for lot nos. 1 through 5 of tract no. 13700 in the sum of forty-six thousand, two -hundred fifty dollars ($46,250) at an interest rate of nine and one -quarter percent (9.25%) per annum during the period of time from the date of this Agreement until December 15, 1998. 2. Schedule of Payments. Applicant shall make twenty-four (24) monthly payments to City in the amounts of $2,118.23 commencing January 15, 1997 and ending December 15, 1998. Applicant shall pay the required monthly payment of principal and interest within ten (10) calendar days of the applicable due dates to avoid incurring penalties. 1 3. Penalties. Applicant's failure to make payment within ten (10) days of the due dates specified herein shall subject Applicant to an immediate late fee penalty of twenty-five percent (25%) of the current amount owed with an additional penalty of five percent (5%) of the current amount owed for each day payment is not received beyond the eleventh day. Failure to make payment within thirty (30) days of the current month due date shall subject Applicant to all penalties, and the remaining principal and accrued interest shall immediately become due and payable. 4. Attorney's Fees. In the event any action is commenced to enforce or interpret the terms or conditions of this Agreement, the prevailing party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorney's fees. 5. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 6. Entire Agreement. This Agreement represents the entire agreement of the parties hereto as to the matters contained herein. This Agreement may be amended only by written agreement executed by the parties hereto. 7. Security. City shall have the right to record against the property of Applicant and specifically lot nos. 1 through 11 of tract no. 13700, parcel numbers 0172-471-24 through and including 0172-471-34, in the official records of the County of San Bernardino, this Agreement and any other documents including but not limited to notes and trust deeds, which serve as security for Applicant's performance of its obligations evidenced by this Agreement. City shall provide to Applicant partial or full reconveyance of the dced of trust, commensurate to the amount of principal repaid by Applicant toward this Agreement. CITY OF REDLANDS AWARE DEVELOPMENT CO., INC. wen Larson, ayor ATTEST: Lo Payzer, y erk By: Q5:a:r es W. Ware Title: President 2 ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) SS CITY OF REDLANDS ) By the authority granted under Chapter 4, Article 3, Section 1181, of the California Civil Code, and Chapter 2, Division 3, Section 40814, of the California Government Code, on December 17, 1996, before me, Beatrice Sanchez, Deputy City Clerk, on behalf of Lorrie Poyzer, City Clerk of the City of Redlands, California, personally appeared Swen Larson and Lorrie Poyzer { X) personally known to me - or - ( I proved to me on the basis of satisfactory evidence to be the persons whose names) are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. (SEAL) WITNESS my hand and official seal. LORRIE POYZER, CITY CLERK By: Beatrice Sanchez, Deputy City Clerk (909)798-7531 CAPACITY CLAIMED BY SIGNER(S) { } Individual(s) signing for oneself/themselves { } Corporate Officer(s) Title(s) Company { } Partner(s) Partnership { } Attorney -In -Fact PrincipaI(s) { } Trustee(s) Trust {x } Other Title(s) Mayor and City Clerk Entity Represented Citv of R THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW: Title or Type of Document: Security Agreement Number of Pages six Date of Document December 17, 1996 Signer(s) Other Than Named Above Charles W. Ware ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) SS CITY OF REDLANDS ) By the authority granted under Chapter 4, Article 3, Section 1191, of the California Civil Code, and Chapter 2, Division 3, Section 40814, of the California Government Code, on December 1.7 , 1996before me, Beatrice Sanchez, Deputy City Clerk, on behalf of Lorne Poyzer, City Clerk of the City of Redlands, California, personally appeared Charles W. ware ( I personally known to me - or - &I proved to me on the basis of satisfactory evidence to be the persons) whose name4) is/= subscribed to the within instrument and acknowledged to me that helsiw�dwy executed the same in his/hsm'ftg authorized capacity0es) and that by hiskhx;fthek signature) on the instrument the person(-i), or the entity upon behalf of which the person( acted, executed the instrument. (SEAL) WITNESS my hand and official seal. LORRIE POYZER, CITY CLERK By: ' Beatrice Sanchez, Deputy City Clerk (909)798-7531 ---------------------------- CAPACITY CLAIMED BY SIGNER(S) £ Individual(s) signing for oneself/themselves {xx) Corporate Officer(s) Title(s) President Company Aware Development Company Partner(s) Partnership { Attorney -In -Fact Principal(s) € } Trustee(s) Trust { } Other Title(s) Entity Represented THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW: Title or Type of Document: SecuritV Agreement Number of Pages six Date of Document December 17, 1996 Signer(s) Other Than Named Above Swen Larson and Lorrie Poyzer EA ,��, � 12/03/1996 Page 1 AWARE DEVELOPMENT COMPANY, INC. Compound Period ........: Monthly Nominal Annual Rate ....: 9.250 % Effective Annual Rate ...: 9.652 % Periodic Rate ..................: 0.7708 % Daily Rate ........................: 0.02534 % CASH FLOW DATA Event Start Date Amount Number Period End Date 1 Loan 12/15/1996 46,250.00 1 2 Payment 01/15/1997 2,118.23 24 Monthly 12/15/1998 AMORTIZATION SCHEDULE - Normal Amortization Date Payment Interest Principal Balance Loan 12/15/1996 46,250.00 1996 Totals 0.00 0.00 0.00 1 01 /15/1997 2,118.23 356.51 1,761.72 44,488.28 2 02/15/1997 2,118.23 342.93 1,775.30 42,712.98 3 03/15/1997 2,118.23 329.25 1,788.98 40,924.00 4 04/15/1997 2,118.23 315.46 1,802.77 39,121.23 5 05/15/1997 2,118.23 301.56 1,816.67 37,304.56 6 06/15/1997 2,118.23 287.56 1,830.67 35,473.89 7 07/15/1997 2,118.23 273.44 1,844.79 33,629.10 8 08/15/1997 2,118.23 259.22 1,859.01 31,770.09 9 09/15/1997 2,118.23 244.89 1,873.34 29,896.75 10 10/15/1997 2,118.23 230.45 1,887.78 28,008.97 11 11/15/1997 2,118.23 215.90 1,902.33 26,106.64 12 12115/1997 2,118.23 201.24 1,916.99 24,189.65 1997 Totals 25,418.76 3,358.41 22,060.35 13 01 /15/1998 2,118.23 186.46 1,931.77 22,257.88 14 02/15/1998 2,118.23 171.57 1,946.66 20,311.22 15 03/15/1998 2,118.23 156.57 1,961,66 18,349.56 16 04/15/1998 2,118.23 141.44 1,976.79 16,372.77 17 05115/1998 2,118.23 126.21 1,992.02 14,380.75 18 06/15/1998 2,118.23 110.85 2,007.38 12,373.37 19 07/15/1998 2,118.23 95.38 2,022,85 10,350.52 20 08/1511998 2,118.23 79.79 2,038.44 8,312.08 21 09/15/1998 2,118.23 64.07 2,054.16 6,257.92 22 10/15/1998 2,118.23 48.24 2,069.99 4,187.93 23 11 /15/1998 2,118.23 32.28 2,085.95 2,101.98 24 12/15/1998 2,118.23 16.25 2,101,98 0.00 1998 Totals 25,418.76 1,229.11 24,189.65 Grand Totals 50,837.52 4,587.52 46,250.00 12/17/1996 14:41 9092739939 CAL. WE51 r_rAur_ of CALIFORNIA WEST CONSTRUCTION 150o w, sixth St. # A GoronO. CA 91720 Cal. Lic. $693690- Telephone 1909) 273-73DO Fox (9fl9) 273-9939 17 December, 1996 Via Facsmilie 909/798-7602 Mr. Steve Chapman CITY OF REDLANDS 35 Cajon Street, Suite Redlands, California 92373 Dear Steve: As per your request the following is a description of Califomia West Construction's relationship and tie-in with aware Development Co., Inc: There is an LLC formed called The CW Group, LLC, with which Californi West Construction and Aware Development Co., Inc. are equai-share partners. It is agreed in the LLC agreement that the projects in Redlands on Magnolia Avenue are to be a split ownersNplspllt profit endeavor. On paper, for financial purposes, the project is shown as being owned by Aware Development Co., Inc. a California Corporation. I hope this helps clarify the situation. if you should have any further questions, please do not hesitate to contact me. Sincerely, CALIFORNIA WEST CONSTRUCTION Matt Meiners MM:Ikc nce-_1 r7_1 aaC 1 Z- 70 ggqP?79919 96% P.01 Revised 915/96 State Aviation Grant - Assistant Public Works Director Laaninen reported the Airport Advisory Board, at it meeting on Augut 7, 1996, voted unanimously to recommend to the City Council that they authorize the Caltrans Aeronautics Program grant application for the slag shoulder project at the Redlands Municipal Airport and that they authorize the financing of the local match amount ($2,889.00) from the Special Contractual Services line item in the approved 1996-97 budget. Expressing financial concerns this early in the fiscal year, Councilmember Cunningham moved to continue this matter to September 17, 1996, and directed staff to see if we accept the grant, do we have to use it. Motion seconded by Councilmember Gil and carried unanimously. California West Construction Financing Agreement - Finance Director Chapman explained that California West Construction wants to begin construction of 11 single family homes on Magnolia Avenue between Lakeside and Bellevue Avenues (Tract 13700). Of the $133,356.00 in total impact fees owed to the City of Redlands, the builder has requested that the City finance $47,000.00. Representing California West Construction, Mr. Matt Meiners has agreed to a two-year amortization at an interest rate of °r "prime plus one percent. " The note would be secured by a second trust deed on the property and as each lot is sold, the City would provide for a partial reconveyance. Councilmember Cunningham moved to approve a two-year financing, up to a maximum of $47,000.00, over two years of impact development fees charged to California West Construction with the caveat that staff ensure the level of equity so we feel secure in the second trust deed, and authorized the Mayor to execute the agreement on behalf of the City. Motion seconded by Councilmember Larson and carried unanimously. ADJOURNMENT There being no further business, the City Council meeting adjourned at 7:55 P.M. The next regular meeting will be held on September 17, 1996. City Clerk September 3, 1996 Page 10 UNCHICAGO TITLE 560 E. HOSPITALITY LANE SAN BERNARDINO, CALIFORNIA 92408 (909)884-0448 CITY CLERK, CITY OF REDLANDS P. O. BOX 3005 REDLANDS, CALIFORNIA 92373 DATE: January 17, 1997 ATTN: LOAN CLOSING REF NO.: POLICY: 6036636 -K02 In accordance with instructions in the above order number, we enclose herewith our Policy of Title Insurance as requested. Any documents recorded in connection with this transaction will be forwarded to you direct from the County Recorder's office. It has been our pleasure to have handled this transaction for you. If, at anytime in the future we may assist you, we shall be pleased to have you request CHICAGO SERVICE.. We appreciate your business. Sincerely, CHICAGO TITLE CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY 1990 CHICAGO TITLE INSURANCE COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, CHICAGO TITLE INSURANCE COMPANY, a Missouri corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land; and in addition, as to an insured lender only: 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage, said mortgage being shown in Schedule B in the order of its priority; 7. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule B, or the failure of the assignment shown in Schedule B to vest title to the insured mortgage in the named insured assignee free and clear of all Iiens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. In Witness Whereof, CHICAGO TITLE INSURANCE COMPANY has caused this policy to be signed and sealed as of Date of Policy shown in Schedule A, the policy to become valid when countersigned by an authorized signatory. Issued by: CHICAGO TITLE COMPANY 560 E. Hospitality Lane San Bernardino, CA 92408 (909) 884 - 0448 CHICAGO TITLE INSURANCE COMPANY By: I0 President Secretary EXCLUSIONS FROM COVERAGE itters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees ch arise by reason of: irdinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restrict- ating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any ent now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or �ntal regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting elation or alleged violation affecting the land has been recorded in the public records at Date of Policy. ,nmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, cumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of lent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser forvalue without knowledge. encumbrances, adverse claims or other matters: �r not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; i to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; n no loss or damage to the insured claimant; or created subsequent to Date of Policy; or In loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or the interest insured by this policy. lity of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or fail ire of mt owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. nenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured I is based upon usury or any consumer credit protection or truth in lending law. rich arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the insured lender, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws. CONDITIONS AND STIPULATIONS = TERMS -ms when used in this policy mean: e insured named in Schedule A, and, subject to any rights mpany would have had against the named insured, those e interest of the named insured by operation of law as purchase including, but not limited to, heirs, distributees, personal representatives, next of kin, or corporate or rs. The term "insured" also includes the indebtedness secured by the insured mortgage and ownership of the indebtedness except a successor who is he provisions of Section 12(c) of these Conditions and ,ing, however, all rights and defenses as to any successor Nould have had against any predecessor insured, unless uired the indebtedness as a purchaser for value without sserted defect, lien, encumbrance, adverse claim or other nst by this policy as affecting title to the estate or interest in rental agency or governmental instrumentality which is an cr under an insurance contract or guaranty insuring or debtedness secured by the insured mortgage, or any part imed as an insured herein or not; fesignated in Section 2(a) of these Conditions and Stipula- mant": an insured claiming loss or damage. ler": the owner of an insured mortgage. tgage": a mortgage shown in Schedule B, the owner of an insured in Schedule A. or "known": actual knowledge, not constructive knowl- ch may be imputed to an insured by reason of the public in this policy or any other records which impart construc- rs affecting the land. nd described or referred to in Schedule A, and improve- rto which by law constitute real property. The term "land" any property beyond the lines of the area described or dule A, nor any right, title, interest, estate or easement in ads, avenues, alleys, lanes, ways or waterways, but noth- 9ify or limit the extent to which a right of access to and from by this policy. mortgage, deed of trust, trust deed, or other security ds": records established under state statutes at Date of )se of imparting constructive notice of matters relating to chasers for value and without knowledge. lity of the title": an alleged or apparent matter affecting the mortgage to be released from the obligation to purchase by virtue of a contrac- tual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE (a) After Acquisition of Title by Insured Lender. If this policy insures the owner of the indebtedness secured by the insured mortgage, the coverage of this policy shall continue in force as of Date of Policy in favor of (i) such insured who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sale, conveyance in lieu of foreclosure, or other legal manner which discharges the lien of the insured mortgage; (ii) a transferee of the estate or interest so acquired from an insured corporation, provided the transferee is the parent or wholly -owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor insureds; and (iii) any governmental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage. (b) After Conveyance of Title by an Insured. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of cove- nants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any pur- chaser from an insured of either (i) an estate or interest in the land, or (H) an indebtedness secured by a purchase money mortgage given to an insured. (c) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance by an insured lender shall in neither event exceed the least of: (i) the amount of insurance stated in Schedule A; (4) the amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, amounts advanced pursuant to the insured mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements, but reduced by the amount of all payments made; or (iii) the amount paid by any governmental agency or governmental instru- mentality, if the agency or instrumentality is the insured claimant, in the acqui- sition of the estate or interest in satisfaction of its insurance contract or guar- anty. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT An. insured shall notify the Company promptly in writing (i) in case of any litigation'as set forth in Section 4(a) below, (H) in case knowledge shall come to which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest or the lien of the insured mortgage, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to that insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE (a) Upon written request by an insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of such insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of such insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent juris- diction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prose- cute or provide for the defense of any action or proceeding, an insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of such insured for this purpose. Whenever requested by the Company, an insured, at the Company's expense, shall give the Com- pany all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured. If the Company is prejudiced by the failure of an insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, includ- ing any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. PROOF OF LOSS OR DAMAGE In addition to and after the notices required under Section 3 of these Condi- tions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of an insured claimant to provide the required proof of loss or damage, the Company's obligations to such insured underthe policy shall terminate, including any liability orobliga- tion to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, an insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reason- able times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any author- ized representative of the Company, the insured claimant shall grant its per- mission, in writing, for any authorized representative of the Company to exam- ine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by an insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of an insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that insured for that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) to pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay; or (ii) in case loss or damage is claimed under this policy by the owner of the indebtedness secured by the insured mortgage, to purchase the indebted- ness secured by the insured mortgage for the amount owing thereon together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of purchase and which the Company is obligated to pay. If the Company offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer, assign, and convey the indebted- ness and the insured mortgage, together with any collateral security, to the Company upon payment therefor. Upon the exercise by the Company of the option provided for in paragraph a(i), all liability and obligations to the insured under this policy, other than to make the payment required in that paragraph, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. Upon the exercise by the Company of the option provided for in paragraph a(ii) the Company's obligation to an insured lender under this policy for the claimed loss or damage, other than the payment required to be made, shall terminate, including any liability or obligation to defend, prosecute orcontinue any litigation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insuredagainst underthis policy, togetherwith any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or b(ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prose- cute or continue any litigation. 7. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or dam- age sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy to an insured lender shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A, or, if applicable, the amount of insurance as defined in Section 2 (c) of these Conditions and Stipulations; (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, at the time the loss or damage insured against by this policy occurs, together with interest thereon; or (III) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the insured lender has acquired the estate or interest in the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed the title, then the liability of the Company shall continue as set forth in Section 7(a) of these Conditions and Stipulations. (c) The liability of the Company under this policy to an insured owner of the estate or interest in the land described in Schedule A shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (d) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. LIMITATION OF LIABILITY (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, or otherwise establishes the lien of the insured mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or dam- age until there has been a final determination by a court of competent jurisdic- tion, and disposition of all appeals therefrom, adverse to the title or, if applica- ble, to the lien of the insured mortgage, as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling anyclaim or suitwithout the prior written consent of the Company- (d) The Company shall not be liable to an insured lender for: (i) any indebt- edness created subsequent to Date of Policy except for advances made to protect the lien of the insured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of improvements, or (ii) construc- tion loan advances made subsequent to Date of Policy, except construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the land which at Date of Policy were secured by the insured mortgage and which the insured was and continued to be obligated to advance at and after Date of Policy. 9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy, except payments made for costs, attor- neys' fees and expenses, shall reduce the amount of the insurance pro tanto. However, as to an insured lender, any payments made prior to the acquisition of title to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of the insurance afforded under this policy as to any such insured except to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage. (b) Payment in part by any person of the principal of the indebtedness, or any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or release of the insured mortgage, to the extent of the payment, satisfaction or release, shall reduce the amount of insurance pro tanto. The amount of insurance may thereafter be increased by accruing interest and advances made to protect the lien of the insured mortgage and secured thereby, with interest thereon, provided in no event shall the amount of insur- ance be greater than the Amount of Insurance stated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company to an insured lender except as provided in Section 2(a) of these Conditions and Stipula- tions. 10. LIABILITY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter exe- cuted by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. The provisions of this Section shall not apply to an insured lender, unless such insured acquires title to said estate or interest in satisfaction of the indebtedness secured by an insured mortgage. 11. PAYMENT OF LOSS (a) No payment shall be made without producing this policy for endorse- ment of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company Ie sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated (i) as to an insured owner, to all rights and remedies in the proportion which the Company's payment bears to the whole amount of loss; and (ii) as to an insured lender, to all rights and remedies of the insured claimant after the insured claimant shall have recovered its principal, interest, and costs of collection. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required Ie pay only that partof any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impair- ment by the insured claimant of the Company's right of subrogation. (b) The Insured's Rights and Limitations. Notwithstanding the foregoing, the owner of the indebtedness secured by an insured mortgage, provided the priority of the lien of the insured mortgage or its enforceability is not affected, may release or substitute the personal liability of any debtor or guarantor, or extend or otherwise modify the terms of payment, or release a portion of the estate or interest from the lien of the insured mortgage, or release any collateral security for the indebtedness. When the permitted acts of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of the insured mortgage, as insured, the Company shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Compa- ny's right of subrogation. (c) The Company's Rights Against Non-insured Obligors. The Company's right of subrogation against non-insured obligors shall exist and shall include, without limitation, the rights of the insured to indem- nities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subroga- tion rights by reason of this policy. The Company's right of subrogation shall not be avoided by acquisition of an insured mortgage by an obligor (except an obligor described in Section 1(a)(ii) of these Conditions and Stipulations) who acquires the insured mort- gage as a result of an indemnity, guarantee, other policy of insurance, or bond and the obligor will not be an insured under this policy, notwithstanding Sec- tion 1(a)(i) of these Conditions and Stipulations. 13. ARBITRATION Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connec- tion with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitra- tion pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached hereto bythe Company is the entire policy and contract between the insured and the Com- pany. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage, or of the title to the estate or interest covered hereby, or by any action asserting such claim shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 15. SEVERABILITY In the event any provision of this policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 16. NOTICES, WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at the issuing office or to: Reorder Form No. 8223 CHICAGO TITLE INSURANCE COMPANY Claims Department 171 North Clark Street Chicago. IL 60601-3294 California Land Title Association Loan Policy Your Ref: AWARE DEVELOPMENT CO., INC. SCHEDULE A Amount of Insurance: $46,250.00 Policy No. 6036636 K02 Date of Policy: DECEMBER 18, 1996 at 3. 00 PM Premium: $3, 232 . 00 1. Name of Insured: CITY OF REDLANDS, A CALIFORNIA MUNICIPAL CORPORATION 2. The estate or interest in the land which is covered by this policy is: A FEE 3. Title to the estate or interest in the land is vested in: AWARE DEVELOPMENT COMPANY INC., A CALIFORNIA CORPORATION 4. The land referred to in this policy is situated in the State of California, County of SAN BERNARDINO and is described as follows: LOTS 1 THROUGH 11, INCLUSIVE, OF TRACT NO. 13700, IN THE CITY OF REDLANDS, AS PER MAP RECORDED IN BOOK 247, PAGES 12 AND 13 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. This Policy valid only if Schedule B is attached. GLILIAB8--10/13195AA CHICAGO TITLE INSURANCE COMPANY California Land Title Company Loan Policy Your Ref: AWARE DEVELOPMENT CO., INC. SCHEDULE B EXCEPTIONS FROM COVERAGE Policy No. 6036636 K02 This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of- 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whetheror not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. PART II 1. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: PENALTY: 2ND INSTALLMENT: PENALTY AND COST HOMEOWNERS EXEMPTION: CODE AREA: ASSESSMENT NO: AFFECTS: LOT 1. $397.60 UNPAID $N/A (DUE AFTER DECEMBER 10) $397.60 UNPAID $N/A (DUE AFTER APRIL 10) $NONE 005000 0172-471-24 2. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: PENALTY: 2ND INSTALLMENT: PENALTY AND COST: HOMEOWNERS EXEMPTION: CODE AREA: $412.60 UNPAID $N/A (DUE AFTER DECEMBER 10) $412.60 UNPAID $N/A (DUE AFTER APRIL 10) $NONE 005000 CLi LIBS8--10/13195AA CHICAGO TITLE INSURANCE COMPANY Policy No. 6036636 -K02 Page 1 SCHEDULE B ( CONT . ) Part IT ASSESSMENT NO: 0172-471-25 AFFECTS: LOT 2. 3. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: PENALTY: 2ND INSTALLMENT: PENALTY AND COST: HOMEOWNERS EXEMPTION: CODE AREA: ASSESSMENT NO: AFFECTS: LOT 3. $412.60 UNPAID $N/A (DUE AFTER DECEMBER 10) $412.60 UNPAID $N/A (DUE AFTER APRIL 10) $NONE 005000 0172-471-26 4. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY 'TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: PENALTY: 2ND INSTALLMENT: PENALTY AND COST: HOMEOWNERS EXEMPTION: CODE AREA: ASSESSMENT NO: AFFECTS: LOT 4. $412.60 UNPAID $N/A (DUE AFTER DECEMBER 10) $412.60 UNPAID $N/A (DUE AFTER APRIL 10) $NONE 005000 0172-471-27 5. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: PENALTY: 2ND INSTALLMENT: PENALTY AND COST: HOMEOWNERS EXEMPTION: CODE AREA: ASSESSMENT NO: AFFECTS: LOT 5. $412.60 UNPAID $N/A (DUE AFTER DECEMBER 10) $412.60 UNPAID $N/A (DUE AFTER APRIL 10) $NONE 005000 0172-471-28 6. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS CLTASSC -- 12/16/SS Policy No. 6036636 -K02 Page 2 SCHEDULE B ( CONT . ) Part II COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: $412.60 UNPAID PENALTY: $N/A (DUE AFTER DECEMBER 10) 2ND INSTALLMENT: $412.60 UNPAID PENALTY AND COST: $N/A (DUE AFTER APRIL 10) HOMEOWNERS EXEMPTION: $NONE CODE AREA: 005000 ASSESSMENT NO: 0172-471--29 AFFECTS: LOT 6. 7. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: $412.60 UNPAID PENALTY: $N/A '(DUE AFTER DECEMBER 10) 2ND INSTALLMENT: $412.60 UNPAID PENALTY AND COST: $N/A (DUE AFTER APRIL, 10) HOMEOWNERS EXEMPTION: $NONE CODE AREA: 005000 ASSESSMENT NO: 0172-471-30 AFFECTS: LOT 7. 8. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENT'S COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: $412.60 UNPAID PENALTY: $N/A (DUE AFTER DECEMBER 10) 2ND INSTALLMENT: $412.60 UNPAID PENALTY AND COST: $N/A (DUE AFTER APRIL 10) HOMEOWNERS EXEMPTION: $NONE CODE AREA: 005000 ASSESSMENT NO: 0172-471-31 AFFECTS: LOT S. 9. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: $412.60 UNPAID PENALTY: $N/A (DUE AFTER DECEMBER 10) 2ND INSTALLMENT: $412.60 UNPAID PENALTY AND COST: $N/A (DUE AFTER APRIL 10) CLTAUC -- 12/16/$8 Policy No. 6036636 -K02 Page 3 Part xI HOMEOWNERS EXEMPTION: CODE AREA: ASSESSMENT NO: AFFECTS: LOT 9. SCHEDULE B (CONT.) $NONE 005000 0172-471-32 10. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: PENALTY: 2ND INSTALLMENT: PENALTY AND COST: HOMEOWNERS EXEMPTION: CODE AREA: ASSESSMENT NO: AFFECTS: LOT 10. $412.60 UNPAID $N/A (DUE AFTER DECEMBER 10) $412.60 UNPAID $N/A (DUE AFTER APRIL 10) $NONE 005000 0172-471-33 11. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1996-1997. 1ST INSTALLMENT: PENALTY: 2ND INSTALLMENT: PENALTY AND COST: HOMEOWNERS EXEMPTION: CODE AREA: ASSESSMENT NO: AFFECTS: LOT 11. $412.60 UNPAID $N/A (DUE AFTER DECEMBER 10) $412.60 UNPAID $N/A (DUE AFTER APRIL 10) $NONE 005000 0172-471-34 12. THE LIEN OF SUPPLEMENTAL OR ESCAPED ASSESSMENTS OF PROPERTY TAXES, IF ANY, MADE PURSUANT TO THE PROVISIONS OF PART 0.5, CHAPTER 3.5 OR PART 2, CHAPTER 3, ARTICLES 3 AND 4 RESPECTIVELY (COMMENCING WITH SECTION 75) OF THE REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA AS A RESULT OF THE TRANSFER OF TITLE TO THE VESTEE NAMED IN SCHEDULE A; OR AS A RESULT OF CHANGES IN OWNERSHIP OR NEW CONSTRUCTION OCCURRING PRIOR TO DATE OF POLICY. 13. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SET FORTH IN A DOCUMENT GRANTED TO: REDLANDS WATER COMPANY PURPOSE: PIPELINES CLTASSC -- 12/16/89 Policy No. 6036636 -K02 Page 4 SCHEDULE B (CONT . ) Part Ix RECORDED: FEBRUARY 24, 1882 IN BOOK 28, PAGE 233 OF DEEDS AND MAY 2, 1882 IN BOOK 29, PAGE 65 OF DEEDS AFFECTS: CANNOT BE LOCATED FROM THE RECORD 14. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SET FORTH IN A DOCUMENT GRANTED TO: THE REDLANDS, LUGONIA AND CRAFTON DOMESTIC WATER COMPANY PURPOSE: PIPELINES RECORDED: IN BOOK 79, PAGE 141 OF DEEDS AFFECTS: SAID LAND 15. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SET FORTH IN A DOCUMENT GRANTED TO: WEST REDLANDS WATER COMPANY PURPOSE: PUBLIC UTILITIES RECORDED: IN BOOK 125, PAGE 273 OF DEEDS AFFECTS: CANNOT BE LOCATED FROM THE RECORD 16. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS RESERVED IN A DOCUMENT PURPOSE: PUBLIC UTILITIES RECORDED: JANUARY 5, 1929 IN BOOK 448, PAGE 393 OFFICIAL RECORDS AFFECTS: CANNOT BE LOCATED FROM THE RECORD 17. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SET FORTH IN A DOCUMENT GRANTED TO: SOUTHERN CALIFORNIA EDISON COMPANY PURPOSE: PUBLIC UTILITIES RECORDED: OCTOBER 5, 1960 IN BOOK 5252, PAGE 196 OFFICIAL RECORDS AFFECTS: AS SHOWN ON SAID TRACT MAP 18. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SET FORTH IN A DOCUMENT GRANTED TO: GENERAL TELEPHONE COMPANY OF CALIFORNIA PURPOSE: PUBLIC UTILITIES RECORDED: APRIL 14, 1970 IN BOOK 7424, PAGE 280, OFFICIAL RECORDS AFFECTS: THE SOUTHEASTERLY 4 FEET OF THAT PORTION OF LOT 6, CLTASSC - 12/16/88 Policy No. 6036636 -K02 Page 5 Part II SCHEDULE B (CONT. ) BLOCK 23, WEST REDLANDS, AS PER PLAT RECORDED IN BOOK 9 OF MAPS, PAGE 22, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE MOST NORTHERLY CORNER OF SAID LOT 6; THENCE IN A SOUTHWESTERLY DIRECTION ALONG THE SOUTHEASTERLY LINE OF BROOKSIDE AVENUE, A DISTANCE OF 70 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID LINE A DISTANCE OF 155 FEET TO THE SOUTHWESTERLY LINE OF LOT 6; THENCE SOUTHEASTERLY AT RIGHT ANGLES ALONG THE SOUTHWESTERLY LINE OF SAID LOT, A DISTANCE OF 221.68 FEET TO THE MOST WESTERLY CORNER OF THAT PROPERTY, AS CONVEYED TO ROBERT T. NASH, ET UX, BY DEED RECORDED DECEMBER 10, 1930, IN BOOK 678, PAGE 169 OFFICIAL RECORDS; THENCE NORTHEASTERLY ALONG THE NORTHWESTERLY LINE OF SAID NASH PROPERTY, A DISTANCE OF 155 FEET; THENCE NORTHWESTERLY AT RIGHT ANGLES A DISTANCE OF 221.68 FEET TO THE TRUE POINT OF BEGINNING. 19. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SET FORTH IN A DOCUMENT GRANTED TO: GENERAL TELEPHONE COMPANY OF CALIFORNIA PURPOSE: PUBLIC UTILITIES RECORDED: APRIL 14, 1970 IN BOOK 7424, PAGE 283 OFFICIAL RECORDS AFFECTS: THE SOUTHEASTERLY 4 FEET OF THAT PORTION OF LOT 6 IN BLOCK 23 OF WEST REDLANDS, AS PER PLAT RECORDED IN BOOK 9 OF MAPS, PAGE 22, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 6; THENCE WEST ALONG THE NORTH LINE OF SAID LOT, 70 FEET; THENCE AT RIGHT ANGLES SOUTH 221.68 FEET TO THE NORTHERLY LINE OF LAND CONVEYED TO ROBERT T. NASH AND WIFE; THENCE EAST AT RIGHT ANGLES, 70 FEET; THENCE NORTH 221.68 FEET TO THE POINT OF BEGINNING. 20. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SHOWN OR AS OFFERED FOR DEDICATION ON THE RECORDED MAP SHOWN BELOW. MAP OF: TRACT NO. 13700 RECORDED: IN BOOK 247, PAGES 12 AND 13 OF MAPS EASEMENT PURPOSE: ]DRAINAGE AFFECTS: AS SHOWN ON SAID MAP 21, AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SET FORTH IN A DOCUMENT CUrASSC -- 12/16/88 Policy No. 6036636 -K02 Page 6 SCHEDULE B c CONT . a Part II GRANTED TO: GTE CALIFORNIA INCORPORATED PURPOSE: PUBLIC UTILITIES RECORDED: JULY 17, 1992, AS INSTRUMENT NO. 92-297489, OFFICIAL RECORDS AFFECTS: THE NORTHEASTERLY 3 FEET OF LOTS 3, 5 AND LOT 9; AND THE SOUTHWESTERLY 3 FEET OF LOTS 2, 4 AND OF LOT 8 22, A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $196,000.00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-338014, OFFICIAL RECORDS AFFECTS: LOT 1 23. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $204,000.00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT 90. 96-338015, OFFICIAL RECORDS AFFECTS: LOT 2 24. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $220,000.00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-338016, OFFICIAL RECORDS AFFECTS: LOT 3 CUrn88C -- 12/16/8S Policy No. 6036636-K02 Page 7 SCHEDULE B (CONT. 7 Part II 25. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $196,000.00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-338017, OFFICIAL RECORDS AFFECTS: LOT 4 26. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $204,000-00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-338018, OFFICIAL RECORDS AFFECTS: LOT 5 27. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $220,000.00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-338019, OFFICIAL RECORDS AFFECTS: LOT 6 28. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $196,000.00 CLTA85C -- 12/16/U Policy No- 6036636 -K02 Page 8 SCHEDULE B (CONT. ) Part II ➢ATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-336020, OFFICIAL RECORDS AFFECTS: LOT 7 29- A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $204,000.00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-338021, OFFICIAL RECORDS AFFECTS: LOT 8 30. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $220,000.00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-338022, OFFICIAL RECORDS AFFECTS: LOT 9 31. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $196,000.00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-338023, OFFICIAL RECORDS C€.TASSC -- 12/16/98 Policy No. 6036636 -K02 Page 9 Part II AFFECTS: SCHEDULE B (CONT . ) LOT 10 32. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT! $204,000.00 DATED: SEPTEMBER 11, 1996 TRUSTOR: AWARE DEVELOPMENT CO., INC., A CALIFORNIA CORPORATION TRUSTEE: CHICAGO TITLE INSURANCE COMPANY BENEFICIARY: APOLLO MORTGAGE AND FINANCIAL SERVICES, INC. RECORDED: SEPTEMBER 12, 1996 AS INSTRUMENT NO. 96-338024, OFFICIAL RECORDS AFFECTS: LOT 11 33. A DOCUMENT ENTITLED "SECURITY AGREEMENT", DATED DECEMBER 17, 1996 EXECUTED BY CITY OF REDLANDS, A MUNICIPAL CORPORATION AND AWARE DEVELOPMENT COMPANY, INCORPORATED, SUBJECT TO ALL THE TERMS, PROVISIONS AND CONDITIONS THEREIN CONTAINED, RECORDED DECEMBER 18, 19960463536, OFFICIAL RECORDS. 34. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $46,250..00 DATED: DECEMBER 17, 1996 TRUSTOR: AWARE DEVELOPMENT COMPANY, INCORPORATED TRUSTEE: CHICAGO TITLE COMPANY, A CALIFORNIA CORPORATION BENEFICIARY: CITY OF REDLANDS, A CALIFORNIA MUNICIPAL CORPORATION RECORDED: DECEMBER 18, 1996 AS INSTRUMENT NO. 19960463537, OFFICIAL RECORDS ORIGINAL LOAN NUMBER: NONE SHOWN END OF SCHEDULE B LS/DW AUTHORIZED SIGNATORY Ci,TAMC -- 12/16/88 .1.• fir/ r_r. p L k TRACT O. 13700 00 W= A SMVIS" a M A. 5. AMA PM" R = 6, 3rD17 21 as Mkt Or 'AFT OXAM. M.a. !l72, T9fS IM 110 = 9XMrAMSM a Mr Q MUMME AV=1M=%S VN0(M - Um ]OQri85>= Cr =A am 5. AS t1Rmm 1M = lkf.'t71AfLh0ll fr MR NAM or 9mw, Tom W SSW WlM .1I11.Y 11. DM, al M 4353. P= M [FFLCfei. X==. 7LCO11118 Cr Seel a9reu M aXM, CALlFOW11, ` C"s A. SMUH DUjLMER kaa9 BLK. 26, 1,'ESr REDLANDS � U B. 9/22 o'rr-���KSID� gi����.fe dyer $ Lam$ -- g , 9 rs AA► rrl9.r : lssts RCE Og -0,f �• f Q � i F 8 BEM. 23, ` r' Yi E ST RED+ -,s F ft 1 VA 9122 aG4ti s 5613a0' r �-„• p' tl'f. ] �A• 10[.7.H .5 t good � r g0.0R per � �..K31• _ - o• f�ii� a.� ye cr.w.e � V >t ? A it Itl GJ - 9W 7 x 6� 8 D t,,p A ♦ 3 ? 2 ! e n-els7� sAR• i+ Z Y ! � � I � R-� L.r!!sr I IY ae •at:dj' tladf' -d'6rl'•u -6sYl k �� cP' ja irlAtr• (M�Q77'a.r3t16 ryaya) � 1 ARM �p'a Purr rlfr"'"'s"dr"d MAONOiIA:� ,rriisssi ruprr) AVENUE I I Imo•# Is'I�i "•?AL`i X. romms 9L098011 AVEWE H.U. faa lBS 1. 2w Lu1f Er bwdW 9W IL,e tatQ L !flA Nstle[]lt'E of atDakm[d• h,aeln a6ow � M.56' 1i ]li. pst Petal MR 3637, Fam 76MA1. 1. • Dmtw .. _ . a M mt a Able. 5. 0 9e.p.a wt 1' n � RCC20�rlwtl, aanpt we m tTwC emutlme tovuttmis K' LA01r the alc8m. eunle 6, 3m r x.r. owd tuDwat mu Iet mmms maRatom in It a altl 12 fr.Fr.u` Sidi 11ma0f. lim,�[cm�s r,.P-t7 m . ' S. Wdit mglladr Ileac dwU F m ftq or %WUm& antwi m. . a, altla mpocc tadr ce. sae+. a.ea ae®o aM toed veldt ttr Ctq d PedLwai L,didfea b }dmq. 7. Wm tract Lm 14 lam ,;Zq7%/3: . This plat is for your aid in locating your land with reference to streets and other parcels. It is not a survey. While this plat is believed to be oorred, Chicago Title assumes no liability for any loss occuring by r,eaaon of reliance thereon.