HomeMy WebLinkAboutResolutions 89-120 N.C.S. 05/01/1989
I~OSOIUt10~"1 NO. s9-120 N.C.S.
of the City of Petaluma, California
RESOLUTION APPROVING PROPOSED RESALE CONTROLS
FOR MADISON MANOR AND CHERRY HILL PROJECTS
PROPOSED BY BURBANK HOUSING DEVELOPMENT CORPORATION
WHEREAS certain City and Community Development Block Grant resources
have been allocated to said low and moderate income housing projects; and
WHEREAS it is the City's desire to insure that said resources are, in the
event of resale of said units, recaptured for reuse in the provision of low
and moderate income housing ; and
WHEREAS housing resale controls have been proposed by Burbank Housing
Development Corporation which will achieve recapture,
NOW THEREFORE BE IT RESOLVED that the City Council approves the
resale controls as proposed and authorizes the City manager or his designee
to sign loan documents as necessary,
reso.madison.manor / resoll
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Appro s to
Council of the City of Petaluma at a (Regular) (t~j~~l) meeting °~
on the .....---• 1 s t•--.-.... day of ..................... May.-....-..................--..., 19-8.9.., by the
following vote:
Ci)S Attorney
AYES: Cavanagh, Tencer, Woolsey., Balhsaw, Vice Mayor Davis, Mayor Hilligo~s
NOES: 0
ABSENT: 0 STAIN: Sobel
__...,
ATTEST: ~'~i~~~~ .... ..:...... ........ ............ ...... .--- -• -•'-
City Clerk Mayor
Council File--(-1 .................................
CA 10-85 Res. No. ....8.7. .1.2.V........ N.C.S.
' ', , '
RROMI'SSORY `NOTE;
SECURED BY DEED OF TRUST
S°hared; Apprec°at-ion , .1.9.
• ~- Cali;forn~a
FOR 'VALUE RECE'iVED 'txhe u~ndersgned,,
_ - - -~
hereby j;~ntly .and
he~r_eafter cal,l.ed "Borrowers ,•" s.e~er_ally°.
-promise t'o pay° to.. Burbank Hou"sing `v.evel'opment 'Corporatori., a
-. ;. ~ .
C'alf'orn~~a nonpro:£it .corporation,. he're`after ~caaled, "Lender,'" or
to L,enderr' s .order, lawf,u;T mon~e of the United Sta-ties o-f Amer'ica
_ as hereafter "set forth. .
1. RECITALS;. Borrowers °acknowl,edge and agree that;,
~l al . Lender is provdi•n~g; Borrowers with _;pa~rtial
f`inaricrig• for the pu'rch•a~see~ by Borrowers :of' `the real ~ propertg
described in Exhb:t• A attached hereto ,(`t°he "P-roper,ty" )::
1,.:2~.. T:he: °amou~nt. of the' f~i`nancn,g being pr~.o-,vided . t°o
Borrowers by ,Lender is
1., 3: Said amount repr•e~sents percent (, _ ~;,)
' of the cu'rre:nt £ar market °value o£ th~e~ .Pr-op'ertg
2 DEF'IN.LT~IONS;. The following def'nit,:io.ns shall apply
°t'hroughot this .promsisory note:'
. „
2'.~1. B`orrowera~.
• _ _ ~ an'd. their suc:ce~s'so.rs~ and aEs~signs.;
2~.,2.• Fair 'Market "Yalu°e. Th`e fair market ag`u`e of '~th=e
P:rop~erty,, exel~udi:ng the val'u;e of a~n=.y improvements to th,e Property
•STD D-.1 1 .
•
,,
,:, .
. -
i
made by Borrowers.
_.
;2 , 3 , :Lender . ~ B;urbank H,ouasr'ng D:eve`lo:pment Co,r~poraton:.;.
a Californ°a, nonpro'ft corporaaion, and: ,ts su~ccel s~ors and
asssgn's-. ~~
2.<4.. Median Lncome;;. °The median income. o:f' 11, (_,)-
I"
;person households residing, in. the Sant=a Rosa-Petaluma PMSA
i~ .
according, to the <income~ sch,edul,e most rec,e'ritly publis`l,ed by th;e~
United $tat•es Department of ;Ho:using- and' Urban Development
2 , 5 . Net Sa e`s P-rice;. Th°e price o~ t•he Pr~~operty o,n
which the transfer tax is pa:d., lus th:e amount: of .an11y ex'i~stµing
f"iriancing that th`e purchaser-- o~f. the ~ Property' as-sumes or takes'
subject to;~ . minuas any co is of sa1:e (including, but, nOt 1~imt_ed
to, sale commissions and closing costs), that Borrowers pay;, and
furth°er ;mi•nu~s the. fair ;ma~rke:t value at t'h'e; time of trhe sale of
any `mpro.vementsr to: the Propertymade Eby :Borrowers;:. ;provided;,.
`however, that ;no reduction in, Net Sa'l'es Price "shall be made f.or
any improvement unless" Borrowers provide t9 '`Lender- a~ curr.ent:,
written appraisal;, made by a qua:Iified• appraiser, of the, fair,
market value o,f the .improvement;.
2.6. Property:. The real property des°crbed in Exhibit
A a ~tached hereto. -
2.7'. S~al.e. Any tran`s;fer of 't.it;le to the Pr ~per.ty.,, or~
~~
the execution. of an ~nstal'lmente s°a e contract. g ~v~ng a.he
pur.c;h~aser a rkghf to possess the Property: befog-e sale:°
Notw.ths~tandrig t°h~ea foregoing, the. " following shall not be;
considered a, Sa-1.e : (a) the crea~t:on o:f a :lien or other
STD D-1 2 -~
--
- en,cumbra_nce subord'nat°e to L•ender's se•c:ur"ty ns~tr"ument "which
does not r:e a"tee to a transfer o:f ,r:ght~s' of oc,c,upan!cy' in. the
- ° . Pro.p,erty;, (gib„j the. .c:reat~iom" of a; -pure~ha's:e money° security in:tere t . .
f,or hou~seho'ld iappliances,; ~(c') a tra°nsfer by' devise, descent,, o;r;
oper-ation o;f "law on: the death of a jq`rit tenant, ~or ,ten_ant by the
entirety;; (d`) the xgra'nt•ing <o•f a lea~seho'ld interest of~ three: ~years~
or 1_ess~ :n'ot containing an option to purchiase• ('e:) a trap>sf~e~r to a
relative res'u`lting -from the death of a Borrower; (f) a, trap"sfe:r -
wh~e~r'e ~a spouse or child of a Bor-rower becomes an., - owrie~r of t;he
. ;Property°; ('gig)' a, transfer ~r~e ;ulting from •a decree of ~ds~sohuto~n~
`of; ,marriage., ,h,ega-T s~epazat•on. a•greement., or nc~i$ental property
settlement, agreement; by "which the spouse 'o:f` a, Borrower :becomes a,
-: ~sole~=owner o'f>„the. Property; and (h,) a transfer into an ntervivo;s
tru?'s;t in which a B"orrowe_r is and remains a beneficiary and wh'iah
,_ ~ ~ -
' does •not r•el~ate. to, F a transfer o'f° rights` o.f? o;c:cupan.cy , .n the
,' _
- Property:.~ -
,3. `DUCE ON _SALE, fihs promissory note ~sh~all be due and _
,'payabAle. in f<u11 upon °the •oceurre_n:ce o_f` any Sale w2e`re a~riy one of •,
~t`he :f:o'lhow~rig c'rc;umstarices applie-s~: -
3.1,.," The 'Sa-le r.esu,l,t"s ,in. ow;ne•rship: ^of tale Prbgerty~ by .
~an :owner or owners .whose hou~s;e~hold income ,is greater tfian- :e-ghty
.percent '(.8,0'$) :of 'Median, Ineome~: `` -
3.'2. Tlie sales pz'.ce (,inc~1`ud~i"ng' broker's commisa;iori;
if •~any) exceeds the ~prc:e, at 'whic'h` a low-yin°come hou`seho;ld
~•purc!has~ing' `the Property wou-l;d' bey s;pendrig exactly .thirty percent:
(;30`x`) o;f° its: income on mortgage pa,y",menu . - For purposes of ."this
'STD D-.1, 3 - -
Section 3,.2, i:t~ shall 'be as~s,umed, regardless o:f the actu°a'1 facts
of the Sale; that th;e; .hous°°eh;old ~pur,c~hasing th:e Pr'ope~rtyj (`aj .earns
eighty percen
payment equ_aI
t°a ke s out a,
mortgage roan:
t ('8'0$), of Median I'mcome;~ (b) makes a (cash, down
to f~i~e' percent (5`~') o`f the Sales Pric: , and ('c~)
new 3A'-year-, fully-amortized, fixed-r,l to first
at t;he interest .rate shown as, the '',fin l l .a~erage`-
contract interest rate on con~entorial mortgage loans eaosed~ f:or
~purcha~sin'g prevo:isly. ;occup`ed single-.fam`ily homes by all ma.j~ar
lenders "' in. th,e most recent Information Bulletin 'pu~hlis~~led, $y, the
Federal Home Loan Barik-of; San Francisco, The amount of ths~•new
;first mortgage loan ~s~hall be assumed, to be equal to the sales
price (nc'ludng ;broker's commis s,ion, if any) , minus' the buyer's
assumed ,five percent (5$) down payment, and :further ~I'minus a;ny:
fi`n'ancing requiring no. .immediate periodic ;payments (s.ui~ h as the
fin~anc.ng evidenced bg this ;promissory notej.t'ha`t wouldll actually .
be'~ availabl-e t:o a low-=income hou~s,ehold' pu`rc,~has;ng the Proper.ty..: -
g ~•
3 .'3 : T;he Sale occurs throw h exercise _ of the option;
A..
gra-nt.ed in the Option to; Repurchase of even . date. herew"t°h
executed by Borrowers in fawo~r ;o f; Lender. 4 ,
4;. AMOUNT WHEN DUE ON 'SALE. If' this not°e becomes due
pur-,scant to Section 3 above, Borrowers s:ha].1 pay to. ;Lenid.er ,
perdent (,_~'~) 'of the Net Sale Price in th'e S~al'e causrig payment
to become due. ~ ~ ~ -
5. PREPAYMENT. Borrowers s'ha11 'h'ave t-he right gt~~ any t°me
to prepay thia note:, prov%ded thaw ang., prepayment .must a i~n -f.u.1-1
and no partial prepayment. shall be, allowed.. The .amount., of~ any
STD: D=l 4
:`,
;prepaym'en;t sh'a1;1 be- 'percent (;._$) of the ,Fair Market
.,
Value as' of t°h.e date o,f `pr'epaym°e.nt.. 'To determ~ne~ the: 'Fair Mar.k'e.t. -
Valuae,, Borrowers a-nd `Lender , shall: erideavo'r t°,o agr-ee on a
quaff ed apprais°er- . In thee. event Borrowers and, L• endear °a_re
- ;unab'l.e to agree, et er party .may apply to a'ny Fudge, of the
• Sonoma. Country Super,o~r Court, for appo,n~tment ~of~ ~~a qualified
' appraidser'a. The° a~ppra_ser thus. ~appo'°n;ted s'ha1~;1• °r.ender a.n ~'
app:r'a's°al ofd the Fair Market Va ue~, whcich ppra-sa'l s~h°aI1~ ;be
a
bind-n•;g on the parties-:. Borrowers shall .pay ..one-half and Lender
sha`11 pay one-half' :of' °tYie: °f:ee charged' by the appraiser,; -
4 _.
k,6'. SECURITY. `T,his prom so`rt' note is s;e;cured' by a deed of
t°rust• of .e~,en' date he~rewt`h.
- 7 . DEFAULT UNDER .DEED OF' TRUST'. N:otwi:th"standing any; other •
provisions o'f` 't'his promis :ory note, if- d°e.f~ault occurs in •any; of .
tfie covenants or agreements contained in the°.,deed. of trust
~ecurng this; promssorg notes, this ,promissory.. ~ note': s.h°all
immediate°ly become. dine and' payable ,i~n . full.. at : they ..option of
° Lender. In °the event Lender` exercise such option., the amount-
• _ ~ .
due 'and payable shall :b'e percent (~,=~) 'of :the Fa~~'r `Mark'et '
Value> ,asp of the date of exercise. Eo•r~ pw=poses ~of this s-e'ction,,.,
the Fair- Ma=rket° Va-1ue s,h°all be that determined .by 'a PIAfi' member oaf -
the • Airier:i,can.. Institute: of Real Property Appraisers or , an S~RP.A,
member of the Societ;,y of Re`aa, .Est°ate Appraisers appointed . by
Lender- . Fa a-re by Len~d'er to exercises its .opt-`ion `to a;cceae_ra:t:e .
in th,e event of, a default sh°all riot; constitute. wailer of . t`he _~
right- :to exercise such option in t~he~ -eyen.t of the s^ame or .any
S;TD `D=1 5
it
` .other d'ef_au,lt . - '
8': REMEDIES. Borrowers are; purcha~s>ng the Prope"r.ty from
Lender, and t~his~ promis ory no<te c:onrys>titutes the ,unpa Id ba ance~
of the purchase price of, the Pro;perty. Borrowers: ,shall .have nog
per;so~nalliability for any deficiency on this promsDory. not,e;,
a_nd Lender''s only remedy shall be foreclosure pursuant to l,aw as'
provided :in. th'e deed of -trus securing t~h•is promissory ~°otet;,
ll__
_9 . COSTS AND ATTORNEYS'' FEES . I'f' su`i't is brought to
collect, t-his promissory note„ Lender shall beo emit ed..tlo collect
• ~II
~ala of its reason~ab e .cows and experi~ses~ of suit,, :,including, but
'I
- riot limited to, reasonable att°brneys' fees: ~
1.0 .,_ SEVERABILLTY, The covenants oaf this promissorynote
a're'. seve'rable,: Invalidation of any cove~narit or any part, th:ereo~f
. ~
by 1`aw, judgement, or court order shall :not affect the ~a;ldity
~ ,-
of an_y of°her covenant. - ~j
~I
"Borr,owers'`
,t
STD ;D-,1. 6
RE.C,ORDING" RE;QUES~TED BY t' )
- ~- ) .
WHEN RECORDED ;MAIL TO
).
~BURBANR HOUSING DEVELOPMENT ),
•C,ORPbRAT:I'ON - ')
3~Q33 Cleveland Ave:nue~, Su'%te ,I;q~l-A )
~S"antra Ros'a~, CA ~9~5403 j
' ~- OPT=LON TO REPURCHASE
•;THIS± OPTION TO :REPURCHASE is granted _ ~ _ ,
1 g_., .bY
("90p• .io_nors"',), in, faVOr of B~urba~nk., ~ 'Ho'us,ng: Deve.lo;pmen•t
~Corporaton; a° Ca`Ifornia nonpro;f'it corporation ("Opt-ionee"~) .
1.. RECTTALS~. Opt_ionors acknowledge and agrees thaf
` 1.1... Optonee is s~e`l.lin~g t:o Optongrs the real.
--
property described in Exhibit A. a,ttacYied, hereto (~`t~h'e "Property") ;.
In, eon~n~ection wtfi t'he sale, Optionee is pr.ovd'ng Optionors . wi.ah
advaritage,ous s4ec.,ond'a~ry financing.: :° -
1.2~. Qptionee ~s _a nonprofit corporation dedicated Ito;
d~ev~el.opn,g and p:res.ervn:g aow-n:com:e af`for'd`abl`e housn°g:
Optionee dev~:e`l.oped t2e P'roperty~, aaong with the s;ubdivs.on- o`f
•wh_ic~h, the P.r:operty .ins a' ;past.; in order t~o increase th,e supply of
l;ow-income ,aff~ordab;le hou's~ng. In• :doing so,~ O,pt°ion.ee ise;d, funds
from public` sources., which funds ar"-,e also dedicated to the
proavis;i~on o.f low-.in.come affordabae 'housing. Optonee,~ and its:
funding` soureesr' are legtmat.el.y coneer_n.ed that t-he° Prop'e•rtay~
S:TD D-"1
°reman low-in:come~.af-fordable ho;usmg over time. ~ ~
1, 3. Tn order to ~maint~ain the 'Prop,erty as `low=income
affordable housimg :over time, st is appropriate that Optonee
have•`an option 'to repurchase the Property.
., ~.
2'. DEFINhTIONS. The following def"init;o;ns sha'11 apply
throughout this Option to Rep,u.re-h-a ,eA
- 2.1.. `Fair Market Val.ue~: Th.e f~a°r market vale°e of the
Pr.operty,, in~clud~ng the va?lue of any {mprov:ements to the Property
made by Opt=onor~s .
2 ...1: D~ton.: ' ~ fihe opt~~on t;o repurcha°se th'e. Property
grantedherein .
`2.;21, Optio,n~ee. B;u;rba_nk~ Housing Dewf lopmen:t
corporation, a Ca;l.f'orna nonprofit torporat:ion., ,anal its
suceessor...s and ass,gris: j
2 .~3. O.ptonors_:
and their successors -.and ~as~s~igns,.
2.4. Promissory Note. The proinsisory note of ev$n
I.
date herewith executed by Optionors in f~a~or of° Optonee in
i
conn,ec;ton with the sale o'€ t~h.e Proper-ty. ~
2..:5: Property: T,he real property :described° ` it Exh_b~~t
A. att:a~ched ~heret`o.
2 ~6. ~ S'al,e. Any transfer of title. to the Prop,ert~y,: or
- ~ ,~
the execution of an ~nsta`1`lment aal.e contract giv1i~ng the.
pu:rchas;er a ~ right. t,o poas'ess the Property before sale.
:Notwithstanding the foregoing, the following ~sh'a~ll .not be
eons,idered a S'al:e { a), the ereatyon o;f a ~ lien or other
STD D-1 2.
.. '~
,. ~ ~
. _
e~ncumbra-nce subordinate, to th.s~ Option to Repu~rcha~se which, dq.es
not° ,relate 'to a transfer; of right°s of occup:an~cy •n they :Property;.
;(b) the cre`aton oTf a purcha°s;e° money s'ecurrty nt.eres't~ "for
household appliances;, (c,j' a transfer 'by de,~s;e>, des~c'ent,. or~
operation o:f law` on. the :death of a ~o°nt t°en-ant oz te'nan-t by the
entir'etg,; (d;);, thegranting of ~a lea~sethold' interest of three ye'a"r s;
or less not :cont°a'_nn,g a~n opt-ion to purchase;; (e) a tran_sf'er Ito ;a° ,
-- . .
~~.relatve„ resul ing from the death o:f an. Optionor (f) a transfer
where ~ a. spouse or cYii;ld , of an. Opto;nor' becomes an owner o;f they
Prop;erty,; (g) a t-ran ~f'er ;result°ng f=rom `a deer-:ee o:f' drsaoluton
of. marrsage,,. ,legal -sepa-rat~on a.gr.eement, o,r incd'ental prop~er,ty
settl.emerit °agreem'erit by which the spouse o'f .an ,Optionor becomes a.
s:olse owner `o;f the Property, and, '(h) a ~tr'an~sfer ..nto a~n i"n~terv,vos
tru~s:t° .in which an, Opt~onor s~ °and remains: a .beneficiary and which
does :not relate to a~ transf;er Hof rights of occupancy in the ,,, ..
Property:.
•. `3: GRANT OF OPTLON:. 'Opt°o.nors. ~he`reby grant to °Opt~one_e the
.option, to` repurchaas'e `the :Pr:operfy on t,h~_e terms and :c'ondtoris se;t
fort~h~ :herein:
4:. CONS.LDER%ATION~. The Option is granted in; .eornsdera,tom
of; they ~al,e of fh~e Property °and.. the pr.ov~s~on of advanta'g;eou5~
s:e;co,n'd°ary fi~nancng inn con•n_ec.tion with su±eh~ sa'1-e 'by Opt'on,ee "to
Qptonor~s : _ ~ ~ ~ -
5~. TERN!,: The term of the Qpt~on ~s:hal commence ass of the;
.. .
date of this Option.. to Repurchase and` sha1T; expire on. - '
20. ~ ~ "
. STD: D-~T, ~ 3
i
6:.. .METHOD OF EXERCISE;;. ~
6:..1. Notice of. ;Intent to Sell. I,f amd' when Qptonors.
irrten'd to effect a S`al.e of the ;Propert,y, .Opt-,o.nors sha11 notify
Opt'ionee in writing of such .intent.
6.'2. Notice- 'of Exerc-se;. ~ To exercise the Option,
l~ .
Qptione'e mus.t',, within sixty (60 ); days of .its receipt` of any
. _, ~ ~
- notice. given pursuant to~ Section ;6i: 1 above.; notify Opt°+ onors ,in
w-ritng of its _nt~ent to exercise: ~, -
6.3. Fa`il'ure. to Provide ,Notice- of Tntent to Se`ll;., In
the- event °Opt`o,nors fail to provide notice of in't:ent~ `to sell.
•pursuant: to Sect•.on 6.;1 above, and ~Opt`ohee learns of a; ,pending;.
I
~or con!summated Sa e,, Op.tionee may ~ y
at an time thereafter at :ts
election,; exerc~s'e th'e Option by no .fyin~g Optonor••s ni wr,tizng
of its intent to exeres'e..; ~ ~j
• 7.. PLTRGHASE' .PR'I'CE..
r7.1. Fair Market Value. Upon, exercise, of the
t°h,e pure-ba's'e price for the Property shall be the: F~a~
Va4ue. ~T,o d'etermine the, Fait .:Market Value,; Opto;~
Optionee shat endeavor to agree on'a qualified appra
the event Optongrs and Optonee are
unable: t:a agree
party may apply, to any j~u'dge of the Sonoma :County Super
for appointment of a• qualified appraiser°. Thee apps
appointed shall render appraisals of (°a) the .;Fair Mark
and (b~j the fa~z' inar.ket value: any smprovement~s t.o th_e,
made by Optionors (f:or purposes of the..Pr.om°sso=y Note ).
appraisals hall. be binding o.n '•the partie Optonors s
STD: D=-1 4..
Option;
Market
ors °and
er,. I,n
either
r Cour-t
er thins
E Value
erty
<Th~e s e
hall ,pay
I
one-ha~lf~ and Qptonee sha'11 pay one-h~a~ f of the fee° charged' by
.the 'apprais'e=r~: - ~ °
7",.'2~, Credits Agai~ns.t Purcha e Price: Optonee shall,
he given a credit ~aga'rrst; the purchase price for (a;) th;e amo,un.t
due: `u.nder the Pr~om~is o~ry Note: and (rb) t°h,e amount of ,any ex~ssting`
f`na~_ncng, that Optonee assumes or take subject t°o: .
8,'1.. Escrow: Upon exerc'S'e~ ;of~ ~t~he: Optnon, Opt-o~nors
a_nd; Optio,nee, hal estab°lsh °ailn esc-row with„ ~ an e's'cr;ow ;agent
chosen: by Optbn:ee,:, Optonors and Option~ee~ ahalY,r execute ahl
~.dreeds, instruc<tons, and, o't--`tier instruments required by the escrow
_ ,-
agent in order' to c~lo_s~e` the s-a'l:e and ,pu:rcha~se. o;f th~e~ ~P•roper.ty in;
ac~cord'ance. uiith this. ;Option to Repurchase :
-` 8:2,: Time f'or Close of.:Escrow. °Cl.o,se,~~of -es~cr.:o:w shall
ocau'~r` no 1at~.er' than, sixty ~ (,60-) days !after- Qpt~onee•'.s °g=iving' gf;
notice af' exercise ,pu~rsu~ant to. Sect~o;n 6:..2 above, .. °
8 :3~ Prorations and Closing Costs . Real property
„
tares,, intterest on a~sse.s'sme.nts assumed, premiums'- 'on ha~z`ard
ns:uranc'e.: ~ass,i'gned, arid' interest on an°y ~i•ndebtedn'ess secured by.
an_:y deed ;of: trust' to remain. 'on the. `Property shall a`ll be grorat_e:d
as, of° tthe clos.irig date on ~ the: basis ,of; °a t°hirty-dag mont°h:
Closing costs shall `bepaid 'n accord'an~ce: with • t'he; cus<tom and,
;pract',ce in. Sonoma Country at: t"h e, time of closvin,g:. ~.
~~ 8.4. 'S+tate~ o'f T;tl,e, At close of escr.ow.;, ,Qptionor;s
' shall by> grant deed •convey° to Qpt~o.ne'e fee simple 'tit;le to.• the
P.r'ope-rty free and e?lear o,f; a,1-1, ti-t ,e dsefec.t°s, l,.e~ns
^S,TD' D'-1 ~ 5
. ..
,y
;,
encumbrances, deeds of trust,. mortgages, lease ; and
tenants except. ,no,ndelinquent. real property taxes
exceptions tg ti le as are, appr-owed -n writing by
Qptonors sha'11 pr'ocur.e a Calf~orna. Land, Title stand
of title -nsu~r-an'ce• .in t=he. amount of; the purchas:e~ pr:
Property shgwng: title we ted in Opton~ee subject o:n'
exception"s permitted above . .
hts of
s uc'h,
o n ee,..
po.l,cy
of the
to the
8'.,5. Payment of. Pu'r,chase Pr.c'e~. .The purchase price,
ad j,usted; ;by t'he credits ;described in Sect°on 7'.2. above, sh`a'll be
paid all in. cash at close o~f e'serow,,
"9. EARLY TERMINATION;, ~I
9.1. -Events Causing Early 'Termination.: In .the. event
O
tion°ee fails to ~~
_p g-ye notice ;of exer:c~se w~th~n sixty •( 6'0 )' days
after its receipt of a notice of ~,,ntent to sell, nor. ;in the ..event;
Opt--ionee, through no fau .t °of Optionors, fails to clo ~e e5:crow.
:for t'he purcha~s°e of tahe Property within sixty (;60), days after
Optonee'.s giving of` notice of exercise, the Dpt-ion, shall, .
notwit~hst~a'nding the provisions of :Section .5: above, .automatically
~and.mmediat~ely terminate. i
9.2,. Notice, ~of' Terminato Tn the event ~ Ise: Qpton,
t°ermina.te~s. pursuant to Section. ,9.1 above,, Option le sh_a'll
immediately , cause the recordation in the Official Re I o,rds . of.
SonomaCounty of an instrument c:onf;rmng such :term'in`ation..
10, FORECLOSURE. Optonee may also exer-c,is;e the Option
upon ~~ the . occurrence of any once of the :following eve'-nt .(.a) t-he
giving o:f. any of-ice of sale under .any mortgage or' deed li f trust
STD D-:1. ~6:
..
~,` ~ -
with power 'o,f s•a;l'e - en'cumber..n;g th.e Property,; (`b~)serv-ice: o;f
summons - :any judi~c:al f;ore_c~losur.e a~gai,ns`t t°he° Proper-ty., o'r (:cj -
- exe~c;u~t.on ~of~ judgem.e.n°t fore{c,l,osur'e- against ,the Eroperty,,
` Opt'onee sha.l;lhave sixty, (60) days from the. da€~e it= receives.: . ~ '
~, _
<ac-foal ;notice ~o;f any one of the above ~event~s° t'o. ,exer'c-s;e the; -
- Option. Toy exe;rese .the Option upon the occurrence; ~of, any on;e, of . ,
- -
the °abo,,ve ,events, O.p~tonee s~hal . -give notice o both: - Opto;nors.
' and to th;e, ~mo.rtga~gee, `benefiearg under 'the .i`eed ~ of, tru~sa; .nor
` - jud'gemen cred,tor._:
1T-. NOTICES: Any notice required or• permitted, under th°s
Option ~to< ~Repurcha_s,e shat be., sent .by, United States mail, p.ost~age
prepaid,, registered o,r certified,, addressed'. as, 'foll~ows~
L:f to O.ptonors -
I;f~ to' 'Opt~one'e;c; - B;urbarik Hou~s~ing De elopment Corporation;
30'33 `C1e~eTand Avenue,, -Suite 101-A
S--anta : Rosa, CA 9.54D3. - - -
:
E°t~her Option'ors oz Optioneea may 'cchange ;ts ad"dress for zpurpose°s
of notice 'by giving notice to the other party pursuant to this;
S~ect~:on 1~1 _ - ~ , ~ ~ ~~
12 . M°hS'CELLP;NEO.US:' PROV.I'5:IONS•.
12'.1. ~ V,o'dable T'ransf~ers;, =Any attempt to ~sel;l
convey; transfer;; as-sign; lease-,- mortgage; or hypo`the;c'ate the,
:Property: in violation of the °fier-ms of th°s Option: to Repu~rchas,e
shall ;be void°ab'le at t°he election of Optonee>.,
12 . ~2:. As s:gnmen:t,. Ogtionee may ass's ign it_s! ri.ght's
uFnder :this Option ~to Repurehase~.: In the event of any as~s•gnment. -
STD 'D'=1 ,7
of Optonee's r;g~hts, the assignor shall not be ~labhe: to
:Optionor.s f'or any fai-lure on the ,part. of the assll.gmee. to
:consummatea purchase of~ tfie Property' or to ;comply with. t°h:e t.er-ms
' of this Option t~o Repurcha~s`ek.
12.:3. Severabltv.. The provisions of`'t-his Option, to
Repurchase a`r.e severab;l;e. Invalidation of any provseion by law,
,~ J
judgement, or court order- sha11 not aff°ect the val°dty of° any
Daher provision.
°~
:'12.:4. Attorneys' Eees:. 'In theevent of any 1~~ tgatib~n
t:o enforce the provisions of this Option to Repurchase, t=he~
prevailing party s~ha1Y be entthed to reasonable attorneys' 'fetes
' as awarded by 'the court..
'WE HAVE READ °THE FOREGOING PROVISIONS AND AGREE'. TO BE BO,UND~
BY fiH~EM,.
.,
"Opti:o,nors"
i
STATE OF CALIFORNIA ) ~
COUNTY OF `,SQNOMA ) SS'..,
On 19 , bef:o're, me, t°he~ :undersigned,, a,
ngt:ary publ°ic in and fo'r the State of California°,, persgnal'ly
appeared' ~ - ~, ,
personally" known to me, or proved to me on, the{ basis of
satisfactory evidence t,o be the persons whose name
e th:af
subscr-ibed to the w~it'hn instrument,, and, acknowledged t'o ,ms are
they exea:uted it .
WITNESS ;my hand and official se'al.~.
STD.' D-1 8