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UPDATED 11/29/202212/14/2024
CAMARILLO WORKFORCE HOUSING DOWNPAYMENT ASSISTANCE PROGRAM
LOAN AGREEMENT
THIS CAMARILLO WORKFORCE HOUSING DOWNPAYMENT ASSISTANCE PROGRAM LOAN AGREEMENT (“Agreement”) is made and entered into as of _____________, 20___, by and between ____________________________________ (collectively, “Borrower”) and the City of Camarillo, a political subdivision of the state of California (“City” or “Lender”) with reference to the following:
1.RECITALS. The Parties enter into this Agreement with reference to the following facts and objectives:
A. Borrower has entered into an agreement (the “Purchase Agreement”) to purchase a single family home located at _________________________, Camarillo, California, which is more particularly described in attached Exhibit “A” and is incorporated by reference (the “Residence”).
B. Borrower represents to City that Borrower and Borrower’s immediate family currently intend to reside in the Residence as the family’s principal residence at all times throughout the term of this Agreement.
C. City desires to loan to the Borrower a portion of the funds necessary to enable the Borrower to purchase the Residence.
2.DEFINITIONS. Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Agreement:
A. “Administrator” means a private lender or other person or entity used by City to originate and service the City Loan, and to carry out City’s obligations under this Agreement.
B. “City Loan” means the loan given by City to Borrower for purchasing the Residence.
C. “Anniversary Date” means the annual calendar date corresponding with the date upon which the Note was executed.
D. “Eligible Person or Family” means a Lower to Moderate-Income Household with a gross annual income that does not exceed one-hundred 6 3
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and fifty percent (150%) of the Ventura County Area Median Income, adjusted for household size, as established by the California Department of Housing and Community Development (“HCD”)
E. “First Lien” means any lien to which the lien of the City Deed of Trust (attached as Exhibit “C”) is subordinate.
F. “First Lien Lender” means a private lender or other person or entity which serves as the primary funding lender for the purchase of the Residence by the Borrower.
G. “Sale” means any transfer of title, whether or not recorded, and whether voluntary or involuntary, of all or any portion of the Residence. In all events, Borrower is entitled to a return of the cash down payment, hereby agreed to be __________________________________ ($____________) which Borrower originally put down to purchase the Residence.
3.LOAN OF FUNDS.
A. Lender agrees to loan to Borrower, and Borrower agrees to repay to Lender, in accordance with the terms of this Agreement, the principal sum of ______________________________________ Dollars ($__________) (the “City Loan”). The above-described principal sum must be used for the sole purpose of applying such sum toward the purchase of the Residence.
B. In evidence of this City Loan, Borrower agrees to execute a Note Secured By Deed of Trust (the “Note”) in the form attached as Exhibit “B” and incorporated by reference.
C. In further evidence of this City Loan, Borrower agrees to execute a Deed of Trust in the form attached as Exhibit “C” and incorporated by reference.
4.LOAN SERVICING. City may contract with an Administrator to originate and service the City Loan, and to carry out City’s obligations under this Agreement.
5.NOTICE TO CITY. Borrower (or Borrower’s heirs following the death of Borrower) agrees to notify City not less than thirty (30) days before:
A. The sale of the Residence;
B. Any refinancing of the lien of the City Deed of Trust or the First Lien; C. Any equity cash out above the lien of the City Deed of Trust or the First 6 3
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Lien.
D. The close of Borrower’s probate estate.
E. The Borrower no longer occupies the Residence as the principal home or is renting or leasing the property to others.
6.REPAYMENT OF LOAN.
A. Except as otherwise provided in this Agreement, the principal amount of the City Loan, and any other amounts due under this Agreement and the Note, is due and payable, in full, at the option of the City and without notice or demand, upon the occurrence of any one or more of the following:
i. If the owner no longer occupies the residence or is renting or leasing the Residence to others;
ii. Transfer of title, excluding those related to marriage or its dissolution;
iii. A Sale of the Residence (including short sale).
iv. Any modification or refinancing of the First Lien encumbering the Residence made without the City’s prior written consent (which consent the City is under no obligation to give).
v.An uncured default by borrower under the Loan Agreement, the Promissory Note, or the Deed of Trust.
vi. The close of a probate estate following the death of the Borrower, except to a surviving spouse. Notwithstanding the above, the transfer of the Residence solely as a result of the marriage, divorce, incompetency or death of one or more individuals constituting the Borrower will not cause the City Loan to become due and payable, so long as the transferee(s) give notice to City of such event within thirty (30) days of its occurrence and the transferee(s) assume the Borrower’s obligations under this Agreement by execution of an assignment and assumption agreement in a form acceptable to City.
B. If Borrower has fully complied with the terms and provisions of this Agreement, the Note, and the Deed of Trust, and is not in default during the ten fifteen (1015) years of the Note terms, then the entire unpaid 6 3
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principal amount of the loan and any contingent deferred interest of three (3%) annually and all other amounts due under this agreement and the Note is due to the City on the ten fifteen (1015)-year Anniversary Date.
7.REPRESENTATIONS OF BORROWER.
A. Borrower makes the following representations and warranties, each of which must be true on the date of the execution of this Agreement:
i. Borrower has been a resident of the City of Camarillo for the last one (1) continuous year preceding the date of this Loan Agreement; or has been employed for the last one (1) continuous year preceding the date of this Loan Agreement by a business or businesses located within the City of Camarillo.
ii. Borrower is a citizen or legal resident of the United States. iii. Borrower is an Eligible Person or Family.
iv. Borrower has personally advanced at least three percent (3%) of the down payment on the Residence.
v. The purchase price of the Residence does not exceed
__________________________________ Dollars ($___________) for Single Family homes and ______________________________ Dollars ($___________) for Townhomes and Condominiums.
vi. The Residence is located within the City of Camarillo. vii. Borrower has secured independent financing in the form of a mortgage loan from the First Lien Lender in an amount sufficient to pay the balance of the purchase price of the Residence. viii. Borrower has completed a homebuyer education course designated or approved by City.
B. Should any of the foregoing representations and warranties not be true, this Agreement will be rendered void, and the entire principal amount of the Loan immediately becomes due and payable upon City’s demand.
8.OCCUPANCY STANDARDS. The Residence must be used as the principal residence of Borrower and Borrower’s family and for no other purpose. Borrower will not enter into an agreement for the rental or lease of the Residence. City may grant a temporary waiver of the above requirements for good cause, in City’s sole and absolute 6 3
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discretion. The maximum occupancy of the Residence must not exceed the maximum occupancy allowed by the stricter applicable state law or the Camarillo Municipal Code.
Borrower must, upon demand by City, submit to City an affidavit of occupancy verifying Borrower’s compliance with this Section. City may require such an affidavit on an annual basis.
9.SUBORDINATION. The provisions of this Agreement, the Promissory Note, and the City Deed of Trust are subordinate to any First Lien on the Property held by the First Lien Lender and do not impair the rights of the First Lien Lender, or the First Lien Lender’s assignee or successor in interest, to exercise its remedies under the First Lien in the event of default under the First Lien by Borrower. Such remedies under the First Lien include the right of foreclosure, acceptance of a deed or assignment in lieu of foreclosure, or assignment of the mortgage to the Secretary of the United States Housing and Urban Development (“HUD”). Thus, any party, its successors and assigns, receiving title to the Property through a trustee’s sale, judicial foreclosure sale, deed in lieu of foreclosure or assignment to HUD, and any conveyance or transfer thereafter, will receive title free and clear of this Agreement, the Promissory Note, and the City Deed of Trust. In the event of refinancing of the First Lien, the City will subordinate this Agreement, the Promissory Note, and the City Deed of Trust to the new First Lien if (i) the First Lien secures a loan amount which does not exceed the then-current loan balance secured by the First Lien, plus customary and reasonable costs of refinancing actually included in the new loan, and (ii) the sum of the loan balance secured by the First Lien and the City Loan does not exceed ninety-seven percent (97%) of the fair market value of the Property, as determined by a current appraisal reasonably acceptable to the City.
10.TITLE INSURANCE. As a condition to disbursement of the City Loan, Borrower, at no cost to City, must obtain and cause to be delivered to City a standard form CLTA Lender’s policy of Title Insurance, issued by a title company approved by City, insuring the priority of the City Deed of Trust against all monetary liens and encumbrances against the Property, including without limitation, mechanic’s liens claims and excepting only (i) the lien of any non-delinquent property taxes; (ii) the deed of trust securing the First Lien; and (iii) other encumbrances and exceptions to title as may be approved by City in City’s sole and absolute discretion.
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11.NONDISCRIMINATION. Borrower covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against, or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor will Borrower itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. Borrower, its successors, and assigns must refrain from restricting the sale of the Property on the basis of race, color, religion, sex, marital status, national origin, or ancestry of any person. All deeds or contracts must contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
A. In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there will be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor will the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee, or vendees in the land herein conveyed. The foregoing covenants run with the land.”
B. In contracts: “There will be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, ancestry, or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises, nor will the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessee, or 6 3
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vendees of the premises.”
Notwithstanding the foregoing, the Borrower acknowledges and agrees that, during the term of the Agreement, the Promissory Note and City Deed of Trust executed pursuant thereto, Borrower must occupy the Residence as Borrower’s principal residence and cannot rent or lease the Residence.
12.DEFAULTS. If any one or more of the following events of default occur and is not remedied:
A. Any representation or warranty made by the Borrower in this Agreement or in any request or certificate of the Borrower furnished to City hereunder must prove to have been incorrect in any material respect; and/or B. Borrower defaults in the payment, when due, of any principal, interest, or other amount payable by Borrower with respect to the Residence, whether due under this Agreement, the Note or otherwise; and/or C. Borrower defaults in the performance of any other obligation to be performed by it contained herein or in the Note;
Then, and in any such case, in addition to any other rights and remedies available to the City hereunder or at law or in equity or otherwise, City may declare the principal and any other amounts accrued on the Note to be forthwith due and payable, whereupon the same must become forthwith due and payable, and/or City may immediately terminate its commitment hereunder.
13.INDEMNIFICATION.
A. Borrower agrees to indemnify and holds City harmless from and against any claim, action, damages, costs (including, without limitation, attorney’s fees), injuries, or liability, arising out of this Agreement, its performance, or the Residence. Should City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, its performance, or the Residence, Borrower will defend City (at City’s request and with counsel satisfactory to City) and will indemnify City for any judgment rendered against it or any sums paid out in settlement or otherwise.
B. For purposes of this section “City” includes City’s elected and appointed officials; City officers; City employees; City volunteers; elected and 6 3
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appointed officials of the City of Camarillo; City of Camarillo officers; City of Camarillo employees; and City of Camarillo volunteers.
C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement.
D. Borrower remains fully obligated for the payment of taxes, liens, and assessments related to the Residence. There will be no reduction in taxes for Borrower, nor any transfer of responsibility to City to make such payments, by virtue of the City Loan.
14.SUCCESSORS AND ASSIGNS. This Agreement is binding upon and inures to the benefit of the heirs, successors, assigns, and representatives of the parties.
15.NOTICES. All notices, requests, demands, consents, and other communications required or permitted to be given under the terms of this Agreement must be in writing addressed to the recipient party’s Notice Address set forth below and are deemed to have been duly given or made (a) if delivered personally (including commercial courier or delivery service) to the party’s Notice Address, then as of the date delivered (or if delivery is refused, upon presentation), or (b) if mailed by certified mail to the party’s Notice Address, postage prepaid and return receipt requested, then at the time received at the party’s Notice Address as evidenced by the return receipt, or (c) if mailed by first class mail to the party’s Notice Address, postage prepaid, then at the time received at the party’s Notice Address. A party may only change its Notice Address by a notice given in the foregoing form and manner.
Each party’s initial Notice Address is as follows:
If to Borrower:
________________________
________________________
________________________
If to the City:
CITY OF CAMARILLO
Attention: Camarillo Workforce Housing DAP
601 Carmen Drive
Camarillo, CA 93010
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16.DOCUMENTS. Borrower is aware that City has prepared certain documents to implement this Agreement and secure repayment of the City Loan. Borrower has reviewed and agrees to execute the following documents in substantially the form as attached hereto before receiving the City Loan, and any other documents reasonably required by City or a participating entity to complete the transaction contemplated herein:
A. Property Description “ Residence” (Exhibit “A”);
B. Promissory Note (Exhibit “B”);
C. City Deed of Trust (Exhibit “C”);
D. Disclosure Statement and Notice of Rescission (Exhibit “D”).
Borrower agrees and acknowledges that the City Deed of Trust will be recorded as an encumbrance to the Property with the County Recorder of the County of Ventura and appear of record with respect to the Property.
17.FURTHER ASSURANCES. Borrower must execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as City may from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the City Loan.
18.CITY MAY ASSIGN. City may, at its option, assign its right to receive repayment of the City Loan proceeds to a nonprofit entity (including the City of Camarillo) without obtaining the consent of the Borrower or the holder of the First Lien, or to a profit- making entity with the prior written consent of the holder of the First Lien.
19.RELATIONSHIP OF BORROWER AND CITY. The relationship of Borrower and City pursuant to this Agreement is that of debtor and creditor and may not be construed to be a joint venture, equity venture, partnership, or other relationship.
20.TIME OF ESSENCE. Time is of the essence in all of the terms, covenants, and conditions of this Agreement.
21.INTERPRETATION. This Agreement was drafted in and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Ventura County.
22.COMPLIANCE WITH LAW. Borrower agrees to comply with all federal, state, and local laws applicable to this Agreement.
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23.ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms, or other agreements expressed or implied, oral or written. There are ___ (__) Attachments to this Agreement. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns.
24.RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.
25.SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect.
26.AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment executed by the Parties. Lender’s executive manager, or designee, may execute any such amendment on behalf of Lender.
27.COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which must be deemed an original, but all of which together must constitute one and the same instrument.
28.JOINT AND SEVERAL. If more than one person executes this Agreement as Borrower, the agreements, covenants, representations, warranties, obligations, and liabilities of such persons under this Agreement must be joint and several. [SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.
CITY OF CAMARILLO
_________________________________ ____________________________ City Manager Signature
____________________________
Applicant Signature
____________________________
Applicant Signature
ATTEST:
_____________________________
City Clerk
APPROVED AS TO FORM:
_____________________________
City Attorney
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EXHIBIT “A”
LEGAL DESCRIPTION
That real property located in the State of California, County of Ventura, City of Camarillo, and described as follows:
[To Be Inserted]
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EXHIBIT “B”
PROMISSORY NOTE
$_____________Camarillo, California
Date: _______________
Property Address: _____________________________________,Camarillo, CA 93010 FOR VALUE RECEIVED, the undersigned (the “Maker”) promises to pay to the City of Camarillo, or order (“Holder”), at 601 Carmen Drive, Camarillo, California 93010, or at such other address as Holder may direct from time to time in writing, ___________________________________________($________) (the “Note Amount”), together with interest as specified below. All sums hereunder are payable in lawful money of the United States of America. This Note is secured by a Deed of Trust (the “Agency Deed of Trust”).
1. Camarillo Workforce Housing Downpayment Assistance Program Loan Agreement. This Promissory Note (the “Promissory Note” or “Note”) is made and delivered pursuant to and in implementation of the Loan Agreement entered by and between the Holder and the Maker dated ______________________(the “Agreement”), a copy of which is on file as a public record with the Holder and is incorporated herein by reference. The Maker acknowledges that but for the execution of this Promissory Note, the Holder would not have entered into the Agreement or make the loan. Unless terms are expressly defined below, each term has the same definition as in the Agreement.
1. Interest Rate. The Note Amount will accrue contingent, deferred interest in the amount of three percent (3%) interest rate accrued annually in accordance to the terms of the Loan Agreement.
2. Time of Payment. The Agreement sets forth the time for payment.
Notwithstanding any provision in the Agreement, the transfer of the Residence solely as a result of the marriage, divorce, incompetency, or death of one or more individuals constituting the Holder will not accelerate the term of this Promissory Note or cause the Note Amount to become due and payable, so long as the transferee(s) give notice to the Holder of such event within thirty (30) days of its occurrence and the transferee(s) assume the Maker’s obligations under this Promissory Note, by execution of an assignment and assumption agreement to be provided by the Holder.
2. Security for Note. This Promissory Note is secured by a second Deed of Trust executed by Maker as Trustor in favor of Holder as Trustee.
3. Prepayment of Note. Maker may prepay this Note to Holder at any time, provided that any prepayment must be in full and not in part. Prepayment will be treated in the same manner as refinancing of the Property.
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4. Holder May Assign. Maker may, at its option, assign its right to receive repayment of the proceeds of this Promissory Note to a nonprofit entity (including the City of Camarillo) without obtaining the consent of the Maker or the holder of the First Lien, or to a profit-making entity with the prior written consent of the holder of the First Lien.
5. Maker Assignment. In no event can Maker assign or transfer any portion of this Promissory Note without the prior express written consent of the Holder, which consent may be given by the Holder only in the event that the Holder determines that the assignee or transferee is an Eligible Person or Family, and that the assignee or transferee expressly assumes this Promissory Note and the Agreement by execution of a written assignment document to be provided by the Holder. This section does not affect or diminish the Holder’s right to assign all or any portion of its rights to the proceeds of this Note.
6. Joint and Several. The undersigned, if more than one, are jointly and severally liable hereunder.
7. Amendments. This Note may not be modified or amended except by an instrument in writing expressing such intention executed by the parties sought to be bound thereby, which writing must be so firmly attached to this Note.
8. Maker’s Waivers. Maker waives any rights to require the Holder to: (a) demand payment of amounts due (known as “presentment”), (b) give notice that amounts due have not been paid (known as “notice of dishonor”), and (c) obtain an official certification of nonpayment (known as “protest”).
9. Notice. Any notice that must be given to Maker under this Note must be given by personal delivery or by mailing it by certified mail addressed to Maker at the Property address above or such other address as Maker may direct from time to time in writing.
Failure or delay in giving any notice required hereunder does not constitute a waiver of any default or late payment nor will it change the time for any default or payment. Any notice to Holder must be given by certified mail at Holder’s address stated in the preamble to this Note.
10. Successors Bound. This Promissory Note is binding upon the parties and their respective heirs, successors, and assigns.
IN WITNESS WHEREOF, Maker has executed this Promissory Note as of the date set forth above.
By: ___________________________
Printed Name:
By: ___________________________
Printed Name:
By: ___________________________
Printed Name:
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EXHIBIT B1
RIDER TO DEED OF TRUST
This Rider to Deed of Trust is subject to the terms and conditions of the First Time Homebuyer Loan Agreement dated , 20 (the “Loan Agreement”) and incorporated by reference, pursuant to which Beneficiary agreed to loan Trustor the sum of ____________ Thousand Dollars ($ ) (the “Loan Amount”). All terms in this Rider to Deed of Trust, if not otherwise defined, have the same meanings as in the Loan Agreement.
1. Acceleration of Payment. Except as provided in the Loan Agreement with respect to the sale of the Property to an Eligible Person or Family, the City Loan becomes due and immediately payable upon the occurrence of any one of the following events of acceleration: (i) sale or transfer of the Property, including, without limitation, lease, exchange, or other disposition of the Property or any property interest, whether voluntary or involuntary, except a sale or transfer which under federal law, would not, by itself, permit Beneficiary to exercise a due on sale or due on encumbrance clause, (ii) the refinancing of the First Lien for a loan amount in excess of the then-current loan balance secured by the First Lien, plus customary and reasonable costs of refinancing which are actually included in the new loan, (iii) such time if or when Trustor is no longer an occupant of the Property pursuant to the Loan Agreement or is in default of any other obligation under the Loan Agreement, or (iv) the close of a probate estate following the death of Trustor, except to a surviving spouse. Notwithstanding the above, the transfer of the Property solely as a result of the marriage, divorce, incompetency, or death of one or more individuals constituting the Trustor will not accelerate the Note Period or cause the City Loan to become due and payable, so long as the transferee(s) give notice to Beneficiary of such event within thirty (30) days of its occurrence and the transferee(s) assume the Trustor’s obligations under this Agreement, by execution of an assignment and assumption agreement to be provided by Beneficiary. At the request of Trustor, Beneficiary may, in its sole and absolute discretion, in writing waive some or all of the requirements of this Section 1 and defer repayment and/or extend the term of the City Loan. Notwithstanding the foregoing, Trustor may upon written approval by Beneficiary refinance the First Lien for a loan amount equal to or less than the then current loan balance secured by the First Lien, plus customary and reasonable costs of refinancing.
“Eligible Person or Family” means a Lower to Moderate-Income Household with a gross annual income that does not exceed one-hundred and fifty percent (150%) of the Ventura County Area Median Income, adjusted for household size, as established by the California Department of Housing and Community Development (“HCD”)
2. Covenants Do Not Impair Lien. The provisions of the Loan Agreement, the Promissory Note, and the Deed of Trust are subordinate to the First Lien on the Property held by the Lender and will not impair the rights of Lender, or Lender’s assignee or successor in interest, to exercise its remedies under the First Lien in the event of default under the First Lien by Trustor. Such remedies under the First Lien include the right of foreclosure, acceptance of a deed or assignment in lieu of foreclosure, or assignment of the mortgage to the Secretary of the United States 6 3
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Housing and Urban Development (“HUD”). Thus, any party, its successors and assigns, receiving title to the Property through a trustee’s sale, judicial foreclosure sale, deed in lieu of foreclosure or assignment to HUD, and any conveyance or transfer thereafter, receive title free and clear of the Loan Agreement, the Promissory Note, and the Deed of Trust.
3. Protection of Beneficiary’s Rights in the Property. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary’s rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary’s rights in the Property. Beneficiary’s actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorneys’ fees and entering on the Property to make repairs. Although Beneficiary may take action under this Section 3, Beneficiary does not have to do so.
Any amount disbursed by Beneficiary under this Section 3, becomes additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, these amounts bear interest from the date of disbursement at 9% per annum or the maximum legal rate, whichever is less, and are payable, with interest, upon notice from Beneficiary to Trustor requesting payment.
IN WITNESS WHEREOF, Trustor has executed this Rider to Deed of Trust as of the date set forth above.
By: ___________________________ __________________________ Printed Name
By: ___________________________ __________________________ Printed Name
By: ___________________________ __________________________ Printed Name
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STATE OF CALIFORNIA )
) ss.
COUNTY OF ___________________ )
On , before me, , Notary Public, (Print Name of Notary Public)
personally appeared
,
☐personally known to me
-or-
☐proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature Of Notary
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. 6 3
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CAPACITY CLAIMED BY
SIGNER
☐Individual
☐Corporate Officer
Title(s)
☐Partner(s)☐
Limited
☐General
☐Attorney-In-Fact
☐Trustee(s)
☐Guardian/Conservator
☐Other:
Signer is representing:
Name Of Person(s) Or
Entity(ies)
DESCRIPTION OF
ATTACHED DOCUMENT
Title Or Type Of Document
Number Of Pages
Date Of Document
Signer(s) Other Than Named
Above
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STATE OF CALIFORNIA )
) ss.
COUNTY OF __________________ )
On , before me, , Notary Public, (Print Name of Notary Public)
personally appeared
,
☐personally known to me
-or-
☐proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature Of Notary
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. 6 3
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CAPACITY CLAIMED BY SIGNER
☐Individual
☐Corporate Officer
Title(s)
☐Partner(s)☐Limited
☐General
☐Attorney-In-Fact
☐Trustee(s)
☐Guardian/Conservator
☐Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
Title Or Type Of Document
Number Of Pages
Date Of Document
Signer(s) Other Than Named Above
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EXHIBIT “C”
RECORDING REQUESTED BY AND )
When Recorded Mail To: )
)
City of Camarillo
601 Carmen Drive )
Camarillo, CA 93010 )
Attn: Community Development Department )
)
Exempt from recording fee pursuant to Government Code Section 27383
DEED OF TRUST WITH ASSIGNMENT OF RENTS
(RESALE AND REFINANCE RESTRICTED PROPERTY)
(SHORT FORM)
This DEED OF TRUST WITH ASSIGNMENT OF RENTS (“Deed of Trust” or “DOD”), is made as of _________,20__ by __________________________________ (“Trustor”), whose address is ____________________,, to City of Camarillo ( “Trustee”), for the benefit of the CITY OF CAMARILLO, a public body, corporate and politic (“Beneficiary”), having an office located at 601 Carmen Drive, Camarillo, California 93010.
Trustor grants to Trustee in Trust, with Power of Sale, that property in the City of Camarillo, County of Ventura, State of California, described as:
See attached Exhibit A, incorporated herein
Together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues, and profits.
For the purpose of securing (1) payment of indebtedness in the principal amount of ________________________________ ($ ), according to the terms of a Promissory Note dated _______________, 20__ made by Trustor, payable to order of Beneficiary, and extensions or renewals, and (2) the performance of each agreement of Trustor incorporated by reference or contained in this DOD (3) payment of additional sums and interest which may be subsequently loaned to Trustor, or Trustor’s successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust.
To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set 6 3
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forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Ventura County August 17, 1964, in all other counties August 18, 1964, in the book and at the page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely:
COUNTY BOOK PAGE COUNTY BOOK PAGE
Alameda 1288 556 Placer 1028 379 Alpine 3 130-31 Plumas 166 1307 Amador 133 438 Riverside 3778 347 Butte 1330 513 Sacramento 5039 124 Calaveras 185 338 San Benito 300 405 Colusa 323 391 Los Angeles 6213 768 Contra Costa 4684 1 San Francisco A-804 596 Del Norte 101 549 San Joaquin 2855 283 El Dorado 704 635 San Luis Obispo 1311 137 Fresno 5052 623 San Mateo 4778 175 Glenn 469 76 Santa Barbara 2065 881 Humboldt 801 83 Santa Clara 6626 664 Imperial 1189 701 Santa Cruz 1638 607 Inyo 165 672 Shasta 800 633 Kern 3756 690
San Diego SERIES 5 Book 1964, Page 149774
Kings 858 713 Sierra 38 187 Lake 437 110 Siskiyou 506 762 Lassen 192 367 Solano 1287 621 Los Angeles T-3878 874 Sonoma 2067 427 Madera 911 136 Stanislaus 1970 56
Marin 1849 122 Sutter 655 585 Mariposa 90 453 Tehama 457 183 Mendocino 667 99 Trinity 108 595 Merced 1660 753 Tulare 2530 108 Modoc 191 93 Tuolumne 177 160 Mono 69 302 Ventura 2607 237 Monterey 357 239 Yolo 769 16
Napa 704 742 Yuba 398 693 Nevada 363 94
Orange 7182 18
does inure to and bind the parties to this DOD, with respect to the property above described. Said agreements, terms and provisions contained in said subdivision A and B, (identical in all counties), are incorporated and made a part of this Deed of Trust by reference for all purposes and Beneficiary may charge for a statement regarding the 6 3
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obligation secured hereby, provided the charge does not exceed the maximum allowed by law.
The undersigned Trustor, requests that a copy of any notice of default and any notice of sale be mailed to him at his address set forth above.
The Deed of Trust Rider executed by Trustor is attached hereto, marked as Exhibit B, and made part of this Deed of Trust.
Signature of Trustor:
By: ___________________________ __________________________ Printed Name
By: ___________________________ __________________________ Printed Name
By: ___________________________ __________________________ Printed Name
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EXHIBIT D
BORROWER DISCLOSURE STATEMENT
I/we ___________________________________________________________ (“Participant”) are obtaining financial assistance (the “City Loan”) from the City of Camarillo (the “City”) to assist me/us to purchase the above described property (the “Property”), pursuant to a program offered by City (the “Program”) related to affordable housing. I/we understand that the City Loan is conditional on a number of factors, including, without limitation:
• I/we have signed or will sign an First Time Homebuyer Loan Agreement, Promissory Note, Deed of Trust and Declaration of Conditions, Covenants, and Restrictions in connection with the City Loan. I/we have read or had explained to us the terms and conditions of all of those documents. I/we understand that all of those documents impose binding legal obligations on me/us.
• I/we understand that the full amount of a $_______________ loan will be due and payable, along with any contingent deferred interest, if I sell or otherwise transfer this property to non-eligible persons, or if I fail to reside at this property.
• I/we understand that these obligations and restrictions are fully set forth in the following documents that are part of this sale and that this Borrower Disclosure Statement is a simple summary of some of the restrictions on this property:
• First Time Homebuyer Loan Agreement: First Time Homebuyer Loan Agreement explains the terms of the loan from the City, maintenance and occupancy requirements, and other
requirements.
• Promissory Note: An agreement to pay $____________ to the City. • Deed of Trust: Allows the City to foreclose on the property if I do not repay the loan when it is due.
• I/we must qualify for a home loan from a responsible lender. • I/we must make a down payment of at least three percent (3%) of the home purchase price, which may be used to cover closing costs. • I/we must qualify as a “Lower to Moderate Income Household” under the guidelines of the Program.
• During the term of the City Loan, I/we must continuously occupy the Property and I/we cannot rent or lease the Property.
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• An appraisal fee may be payable by me/us upon the following: (i) the loan becomes due upon sale, (ii) the Property is refinanced, (iii) I/we no longer occupy the Property, or (iv) I/we are/am in default of any provision of the Promissory Note and Affordable Housing Loan Agreement.
• City is not responsible for any costs associated with the home I/we purchase with such assistance including, without limitation, any loan fees or charges, any charges for appraisals or any escrow costs or other costs relating to the transfer of the Property.
• City is not responsible for the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether I/we will inform myself/ourselves as to the availability and terms of other public or private loans.
• The City financial assistance I/we receive under this Program may be considered to be income for purposes of federal or state income taxes and City is not responsible for the payment of any taxes, which I/we may incur by virtue of the receipt of such financial assistance.
• I/We have a right to cancel or rescind the City Loan at any time before midnight on the third business day after the First Time Homebuyer Loan Agreement is signed by sending a notice of my/our decision to rescind or cancel the City Loan to:
City of Camarillo
601 Carmen Drive,
Camarillo, California 93010
Attention: Community Development Department
• I/We are responsible for payment of the cost of a title insurance policy insuring the City Deed of Trust to be recorded against the Property to secure City’s right to repayment of the City Loan.
• City cannot ensure that information provided by or on my/our behalf will be kept confidential.
• City is not responsible for selecting a home or providing information concerning other public or private sources of loans.
• City is not charged with the knowledge of the contents of the documents of the lender.
• All loans and funding requests must be approved by the City Council.
Therefore, a minimum 30 day escrow may be necessary.
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NOTICE OF RIGHT OF RESCISSION
(Identification of Transaction)
Notice To Customer Required By Federal Law:
You have entered into a transaction on__________, 20__, which may result in a lien, mortgage, or other security interest on your home. You have a legal right under federal law to cancel this transaction, if you desire to do so, without any penalty or obligation within three business days from the above date or any later date on which all material disclosures required under the Truth in Lending Act have been given to you. If you so cancel the transaction, any lien, mortgage, or other security interest on your home arising for this transaction is automatically void. You are also entitled to receive a refund of any down payment or other consideration if you cancel. If you decide to cancel this transaction, you may do so by notifying
City of Camarillo
(Name of Creditor)
601 Carmen Drive, Camarillo, California 93010
(Address of Creditor’s Place of Business)
by mail or telegram sent not later than midnight on _____________________________. (Date)
You may also use any other form of written notice identifying the transaction if it is delivered to the above address not later than that time. This notice may be used for that purpose by dating and signing below.
I hereby cancel this transaction.
_________________________________ _____________________ (Owner’s Signature) (Date)
SEE NEXT PAGE FOR IMPORTANT INFORMATION ABOUT
YOUR RIGHT OF RESCISSION
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ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE
Each of the undersigned hereby acknowledges receipt of two completed copies of the Notice of Right of Rescission.
_________________________________ _____________________ (Owner’s Signature) (Date)
_________________________________ _____________________ (Owner’s Signature) (Date)
EFFECT OF RESCISSION. When a customer exercises his right to rescind he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within ten (10) days after receipt of a notice of rescission, the creditor shall return to the customer any money or property given as earnest money, down payment or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the customer, the customer may retain possession of it. Upon the performance of the creditor’s obligations under this section, the customer shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the customer shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the customer, at the option of the customer. If the creditor does not take possession of the property within ten (10) days after tender by the customer, ownership of the property vests in the customer without obligation on his part to pay for it.
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EXPIRATION OF RESCISSION PERIODS
Direct Loans
(Truth in Lending - Real Estate and Home Improvement Loans) __________________________________________ $________ Borrower(s) name Loan Amount __________________________________________, Camarillo, CA Address of Residence
In connection with the Agreement of the City of Camarillo (“City”) to make the loan described above, which will be secured by a deed of trust on the residence at the above address, each of the undersigned hereby represents as follows:
1. The undersigned understands the terms of this Agreement and its attachments.
2. The undersigned has been notified that it must inform City by today’s date should any of them desire to rescind or terminate this transaction.
3. The undersigned acknowledges that this loan has not been funded for at least three days from the date of execution, in order to provide them with an opportunity to rescind should they so desire.
4. City agreed, subject only to the occurrence of certain conditions, to make the above described loan and delivered to each undersigned a Disclosure Statement setting forth terms of said loan and a Notice of Right of Rescission advising each undersigned of their right to rescind and cancel said transaction in accordance with the Truth in Lending Act on or before the date the undersigned executed this document.
5. Before the date shown above, no proceeds of said loan have been disbursed to or for the benefit of any of the undersigned.
6. None of the undersigned have canceled or rescinded the above described loan transaction nor have any of the undersigned notified said City of any intention to cancel or rescind said loan transaction.
The undersigned request the City of Camarillo to proceed with the making of the above described loan in reliance upon the foregoing representations. _________________________________________
(Owner’s Signature) (Date)
_________________________________________
(Owner’s Signature) (Date)
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ACCEPTANCE OF DEED
(APN or Address)
Government Code Section 27281
This is to certify that the interest in real property conveyed by the foregoing _______________________________Deed for _______________________________ dated __________________, 20__ from _____________________________________, to the City of Camarillo is hereby accepted by the undersigned officer on behalf of the City of Camarillo by order of the Camarillo City Council on __________________, 20__ and the Grantee consents to recordation thereof by its duly authorized officer.
DATED: ________________________
CITY OF CAMARILLO
__________________________
Greg Ramirez, City Manager