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2017 Habitat for Humanity of the Coachella Valley, Inc. - Deed of TrustRECORDING REQUESTED BY C AND WHEN RECORDED MAIL. DOCUMENT AND TAX STATEMENT To: (0/0 ti/0 Flouisi iq Vin arl srt r 1 ?HMS CM I 161111,pict) I niri Ca n v-cb, MAME CrrY, STATE & EP CODE DOC # 2017-0374721 09/08/2017 03:51 PM Fees: $0.00 Page 1 of 12 Recorded in Official Records County of Riverside Peter Aldana Assessor -County Clerk -Recorder **This document was electronically submitted to the County of Riverside for recording** Receipted by: TERESA #134 SPACE ABOVE FOR RECORDER'S USE ONLY D eon o- Tr4s-- A3\f n �i g n meArtr'r Zei/Vs ¶r A- c k * L1 Ax a Title of Document • • . ?r .� . r �e,� ' z ers THIS COVER SHEET ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) Recording Requested By First American Title Company RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: La Quinta Housing Authority 78-495 Calle Tampico ' • La Quinta, California 92253 Attn: Executive Director 4-,SY7lo30 DOC #2017-0374721 Page 2 of 12 APN: 774-044-012-3 (Space Above This Line For Recorder's Use) (Exempt From Recording Fees Pursuant To Government Code Section 27383) DEED OF TRUST WITH ASSIGNMENT OF RENTS AND RIDER TO DEED OF TRUST ATTACHED HERETO This DEED OF TRUST WITH ASSIGNMENT OF RENTS AND RIDER TO DEED OF TRUST ATTACHED HERETO ("Deed of Trust"), made this 24th day of August, 2017, between EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and wife as joint tenants, herein called "Participant," whose address is 53240 Avenida Alvarado La Quinta, California, 92253, FIRST AMERICAN TITLE COMPANY, a California corporation, herein called "Trustee," and the LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic, herein called "Beneficiary," WITNESSETH: That Participant grants to Trustee in trust, with power of sale, that property in the City of La Quinta, County of Riverside, State of California, described in the legal description attached hereto as Exhibit "A", together with 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 the sum of $90,020, with interest thereon according to the terms of a promissory note or notes of even date herewith made by Participant, payable to order of Beneficiary, and extensions or renewals thereof; (2) the performance of each agreement of Participant incorporated by reference or contained herein; and (3) payment of additional sums and interest thereon which may hereafter be loaned to Participant, or his successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. A. To protect the security of this Deed of Trust, Participant agrees: 1) To keep said property in good condition and repair, not to remove or demolish any building thereon; to complete or restore promptly and in a good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor, to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. 2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at the option of Beneficiary the entire amount so collected or any part thereof may be released to Participant. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 53240 Avcnida Alvarado Castillo DOC #2017-0374721 Page 3 of 12 3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Participant fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Participant and without releasing Participant from any obligation hereof, may: make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. 5) To pay immediately upon demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: 1) That any award in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such moneys received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. 2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. 3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon, or join in any extension agreement or any agreement subordinating the lien or charge hereof. 4) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto." 53240 Avenida Alvarado Castillo -2- DOC #2017-0374721 Page 4 of 12 5) That as additional security, Participant hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of this Trust, to collect the rents, issues and profits of said property, reserving unto Participant the right, prior to any default by Participant in payment of any indebtedness secured hereby or in the performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, Tess costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collecting of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 6) That upon default by Participant in payment of any indebtedness secured hereby or in the performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed of Trust, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Participant, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Participant, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. 7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Participant, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded and the name and address of the new Trustee. 53240 Avenida Alvarado Castillo -3- DOC #2017-0374721 Page 5 of 12 8) That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 9) That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Participant, Beneficiary or Trustee shall be a party unless brought by Trustee. The undersigned Participant requests that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth. EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and wife as joint tenants Printed Name: EDUARDO VERDUGO CASTILLO By:o ��rnq N� a�, 6'r7 c=', k.6)Y Prin ed Name: MARIANA NAVAR 0 MELCHOR 53240 Avenida Alvarado Castillo -4- Dated: 0 9/ 1 r/ 1 7 Dated: (9 101 I/ o l 3 r DOC #2017-0374721 Page 6 of 12 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Riverside } } On Se &tor 1 or)) , before me, - LL r(UVl (insert name and title of the officer) Notary Public, personally appeared EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, who proved to me on the basis of satisfactory evidence to be the person® whose name@ i%/ r subscribed to the within instrument and acknowledged to me that hNisi lh je executed the same in h:16lher hal -authorized capacity, and that by hjhp /1 v signaturik0 on the instrument the person®, or the entity upon behalf of which the personacted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature r -I 6 °`^ L. DC`1i1 A Comm. #2181092 7i ▪ �= Notary Public -California - • �r; a; s Riverside County bi 4•a My Commission Expires " January 23, 2021 1'= :11111111,!1111r rrrllr 11 ,III 111111111llllllm 53240 Avenida Alvarado Castillo -5- (Seal) DO NOT RECORD TO DOC #2017-0374721 Page 7 of 12 REQUEST FOR FULL RECONVEYANCE ,TRUSTEE: The undersigned is the legal owner and holder of the note or notesand of all indebtedness secured by the foregoing Deed of Trust. 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, on 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, an 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 Please mail Deed of Trust, Note and Reconveyance to Do Not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. w 1-- m cc 53240 Avenida Alvarado_Castillo -6- DOC #2017-0374721 Page 8 of 12 EXHIBIT "A" LEGAL DESCRIPTION That certain real property located in the City of La Quinta, County of Riverside, State of California and described as follows: LOT 13 IN BLOCK 175 OF SANTA CARMELITA AT VALE LA QUINTA, UNIT #18, AS PER MAP RECORDED IN BOOK 19, PAGES 30 AND 31 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; EXCEPTING THEREFROM ONE -SIXTEENTH OF ALL COAL, OIL, GAS AND OTHER MINERAL DEPOSITS IN SAID LAND, AS RESERVED IN THE PATENT FROM THE STATE OF CALIFORNIA, RECORDED JULY 26, 1934 IN BOOK 182 PAGE 463 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. AP N : 774-044-012-3 1 53240 Avenida Alvarado Castillo -7- DOC #2017-0374721 Page 9 of 12 RIDER TO DEED OF TRUST This Deed of Trust is subject to the terms and conditions of that certain Affordable Housing Agreement with Resale Restrictions and Option to Purchase executed and recorded concurrently herewith in the Official Records of the County of Riverside (the "Affordable Housing Agreement") and incorporated herein by reference, pursuant to which Beneficiary is deemed to have loaned Participant the sum of Ninety Thousand Twenty Dollars ($90,020). (the "Authority Loan"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Affordable Housing Agreement. Notwithstanding the foregoing, Trustor acknowledges that upon Trustor's sale or other "Transfer" (as defined in the Affordable Housing Agreement) of the Property, the transferee will be required to assume all obligations of "Participant" under the Affordable Housing Agreement, of "Maker" under the Note, and of Trustor hereunder. 1. Order of Recordation. Participant agrees it shall instruct the Escrow Agent for the acquisition of the Property by the Participant that the order of recording in the escrow for the purchase of the Property by the Participant shall occur as follows: 1) the Affordable Housing Agreement; 2) this Deed of Trust; 3) the lien of the primary mortgage loan provided by an institutional lender (the "Primary Mortgage"); 4) the lien of any "silent second" financing provided by Habitat for Humanity of the Coachella Valley, Inc.; and 5) a Subordination Agreement in a form approved by Beneficiary's legal counsel subordinating this Deed of Trust to the holder of the Primary Mortgage, and requiring said holder to provide the Beneficiary with a written notice of any default under said lien and a right to cure said default. Participant shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the liens described in clauses 3 and 4 of the preceding paragraph requesting a statutory notice of default as set forth in California Civil Code Section 29246. Such notice shall be sent to: La Quinta Housing Authority, 78-495 Calle Tampico, La Quinta, California 92253, Attention: Executive Director. 2. Protection of Beneficiary's Rights in the Property. If Participant 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 appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Beneficiary may take action under this Section 2, Beneficiary does not have to do' so. Any amount disbursed by Beneficiary under this Section 2 shall become additional debt of Participant secured by this Deed of Trust. Unless Participant and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at seven percent (7%) per annum or the maximum legal rate, whichever is less, and shall be payable, with interest, upon notice from Beneficiary to Participant requesting payment. 53240 Avenida Alvarado Castillo -1- DOC #2017-0374721 Page 10 of 12 3. Beneficiary's Right to Assign. Beneficiary shall have the right, without obtaining the prior consent of Trustor, to assign any of its rights hereunder. IN WITNESS WHEREOF, Participant has executed this Rider to Deed of Trust as of the date set forth below. EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and wife as joint tenants By: _r.t.ir_.11s .\ C Printed Name: EDUARDO VERDUGO CASTILLO By: f OIOcrn 7tiQrt1Itr) +,1chOk- Printed Name: MARIANA NAVARRO MELCHOR 53240 Avenida Alvarado Castillo -2- Dated: 9 / l 0,2 Dated: DOC #2017-0374721 Page 11 of 12 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the . truthfulness, accuracy, or validity of that document. State of California County of Riverside } On Scot -mho( I 1 1 -1- , before me, L ( rCuri (insert name and title of the officer) Notary Public, personally appeared EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, who proved to me an the basis of satisfactory evidence to be the persons whose named ica subscribed to the wit in instrument and acknowledged to me that le/tie/C3 le/tie/C3executed the same in t$/hpr Ji authorized capacit '$��3, and that by hidltyerlsignature neon the instrument the person s°, or the entity upon behalf of which the persons acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Lt -in (Seal) ;� IL. D URA 1Ni r� a Comm. #2181092 44 Notary Publc-California Riverside Counly My Commission Expires `� Jonuory 23, 2021 �= 53240 Avenida Alvarado Castillo -3- DOC #2017-0374721 Page 12 of 12 Notary Seal Under the provisions of Government Code 27361.7, I certify under the penalty of perjury that the Notary Seal on the document to which this statement is attached reads as follows: Name ofNotary: D vroin Commission #: Date Commission Expires: CountY where Bond is filed: Vendor: —� ate 23 i v i PIace of Execution: Redlands, CA Date: Signature: �.3verrei-0 First American Title City of La Quinta Public Works/Engineering Department 78495 Calle Tampico La Quinta, CA 92253 Attn: Becky Caha Re: Seller: Habitat for Humanity of the Coachella Valley, Inc., Buyer: Eduardo Verdugo Castillo and Mariana Navarro Melchor Property: 53-240 Avenida Alvarado La Quinta, CA 92253 First American Title Company 500 S. Palm Canyon Drive, Suite 210 Palm Springs, CA 92264 (760)318-7180 Fax - (866)623-4186 September 11, 2017 Escrow No.: RPS -5476311 (LRDJ) The closing of the above referenced transaction is now complete. For your records we enclose the following (If checks are included in this package, please negotiate as soon as possible): Final Settlement Statement Additional documents, if applicable Keep these instruments secure as some of them cannot be replaced. Any recorded documents to which you may be entitled, and your policy of title insurance, will follow shortly. Should you have any questions or need further assistance, please contact the undersigned. Thank you for working with First American Title Company. We look forward to serving you in the future. Sincerely, Lynae Rendon/ Dusty Jeffries Escrow Officer palmspringsescrow@firstam.com LRDJ/DJ PROMISSORY NOTE SECURED BY DEED OF TRUST $90,020 August 24, 2017 Property Address: 53240 Avenida Alvarado, La Quinta, CA 92253 La Quinta, California FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to the La Quinta Housing Authority ("Holder"), at 78-495 Calle Tampico, La Quinta, California 92253, or at such other address as Holder may direct from time to time in writing, Ninety Thousand Twenty Dollars ($90,020) (the "Note Amount"), together with interest thereon as hereafter set forth. All sums hereunder shall be payable in lawful money of the United States of America. This Promissory Note Secured by Deed of Trust (the "Promissory Note" or "Note") is secured by a Deed of Trust with Assignment of Rents and Rider to Deed of Trust Attached Hereto of even date herewith, executed by Maker as Trustor in favor of Holder as Beneficiary (the "Deed of Trust"). 1. Loan Agreement. This Promissory Note is made and delivered pursuant to and in implementation of the Affordable Housing Agreement with Resale Restrictions and Option to Purchase entered into by and between the Holder and the Maker concurrently herewith and recorded in the Official Records of the County of Riverside (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 enter into the Agreement. Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition as set forth in the Agreement. 2. No Interest. Except as otherwise provided herein, the Note Amount shall bear no interest. 3. Time of Payment. Unless an "Event of Acceleration" (as that term is defined in Section 4 below) occurs prior to the expiration of the Covenant Period, then upon the expiration of the Covenant Period, the Note Amount will be forgiven and this Note shall be cancelled. 4. Events of Acceleration. The Note Amount shall become due and immediately payable irrespective of any provisions herein to the contrary upon the occurrence of any one of the following events of acceleration ("Event of Acceleration"): (i) a Prohibited Transfer of the Property, except a Transfer which under applicable law, would not, by itself, permit Holder to exercise a due on sale or due on encumbrance clause, or (ii) such time if or when Maker (or upon a Transfer of the Property by Maker that constitutes a Permitted Transfer, Maker's transferee) is no longer in compliance with the occupancy requirements set forth in Section 9 of the Agreement or is in default of any other obligation under the Agreement, this Note, or the Deed of Trust. 53240 Avenida Alvarado Castilla AN EVENT OF ACCELERATION OR PAYMENT OF THE LOAN EVIDENCED BY THIS NOTE, WHETHER VOLUNTARY OR DUE TO AN EVENT OF ACCELERATION, SHALL NOT TERMINATE THE AFFORDABILITY RESTRICTIONS OF THE AGREEMENT OR THE 45 -YEAR AFFORDABILITY PERIOD SET FORTH IN THE AGREEMENT. MAKER EXPRESSLY ACKNOWLEDGES THE FOREGOING. MAKER'S INITIALS Holder's Executive Director may, in his or her sole and absolute discretion, waive some or all of the requirements of this Section 4. The rate of interest applicable to periods of default for the Events of Acceleration set forth in this Section 4 shall be calculated at the lesser of ten percent (10%) per annum or the maximum legal rate, and shall accrue as of the date such payment was originally due. 5. Security for Note. This Promissory Note is secured by the Deed of Trust. 6. Prepayment of Note. Maker may prepay this Note to Holder, provided that any prepayment must be in full and not in part. 7. Holder May Assign. Holder may, at its option and without obtaining the consent of the Maker, assign (i) any of its rights hereunder to Habitat, and/or (ii) its right to receive payment under this Promissory Note. 8. Maker Assignment. In no event shall Maker assign or transfer any portion of this Promissory Note without the prior express written consent of the Holder, which consent shall be given by the Holder only in the event that (i) the Maker has determined, and Holder has verified, that the assignee or transferee is an Eligible Buyer, (ii) that the price at which Maker intends to transfer the Property is an Affordable Sales Price, and (iii) that the assignee or transferee has expressly assumed the Agreement, this Note and the Deed of Trust by execution of a written assumption agreement to be provided by the Holder. 9. Joint and Several. The undersigned, if more than one, shall be jointly and severally liable hereunder. 10. Collection Costs; Attorneys' Fees. If the Note Amount becomes due and is not paid, Borrower shall pay all costs of collection, including, but not limited to, attorneys' fees and all expenses incurred in connection with the protection or realization of the collateral securing the payment hereof or enforcement of any guarantee, incurred by Holder on account of such collection, whether or not suit is filed hereon. 11. 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 so as to become a permanent part thereof. 53240 Avenida Alvarado Castillo -2- 12. 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"). 13. Notice. Any notice that must be given to Maker under this Note shall be in writing and shall be effective when personally delivered or forty-eight (48) hours after deposit in the United States Mail, as certified or registered mail, return receipt requested, first-class postage and fees prepaid, addressed to Maker at the Property Address above or such other address as Maker shall direct from time to time in writing and to Holder at Holder's address stated in the preamble to this Note. Failure or delay in giving any notice required hereunder shall not constitute a waiver of any default or late payment, nor shall it change the time for any default or payment. 14. Successors Bound. This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. 53240 Avenida Alvarado Castillo [END - SIGNATURE PAGE FOLLOWS] -3- IN WITNESS WHEREOF, Maker has executed this Promissory Note. "Maker" EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and wife as joint tenants By: F t rr. vac, �. \).r Printed Name: EDUARDO VERDUGO CASTILLO 0 By: r ?ti o[CJ 1'vV 4,-- Y� 7�- Printe Name: MARIANA NAVARRO MELCHOR 53240 Avenida Alvarado Castillo -4- Dated: ©9 / o i / o)7 Dated: 07/r)/ /?o/ BORROWER DISCLOSURE STATEMENT Name of Participant(s): EDUARDO VERDUGO CASTILLO MARIANA NAVARRO MELCHOR Property Address: 53240 Avenida Alvarado La Quinta, California 92253 Authority Loan Amount: Ninety Thousand Twenty Dollars ($90,020) I/we EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and wife as joint tenants (collectively, the "Participant") are purchasing the above described property (the "Property") from Habitat for Humanity of the Coachella Valley ("Habitat"), the developer of the Property. I/we understand that the former La Quinta Redevelopment Agency (the "Agency") provided a loan to Habitat to assist Habitat with purchasing and developing the Property and other adjacent property, and that a portion of that financial assistance (the "Authority Loan") is now deemed to have been provided to me/us by the La Quinta Housing Authority, which is the housing successor entity to the Agency. I/we understand that our ability to purchase the Property is conditioned on a number of factors, including, but not limited to: • I/we have signed or will sign an Affordable Housing Agreement with Resale Restrictions and Option to Purchase ("Authority Affordable Housing Agreement"), Promissory Note Secured by Deed of Trust ("Authority Promissory Note"), and Deed of Trust with Assignment of Rents and Rider to Deed of Trust Attached Hereto ("Authority Deed of Trust") in connection with my/our purchase of the Property. 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 Authority Loan will be due and payable if Uwe: ■ sell or otherwise transfer the Property to a household that does not qualify under California law as a "very low income household" (a "Qualified Buyer") and/or is at a price that exceeds an "Affordable Sales Price" (as that term is defined in the Authority Affordable Housing Agreement); ■ no longer live in the Property as my/our primary residence; or • otherwise violate the Authority Promissory Note or Authority Affordable Housing Agreement or the other documents we have signed in connection with my/our purchase of the Property and the Authority Loan. 53240 Avenida Alvarado Castillo • I/we understand that if I/we attempt to sell the Property to a household that does not qualify as a Qualified Buyer or if I/we attempt to sell the Property at a price that exceeds an Affordable Sales Price I/we may be required to pay to the Authority a penalty that equals the difference between the sales price for the Property and an Affordable Sales Price. • I/we understand that the Authority Affordable Housing Agreement contains an option to purchase that may be exercised by Habitat or by the Authority to purchase the Property at an Affordable Sales Price in the following situations: • during the period after I/we notify Habitat and Authority of my/our desire to sell the Property or I/we place the Property for sale (whichever occurs first), for a minimum of 60 days, and up until the time I/we enter into an agreement to sell the Property to a Qualified Buyer; or ■ upon my/our sale of the Property to a buyer who does not qualify as a Qualified Buyer. • I/we understand that the Authority Affordable Housing Agreement will remain in effect for forty-five (45) years. I/we further understand that I/we may be liable to pay damages to any noneligible buyer to whom I/we sell the Property if the Authority exercises its option to purchase the Property from the noneligible buyer. • I/we understand that I/we must qualify for a loan from a third party institutional lender (a "Lender"). • I/we must make a down payment in connection with my/our purchase of the Property, plus closing costs, but the amount of the down payment must not exceed one percent (1 %) of the purchase price of the Property. • I/we acknowledge that I/we do not have cash assets (including my/our down payment amount) in excess of $50,000. • I/we must qualify as a "very low income household" under California law. • My/our monthly payments for housing expenses may not exceed 30% times 50% of the Riverside County median, as more specifically defined by Health and Safety Code Section 50052.5 and the Affordable Housing Cost Worksheet available from Authority. • During the term of the Authority Affordable Housing Agreement, I/we must continuously occupy the Property and I/we shall not rent or lease the Property. 53240 Avenida Alvarado Castillo -2- • Authority shall not be held responsible for any costs associated with the Property I/we purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals or any escrow costs or other costs relating to the transfer of the Property. • I/we have a right to cancel or rescind this transaction at any time prior to midnight on the third business day after the Promissory Note is signed by sending a notice in the form which is attached to this Borrower Disclosure Statement of my/our decision to rescind or cancel the transaction to: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, California 92253 • I/we are responsible for payment of the cost of a title insurance policy insuring the Authority Deed of Trust to be recorded against the Property to secure Authority's right to repayment of the Authority Loan. • Authority cannot ensure that information provided by or on my/our behalf will be kept confidential. • Authority shall not be responsible for providing information concerning other public or private sources of loans. • Authority shall not be charged with the knowledge of the contents of the loan documents of Habitat. • All loans and funding requests must be approved by the Executive Director of Authority. Therefore, a minimum 30 day escrow may be necessary. "Participant" EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and wife as joint tenants By: Date- CJ / 1 // , 2017 Printed Name: EDUARDO VERDUGO CASTILLO By: (IV I(Yl('J f\Inch/i) qc-ichav Date: d (ni / , 2017 Printe Name: MARIANA NAVARRO MELCHOR 53240 Avenida Alvarado Castillo -3- NOTICE OF RIGHT OF RESCISSION (Identification of Transaction) Notice To Customer Required By Federal Law: You have entered into a transaction on August 25, 2017, 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 (3) 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 from 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 La Quinta Housing Authority at (Name of Creditor) 78-495 Calle Tampico, La Quinta, California 92253 (Address of Creditor's Place of Business) by mail or telegram sent not later than midnight on August 30, 2017. (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. hereby cancel this transaction. (Date) (Owner's Signature) SEE NEXT PAGE FOR IMPORTANT INFORMATION ABOUT YOUR RIGHT OF RESCISSION 53240 Avenida Alvarado Castillo -4- 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. \) C oct -0 - 17 (Owner's Signature) (Date) 40/11(14) (1 ((O ✓r0 -4r4G (Owner's Signture) (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. 53240 Avenida Alvarado Castillo -5- American Land Title Association ALTA Settlement Statement - Combined Adopted 05-01-2015 File No: RPS -5476311 Printed: 09/11/2017, 1:44 PM Officer/Escrow Officer: Lynae Rendon/ Dusty Jeffries/DJ Settlement Location: 500 S. Palm Canyon Drive, Suite 210, Palm Springs, CA 92264 First American Title Company 500 S. Palm Canyon Drive, Suite 210 • Palm Springs, CA 92264 Phone: (760)318-7170 Fax: (866)623-4186 Final Settlement Statement 0. N f k Property Address: 53-240 Avenida Alvarado, La Quinta, CA 92253 Buyer: Eduardo Verdugo Castillo, Mariana Navarro Melchor Seller: Habitat for Humanity of the Coachella Valley, Inc., Lender: First Bank Settlement Date: 09/08/2017 Disbursement Date: 09/08/2017 vY� r-irKrNy CERTIFY THIS 10 BE A TRUE AND CQRREc- copy FirstAror2ricn TitIET company Y By Seller Description Buyer Debit Credit Debit Credit Financial 243,100.00 Sale Price 243,100.00 Deposit: Receipt No. 1355108053 on 09/07/2017 by Eduardo Verdugo Castillo / Mariana Navarro Melchor 52.31 Deposit: Receipt No. 1355107900 on 06/23/2017 by Mariana Navarro Melchor 1,300.00 Loan Amount - First Bank 135,200.00 90,020.00 New Loan to File - City of La Quinta Public Works/Engineering Department 90,020.00 21,780.00 New Loan to File - Coachella Valley Habitat for Humanity 21,780.00 Prorations/Adjustments 637.65 County Taxes 07/01/17 to 09/08/17 @$1,713.09/semi 637.65 Loan Charges Loan Charges to First Bank Prepaid Interest 09/06/17 to 10/01/17 @$12.960000/day 324.00 Appraisal Fee 475.00 Credit Report 32.50 Flood Certification 7.00 Tax Service 62.00 Appraisal Processing Fee 11.00 Property Tax Direct Fee 2.50 Non -Specific Lender Credits 344.00 Impounds Aggregate Adjustment 263.01 Homeowner's Insurance 3 mo(s) @$52.59/mo 157.77 County Property Taxes 10 mo(s) @$285.52/mo 2,855.20 This is a summary of the closing transaction prepared by First American Title Company. This document is not intended to replace the Closing Disclosure form. Copyright 2015 American Land Title Association All rights reserved Page 1of2 File # RPS -5476311 Printed on 09/11/2017 at 1:44 PM Seller Description Buyer Debit Credit Debit Credit Title Charges & Escrow / Settlement Charges 1,043.00 Title - Owner's Title Insurance (optional) Eagle Owners Policy to First American Title Company Title - Lender's Policy ALTA Loan Policy Extended - 1 to First American Title Company 175.00 Title - Lender's Policy ALTA Loan Policy Extended - 2 to First American Title Company 384.00 Title - Lender's Policy ALTA Loan Policy Extended - 3 to First American Title Company 395.00 1,615.00 Title - Escrow Fee Escrow Fee to First American Title Company Title - New Loan Services Fee New Loan Services Fee to First American Title Company 710.00 200.00 Title - Notary/Signing Fee Notary/Signing Fee to First American Title Company Title - Notary/Signing Fee Notary/Signing Fee 2nd Loan to First American Title Company 175.00 Title - Notary/Signing Fee Notary/Signing Fee 3rd Loan to First American Title Company 100.00 Government Recording and Transfer Charges * Record Deed Paid by Others -Settlement Agent $21.00 * Record First Deed of Trust Paid by Others -Settlement Record Deed of Trust - 1 Agent $78.00 * Record Deed of Trust - 3 to Riverside Paid by Others -Settlement County Clerk -Recorder Agent $72.00 Record Agreement Paid by Others -Settlement Agent $66.00 267.85 County Documentary Transfer Tax Miscellaneous 425.00 Home Warranty to First American Home Warranty Homeowner's Insurance Premium to Wells Fargo Insurance 631.00 89.95 Special Hazard Disclosure(CA) to First American Natural Hazard Disclosure 3,833.24 Payoff good through 09/30/17 to Riverside County Treasurer -Tax Collector 119,911.69 243,100.00 Subtotals 249,596.97 249,596.97 Due From/To Buyer 123,188.31 Due To Seller 243,100.00 243,100.00 Totals 249,596.97 249,596.97 *Recording fees are paid by the Settlement Agent. This is a summary of the closing transaction prepared by First American Title Company. This document is not intended to replace the Closing Disclosure form. Copyright 2015 American Land Title Association. All rights reserved Page 2 of 2 Printed on 09/11/2017 at 1:44 PM File # RPS -5476311