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HomeMy WebLinkAboutR-1990-D5680 Hoemownership Program• • t • RESOLUTION NO. 56 A Resolution of the Council of the City of Yakima, Washington, authorizing a loan under the City's Homeownership Program. WHEREAS, pursuant to Ordinance No 3206 of the City of Yakima (the "City), adopted September 26, 1989, the City established a program to provide below-market rate loans for the acquisition of residential property by persons or families of low income (the "Homeownership program" or "Program") and authorized the issuance and sale of its Limited Tax General Obligation Notes, 1989 (Series A -C and E -K), to fund such program; and WHEREAS, Ordinance No. 3206 requires approval by the City Council of each loan to be made under the Program; and WHEREAS, the Office of Housing and Neighborhood Conservation (the "Office"), as administrator of the Homeownership Program, has requested that the City Council approve a loan to be made under the Program; and WHEREAS, in the certificate attached hereto as Exhibit 1 and incorporated by this reference herein, the Office has assured the City Council that such loan meets all requirements of the Program and complies with the laws of the State of Washington and with the Internal Revenue Code of 1986, as amended; NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF YAKIMA, WASHINGTON, AS FOLLOWS: ,SECTION 1. Findings. In reliance upon the certificate attached hereto as Exhibit 1, the City Council hereby finds that the proposed loan to Floyd L. St. Clair and Sandra E. St. Clair (the "Debtor"), in the aggregate amount of $29,000.00 (the "Loan") to purchase a residence located at 607 N 4TH AVE in the City, meets all federal and state laws and regulations applicable to the Program and meets all requirements of the Program, as set forth in the Program Policies and Procedures. The City Council further finds that the full amount of $29,000.00 the Loan be funded from the Homeownership Account of the Yakima General Fund, and that such amounts are not greater than the amounts available for such purpose. SECTIQN 2. Authorization. The City Council hereby authorizes the Office to make the Loan upon the terms set forth in and upon the execution by the Debtor of the Homeownership Agreement, Promissory Note and Deed of Trust, attached hereto as Exhibit 2 and by this reference incorporated herein. The City Council further authorizes the Office to execute and deliver all documents necessary thereto. ADOPTED by the Council of the City of Yakima, Washington, at a regular meeting thereof, this ,�-�� day of �� r� s ,19 3' , CITY OF YAKIMA, WASHINGTON • BY MAYOR ATTEST: CITY CLERK CEFITiFiCATE I, the undersigned, Clerk of the City of Yakima, Washington (the "City"), and keeper of the records of the City Council (herein called the "Council"), nn HEREBY CERTIFY: 1. That the attached resolution is a true and correct copy of Resolution No. of the Council (herein called the "Resolution"), duly passed at a Business meeting thereof held on the 23rd of January,1990 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Resolution; that all other requirements and proceedings incident to the proper passage of said Resolution have been duly fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this day of , 1990. CITY CLERK CITY OF YAKIMA, WASHINGTON LOAN AGREEMENT THIS LOAN AGREEMENT ("Agreement") is made and entered into this day of ,19 , by and between the City of Yakima ("Lender") and FLOYD L. AND SANDRA E. ST. CLAIR ("Borrower(s)"). RECITALS WHEREAS, Borrower is purchasing that certain property (the "Property") located in Yakima County, Washington, more particularly described in Exhibit A attached hereto and by this reference incorporated herein; WHEREAS, this Agreement is entered in conjunction with the Borrower's note (the "Note") and the deed of trust (the "Deed of Trust") of even date securing Lender's loan; WHEREAS, this Agreement together with the Note and the deed of trust shall hereinafter be collectively referred to as the "Loan Documents"); NOW, THEREFORE: in consideration of the mutual promises contained herein, and other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the parties agree to the following terms: 1. Performance of Obligations. Borrower agrees to comply with, abide by, and perform as applicable all of the obligations, terms, provisions and conditions of this Agreement. Borrower's breach of any of the provisions in this Agreement shall constitute a default (an "Event of Default") under the Loan Documents, thereby providing Lender with any or all of the remedies specified in the Loan Documents or otherwise available at law. 2. Repairs and Improvements. Borrower acknowledges that he/she examined the Property, is aware that the Property may need repairs and takes the full responsibility for repairing the Property to such a condition that the Property is safe and satisfactory for habitation and meets all applicable minimum code standards, and that Lender shall have no responsibility whatsoever, including costs, for any such repair. a. • ' • • • - Prior to Borrower's occupancy of the Property, Borrower, at Borrower's sole cost and expense, must repair those defects on the Property, if any, which pose a substantial danger to health and safety, and also must place the property in such condition as to meet the minimum health and safety standards for occupancy as determined by the appropriate governmental authorities. Borrower must complete the repairs within one (1) year from the date of this Agreement. Borrower's failure to place the Property in such condition as to allow occupancy and to present evidence of such compliance to Lender within one (1) 1 b. ."4 ehdI ,,,ranc.f2f Ljill TA "0 4e.“6,15 6011Z, OVgi1 IIJI It ZA/ !%UI 4.0.11061 MI# “11 15=VU111 nf nnfRilqc it* • 111*. s .* s t. Air it • -IL Borrower must improve the Property so that it meets all local code standards for decent, safe,and sanitary housing. Borrower also must comply with any energy conservation measures designated by Lender as part of the repairs. Borrower's failure to place the Property in such condition as required in this subparagraph 2(b) and to present evidence of such compliance to Lender within three (3) years from the date of this Agreement shall constitute an Event of Default. 3. Residence on the Property. Borrower must occupy the Property upon completion of the repairs required in subparagraph 2(a). Borrower shall reside in the Property as his/her principal place of residence for a period of no less than five (5) consecutive years following occupancy of the Property. The Property shall not be occupied by persons other than Borrower and his/her immediate family unless the unit has been approved in writing for multiple -occupancy by Lender in the event Ai the death of Rnrrewnr, the occupancy provisions in this paragraph shall remain in effect as to the surviving Borrower. 4. Insurance and, Liabiliye Borrower shall obtain and at all times maintain and keep in force: insurance against loss or damage to the Property and any improvements thereon, by fire and any of the risks covered by insurance now known as "fire and extended coverage" in an amount not less than the full replacement value of the Property and improvements, with a deductible not to exceed an amount approved by Lender. These policies of insurance shall contain a "Replacement Cost Endorsement" reasonably satisfactory to Lender. All policies of insurance shall be issued by companies and in amount satisfactory to Lender. Borrower shall furnish Lender with an original or certified copy of all policies of required insurance. At least fifteen (15) days before the expiration of each such policy, Borrower shall furnish Lender with evidence satisfactory to Lender of the reissuance of a policy so as to continue in force the insurance required by the Loan Documents. All insurance policies shall contain a provision that such policies may not be cancelled or amended, which term shall include any reduction in the scope or limits of coverage, without at least thirty (30) days prior to written notice to Lender, Borrower assumes all risk and responsibility for accident, injury or damage to persons or property caLsed from the condition of the Property or Borrower's use and conrol of the Property. Borrower shall forever defend, indemnify and hod harmless Lender and any of Lender's employees, agents or officers for any expense or damages Lender may suffer duo to the Action of Borrower or anyone acting on Borrower's behalf or any invitee upon the Property which shall cause accident, injury, or damage to any person or property. Borrower's shall, while this Agreement remains in effect, keep in force with 2 respect to the Property, public liability insurance in such manner and in such amounts as Lender deems appropriate. Lender shall be a named insured of such policy. 5. property Taxes and Assessments. Borrower shall pay, before delinquency, all taxes and assessments. Borrower shall promptly pay all contractors and materialmen to minimize the possibility of any lien attaching to the Property, and should any lien be filed, Borrower shall cause such lien to be released through bond or otherwise within thirty (30) days after such lien is filed. 6. Monitoring. For a period ending five (5) years after Borrower's occupancy of the Property, Lender may enter and inspect the Property every six (6) months, at a date and time agreed to by Lender and Borrower, to determine if Borrower is complying with the terms and conditions of this Agreement. Borrower's failure to cooperate with Lender in arranging such visits shall constitute an Event of Default. 7. Certification of Borrower. Borrower certifies that he/she (1) is twenty-one (21) years of age or over, (2) is the head of a household as such is defined for Federal Income Tax purposes, (3) possesses the financial resources or the necessary skills to rehabilitate or cause the rehabilitation of the Property, as well as to pay the appropriate expenses in the continuing maintenance and upkeep of the Property, (4) has not (including immediate family) previously participated in the City of Yakima Homesteading Program, and (5) is not currently a homeowner. 8. Benefit. The Agreement shall be binding on Lender and Borrower, the Lender's successors and assigns and Borrower's heirs, legatees and devisees. CITY OF YAKIMA By ATTEST: City Clerk 3 Richard A. Zais, Jr., City Manager City of Yakima, (Lender) 129 North Second Street Yakima, Washington 98902 Borrower Borrower (Address) CORPORATE ACKNOWLEDGEMENT OF LENDER STATE OF WASHINGTON) crri OF YAKIMA ) ss. YAKIMA COUNTY On this day of ,19 , before me the undersigned, a notary pubic in and for the State of Washington, duly commissioned and sworn, personally appeared Dixie L. Kracht, Block Grant Manager, known to be the authorized agent for the lender who executed the foregoing instrument as their free and voluntary act and deed, for the uses and purposes therein mentioned. WITNESS my hand and official seal affixed the date and year in this certificate above written. NOTARY PUBLIC in and for the State of Washington residing at My commission expires ACKNOWLEDGE OF BORROWER(S) STATE OF WASHINGTON) CITY OF YAKIMA eke YAKIMA COUNTY On this day of ,19 , before me the undersigned, a notary public in and for the State of Washington, duly commissioned and sworn, personally appeared known to be the individual(s) described in and who executed the foregoing instrument as their free and voluntary act and deed, for the uses and purposes therein mentioned. WITNESS my hand and official seal affixed the date and year in this certificate above written, NOTARY PUBLIC in and for the State of Washington residing at My commission expires 4 NOTE 607 N 4TH AVE , 1990 PROPERTY ADDRESS YAKIMA, WASHINGTON 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $29,000.00 (this amount is called "principal"), plus interest. to the order of the Lender. The lender Is CITY OF YAKIMA, OFFICE OF HOUSING AND NEIGHBORHOOD CONSERVATION. i understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "NoteHolder". 2. INTEREST Interest will be charged on unpaid principal until the full amount of principal has been pald. I will pay Interest at a yearly rate of 6%. The Interest rate required by this Section 2 Is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will make my monthly payments on the 1ST day of each month beginning on MARCH 1, 1990. I will make these payments every month until I have paid all of the principal and Interest and any other charges described below that I may owe under this Note. My monthly payment will be applled to Interest before principal. If, on JANUARY 1, 1999,1 still owe amounts under this Note, I will pay those amounts in full on that date, which Is called the "maturity date". I will make my monthly payments at YAKIMA VALLEY BANK or at a different place if required by the NoteHolder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S. $350.00. 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are due. A payment of principal only Is know as a "prepayment". When I make a prepayment, I will tell the Noteholder In writing that I am doing so. I may make a full prepayment or partlal prepayments without paying any prepayment charge. The NoteHolder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the NoteHolder agrees in writing to those changes. 5. LOAN CHARGES If a law. which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected In connection with this loan exceed the permitted Ilmits, then: (I) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) any sums already collected from me which exceeded permitted limits will be refunded to me. The NoteHolder may choose to make this refund by n3ducing the principal I owe under this Note or by making a direct payment to me. If a refund reduces principal, the reduction will be treated as a partial prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the NoteHolder has not received the full amount of any monthly payment by the end of 1Qcalendar days after the date it Is due, I will pay a late charge to the NoteHolder. The amount of the charge will be FIVE DOLLARS ($5) I will pay this late charge promptly but only once on each late payment. (B) Default 111 do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default 111 am in default, the NoteHolder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the NoteHolder may require me to pay Immediately the full amount of principal which has not been paid and all the Interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is delivered or mailed to me. (D) No Waiver by NoteHolder Even if, at a time when I am in default, the NoteHolder does not require me to pay immediately In lull as descri • ; • above, the NoteHolder will still have the right to do so 111 am in default at a later time. (E) Payment of Noteiloider's Costs end Expenses If the NoteHolder has required me to pay Immediately In full as described above, the NoteHolder will have tne right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include; for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing It by first class mail to me at the Property Address above or at a different address If I give the NoteHolder a notice of my different address. Any notice that must be given to the NoteHolder under this Note will be given by mailing it by First Class mail to the NoteHolder at the address 01 112 S. 8th Street, Yakima, WA.==901, or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE 11 more than one person signs this Note, each person Is fully and personally obligated to 'Amp all of the promises made in this Note, including the promise to pay the IA amount ow Any person who Is a guarantor, surety or endorser of the Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of thls Note, Is also obligated to eep all of the promises made In this Note, The NoteHolder may enforce its rights under this Note against Ranh person individually or against all of us together. This means that any one of us may be required to pay all of the amount owed under this Note. WAIVERS I and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. "Presentment' means the right to require the NoteHolder to demand payment of amounts due. "Notice of dishonor" means the right to require the NnteHnider to give notice to other persons that areeneta due have not been paid. 10. UNIFORM SECURED NOTE This Note Is a uniform instrument with iimited variations in some Jurisdictions. In addition to the protections given to the NoteHolder under this Note, a Mortgage, :a • of Trust or ; urity ;a • (the "Security Instrumenr), dated the same date as this Note, protects the NoteHolder from possible losses which might result 111 do not p the promises which I make In this Note. That Security Instrument desert. ; how and under what conditions I may be required to male Immediate payment In full of all amounts I owe under this Note. Some of those conditions are descri • ; • as follows: Transfer of the Property or a = ; neficial Interest In Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest In Borrower is sold or transferred and Borrower Is not a natural person) without Lender's prior written consent, Lender may, at Its option, require immediate payment In full of all sums secured by this Security Instrument However, this option shall met be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument, If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice Is delivered or mailed within which Borrower must pay all secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by thls Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S) AND SEAL(S) OF 1 IE UNDERSIGNED Floyd L St. Clair Sandr E. St, Clair AFTER RECORDING RETURN TO: Office of Housing and Neighborhood Conservation 112 S. 8th St. Yakima, Wa. 98901 [Space Above This Lieu For Recording Data] DEED OF TRUST THIS DEED OF TRUST ("Security Instrument") is made on January 18, 19..9.0....The grantor is ("Borrower"). The trustee is .Lit.y...of...Yakitna..0.££i.ce...af..Housing and..Neighhorhond..fanseruatian ("Trustee"). The beneficiary is Clty..a..Yakima..Ra.Rar.kwemk..af...Gatomuni.t;x...&..Irl QA.Qati.Q..A.e.11e.lnFmen.C., which is organized and existing under the laws of Washington. and whose address is .129...No.tth..2ud..S.tre.et Yak i ma,...Washing.ton. ("Lender"). Borrower owes Lender the principal sum of ..xW.arty..ni nl:...khsusend...an1l..nu...atzt;..)rumixt;d.a Dollars (U.S. $..29.,.000...00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and payable on a fi..Rtsx...nA.t:.R This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and moddicauons; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in County, Washington: Lot 13, Cherry Avenue Subdivision—Yakima, Washington according to the plat thereof recorded in Volume G of Plats, Page 8, records of Yakima County, Washington. Situated in Yakima County, State of Washington. which has the address of ¢Q 7 Ruth 4th Avenue Yakima [Stroud ICurl Washington 98902 ("Property Address"); [zip Code[ TOGETHER WITH all the improvements now nr hereafter erected on the property, and all easements, rights, appurtenances, rents, royalties, mineral, oil and gas r _;hts and profits, water rights and stock and all lixtures now or hereafter a part of the property. All replacements and ad litions shall also be covered by this Security Instrument. All oldie foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grunt and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. WASHINGTON —Single Family — FNMA/FHLMC UNIFORM INSTRUMENT UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and Late Charges, Borrower shall promptly pay when due the principal of and i.,,erest on the de �••- � •''• ...... ecu, evidenced by the Note and any prepayment and late charges due under the Note. 2. bunds fur Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower art!!! pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a aunt ("Funds") equal to one -twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums, and (d) yearly mortgage insurance premiums, if Any: These it_.... air. called “escreee ,n.,,,,." Lcndcr may vsiintaic the Funds due 011 the basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Lender shall•apply the Funds to pay the escrow items. Lender inay not charge for holding and applying the Funds, analyzing the account or verifying the escrow i!_....., unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the suns secured by this Security instrument. if the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shade exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in full (Wall sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. Wunder paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later Than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application .a.• against sums secured , , ., Securityacredit againstthe this Instrument. 3. Application of Payments. Unless applicable how provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. 4. Charges; Liens, Borrower shall pay all taxes, assessments, charges, lines and impositions attributable to the Property which may attain priority over this Security Instrument. and leasehold nayn„•ni' gro + rents :r any. ••• r^�•••�••••• ... b..,"eese rents, e, any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish w Lender all notices (Winnows to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shalt promptly discharge arty tint which has priority over this Security instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a mauler acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement ol'the lien or forfeiture of any pari of the Property; or (e) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which niay attain priority over this Security Instrument Lender may notice identifying the lien. Borrower shall satisfy die lien or take one or more of the actions se! forth abovenwithi t 10 days of the giving of notice. S. Hazard Insurance, Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire„ hazards included within the term "extended coverage" and any other letaards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires: The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the ?veltt of loss, Borrower shall give p,u",pt notice to the insurance carrier and Lender. Lender may make proof of loss tint)! made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property dantaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within i0 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use tate proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30 -day pet iod will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date (Witte monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. if under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting front damage to the Property prior to the acquisition shall pass to Lender to the extent of the suets secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the Property, allow the Property to deteriorate or commit rd's. 11. •' . seism. as this Security instrument is on a leasehold, Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title 10 the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Properly; Mortgage Insurance. If Borrower fails to perform the covenants and agreements contained in this Security lnstrun, an, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in ba tkruptcy, probate, for condemnation or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shalt become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms ol'payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice front Lender 10 Borrower requesting payment. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the insurance in effect until such time as the requirement for the insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law. 8, Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. 1n the event of a partial taking ol'the Property, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total an►ount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. if the Property is abandoned by Borrower, or if', after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days alter the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. Unless Lender and Burrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of such payments. 10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 11. Successors and Assigns Bound; Joint Cain Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (u) is co-signing this Security Instrument only to mortgage, grunt and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Burrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 12. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment t0 Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 13. Legislation Affecting Lender's Rights. If enactment or expiration of applicable laws has the effect of rendering any provision of the Note or this Security Instrument unenforceable according to its terms, Lender, at its option, may require immediate payment in full of all suets secured by this Security Instrument and may invoke any remedies permitted by paragraph 19. If Lender exercises this option, Lender shall take the steps specified in the second paragraph of paragraph 17. 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by lirst class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by lust class mail to Lender's address staled herein or any other address Lender designates by notice to llorrowcr. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared l0 be severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part o1' the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Burrower is not u natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in lull of all suets secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law us of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days froth the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. !f Borrower fails to pay these sums prior to the expiration of this period, Lender stay invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 18. Borrower's Right to Reinstate. 11' Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earLcr of: (a) 5 days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in Ihss Security Instrument; or (b) entry of a judgment enforcing :his Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due unde this Security Instrument and the Note had no acceleration occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, tisis right to reinstate shall not apply in the case of acceleration under paragraphs 13 or 17. NOvV..lfvnm. CcOLNA .Ts.Borrower and ender further covenant and 19. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach or any covenant or agreement in this Security Instrument (but not prior to acceleration under paragraphs 13 and 17 :epees rpr.l!catpte law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not Tess than 30 days from the dale the notice is given to Borrower, by which the default must be cured; and (di iitui fuiiure to Cure the ucfaol' " before t tat .`pe il:Ca in. the noticemnv rgso!t in Iia r�•hr:�tinn of thr Qum!: secured by this Security instrument and sale of the Property at public auction at u lute not less than 120 days in the future. The notice shall further inform Borrower of the right to reinstate after acceleration, the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale, and any other mutters required to be included in the notice by applicable law. 1f the default is not cured on or before the date specified in the notice, lender at its option may require immediate payment in fail of aii sums secured by this Security iasirupreii w.ihuut further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 19, including, but not limited to, reasonable attorneys' tees and costs of title evidence. If Lender invokes the power of sale, fender shall give written notice to Trustee of the occurrence of an event of default and of Lender's election to cause the Property to be sold. Trustee and Lender shall take such action regarding notice of sale and shall give such notices to Borrower and to other persons us applicable law may require. After the time required by applicable law and after publication of the notice of sale, Trustee, without demand on Borrower, shall sell the Property ut public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sole of the Property for a period or periods permitted by uppticuh!e low by public annonnerment at the time and place fixed in the notice of sale. Lender or its designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property without any covenant or warranty, expressed or implied.'fhe recitals in the T'rustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale In the following order: (a) to all expenses of the sale, including, but not limited to, reasonable T'rustee's and attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it or to the clerk of the superior court of the county in which the sale took place. Possession. ele ride ph Inabandonment of Ihr Property tender (in 20. riL'puer in s oa�cadev,e. Upon acceleration u...., paragraph .. or .-. ..._ Property, ... ... person, by agent or by judicially appointed receiver) shall be entitled to enter upon, lake possession of and manage the Property and to collect the rents of the Property including those past due. Any rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Security Instrument. 21. Reconveyance. Upon payment alai! sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security instrument to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs. 22, Substitute Trustee. In accordance with applicable law, Lender may front lime to time appoint a successor trustee to any Trustee appointed hereunder who has ceased to act. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by applicable law. 23. Use of Property. The Property is not used principally for agricultural or farming purposes. 24. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. [Check applicable box(es)] 0 Adjustable Rate Rider [-I Condominium Rider El 2-4 Family Rider El lI Graduated Payment Rider fl Planned Unit Development Rider Other(s) [specify] 13Y SIGNING BELOW. Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. STATE OF WASHINGTON ) ) SS YAKIMA COUNTY ) FLOYD L. ST CLAIR (Seal) .mea,rowar MORA t. ST. um [Speen Below This Line For Acknowledgment) (Seal) ®Burrower On this day of , 19, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Floyd L. and Sandra E. St. Clair , known to be the individual described in and who executed the foregoing instrument, and acknowledged to me that signed and scaled the said instrument as free and voluntary act and deed, for the uses and purposes therein mentioned. WITNESS my hand and official seal affixed the date and year in this certificate above written. Notary in and for the State My Commission expires: of Washington residing at EXHIBIT A CITY OF YAKIMA'S DESIGNATED PROJECTS TARGET AREA The homeownership project's target area will be designated to be all single family, owner occupied homes East of 16th Avenue, North, South and East within the City Limits of Yakima.