HomeMy WebLinkAboutR-1990-D5681 Homeownership Program•
•
•
RESOLUTION NO.
D 5681
A Resolution of the Council of the City of Yakima, Washington,
authorising 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, HE IT RESOLVED HY 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 Josefina C. Perez and Josefina M. Cardenas (the "Debtor") , in
the aggregate amount of $28,000.00 (the "Loan") to purchase a residence
located at 405 3 NACHES 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 $28,000.00 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
SECTION 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 i day of �d� ,19
ATTEST:
1-�-v-� C 11'1 L
CITY CLERK
CITY OF YAKIMA, WASHINGTON
MAYOR
CERTFFICATE
I, the undersiqned, Clerk of the City of Yakima, Washington (the
"City"), and keeper of the records of the City Council (herein called
the "Council"), DO HEREBY CERTIFY:
1. That the attached resolution is a true and correct copy of
Resolution No. of the Council (herein called the
"Resolution"), ri!Jly passed at Pusiness 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 111 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
JOSEFINA C. PEREZ AND JOSEFINA M. CARDENAS ("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. Borrower's Examination of the Property: Requirements of Occupancy.
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. Repairs Required Prior to Occupancy: Prior to Borrower's
occupancy of the Property, Borrower, at Borrower's sole cost
and expense, must repair these 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.
year from the date of this Agreement shall constitute an Event
of Default.
At. 6116_ gist
Borrower must improve the Property so that it meets aU |woa
code standards for deconi, umfu, and sanitary housing.
Borrower also must comply with any energy conservation
measures designated by Lender as part of the repairs.
Borrowers 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. Res _ 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 of the death of Bur,uxver, the occupancy
provisions in this paragraph shall remain in effect as to the
surviving Borrower.
4. Borrower shall obtain and at e| times
maintain and keep in force: insurance against loss or damage to the
Property and any improvements thmraon, 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 improvoments, with a deductible not to exceed an amount
approved by Lander. 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 pm|icy.
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 arnendod,
which term shall include any reduction in the scope or limits of
covenago, without at least thirty (30) days prior to written notice
to Lender.
Borrower assumes all risk and ,esmonmibi|ib/ for accident, injury or
damage to persons or property caused from the condition of the
Property or Borrower's use and control of the Property. Borrower
shall forever defend, indemnify and hold harmless Lender and any of
Lender's omp|oymea, agents ui o#ioero for any expense or damages
Lender may suffer due to the Phudmn 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)
CITY OF YAKIMA ) ss.
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 Dixie L. Kracht, Block Grant
Manager, known to be the authorized agent for the lender who executed the
foregoing instrument as the 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 )
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
405 SOUTH NACHES 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. (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 thls Note Is called the "NoteHolder".
2. INTEREST
Interest will be charged on unpaid principal until the full amount of principal has been
paid. I will pay Interest at a yearly rate of 651.
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
. I will make these payments every month until I have paid all of the principal and interest
and any other charges described below that 1, may owe under this Note. My monthly
payment will be applied to interest before principal. if, on , I 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..
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 partial 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 limits, 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 reducing 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 10 calendar 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.
(0) Default
If I do not pay the full amount of eac h monti ily 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 1 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 d not require me to pay
immediately in full as descri • te a• • a the NoteHolder will still have the right to do so if I am
In default at a later time.
(a) Payment of NoteHeider's CoeiswuEXitatoneile
if the NoteHolder has required me to pay Im ;:*lately In full as dosed*: • a* • ; the
NoteHolder will have the right to be paid back by me for all of Its costs and expenses In
enforclna this Note to the extent not prohibk e • by applicable law. Those expenses include,
for example, re nable atto
T. GIVING OF NOTICES
Unless applicable law requires a different rr • , any notice that must be given to rne
under this Note will be given by delivering it or by mailing it by first class mall 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 mall to the NoteHolder at the address of 112 S. Bth street, Yakima,
WA. !:a el, or at a different address if I am given a notice of that different address.
8. OBLIGATIONS OF PERSONS UNDER THIS NOTE
If more than one person signs this Note, each person Is fully and personally oblige
to keep ail of the promises made in this Note, Including the promise to pay the full amount
owed. Any person who is a guarantor, surety or endorser of the Note Is also oblige e • to do
these things. Any person who takes over th obligations, including the obligations of a
guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made
in this Note. The NoteHolder may enforce its rights under this Note aaainst each 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.
t
9. WAVERS
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 NoteHolder to give notice to other persons that amounts due have not been paid.
10. UNIFORM SECURED NOTE
This Note is a uniform instrument with limited variations in some jurisdictions. In
addition to the protections given to the NoteHolder under this Note, a Mortgage, 1 d of
Trust or Security ta• (the "Security instrument"), dated the same date as this Note, protects
the NoteHolder from possible losses which might result if I do not keep the promises which I
make in this Note. That Security Instrument describes how and under what conditions I may
be required to make immediate payment in full of all amounts I owe under this Note. Some of
those conditions are descrls as follows:
Transfer of the Property or a a eleficial interest in Borrower. If all or any part of
the Property or any interest In It is sold or transferred (or if El beneficial interest in Borrower is
sold or transferred and Borrower Is not a natural parson) 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 not be exercised by Lander 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
falls to pay these sums prior to the expiration of this period, Lender may Invoke any remedies
permi le. by this Security Instrument without further notice or demand on Borrower.
WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED
JOSEFINA C. PEREZ
JOSEFINA M. CARDENAS
AFTER RECORDING RETURN TO:
Office of Housing and Neighborhood Conservation
112 S. 8th St.
Yakima, Wa. 98901
[Space Above This Line For Recording Datal
DEED OF TRUST
THIS DEED OF TRUST ("Security Instrument") is made on January 18,
19....90... The grantor is ....Los.efina...C,...kere.z.,...a..si.ngle.. .Watnen...and,..,Iuaf*f.i.nu,..l'1.,...Qi}.xdeltafr.,...r7
single...women. ("Borrower"). The trustee is G kty...4.f...Xflkilna Office of
Housing..and...Nei,ghbaxbaad.-CPASAtNA1:: A ("Trustee"). The beneficiary is
Gil:y...ol;..yakitea...Regartme t,„of.. olmlunity & Economic Development which is organized and existing
under the laws of Washii gt:A.n , and whose address is 1-29 North 2nd Street
Yak i ma.,...Was b ingxon. ("Lender").
Borrower owes Lender the principal sum of...Trden.ty...e.i.ghk..thous.and..az>,d..zt9..0.ne..11=1Xe.d
Dollars (U.S. $...25...049., Q4 ). 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 as per note
This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all
renewals, extensions and modifications; (h) 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 sate, the following described property located in Yalfim i County, Washington:
Lot 4, Block 95, Town of North Yakima, now Yakima, as recorded in Volume "E" of Plats, pa;
1, records of Yakima County, Washington.
Situated in Yakima County, State of Washington.
which has the address of
408 South Naches Avenue Yakima
Washington 98901 ("Property Address");
[Zip Code]
tStreetl
[City]
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, rights,
appurtenances, rents, royalties, mineral, oil and gas ri, his and p,ofits, water rights and stock and all fixtures now or
hereafter a part of the property. All replacements and ad,'.tions shall also be covered by this Security Instrument. All of the
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 grant
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 — FNMAIFHLMC UNIFORM INSTRUMENT
UNIFORM C.QVFNANTs• florrnwer 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 interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one -twelfth on (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 items are called "escrow items." Lender may estimate the Funds due on 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
stale agency (including tenter if Lender is such .an institution) Lender shall. apply the Funds . -
..�,..+�, o„u„ u �� Funds l4 _-i.. the C11.1 V11' It CII W.
Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
Lendemay agree in writing that interest shall be paid on the Funds. Unless agreement made ,:__u_
r ..... ........ ...........•. ,,.,. I. Unless an 46 re'eineni is 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 sums secured by
this Security Instrument.
11' 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, shall 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 of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
any Finds held by Lender. If under paragraph i % 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 as a credit against the sums secured by this Security Instrument.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 arid 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, fines and impositions attributable to the
Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if 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 shaii promptly furnish to Lender all noti • s e f
P I Y notices o amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien 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 manner 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 of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any parr of
the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set !drib above within 10 days
of the giving of notice.
5, 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 hazards 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 event of loss, Borrower shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of Toss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
of the Property damaged, 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 30 days a notice from Lender that the insurance carrier has
offered to settle a claim, then Leader may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security instrument, whether or not then due. The 30 -day period 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 (lithe monthly payments referred to in paragraphs I 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
from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums 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 waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
fee title shall not merge unless Lender agrees to the merger in writing.
7. Protection of Lender's Rights itt the Property; Mortgage Insurance. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
Lender's rights in the Properly (such as a proceeding in b 'nkruptcy, probate, for condemnation or to enforce laws or
regulations), then Lender may do and pay for whatever is nee •ssary to protect the value of the Property and Lender's rights
in the Property. Lender's actions may include paying any s ams secured by a lien which has priority over this Security
Instrument, appearing in court, paying reasonable attorneys' "cos and entering on the Property to stake 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 shall become additional debt of Borrower secured by this
Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to 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. In the event of a partial taking of 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 amount 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 after 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 Borrower 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 1 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 sutras 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
shalt not be a waiver of or preclude the exercise of any right or remedy.
11. Successors and Assigns Bound; Joint and 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: (a) is co-signing this Security Instrument only to mortgage, grant 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 Borrower 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 to 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 sums 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 first 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
first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. 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 alrect 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 to 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 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 nota 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 not 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 roust pay all sums 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 this Security Instrument without further notice or demand on Borrower.
18, Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have
enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as
applicable law may specify for reinstatement) before sale of the Proprrty pursuant to any power of sale contained in this
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 under 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, reasonanle 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 dim acceleration had
occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraphs 13 or t7.
NON•UNIFOitnt COVENANTS. Borrower and Lender further covenant and agree as follows:
19. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's
breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under paragraphs 13 and 17
unless applicable law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the
default; adate, ..at lees thge 30 day from the date the nptiee is given to Borrower, by which the default must be cured;
and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums
secured by this Security Instrument and sale of the Property at public auction at a dale 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 matters
required to be included in the notice by applicable law. If the default is not cured on or before the date specified in the
notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without
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' fees and costs of title evidence.
If Lender invokes the power of sale, Lender 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 snld. Trustee and Lender shall take such action regarding
notice of sale and shall give such notices to Borrower and to other persons as 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
n at ..obllc auction to the highest. bidder of the linen 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 sale of the Property for a period or periods
permitted by applicable law by public announcement 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. The recitals in the Trustee'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 Trustee's and attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess
to the parson or persons legally entitled to it or to the clerk cif the superior court of the county in which the sale took place.
20.....,. Lender
P ssessi entitled _ ._cele the clerk paragraph 19 or abandonment of the Property, Lender (in
Lender in Possession. vpui, acceleration under
person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take 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 of all sums secured by this Security Instrument, Lender shall request Trustee to
reconvcy the Property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security
Instrument to Trustee. Trustee shall reconvcy the Property without warranty and without charge to the person or persons
legally entitled toil. Such person or persons shall pay any recordation costs.
22. Substitute Trustee. In accordance with applicable law, Lender may from time 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
_d shall and
this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and �„e amend a.,\,
supplement the covenants and agreements of this Security Instrument as if the rider(s) were a pari of this Security
Instrument. [Check applicable box(es)]
❑ Adjustable Rate Rider ❑ Condominium Rider ❑ 2-4 Family Rider
❑ Graduated Payment Rider ❑ Planned Unit Development Rider
❑
Other(s) [specify]
BY SiGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security
Instrument and in any riders) executed by Borrower and recorded with it.
STATE OF WASHINGTON )
) SS
YAKIMA COUNTY )
JOSEFINA C. PEREZ
(Seal)
—Borrower
(Seal)
JOSEFINA M. CARDENAS —Borrower
[Space Below This Line For Aceno ;tedgnentl
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 JOSEFINA C. PEREZ AND JOSEFINA 1. CARDENAS , known to be the individual
described in and who executed the foregoing instrument, and acknowledged to me
that _ signed and sealed 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
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.