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HomeMy WebLinkAboutR-1990-D5702 Homeownership Program 5 7 2 RESOLUTION NO. A Resolution of the Council of the City of Yakima, Washington, • authorizing a loan for Guillermo Aguilar and Ana N. Aguilar 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 R c SOLVED 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 Guillermo Aguilar and Ana M. Aguilar (the "Debtor"), in the aggregate amount of $56, (the "Loan"), to purchase and rehabilitate) a residence located at 1309 LANDON 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 $7,000.00 of the Loan be funded from the Homeownership Account of the Yakima General Fund and that $49,700.00 will be funded from 203K PROGRAM through Security Pacific Bank Washington 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 Cit_ Yakima, Washington at a regular meeting thereof, this c )(,) 11- day of ,19 ` CITY OF YAKIMA, WASHINGTON MAYOR ATTEST: kaA CEPTI FICA TE 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"), DO HEREBY CERTIFY: 1. That the attached reolution is a true and correct copy of Resolution No, of the Council (herein called the "Resolution"), duly passed at a meeting thereof held on the _of ,19 2. That said meeting wilS 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 or the Councii voted in Lin proper !Wanner for the passage of said Resolution; that all other requirements and proceedings incident to the proper massage of said Resolution have been duly fulfilled, carried out and otherwise observed; and that i am authorized to execute this certificate. IN WITNESS WHEREOF, have hereunto set my hand this e. day of CITY CLERK CITY OF YAKII1A„ WASHINGTON LOAN AGREEMENT THIS LOAN AGREEMENT ("Agreement") is made and entered into this 20th day of February,1990 , by and between the City of Yakima ("Lender") and - II • . • • 1 • I ("Borrower(s)"). 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. • - • 11..1 • Os . 0.. 'It 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. .4- ' •• 1- • ••- ° :-• -11-• • • - • • • • 11 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 1 shall have no responsibility whatsoever, including costs, for any such repair. a. D': P‘e'T_ Primr RorrriwAr' Q 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. b. Borrower must improve the Property so that it meets all local code standards for decent, saf, and sanitary housing. Borrower also must comply with any energy conservation measures desionated 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. i':1L L1 ia_Eigt.2v.dy„ Borrower must occupy the Property upon completion of the repairs required in subparagraph 2(a). Borrower shall reside in the Property as his/hor principal place of residence for a perior! of 113 iozys 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 Borrower, the occupancy provisions in this paragraph shall remain in effect as to the surviving Borrower. 4. Boramfor shall obtain and at all times maintain and keep in force: i nsuranco 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 fell replacement value of the Property and improvements, with kA d4ductible not to exceed an amount approved by Lender. These policies of insurance shall contain a "Replacement Cost Endorsement" reasonably satisfactory to Lender. 2- 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 payment of premiums and 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 written notice to Lender. Borrower assumes all risk and responsibility for accident, injury or damage to person or property caused from the condition of the Property or Borrowers use and control of the Property. Borrower shall forever defend, indemnify and hold harmless Lender and any of Lender's employees, agents or officers for any expense or damages Lender may suffer due 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 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. • • ;' .,. .14 .. �r�r 7a 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. hie nitoring. 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. 3 7. , _ = �_ _ r, Borrower certifies that he /she (1) is is twenty -one (21) years of a or over, (2) is the head of a household _� defined for Federal I ncom e Tax purposes, (3) po as ����1 I� 4;,I t�1111�� 1 @dl ��d6°g �1l BSI Income Tax �a c.ae �a co e,.o �o ba, ssesses a°�! M`° �"' ° ' °° '" ° '` ° 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 e ontinuing 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. B .nQfit. The Agreement shall be binding on ndor and Borrower, the Lender's successors and assigns and Borrower's heirs, legatees and devisees. rE4 �.ei ran 1 4,9 1,1%® �v<B S j D vws'mwwm �'mz^nu Richard A. Zais, Jr., City Manager ATTEST: Gft of Yakima, (Lender) 129 N S St a �.:v North e :.s e F�:c�L^d R36 i k. 0.+ a T S�IIII S, Tivcwi!!l95wAno sJ6 Ddd 6sm .�o�.._ clerk o, _..�.__ Borrower Borrower _� . (Address) 4 • 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 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_, • 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 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 , 5 PROMISSORY NOTE S7,000.00 DATE: We Guillermo Aguilar and Ana M. Aguilar, husband and wife, jointly and severally promise to pay to the order of OFFICE OF HOUSING AND NEIGHBORHOOD CONSERVATION, a division of the Department of Community Development of the City of Yakima, a municipal corporation of the State of Washington, at Yakima, Washington, SEVEN THOUSAND & NOI100 Dollars, payable in lawful money of the United States of America, with interest thereon in like money from NtA paid, at the rate of percent per annum, to be paid as follows: PAYMENT IN FULL IS DUE UPON ANY TRANSFER OF OWNERSHIP OF THE PROPERTY LOCATED AT J 309 LANDONff YAKIMA, WASHINGTON, TO ANY OTHER PERSON(S) OR ENTITIES OTHER THAN WHETHER SUCH TRANSFER IS RECORDED OR NOT RECORDED. In the event any payments due hereunder are not paid within ten (10)days of the due date, makers agree to pay, in addition thereto, a late charge equal to Five Doljal:s ($5.00) for each calendar month, or portion thereof, that such payment remains delinquent. This note is secured by Deed of Trust of even date, covering property located at 1309 TANDON, Yakima County, Washington, and the terms of such Deed of Trust are incorporated herein by this reference. In case of default in payment ot any of the principal installments or interest, when the same shall become due and payable, the holder hereof may declare the whole amount due and payable and may immediately institute suit to colJect the entire amount, including principal and interest. The maker and endorser hereon severally waive presentment for payment, protest, and notice of protest of non payment of this note; and do hereby agree that if collected by an attorney after maturity and before the commencement of suit hereon, fifteen percent (15%) of the sum due and unpaid shall be added and paid as attorney's fees for such collection; and in case suit or action is instituted to collect this note or any portion thereof, do further promise and agree to pay such sum as the court may adjudge reasonable as attorney's fees in such suit or action; and the venue of such action shall lie in Yakima County. Guillermo Aguilar Ana M. Aguilar 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, DUTY COMMISSIONED AND SWORN, PERSONALLY APPEARED Guillermo Agut1ar_AND 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 IN AND FOR THE STATE MY COMMISSION EXPIRES: OF WASHINGTON RESIDING AT AFTER RECORDING RETURN TO: Office of Housing and Neighborhood Conservation 112 S. 8th St. Yakima, WA 98901 • Rpm Above This Ube For Recording Dalai DEED OF TRUST THIS DEED OF TRUST ( "Security Instrument ") is made on Febrµary...Z2 19..90.••. The grantor is Gp,11ermo Aguilar and Ana M. Aguilar., husband and wi1`e, ("Borrower"). City of Yakima O'ffice of Housing and Neighborhood t on ("Trustee"). The beneficiary is City of Yakima, bept. of Community & Economic D�� V:TI1i2ttt chhlsorganized a existing , and whose address is under the laws of Washington 1 Nortl zna and WA 98901 ( "Lender'). Borrower owes Lender the principal sum of .... S. M.11..T14R1F.vsfiA.4 49/ j9Q - - - - - - - - - - - - - - - - - - - - - - - - - Dollars (U.S. S 7. A.AA.,.QA ) 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; (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, ima with power of sale, the following described property located in County, Washington: The West half of Lot 36, HACKETTS SUBDIVISION, as recorded in Volume "H" of Plats, Page 50, records of Yakima County, Washington; EXCEPT East 10 feet for an alley. Situated in Yakima County, State of Washington. which has the address of 1309 Landon Ave . XfikAWa (Strwtj (City) Washington 98902 ( "Property Address "); (Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights and profits, water rights and stock and all fixtures now or hereafter a part of the property. All replacements and additions 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 uniforrn covenants for national use and nonuniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. WASHINGTON — Single Family — FNMAIFHLMC UNIFORM INSTRUMENT Dud orThai Wavhingtan Legal Blank Inc., Bellevue. WA Farm Na 111, 12183 MATERIAL MAY NOT BE REPRODUCED IN WHOLE OR IN BART IN ANY FORM WHATSOEVER. 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 interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes mid 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 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 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 euaranteed 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 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 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 sums 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, 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 Funds held by Lender. If under 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 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 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, 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 these obligations in the mangler provided in paragraph 2, Or if not paid in that manner, Borrower shall Par s P P pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of 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 part 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 forth 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 ; hararrts included within shay t^rrn "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 Leader's approval which shall not be unreasonably withheld. All shall b i po licies and r sha a r ender an d nc l ud ., a standard clause. insurance y am••............. renewals uee.e w eee..v to shall i en.e,ea,.e eea,u v include a Jla1,Na,U mortgage 61a UJC. 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 loss 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 suns 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 Lender 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 of the 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 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 in 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 Property (such as a proceeding in bankruptcy, 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 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 front 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 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 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 shalt 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 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 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 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 nailed within which Borrower must 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 Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgrnent enforcing this 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, 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, this right to reinstate shall not apply in the case of acceleration under paragraphs 13 or 17. wnN-UNIFORM COVENANTS. Borrower and Under further and, agree asmUows: 19. Acceleration; Remedies. Lender shall give notice to Borrower priacceleration mllomngBorrower's breach or any covenant or agreement in this Security Instniment (but not prior to acceleration under paragraphs 13 and 17 unless applicable law provides otheeavise). The notice shall specify: (a) the default; (b) the action required to cure the default; e date, net less tivm 10 4,. ..ys from the 4, 3te thn lintlro 21vc.n nttrrower, hy vhich the defeult must be timed; and (d) that failure to cure the default date secured by this Security Instrument and sale of the Property at public auction at a date 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 nontexistence 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 en 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 uppiicabie maw, Lender shuii 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 invoktm the power of sale, Lender shall give written notice to Tritstu 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 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 Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale one or more parcels and in any order Trustee determinea, Trustee may postpone sale of the Property for a period or periods permitted by applicable law by public ennouncement 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 pueelitts,er Trostee% deed conveying the Property without any covenant or warranty, expressed or implied. The recitals in the Trustee% 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, reaeorealde Trasteei's end .t.terneys' fees; em tn qt. em ■ hy this Qecnrity In.trnment; and (r) ORY "e." 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. 20. Lender In Possession, Uon acceleration undcr paragraph 19 or abandonmerit of the Property, Lender (in 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 cases 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. Recoriveyanee. Upon payir,ent sums secured by this Security Instrument, Lender shall request Trustee to rcconvcy thc Property and shall surrender this Seurfty Instrument and alt notes evidencmg debt secured by this Security , Instrument to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legaily entitled to it. Such person or persous shall pay any recordation cOslS. 22. Substitute Trustee, In accordance with applicable mw, Lender may from time to time appoint a suc�ssor trustee to any Trustee appointcd hereunder who has ceased 10 act. Without conveyaiice of the Property, the successor trustee shall succeed 10 all the title, power and duties conferred upon Trustee herein and by applicable law. 23. Use of Property. The Property is not used priiicipally for agricultural or farming purposes. 24. Riders to this Security Instrument. If one or more riders mo by Borrower and ucomed 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 Instniment as if the rider(s) were a part of this Security Instrument. [Check applicable box(es)] 0 Adjustable Rate Rider El Condominium Rider El 2-4 Family Rider []nmxv*ud Payment Rider El Planner! Unit Development Rider [] Other(s) [specify] BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrurnent and in any nder(s) eaeeuted by Borrower and reeorded with it. �ud (Seal) 1acnm Aguilar — Borrower (Seal) Ana 14. Aguilar _o°"mer 1,5,7=�41 Ask=t,,i0a=v - -- ---- --- CITY OF YAKIMA'S DESIGNATED PROJECT'S TARGET AREA The homeownership project's target area will be designated to be all residential homes located East of 16th Avenue and within the City Limits to the South, East and North.