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HomeMy WebLinkAbout2004-114 Trust Deed - ACLTWhen Recorded Return Original to: Barbara Christensen, City Recorder 20 East Main Street, Ashland, Oregon 97520 Jackson County Official Records 2004-033619 R-TD Cnt=l Stn=5 BARTLEGE06/17/2004 10:42:54 AM $30.00 $5.00 S11.00 Total:S46.00 01036208200400336190060061 I, Kathleen S. Becket't, Coun~ Clerk for Jackson County, Oregon, certify that the instrument ide,ntified herein was recorded in the Clerk records. Kathleen S. Beckett - County Clerk TRUST DEED This trust deed is made on .__.~ (~~ ,2004, between The Ashland Community Land Trust (ACI~./, as Grantor(s), the City of Ashla-~'-~, as Beneficiary, and Paul Nolte~ an active membbr~of the Oregon State Bar as Trustee. 1. Conveyance by Grantor. For good and valuable consideration, receipt of which is acknowledged, and for the purpose of securing the loan obligations described in Section 3 below, Grantor irrevocably grants, bargains, sells, conveys, assigns, and transfers to Trustee in trust for the benefit and security of the Beneficiary, with power of .,;ale and right of entry and possession, all of Grantor's right, title, and interest in and to the real property located in Jackson County, State of Oregon, and more particularly described in the attached Exhibit A (the "Property"). 2. The Note. Beneficiary has offered to defer the systems development charges due on the Property and to make a loan to Grantor for the amount of the charges which loan is to be evidenced by a promissory note of the same date as this trust deed. (The promissory note as modified, supplemented, extended, renewed, or replaced from time to time is referred to below as the "Note".) The date of maturity of the debt secured by this instrument is 20 years from the date of the Note. In the event the Property, or any part of, or interest in, the Property is sold, agreed to be sold, conveyed, assigned or alienated by the Grantor without complying with the terms of the Note or the Agreement described below, then, at the Beneficiary's option, all obligations secured by this instrument, irrespective of the maturity dates expressed above or in the Note, shall immediately become due and payable. 3. Obligations Secured. This trust deed secures the following, collectively referred to as the "loan obligations": 3.1. The payment of all indebtedness, including but not limited to principal and interest, and the performance of all covenants and obligations of Grantor under the Note, whether such payment and performance is now due or becomes due in the future; 3.2. The payment and performance of all covenants and obligations in the City of ./~z.~hland Affordable. Housing Resal,e, Restriction Agreement (SDCs Only) dated ~_t~ ( the Agreement ) entered into by Grantor and Beneficiary. The term (~-~an o[bligat~'ons" as used in this trust deed shall mean all amounts payable 11o 1~'eneficiary under the terms of the Note and the Agreement. 4. Possession. Grantor agrees to pay the Note and the Agreement in accordance with PAGE1-TRUST DEED their terms. Until default occurs, Grantor shall remain in possession and control of the property and subject to the terms of the Agreement, Grantor shall be free to operate and manage the property and receive the proceeds of operation. 5. Warranty of title. Grantor warrants that Grantor holds merchantable title to the property in fee simple or that Grantor holds a vendee's interest in the property under a conditional sales contract. Grantor warrants and will defend Grantor's title against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Beneficiary or Trustee under this deed, Grantor shall defend the action at Grantor's expense. 6. Powers of Trustee. In addition to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following action with respect to the property on the request of Beneficiary and Grantor: (a) joining in the dedication of roads or other rights in the public; (b) joining in granting any easement or creating any restriiction on the property; (c) joining in any subordination or other agreement affecting this deed or the interest of Beneficiary under this deed; or (d) selling the property or any part thereof. Trustee shall not be obligated to notify any other party of a pending sale under any other deed or trust or lien, or of any action or proceeding in which Grantor, Beneficiary, or Trustee shall be a party, unless the action or proceeding is brought by Trustee. 7. Deed of Reconveyance. If Grantor pays all of the loan obligations when due and otherwise performs all of the obligations imposed on Grantor under this instrument, the Note and the Agreement, Beneficiary shall execute and deliver to Trustee a request for full reconveyance. 8. Default. Grantor shall be deemed to be in default if Grantor fails to perforrn any of the obligations imposed by this deed, the Note or the Agreement. 9. Remedies. On the occurrence of any event of default and at any time thereafter, Beneficiary may exercise any one or more of the following rights and remedies: 9.1. The right to declare all sums secured by this trust deed immediately due and payable. 9.2. The right to foreclose by notice and sale by Trustee or by judicial foreclosure, in either case in accordance with applicable law. 9.3. The right in connection with any legal proceedings to have a receiver appointed to take possession of any or all of the property, with the power to protect and preserve the property and to use the property preceding fl~reclosure or sale and apply the proceeds, over and above costs of the receivership, against the loan obligations. The receiver may serve without bond if permitted by law. Beneficiary's right to the appointment of a receiver shall exist whether or not apparent value of the property exceeds the loan obligations by a substantial amount. PAGE 2-TRUST DEED 9.4. Any other right or remedy provided in this deed, the Note or the Agreement. 10. Application of proceeds. In the event the Trustee exercises the power of sale conferred by this trust deed, the Trustee shall apply the proceeds of the sale :in the following order: 10.1. To the expense of the sale, including reasonable attorney fees, 10.2. To the loan obligations secured by this trust deed, and 10.3. The surplus, if any, to the persons entitled thereto. 1 1. Waiver. A waiver by either party of a breach of a provision of this agreernent shall not constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. Election by Beneficiary to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or take action to perform an obligation of Grantor under this deed after failure of the Grantor to perform shall not affect Beneficiary's right to declare a default and exercise its remedies under this trust deed or the Contract. 12. Trust Deed Binding on Successors and Assigns. Subject to the limitations stated in this deed on transfer of Grantor's interest, and subject to the provisions of applicable law with respect to successor trustees, this deed shall be binding on and inu~re to the benefit of the parties, their successors and assigns. STATE OF OREGON COUNTY OF JACKSON /~£i This instrument was a.cknowledged before me on NANCY E SLOCUM NOTARY PUBLIC - OREGON COMMISSION NO. 371650 MY COMMISSION EXPIRES SEPT. 18, 2007 ~ '~"O5/ by No/t/ary Pubic for"'Oregon My commission expires: PAGE 3-TRUST DEED EXHIBIT "A" · TRACT A: Beginning at the southeast corner of Lot Ten (10) of THE ASHLAND HOMESTEAD ASSOCIATION tract in the City of Ashland, Jackson County, Oregon; thence North, along the east line thereof, 80.0 feet; thence West, 113.5 feet to the west line of the East Half of said Lot; thence South, along said line, 80.0 feet to the south line of said Lot; thence East, along said line, 113.5 feet to the point of beginning. TRACT B: Beginning at a point on the division line between the East Half and the West Half of Lot Ten (10) of THE ASHLAND HOMESTEAD ASSOCIATION tract in the City of Ashland, Jackson County, Oregon, which point bears 80.0 feet North of the south line of said Lot; thence North, along said division line, 52.71 feet to the southwest corner of tract conveyed to the Lithia Lumber Co., thence North 78°00' East, along the southerly line of said tract, 46.21 feet; thence South, 62.32 feet; thence West, 45.2 feet to the point of beginning. (Code 5-01, Account #1-007643-7, Map #391E10BC, Tax Lot #3101) PAGE 4-TRUST DEED When Recorded Return Original to: Barbara Christensen, City Recorder 20 East Main Street, Ashland, Oregon 97520 PROMISSORY NOTE SECURED BY DEED OF TRUST $32,663.39 Ashland, Oregon, --~ (~~-2004 For value received, Ashland Community Land Trust of Oregon (AC;I_T) promises to pay to the order of the City of Ashland, Oregon, ("City"), at City Hall or such other place as the City may designate, the principal sum of lhirt¥ two thousand six hundred sixty three & ~,~00 ($32~6637), plus accrued interest, upon the terms and conditions set forth below. 1. AFFORDABLE HOUSING AGREEMENT. This obligation is secured by a 'l-rust Deed on certain real property developed for six rental units ("the property") and is subject to all the terms and conditions of such Trust Deed. This obligation is given pursuant to a "CITY OF ASHLAND AFFORDABLE HOUSING RESALE RESTRICTION AGREEMENT (SDCs ONLY)" and is subject to all the terms and conditions of such agreement (further referred to in this note as "the Agreement"). The promisor shall have the right to prepay all or any portion of the unpaid principal of this note without penalty. However, any payments shall be applied first to accumulated interest and then to principal. 2. INTEREST. The unpaid principal balance of this note shall bear simple interest at the rate of six percent (6.0%) per year from the date of this note until paid. 3. REPAYMENT. 3.1 . During the first 20 years after this note is executed, no payments of either principal or interest shall be due or payable so long as ACLT continues to own the property and make the six rental units available to eligible Iow-income households, and so long as ACLT is not in violation of any of the terms of this note or the trust deed securing it. As set forth in the Agreement, ACLT may also make a transfer of the property containing the rental units to a buyer who shall assume this note without violating the terms of this note. During the first 20 years after this note is executed, the total amount of the principal and accrued interest shall become immediately due and payable in full upon the transfer of the property to any person or entity, other than a buyer as defined in the Agreement who assumes this note and the trust deed securing it, and agree to comply with all of its terms, or whenever ACLT is in default for failure to comply with any of the terms of this note or the trust deed. At the end of 20 years following the date of execution of this note, if ACLT is at that time the owner of the property containing the rental units and is not in default under any terms of this note or the trust deed, this note PAGE 1 of 2-Promissory Note (Rev'd 5/04) and the obligation to pay the principal and accrued interest shall be cancelled and forgiven by the City. 4. BINDING EFFECT; JOINT AND SEVERAL OBLIGATIONS. This note and its terms shall be binding upon the heirs, executors, administrators, personal representatives, successors, and assigns. 5. ATTORNEY FEES AND COSTS. If either party is required to initiate legal proceedings to enforce its rights under this Agreement, the prevailing party in such action shall be entitled to an award of reasonable attorneys' fees and costs in addition to any other recovery under this Agreement. 6. SEVERABILITY; GOVERNING LAW. If any provision of this note is or becomes inconsistent with any applicable present or future law, rule or regulation, such provision will be deemed rescinded or modified in order to comply with the relevant law rule or regulation, and all other provisions of this note shall continue in full force and effect. This note shall be governed by and interpreted under the laws of the State of Oregon. 7. NO WAIVER. Failure by the City to require strict performance of any term of this note, including the extension of any payment or acceptance of any part of a payment, shall not affect the City's rights or be considered a waiver by the City of the strict performance of all conditions of this note. No waiver by the City of any default shall be considered a waiver of any subsequent default or a waiver of this paragraph. EXECUTED this ay of_. BUYER THIS DD~'EIMENT CONTAINS PROVISIONS RESTRICTING NOTICE TO : RESALES AND ASSUMPTIONS. Sig/rCatfure" / '~' - -?/ Printed Name .... Signature Printed Name PAGE 2 of 2-Promissory Note (Rev'd 5/04)