HomeMy WebLinkAbout1987-030 SO Skyways Purchase RATER TITLE INSURANCE CO.
485 East Main St.
ASHLAND, OREGON 97520
Phone 482-4006
November 25, 1987
City of Ashland
Attention: A1 Alsing
- Our Receipt ~) 1432 for $16,852.54
- Legal Opinion: Lindsay, Hart, Neil & Weigler
- Original signed Contract For Sale of Property
A. Jan~s Parish
C~TER TITLE INSURANCE COMPANY
485 g. MAIN
ASHLAND, OREGON 97520
RECEIVABLE NO.
ESCROW TRUST RECEIPT N°. t 1632
ooMP^NY[ 045 [ o F,C [002
[ //ESCROW NO. [ DATE
68053 11/25/87
lRECEIVED OF
CITY OF ASHLAND
~,~nds to Close Escrow: S.O. Sk!-~_ays :. City of Ashland
IABA# I
* *Sixteen Thousand
CASH
CASHIER'S CHECK
Eight Hmctred Fifty Two & 54/00' *D~L~R8'~ ~ '16,852 54
I CHECKS ]
20173 RECEiVeD AFTER ItOVRS ~]
24-12 I FROM BUYER ~ SELLER~ ~
CHECKING ACCOUNT NO.
[ FIB: 034 065000 5
CUSTOMER COPY
1001 FOURTH AVENUE PLAZA
(SEAFIRST ]~LDO.), SUITE ~00
{206) 02~-4711
LINDSAY, HART, NEIL ~: WEIGLER
SUITE 1800
222 $.W. GOLU>IBIA
PORTL~D, ORE~ 07201-001g
TELEPHONE (50g) 226-1191
TELECOPIER {500) 226-0070
TELEX 494-70~2
November 18, 1987
City of Ashland, Oregon
20 East Main Street
Ashland, Oregon 97520
Re:
$126,075
City of Ashland, Oregon
Contract to Purchase between City of Ashland,
Oregon and Southern Oregon Skyways, Inc.
We have acted as bond counsel in connection with the
authorization and execution by the City of Ashland, Oregon (the
"City") of a Contract for Sale of Property (the "Contract")
between the City and Southern Oregon Skyways, Inc. (the
"Seller"), dated October 30, 1987. The Contract provides for the
purchase by the City from the Seller of certain hangars as
described in the Contract located at the Ashland Municipal
Airport, Ashland, Oregon (the "Project"), for a purchase price of
One Hundred Twenty-Six Thousand Seventy-Five Dollars
($126,075).
We have examined the law, a duly certified transcript of
proceedings of the City, prepared in part by us, and other
documents which we deem necessary to render this opinion.
As to questions of fact material to our opinion, we have
relied on the representations of the City contained in the
Contract and in the certified proceedings and other
certifications of public officials furnished to us without
undertaking to verify the same by independent investigation.
Based on our examination, we are of the opinion, under
existing law, as follows:
A. The City is duly created and validly existing as a
body corporate and politic and public instrumentality of the
State of Oregon with the corporate power to enter into and
execute the Contract and perform the agreements on its part
contained therein.
LINDSAY, HART, NEIL & WEIOLER
Legal Opinion
Page 2
November 18, 1987
B. The Contract has been legally authorized and
executed pursuant to the Constitution and Statutes of the State
of Oregon and a resolution of the City (the "Resolution"), and
constitutes a valid and legally binding obligation of the City.
C. The City has pledged the punctual payment of
installment payments and interest thereon as the same become due
and payable under the Contract. The City expects to lease the
Project pursuant to Sections 142(b)(1)(B) and 142(b)(2) of the
Internal Revenue Code of 1986 (the "Code").
D. Assuming compliance by the City, the Seller and
other users of the Project with their covenants relating to the
tax-exempt status of the interest paid by the City and received
by the Seller under the Contract, such interest is excludable
from gross income for federal income tax purposes, except such
interest will be includable in the calculation of alternative
minimum tax imposed on corporations by the Code. To maintain the
exclusion of such interest from gross income for federal income
tax purposes, the City, the Seller and other users of the Project
have covenanted to comply with certain restrictions as to the use
of the Project and the use and investment of Project revenues.
We express no opinion regarding other federal tax consequences
arising with respect to the Bonds.
E. The interest paid by the City and received by the
Seller under the Contract is exempt from personal income taxation
by the State of Oregon.
F. The rights of the Seller and the enforceability of
the Contract and the Resolution may be subject to bankruptcy,
insolvency, reorganization, moratorium and other similar laws
affecting creditors' rights heretofore or hereafter enacted to
the extent constitutionally applicable, and their enforcement may
also be subject to the exercise of judicial discretion in
appropriate cases.
Respectfully submitted,
LINDSAY, HART, NEIL & WEIGLER
Ri~ard D. Roberts
CWCcwc853
CONTRACT FOR SALE OF PROPERTY
THIS CONTRACT, made and entered into this ~ day of
OCTOBER , 1987, by and between SOUTHERN OREGON SKYWAYS, INC.,
whose address is 401 Dead Indian Road, Ashland, Oregon 97520,
hereinafter called "Seller," and the CITY OF ASHLAND, a political
subdivision of the State of Oregon, whose address is 20 East Main
Street, Ashland, Oregon 97520, hereinafter called "Purchaser."
NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein contained, the parties agree as follows:
1. Property Description. The property to be sold is
described in Exhibit "A", attached hereto and by this reference
incorporated herein (the "Property"). The Property includes two
Fixed Base Operator ("FBO") T-Hangers and the FBO Shop Hangar
located at the Ashland Municipal Airport, Ashland, Oregon.
2. Sal.e-Purqhase Agreement. Seller agrees to sell to
Purchaser and Purchaser agrees to purchase from Seller, the
Property in accordance with the terms of this Contract.
3. Terms of Sale.
A®
Purchase Price. One Hundred Twenty-Six Thousand
Seventy-Five Dollars ($126,075).
Be
~a~ment. Purchaser agrees to pay Seller the
purchase price as follows:
(1)
Down Payment. Down payment in the amount of
Fourteen Thousand Seventy-Five Dollars
($14,075); and
(2)
Balance Due. The remaining balance of One
Hundred Twelve Thousand Dollars ($112,000)
shall be paid as follows:
(a)
Purchaser shall pay monthly installments
of not less than One Thousand Five
Hundred Eighty-Three and 30/100 Dollars
($1,583.30) each, including interest at
the rate of eight percent (8%) per annum
on the unpaid balances, as indicated on
Exhibit "B" attached hereto and
incorporated herein by reference (the
"Amortization Schedule"). Each
installment shall be applied first to
interest to date of payment and the
balance to principal. Interest on all
unpaid balances shall commence on
Page 1 - Contract for Sale of Property
October 1, 198J. The first of such
installments shall be paid on or before
the first day of November, 1987, and on
the first day of each month thereafter.
The installments shall continue until
October 1 , 1995, at which time the
entire rem~ning balance of principal and
interest is due and payable, if not
sooner paid.
(b)
Purchaser may, at any time, pay off the
entire balance of the purchase price
remaining due together with interest due
thereon to the date of payment without
prepayment penalties.
(c)
Ail payments to Seller hereunder shall be
made to Seller's address as set forth
above until further notice has been given
in writing by Seller to Purchaser.
4. Closing. The sale shall be closed on or before
October , 1987, through escrow, the cost of which shall be
shared equally by the parties. Seller and Purchaser shall share
the cost of preparation of this Contract, which has been prepared
by the offices of Lindsay, Hart, Neil & Weigler at the request of
Purchaser. Seller's share shall not exceed $600. Seller
acknowledges that he has had the opportunity to have this
Contract reviewed by an attorney of his choice at his own
expense.
At closing, Purchaser shall pay the amount of cash specified
in Paragraph 3 above.
Except as otherwise provided herein, all items to be prorated
shall be prorated as of
5. Seller's Warranty. Seller warrants that Seller owns the
Property and that any leasehold interest in the Property shall be
extinguished by Seller as of the date of this Contract, except as
stated herein, Seller makes no other express or implied warranties.
6. Title Insurance. No title insurance shall be required,
since this transaction~s a transfer of personal property.
7. Taxes. Ail taxes levied against the Property for the
current tax year shall be prorated between Seller and Purchaser
as of October 1, 1987. . The Seller shall pay to Purchaser at
closing all unpaid gas taxes accrued as of OctoSer 1, 1987, or furnish
evidence of payment therefore.
Page 2 - Contract for Sale of Property
8. Tenant Information. Seller shall furnish to Purchaser
prior to or at closing the names and addresses of current
Property tenants and the names and addresses of prospective
Property tenants which have requested their names be placed on a
waiting list.
9. Bill of Sale.
for the Property
Upon payment of the total purchase price
10. Delivery of Possession. Purchaser shall be entitled to
possession of the Property at 11:59 p.m. on September 30 , 1987.
11. Condition of Premises. Purchaser has examined the
Property, knows the condition of the Property, and accepts the
Property "as is" except as otherwise provided in this Contract
at paragraph 5.
12. Alterations of the Property. Purchaser may make any
alterations in the Property, except for structural changes,
without written permission from Seller. Purchaser may make
structural alterations to the Property only after obtaining
Seller's prior written consent.
13. Insurance. During the period of this Contract,
Purchaser will keep the Property insured to the extent of its
full insurable value. The insurance shall cover fire, windstorm,
public liability and extended coverage. Purchaser may insure any
or all of Purchaser's obligations hereunder under a self-
insurance program. All policies must provide that payment, in
the event of loss, be made to Seller and Purchaser as their
interests may appear.
14. Loss by Fire or Other Disaster, Eminen% Domain. If,
prior to the conveying of the Property from Seller to Purchaser
ten percent (10%) or more of the premises is destroyed by fire or
other disaster or taken by eminent domain, then either party may
cancel this Contract. In the event of such a cancellation,
Seller will return the down payment to Purchaser and both parties
are relieved of all further liability under this Contract. If
this Contract is not cancelled, then Purchaser will purchase the
premises without an abatement of the purchase price but will
receive the following at closing:
Ail sums received by Seller under any applicable
and existing insurance policies (less any amounts
paid or payable by Seller for repairs or
restoration);
Page 3 - Contract for Sale of Property
An assignment of any further sums payable to Seller
under such policies; and
Ce
An assignment of any award made for a taking by
eminent domain or sums received in such taking.
If, prior to the closing of title, an immaterial part of the
Property is destroyed by fire or elements beyond either party's
control or taken by eminent domain, this Contract will remain in
full force but the purchase price shall be abated to the extent
of the destruction or taking.
15. Right to Terminate and Conditions. The obligations of
Purchaser under this Contract are conditional upon the occurrence
of certain events on or prior to September , 1987. Purchaser
and Seller agree to diligently pursue the s~-~isfaction of all
conditions. Upon failure of one or more of the conditions
enumerated hereunder, Purchaser may cancel this Contract by
written notice to Seller. Within three (3) days of such notice,
Seller shall refund Purchaser's down payment and this Contract
shall have no further force or effect and both Seller and
Purchaser shall be released of all liability. The conditions are
as follows:
ae
Purchaser obtaining an unqualified opinion from a
natonally recognized bond counsel regarding the
regularity of the financing of the purchase
arrangement of the Purchaser and the tax-exempt
status, from both state and federal taxes, of the
interest paid by Purchaser and received by Seller
under this Contract.
The issuance of any and all land use permits by the
City of Ashland, Oregon.
16. Seller's Options on Default.
Forfeiture. If Purchaser fails to make any payment
or perform any of Purchaser's covenants contained
in this Contract, Seller has the option to declare
this Contract terminated. In this event, Purchaser
forfeits all payments made under this Contract, and
these payments will be retained by the Seller, in
full satisfaction and as liquidated damages.
Seller shall also have the right to reenter and
retake the premises.
Be
Declaring Contract Null and Void. Upon default by
Purchaser, Seller may declare this Contract null
and void, by filing a written declaration of
forfeiture with Purchaser and recording such
declaration with the Jackson County Clerk.
Page 4 - Contract for Sale ~f Property
Ce
Ownership of Improvements. Should this Contract be
terminated by forfeiture, lapse of time or
otherwise, all improvements on or to the Property
made by Purchaser shall become the property of
Seller. Seller shall not have any liability or
accountability to Purchaser for such improvements.
Limitation of Remedies. Seller's remedies as set
out herein, consisting of reentering and retaking
the premises and declaring a forfeiture shall be
Seller's exclusive remedies. Seller may not pursue
any other remedy at law or in equity, in case of
default or breach of this Contract by Purchaser or
prosecute any such remedy contemporaneously with
Seller's right of forfeiture unless such remedy is
otherwise contained in this Contract.
17. Assignment. Ail covenants and agreements in this
Contract shall extend to and be obligated upon the heirs,
executors, administrators, and assigns of the respective
parties. Purchaser may assign this Contract.
18. Notice. Any notice under this Contract shall be in
writing and shall be effective when actually delivered or when
deposited in the mail, registered or certified, addressed to the
parties at the address as stated in this Contract or such other
addresses as either party may designate by written notice to the
other.
19. Multiple Parties. If two or more persons constitute
eithr Seller or Purchaser, the work "Seller" or the word
"Purchaser" will be construed as ifit read "Sellers" or
"Purchasers" whenever the sense of the Contract requires.
20. Attorneys Fees. In the event an action, suit or
proceeding, including appeal therefrom, is brought for failure to
observe any of the terms of this Contract, each party shall be
responsible for its own attorney's fees, expenses, costs and
disbursements for said action, suit, proceeding or appeal.
Page 5 - Contract for Sa'-~. ~. ~ Property
21. Applicable Law.
enforcing this Contract.
Oregon law shall apply in construing or
IN WITNESS WHEREOF, the parties have caused this Contract to
be executed in duplicate as of the day and year first above
written.
SOUTHERN OREGON SKYWAYS, INC.
~3N~' C. GEORGE, P~eJdent
By:
"SELLER"
CITY OF ASHLAND, OREGON
By:
"PURCHASER"
Page 6 - Contract for Sale of Property CWCcwc726
FORM No. 24--ACKNOWLEDGMENT.~CORPORATION.
STEVENS-NESS LAW PUB. CO., PORTLAND, ORE.
STATE OF OREGON,
SS.
County of.. Jackson ............ J On this 29r__h-day ot October .~ , 19 87.,
before me appeared . ~ C_~ G--'E.ORG~ ............... and
............ both to me personally known, who being
duly sworn, did say that he, the said ~te., _C, Georg~
is the President, and he, the said
is the.. Secretary of_ .S___.o~.__~he___rn.__Q~eg_on._Sk~ays,
the within named Corporation, and that the seal affixed to said instrument is the corporate seal ot said Corpora-
tion, and that the said instrument was signed and sealed in behalf of said Corporation by authority of its Board
of Directors, and. Mcrctt~ C. George ..... and
acknowledge said instrument to be the £ree act and deed of said Corporation.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed
my of?cial seal tl~-~day~ last above written.
My Commission expires 02/12-/90
STATE OF OREGON )
) ss.
County of ~ ~C.~ )
.The foregoing instz~ment was acknowZedged
this ~$ day of ~, 1987, by M-~~ ~z~t~%
, ~~ of the City of Ashland, Or~on.
Nota~r~
My Co~i~n expires:
STATE OF OREGON )
) ss.
County of A ~q.~m-h~x )
.The foregoing inst~ment was aq.knowled, ged before me
this .~lD~ day of ~, 1987, by ~?~ ~t~k~
, ~c%~.~/ of the City of Ashland, Oregon.
No~r~ P~blic for~Or~on ,
My C~sion expires: ~/[~[qO
Page 7 - Contract for Sale of Property CWCcwc726
~
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AClU~RE !FOR T£RMI~I~ ~ EXP, AREA
ii
' FUEL'. ISLAND(24'SIGN, 14'ALLowABLE) ·
i- UNPAVED TAXIWAYS
i
NEW AIRCRAFT WASH RACK (
FBO SHOP/HANGAR
CITY TERMINAL BUILDING
AUTO PARKING EXPANSION
I
I0" ROTATING BEACON
:.. 6 LIGHT
FUTURE CITY
T- HANGARS
T-HANGARS
ACCESS ROAD
FBO SITE
HANGAR
EXHIBIT "A"
EXHIBIT B
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eeeeeeeleeeeleeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
0000000000000000000000000000000000000000000000
000000000000000000000000~000000000000~0000~00
(p~nuI~uoo) E LI~IHXZ
AFTER RECORDING, SENT TO:
CWCcwc726
. CRATER TITLE
Crater Tit)e Insurance Co.
BIJYER STATEMENT
10128187
BUYER:
CITY OF ASblI_AND,
20 EAST MAIN ST.
ASHLAND, OREGON
97520
SELLER:
SOUTHERN OREGON SKYWAYS, INC.
401 DEAD INDIAN ROAD
ASHLANO, OREGON 97580
PROPERTY: IMPROVEMENTS LOCATED AT THE ASHLANO AIRPORT
ASHLANO, OREGON 97520
SETTLEMENT DATE: 10115187 PRORATION DATE: 10/01/87
SALE PRICE: 126,075.00
BUYER CHARGES P.O.C.
ESCROW FEES
ATTORNEY FEES
1987-88 PROPERTY TAXES
250?.48 prorated from 10/01./87 thru 06/30/88
at 6.8698 per day
SALE PRICE
GROSS DUE FROM BUYER
BUYER CREDITS
LOAN 8 CR
TOTAL PO 8Y/FOR BUYER
GROSS DUE FROM BUYER 188,852.54
TOTAL PO BY/FOR BUYER -112,000.00
NET FROM ITO> BUYER 16,858.54
1.80.00
7o8.a4
1,889.20
126,075.00
128,852.54
112,000.00
112,000.00
WE HEREBY ACCEPT FEES AND C0ST AS STATED A[)OVE
CITY OF ASHLAND,
THIS INDENTURE WlTNESSETH, That in consideration of the sum of ONE HUNDI~,D
~ENTY-SIX %HOUSAND, SEVENTY-FIVE AND NO ONE-HUNDREDTHS
............................ ~ Dollars, ($126,075.00z,~
the receipt whereof hereby is acknowledged, I the undersigned seller, hereby grant, bargain, sell, transfer and de-
liver unto . the .City of Ashland,, .a political, subi. vision of the Statet . hereinafter called buyer,
the following described personal property, now being and situate ....................... uf Oregon
'-i~'~i~;-~--~i ...... ~'i~ .........................i-~-~--ni~"~-i' ............. ~-~iCS~)n ..................... . ..... -' tO:Wit:
TWo Fixed Base Operator T-Hangers and the Fixed Base Operator Shop Hanger
located at the Ashland Municipal Airport, Ashland, Oregon.
IIF SPACE INSUFFICIENT, CONTINUE DESCRIPTION ON REVERSE SIDE)
TO HAVE AND TO HOLD, the same unto the buyer and buyer's executors, administrators, successors and
assigns forever.
And I, the seller, hereby covenant to and with the said buyer that I am the owner of said personal property;
that the same is free from all encumbrances ..........................................................................
that I have a good right to sell the same, and that I, my heirs, executors and administrators shall warrant and defend
the same against the lawful claims of all persons whomsoever.
WITNESS.. .my . hand ..... this .....29th ........ day of .October . ,19.87 ..
.SOI1TI--]E~. OREG(~._SK~.~/AYS, .INC .........................
by Monty C. George, President
STATE OF .Oregon ......................... lss. ' ..............................................................................
[
County of --Jackson ............................ J
~ Yrmty C. George, President of Southern Oregon Sk .~._ays, Inc.
being/i'rst duly sworn, depose and say tha~alTd..g.O..r~-: !.Sthe sole owner ._ of the property described in the foregoing
bill of sale, that the same has been paid for in full, and that on this date the same is free and clear of liens and encum-
brances of every kind and .nature
........................................................ J .......................................................................................................................................
........................................................................................................................................................................................
._..O~e.. gc~ Sk~ays ,. Inc ................. ~
FORM No. 24---ACKNOWLEDGMENT---CORPORATION.
STATE OF OREGON,
SS.
County of.Jackson ............... [ On this. 29th. day of October 1987
before me appeared ISvnty. C, George ..................................... and
............................................... both to me personally known, who being
duly sworn, did say that he, the said..lv~r~_.~ .~,~ f~eO~ge__..
is the ...... President, and he, the said
is the ............ Secretary ut.. S.._c~.. ~..he _m_.._.~goo.. Skyways,
the within named Corporation, and that the seal affixed to said instrument is the corporate seal o[ said Corpora-
tion, and that the said instrument was signed and sealed in behalt of said Corporation by authority o[ its Board
of Directors, and ..... Mont:y..C,...George ................. and
acknowledge said instrument to be the free act and deed of said Corporation.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed
my official seal the day and year last above written.
Notary Public tor Oregon.
My Commission expires 02/3_2/90
Il' 11 I' rl~l T'
CRATER TITLE ESCROW INSTRUCTIONS INO TITLE INSURANCE~
to Crater Title Insurance Co., DATED OCTOBER 28, 1987
from
SELLER: SOUTHERN OREGON SKYWAYS, INC.
401 DEAD INDIAN ROAD,
ASHLAND,OREGON 97520
BUYER: A POLITICAL SUBDIVISION OF THE STATE OF OREGON CITY OF ASHLAND,
20 EAST MAIN ST.,
ASHLAND,OREGON 97520
1. PROPERTY DESCRIPTION: This escrow covers real property described in
documents furnished by the parties herein and Crater Title Insurance Co. is not
responsible for the accuracy of the description, whether or not the description
closes, any gaps or overlaps created or perpetuated therby, or the failure of the
description to describe the real property which the parties intend to be the
subject of this escrow.
2. TERMS OF TRANSACTION:
$12G,075.00
14,075.00
112,000.00
SALES PRICE
DOWN PAYMENT
BY CONTRACT OF SALE, ACCORDING TO THE TERMS AND
CONDITIONS CONTAINED THEREIN.
THE DATE OF POSSESSION AND THE DATE OF PRO-RATION SHALL BE OCTOBER
1, 1987. OCTOBER RENTAL SHALL BE THE PROPERTY OF AND SHALL BE
COLLECTED BY THE PURCHASER.
PURCHASER ACKNOWLEDGES THAT SELLER HAS FURNISHEO EVIDENCE OF PAYMENT
OF UNPAID GAS TAXES ACCRUED AS OF OCTOBER 1, 1987.
PURCHASER ACKNOWLEDGES THAT ESCROW AGENT HAS MADE NO SEARCH FOR
FINANCING STATEMENTS IN THE OFFICE OF THE SECRETARY OF STATE AND
HOLDS CRATER TITLE INSURANCE CO. HARMLESS FROM ANY LIABILITY IN
CONNECTION THEREWITH.
3. DOCUMENTS TO BE FURNISHED IN ESCROW:
CONTRACT OF SALE
BILL OF SALE
4.TITLE IS TO BE CONVEYED TO: A POLITICAL SUBDIVISION OF THE STATE OF OREGON
CITY OF ASHLAND,
Escrow agent is not responsible for determining that the name of the
grantor as used on any conveyance agrees with the exact names used for the current
vesting of the proPertY.
5. CLOSING OF ESCROW. You are authorized to deliver or record the above
mentioned documents and disburse funds when you have received the same and can
comply with the terms of these instructions.
INASMUCH AS TITLE INSURANCE IS NOT BEING FURNISHED ON THE ABOVE NOTED PPOPERTY IN
CONNECTION WITH THIS ESCROW, CRATER TITLE INSURANCE CO., AS ESCROW AGENT, WILL NOT
ASSUME ANY LIABILITY IN THE EVENT OF DEFECTS IN TITLE TO SAID PROPERTY OR LOSS
OCCASIONED BY OTHER HATTERS PROPERLY THE SUBJECT OF SUCH INSURANCE. THE UNDERSIGNED
RELEASE CRATER TITLE INSURANCE CO. FROM ANY LIABILITY FOR ANY MATTER WHICH HIGHT
HAVE BEEN DISCLOSED BY AN ACCURATE TITLE SEARCH, AND AGREE TO HOLD CRATER TITLE
INSURANCE CO. HARMLESS FROM ANY LOSS DAMAGE, EXPENSE OR I. IABILITY, INCLUDING BUT
NOT LIMITED TO ATTORNEYS FEES AND COSTS ON TRIAL OR APPEAL, WHICH IT MIGHT INCUR AS
A RESULT OF HAVING CLOSED THIS TRANSACTION WITHOUT THE BENEFIT OF SUCH A TITLE
SEARCH AND TITLE POLICY~
6. CLOSING DATE. This escrow shall be closed on or before OCTOBER 15, 1987.
7. PRORATES. Prorated items set forth on Exhibit A, Estimated Closing Costs,
are ~o be prorated to: OCTOBER 1, 1987
8. PROCEEDS. Pay proceeds to seller, or order of seller.
9. ESTIMATED CLOSING COSTS. See Exhibit A attached and made a part hereof. Some
items are estimates. The finaI closing statement may vary due to per diem charges
and other information obtained prior to closing.
CRATER TITLE
ESCROW INSTRUCTION
PAGE 8
10. SELECTION OF DOCUMENT FORMS. The document forms which the parties have
instructed the escrow agent to complete have been selected by the parties after
such advice and consultation as they have determined to be necessary. Ali. forms
furnished by escrow agent have been reviewed and approved by the parties.
11. DETERMINATION OF DISPUTES. Escrow agent shall not be required to determine or
arbitrate any dispute of the principa].s with each other or third parties, but may
await the settIement of any such controversy by final appropriate legal proceedings
or otherwise. Escrow agent may in its discretion, institute such appropriate
interpleader or other proceedings as it may deem proper in connection with any
dispute.
1.8. ATTORNEYS' FEES. Should escrow agent become involved in any litigation,
including interpleader brought by it, as a result of this transaction, all parties
shall be jointly and severally liable to agent for all costs, expenses and
attorneys fees which it may incur by reason of such litigation.
13. TERMINATION OF ESCROW. This escrow shall be closed on or before the closing
date specified in Paragraph 6 above. Escrow agent is authorized to close the
transaction subsequent to that date provided that a written instruction to the
contrary has not been furnished by any of the parties to the escrow. If Al' ANY
TIME either party to this transaction notifies the escrow agent in writing of its
intent not to proceed with this transaction, the duty of escrow agent to complete
the same shall cease. Likewise, if this escrow is not completed within thirty days
of the closing date as set forth herein or extended in writing, the duty of escrow
agent to complete the same shall cease. In either event, all documents and funds
not designated as earnest money shall be returned to the parties providing the
same, and all escrow cancellation fees, title cancellation fees and costs incurred
by escrow agent shall be deducted from the funds held by it. In the event that the
parties have provided escrow agent with mutual instructions as to the disposition
of the balance of earnest money deposited, all funds wiI1 be disbursed in
accordance therewith. In the event thai the parties have not provided instructions
· [or the disposition of the balance of the earnest money when the duty to complete
the transaction ceases, escrow agent shall continue to hold said sum pending such
mutual instructions or other adequate directions as to the disposition thereof.
For each month thereafter that escrow agent maintains said funds in its account,
the sum of $10.00 shall be deducted therefrom for administrative duties.
15. ALL CONTINGENCIES, CONDITIONS AND/OR REQUIREMENTS OF EACH OF THE PARTIES, AS THE
SAME ARE SET FORTH ON THE ORIGINAL. EARNEST MONEY AGREEMENT OF THE PARTIES,
INCLUDING THE TERMS OF ANY ADDENDA, COIlNTER-OFFERS OR OTHER ELEMENTS INCORPORATED
IN THE FINAL WRITTEN EXPRESSION OF THE PARTIES' AGREEMENT, HAVE BEEN MET TO THE
SATISFACTION OF EACH OF THE PARTIES.
1G. THE PARTIES UNDERSTAND THAT EACH WILL BE RESPONSIBLE FOR THEIR OWN UTILITY BILLS,
INCLUDING TERMINATION AND NEW HOOKUP. ALL UTILITY CHARGES, AND ANY PRORATION
THEREOF, INCLUDING BUT NOT LIMITEO TO REIMBURSEMENT FO~ ANY FUEL OIL, WILL BE
HANDLED OUTSIDE OF ESCROW, AND ESCROW AGENT WILL NOT BE RESPONSIBLE FOR THE SAME.
17. THE BUYER MUST FURNISH ESCROW HOLDER A POLICY OR BINDE~ OF FIRE INSURANCE PRIOR TO
CLOSE OF ESCROW.
18. IT IS UNDERSTOOD BY THE PARTIES THAT SELLER IS NOT DEPOSITING THE CONTRACT AND
WARRANTY DEED; NOTE, TRUST DEED AND REQUEST FOR RECONVEYANCE; OR MORTGAGE AND
SATISFACTION OF MORTGAGE IN A COLLECTION ESCROW WITH AN ESCROW AGENT. BUYER
UNDERSTANDS THAT SUCH OOCUMENTS ARE TO BE PROVIDED BY THE SELLER, HIS HEIRS,
SUCCESSORS OR ASSIGNS, THAT BUYER WILL HAKE PAYMENTS TO THE SELLER AND RELY UPON
SELLER TO FURNISH REQUIREO DOCLIMENTS FOR CLEARING TITLE UPON COMPLETION OF THE
OBLIGATIONS OF BUYER.
1.9. THE ESCROW AGENT HEREIN IS AUTHORIZED TO INSERT THE NECESSARY DATES ON THE NOTE AND
MORTGAGE, NOTE AND T~UST DEED, OR L. ANO SALE CONTRACT, TO PROVIDE FOR INTEREST FROM
THE DATE OF THE CLOSE OF ESCROW, AND TO PROVIOE FOR THE FIRST PAYMENT TO BE DUE ONE
MONTH FROM THE DATE OF CLOSE OF ESCROW. SAID DATES MAY ALSO BE INSERTED IN
COLLECTION ESCROW INSTRUCTIONS PROVIDED THAT THEY ARE IN AGREEMENTT WITH THE DATES
IN THE OOCUMENTS DELIVEREO WITH SUCH INSTRUCTIONS.
THE PARTIES HERETO HAVE BEEN ADVISED TO REVIEW THE TRANSACTION WITH THEIR LEGAL
AND TAX PROFESSIONALS. THE ESCROW AGENT HAS PROVIDED NO TAX OR LEGAL ADVICE AS TO
THE EFFECT OF THIS TRANSACTION, AND NEITHER THE ESCROW AGENT NOR ANY REAL ESTATE
LICENSEE INVOLVED HAS ANY RESPONSIBILITY FO~ DOIND SO.
Any matters not covered by these instructions which may arise in connection
~nn99EP~.. N.-n . 69053
CRATER TITLE
ESCROW INSTRUCTION
PAGE 3
with this transaction are the responsibility of the parties and shall be handled
outside of thi~ escrow, including but not limited to any law, regulation Dp'
ordinance affecting this transaction or the property which is the subject hereof.
THE ESCROW HOLDER ASSUMES NO RESPONSIBILITY FOR DETERMINING THAT THE PARTIES TO
THIS ESCROW HAVE COMPLIED WITH THE REQUIREMENTS OF THE TRUTH IN LENDING LAW,
CONSUMER CREDIT PROTECTION ACT OR SIMILAR LAWS.
IT IS UNDERSTOOD BY THE PARTIES SIGNING THE ABOVE ESCROW INSTRUCTIONS OR THOSE
ESCROW INSTRUCTIONS WHICH ARE ATTACHED HERETO THAT SUCH INSTRUCTIONS
CONSTITUTE THE WHOLE AGREEMENT BETWEEN THIS FIRM AS AN ESCROW AGENT AND YOU AS
A PRINCIPAL TO THE ESCROW TRANSACTION. THESE INSTRUCTIONS HAY NOT INCLUDE ALL
THE TERMS OF THE AGREEMENT WHICH IS THE SUBJECT OF THIS ESCROW (OR MAY VARY FROM
THE TERMS THEREOF). READ THESE INSTRUCTIONS CAREFULLY~ AND DO NOT SIGN THEM UNLESS
THEY ARE ACCEPTABLE TO YOU.
THE TAXPAYER I.D. NUMBERS FURNISHED HEREIN ARE CORRECT~ AND THE PERSON PROVIDING
THE SAME SO CERTIFIES UNDER PENAI..TY OF PERJURY.
SOUTHERN OREGON SKYWAYS, INC.
MONTY C. GEORGE
PRESIDENT
CITY OF ASHLAND,
The foregoing instructions are hereby accepted by Crater Title Insurance Co.
Authorized Signature