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199308121969 When recorded, return to: City of Federal way 33530 1st Way South Federal V$ay, Washington 98003 DEED OF TRUST D O (Community Development Block Grant Program) < /f. This Deed of Trust ( "Instrument ") is made August 4, 1923, by the Grantor, Sally J. Kerns. as her separate estate whose address is 208 S 304th, Federal Way, Washington, 98003 ( "Borrower "), Stewart Title Company, whose address is 1201 3rd Av, Suite 3800, Seattle, Washington, 98409 ( "Trustee "), and the 98101 Beneficiary, the City of Federal Way, Washington, a public corporation, whose address is 33530 1st Way South, Federal Way, Washington, 98003 ( "Lender"). Borrower, in consideration of the indebtedness herein recited and the trust herein created, irrevocably grants, conveys and assigns to Trustee, in trust, with power of sale, the following described property located at 208 S 304th Place, Fl Way, King County, Washington: Lot 6, Holiday Park Number 2, according to the plat thereof recorded in Volume 68 of Plats, page 75, in King County, Washington Together with all buildings, improvements and tenements now or hereafter erected on the property, and all heretofore or hereafter vacated alleys and streets abutting the property, and all easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights and profits, water, water rights, and water stock appurtenant to the property, and all of the estate, rights, Oy, title, claim, interest and demand whatsoever of the Borrower, either in law or in equity, whether now owned or hereafter •) acquired, or, in and to the property, and all fixtures, machinery, equipment, engines, boilers, incinerators, building materials, appliances and goods of every nature whatsoever now or hereafter located in, or on, or used, or intended to be used in N connection with the property, including, but not limited to, those for the purposes of supplying or distributing heating, cooling, -- electricity, gas, water, air and light; and all elevators, and related machinery and equipment, fire prevention and extinguishing CO apparatus, security and access control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, c') refrigerators, dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains ON and curtain rods, mirrors, cabinets, paneling, rugs, attached floor coverings, furniture, pictures, antennas, trees and plants; all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the real property covered by this Instrument; and all of the foregoing, together with the property are herein referred to as the "Property ". TO SECURE TO LENDER: (a) The repayment of the indebtedness evidenced by Borrower's Secured Promissory Note dated August 4, 1993, ( "Note ") in the principal sum of Eight Thousand Five Hundred and 11(1/100 Dollars ($8. 500.00), with interest thereon and all renewals, extensions and modifications thereof. (b) The performance of the covenants and agreements of Borrower contained in an Agreement for Rehabilitation co Work between Lender and Borrower dated April 20, 199, as provided in Paragraph 18 hereof. O (c) The payment of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Instrument. , 3 (d) The performance of the covenants and agreements of Borrower contained herein or in any other Loan Documents Jn as defined in Paragraph 14(a) below. Borrower covenants that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant, convey and assign the Property, that the Property is unencumbered by any security interest superior to this instrument, and that Borrower will warrant and defend generally the title to the Property against all claims and demands, subject to any easements and restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring Lender's interest in the Property. Borrower and Lender covenant and agree as follows: (1) Payment. Borrower shall promptly pay when due the indebtedness evidenced by the Note and all other sums secured by this Instrument. 2. Charges; Liens. Borrower shall pay all water and sewer rates, rents, taxes, assessments, premiums and Other Impositions attributable to the Property by Borrower making payment, when due, directly to the payee thereof, or in such other manner as Lender may designate in writing. Borrower shall promptly furnish to Lender all notices of amounts due under this Paragraph 2, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has, or may have, priority over or equality with, the lien of this Instrument, and Borrower shall pay, when due, the claims of all persons supplying labor or materials to or in connection with the Property. Without Lender's prior written permission, Borrower shall not allow any lien, mortgage or other encumbrance inferior to this Instrument to be perfected against the property. 3. Hazard Insurance: (a) Duty to Insure Property. Borrower shall keep the improvements now existing or hereafter erected on the Property insured by carriers at all times satisfactory to Lender against Loss by fire, hazards included within the term "extended G: \WPFILFS\FORMS\SRDOT.FRM 2 • coverage ", rent loss and such other hazards, casualties, liabilities and contingencies as Lender shall require and in such amounts and for such periods as Lender shall require. All premiums or insurance policies shall be paid by Borrower making payment, when due, directly to the carrier, or in such other manner as Lender may designate in writing. (b) Policies. All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. At least thirty (30) days prior to the expiration date of a policy, Borrower shall deliver to Lender a renewal policy in form satisfactory to Lender. (c) Lass. In the event of loss, Borrower shall give immediate written notice to the insurance carrier and to Lender. Borrower hereby authorizes and empowers Lender as attorney -in -fact for borrower to make proof of loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any action arising from such insurance policies, to collect and receive insurance proceeds, and to deduct therefrom Lender's expenses incurred in the collection of such proceeds; provided, however, that nothing contained in this Paragraph 3 shall require Lender to incur any expense or take any action hereunder. Borrower further authorizes Lender, at Lender's option, (i) to hold the balance of such proceeds to be used to reimburse Borrower for the cost of reconstruction or repair of the Property or (ii) to apply the balance of such proceeds to the payment of the sums secured by the Instrument, whether or not then due. (d) Proceeds. If the insurance proceeds are held by Lender to reimburse Borrower for the cost of restoration and repair of the Property, the Property shall be restored to the equivalent of its original condition or such other condition as Lender may approve in writing. Lender may, at Lender's option, condition disbursement of the proceeds on Lender's approval of such plans and specifications of an architect satisfactory to Lender, contractor's cost estimates, architect's certificates, waivers of liens, sworn statements of mechanics and materialmen and such other evidence of costs, percentage completion of construction, application of payments, and satisfaction of liens as Lender may reasonably require. If the Property is sold pursuant to Paragraph 14 hereof or if Lender acquires title to the Property, Lender shall have all of the right, title and interest of Borrower in and to any insurance policies and unearned premiums thereon and in and to the proceeds resulting from damage to the Property prior to such sale or acquisition. 4. Preservation and Maiaoance of Property. Borrower (i) shall not commit waste or permit impairment or deterioration of the Property, (ii) shall not abandon the Property, (iii) shall restore or repair promptly and in a good and workmanlike manner all or any part of the Property to the equivalent of its original condition, or such other condition as o` Lender may approve in writing, in the event of any damage, injury or loss thereto, whether or not insurance proceeds are available to cover in whole or in part the cost of such restoration or repair, (iv) shall keep the Property, including Q, improvements, fixtures, equipment, machinery and appliances thereon in good repair and shall replace fixtures, equipment, -- machinery and appliances on the Property when necessary to keep such items in good repair, (v) shall comply with all laws, N ordinances, regulations and requirements of any governmental body applicable to the Property, (vi) shall give notice in writing co to Lender of and, unless otherwise directed in writing by Lender, appear in and defend any action or proceeding purporting 0 to affect the Property, the security of this Instrument or the rights or powers of Lender. Neither Borrower nor any other l7", person shall not remove, demolish or alter any improvement now existing or hereafter erected on the Property or any fixture, equipment, machinery or appliance in or on the Property except when incident to the replacement of fixtures, equipment, machinery and appliances with items of like kind. 5. Use of Property. Unless required by applicable law or unless Lender has otherwise agreed in writing, Borrower shall not allow changes in the use for which all or any part of the Property was intended at the time this Instrument was executed. Borrower shall not initiate or acquire or acquiesce in a change in the zoning classification of the Property without Lender's prior written consent. 6. Protection of Lender's Security. (a) Lender's Rights. If Borrower fails to perform the covenants and agreements contained in this Instrument, or if any action or proceeding is commenced which affects the Property or title thereto or the interest of Lender therein, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankruptcy debtor or decedent, then Lender, at Lender's option, may make such appearance, disburse such sums and take such action as Lender deems necessary, in its sole discretion, to protect Lender's interest, including, but not limited to, (i) disbursement of attorney's fees, (ii) entry upon the Property to make repairs, and (iii) procurement of satisfactory insurance as provided in Paragraph 3 hereof. (b) Additiorml Indebtedness. Any amounts disbursed by Lender pursuant to this Paragraph 6, with interest thereon, shall become additional indebtedness of the Borrower secured by this instrument. Unless Borrower and Lender agree to other terms of payment, such amounts shall be immediately due and payable and shall bear interest from the date of disbursement at the highest rate which may be collected from Borrower under applicable law. Borrower hereby covenants and agrees that Lender shall be subrogated to the lien of any mortgage or other lien discharged, in whole or in part, by the indebtedness secured hereby. Nothing contained in this Paragraph 6 shall require Lender to incur any expense or take any action hereunder. 7. Inspection. Lender may make or cause to be made reasonable entries upon and inspection of the Property. 8. Condemnation. (a) Proceed ngs. Borrower shall promptly notify Lender of any action or proceeding relating to any condemnation or other taking, whether direct or indirect, of the Property, or part thereof, and Borrower shall appear in and prosecute any such action or proceeding unless otherwise directed by Lender in writing. Borrower authorizes Lender, at Lender's option, as attorney -in -fact for Borrower, to commence, appear in and prosecute, in Lender's or Borrower's name, any action or proceeding relating to any condemnation or other taking of the Property whether direct or indirect, and to settle or compromise any claim in connections with such condemnation or other taking. The proceed of any award payment or claim GAWPFILESWORMSISRDOT.FRM 3 • for damages, direct or consequential, in connection with any condemnation or other taking, whether direct or indirect, of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned to and shall be paid to Lender. (b) Award. Borrower authorizes Lender to apply such awards, payments, proceeds or damages, after the deduction of Lender's expenses incurred in the collection of such amounts, at Lender's option, to restoration or repair of the Property or to payment of the sums secured by this Instrument, whether or not then due, with the balance, if any, to Borrower. Borrower agrees to execute such further evidence of assignment of any awards, proceeds, damages or claims arising in connection with such condemnation or . taking as Lender may require. 9. Borrower and Lim not Released. From time to time, Lender may, at Lender's option, without giving notice to or obtaining the consent of Borrower, Borrower's successors or assigns or of any junior lienholder or guarantors, without liability on Lender's part and notwithstanding Borrower's breach of any covenant or agreement of Borrower in this Instrument, extend the time for payment of the indebtedness or any part thereof, reduce payments thereon, release anyone liable on any of the indebtedness, accept a renewal note or notes therefor, modify the terms and time of payment of the indebtedness, release from the lien of this Instrument any part of the Property, take or release other or additional security, reconvey any part of the Property, consent to any map or plan of the Property, consent to the granting of any easement or join in any extension or subordination agreement. Any actions taken by Lender pursuant to the terms of this Paragraph 9 shall not affect the obligation of Borrower to Borrower's successors or assigns to pay the sums secured by this Instrument and to observe the covenants of Borrower contained herein, shall not affect the guaranty of any person, corporation, partnership or other entity for payment of the indebtedness secured hereby, and shall not affect the lien or priority of lien hereof on the Property. Borrower shall pay Lender a reasonable service charge, together with such title insurance premiums and attorney's fees as may be incurred at Lender's option, for any such action if taken at Borrower's request. 10. Forbearance by Lender not a Waiver. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any right or remedy. The acceptance by Lender of payment of any sum secured by this Instrument after the due date of such payment shall not be a waiver of Lender's right to either require prompt payment when due of all other sums so secured or to declare a default for failure to make prompt payment. The procurement of insurance or the payment of taxes or other liens or charges by Lender shall not be a waiver of Lender's right to accelerate the maturity of the indebtedness secured by this Instrument, nor shall Lender's receipt of any awards, proceeds or damages under Paragraphs 3 and 8 hereof operate to cure or waive Borrower's default in payment of sums secured by this Instrument. 11. Remedies Cumulative. Each remedy provided in this Instrument is distinct and cumulative to all other rights C or remedies under this Instrument or afforded by law or equity, and may be exercised concurrently, independently, or — successively, in any order whatsoever. CO 12. Notice. Except for any notice required under applicable law to be given in another manner, (i) any notice to Borrower provided for in this Instrument or in the Note shall be given by mailing such notice addressed to Borrower at C') Borrower's address stated below or at such other address as Borrower may designate by notice to Lender as provided herein, 0"*. and (ii) any notice to Lender shall be given by certified mail, return receipt requested, to Lender's address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Instrument or in the Note shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. 13. Successors and Assigns Bound; Joint and Several Liability; Agents; Captions. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower. All covenants and agreements of Borrower shall be joint and several. In exercising any rights hereunder or taking any actions provided for herein, Lender may act through its employees, agents or independent contractors as authorized by Lender. The captions and headings of the paragraphs of this Instrument are for convenience only and are not to be used to interpret or define the provisions hereof. 14. Default and Acceleration; Remedies. (a) Default For purposes of this Instrument, "default" is Borrower's breach of, or failure to comply with, any covenant, agreement, term or condition contained in the Note, Borrower's Substantial Rehabilitation Loan Agreement with Lender, Borrower's Agreement for Rehabilitation Work, or this Instrument, ( "Loan Documents "). Default shall include, but not be limited to: (1) Failure to pay when due any sum owing hereunder or under any of the Loan Documents; (2) Failure to complete the required rehabilitation by obtaining a Certificate of Occupancy within a reasonable time after sixty (60) days from the date hereon as determined by the Lender; (3) Any sale or conveyance of the rehabilitated property without the Lender's prior written approval, excluding the creation of a purchase money security interest for household appliances, or tenant leases; (4) Any failure by Borrower at any time to reside in the property as Borrower's primary residence; (5) Any failure to pay or other default in any other indebtedness secured by the rehabilitated property; or (6) The appointment of a receiver or liquidator for the Borrower or Borrower's property, the filing of any state or federal bankruptcy or insolvency petition by or against the Borrower, or any assignment by Borrower for the benefit of Borrower's creditors; or (7) Borrower's death or, if Borrower is a husband and wife forming a marital community, the death of both GAWPFILESTORMS\SRDOT.FRM 4 husband and wife. (b) Acceleration. Upon Borrower's default and after the expiration of any required notice period, Lender, at tender's option, may declare all of the sums secured by this Instrument to be immediately due and payable without further demand. After giving Borrower notice of default in the manner prescribed by applicable law, Lender may invoke the power of sale and any other remedies permitted by applicable law of provided herein. Borrower acknowledges that the power of sale herein granted may be exercised by Lender without prior judicial hearing. Borrower has the right to bring an action to assert the nonexistence of a breach or any other defense of Borrower to acceleration and sale. Lender shall be entitled to collect all costs and expenses incurred in pursuing such remedies, including, but not limited to, attorney's fees and costs of documentary evidence, abstracts and title reports. (c) Sale. 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 decision to cause the Property to be sold. Trustee and Lender shall give such notices as the laws of Washington may require to Borrower and to such other persons as the laws of Washington prescribe, and after the lapse of such time as may be required by applicable law, Trustee shall sell the Property according to the laws of Washington. Trustee may sell the Property at any time and place and under the terms designated in the notice of sale in one or more parcels and in such order as Trustee may postpone sale of all or any parcel of the Property for a period or periods not exceeding a total of one hundred twenty (120) days by public announcement at the time and place fixed in the notice of sale. Lender or Lender's designee may purchase the Property at any sale. (d) Deed and Proceeds. Trustee shall deliver to the purchaser Trustee's deed conveying the Property so sold 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: (i) to all costs and expenses of the sale, including, but not limited to, Trustee's and attorney's fees and costs of title evidence; (ii) to all sums secured by this Instrument in such order as Lender, in Lenders's sole discretion, directs; and (iii) the excess, if any, to the clerk of the superior court of the county in which the sale took place. 15. Reoonveyance. Upon payment or forgiveness of all sums secured by this Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Instrument and all notes evidencing indebtedness secured by this Instrument to Trustee. Trustee shall reconvey the Property without warranty to the person or persons legally entitled thereto. Such person or persons shall pay Trustee's reasonable costs incurred in so reconveying the Property. 16. Substihde Trustee. In accordance with applicable law, Lender may from time to time appoint a successor trustee ON to any Trustee appointed hereunder who has ceased to act. Without conveyance of the Property, the successor trustee shall `.0 succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law. N 17. Use of Property. The Property is not used principally for agricultural or farming purposes. CO 18. Construction Loan Provisions. 47' (a) Agreement for Rehabilitation and Loan Agreement. Borrower agrees to comply with the covenants and conditions of the Agreement for Rehabilitation Work ( "Agreement "), which is hereby incorporated by reference in and made a part of this Instrument. All advances made by Lender pursuant to the Agreement shall be indebtedness of Borrower secured by this Instrument, and such advances may be obligatory as provided in the Agreement. All sums disbursed by Lender prior to completion of the improvements to protect the security of this Instrument up to the principal amount of the Note shall be treated as disbursements pursuant to the Agreement. All such sums shall bear interest from the date of disbursement at the highest contract rate which may be collected from Borrower under applicable law at the time and shall be payable upon notice from Lender to Borrower requesting payment therefor. (b) Breach. From time to time as Lender deems necessary to protect Lender's interests, Borrower shall, upon request of Lender, execute and deliver to Lender, in such form as Lender shall direct, assignments of any and all rights or claim which relates to the construction of the Property and which Borrower may have against any party supplying or who has supplied labor, materials or services in connection with construction of the Property. In case of breach by Borrower of the covenants and conditions of the Agreement, Lender, at Lender's option, with or without entry upon the Property: (i) may invoke any of the rights or remedies provided in the agreement, (ii) may accelerate the sums secured by this Instrument and invoke those remedies provided in Paragraph 14 hereof, or (iii) may do both. GAWPFILES\YORMSISRDOT.FRM 5 IN WITNESS WHEREOF, Borrower has executed this Instrument or has caused the same to be executed by its representatives thereunder duly authorized. BORROWER: / Ii 4 , i , Sally J. 1 ,i Borrower's Address: 208 S 304th Place Federal Way, Washington 98003 STATE OF WASHINGTON ) ss COUNTY OF Pierce On August 4 , 1923, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Sally J. Kerns, to me known to be the individuals) who executed the within and foregoing instrument and acknowledged the instrument to be their free and voluntary act and deed for the uses and purposes therein mentioned and on oath stated that they authorized the instrument. IN WITNESS WHEREOF, I have hereunder my hand and affixed my official seal the day and year first above written. tT 0i N S v T/ 1 I' t1 NOTARY PUBLIC in and f ntment Expires: , or tie State of Washington, residing at �� :...� \ y My Appoi Expi F,0 I C/ co � = ���ns s � ol • �. ; ,..' `DTARy % a reaffle N. O �MINI of % Cr) °‘ -51A � 9 �,3' O� 9' 16- • I WAS G: \WPFILESIFORMS\SRDOT.FRM 6 REQUEST FOR FULL RECONVEYANCE • • TO TRUSTEE: The undersigned is the holder of the note or notes secured by this Instrument. The note or notes, together with all other indebtedness secured by this Instrument, have been paid in full. You are hereby directed to cancel the note or notes and this Instrument, which are delivered hereby, and to reconvey, without warranty, all the estate now held by you under this Instrument to the person or persons legally entitled thereto. DATED: , 1993. 0 .Ll CJ� N co t7` G:\WPFILESWORMS\SRDOT.FRM 8