AG 15-176 COPY
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City o ff'oderal Way
33325 84fi Ave S
Federal Way,WA 98003-6325
Attn:Jeri-Lynn Clark CONFORMED COPY
20151005000344
FEDERAL WAY CI DT 82.00
PAGE-001 OF 010
10105/2015 11:23
DEED OF TRUST
Property Address:404 SW 3051`St,Federal Way,WA 98023
Grantor(s): Musgrove,Sherman&Rachel
Beneficiary: CITY OF FEDERAL WAY,a Washington Municipal Corporation
Property Legal Description(abbreviated): Lot 7, Block 1, Country Lane Division No. 5,Vol. 63, P. 92
Complete Legal Description indicated below.
Assessor's Tax Parcel ID#(s): 178890-0070-02
THIS DEED OF TRUST IS DATED August 17, 2015, between Sherman & Rachel
Musgrove,(referred to below as"Grantoil'), whose address is 404 SW 305"St,Federal Way, WA
98023;CITY"OF k 1,.D ' AL WAY,whose address is 33325 8"1'Ave S, Federal Way,WA 98003
(referred to below as "Lender"); and First American Titte whose inaiiing address is 33600 6`h
Ave S#105,Federal Way,WA 98003(referred to below as"Trustee").
1. CONVEYANCE AND GRANT.For valuable consideration,Grantor irrevocably grants,
bargains,sells and conveys to Trustee in trust,with power of sale and for the benefit of Lender as
Lender, all of Grantor's estate,rights,title and interest,now owned or hereafter acquired,in and
to the following real property located at 404 SW 3051"St,Federal Way,WA 98023 in King County,
Washington, and legally described below, together with all existing or subsequently erected or
affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances;
all water, water rights and ditch rights (including stock in utilities with ditch and irrigation
rights); and all other rights,royalties, and profits relating to the real property, including without
limitation all minerals,oil,gas,geothermal and similar matters(collectively"Real Property").
The Real Property legal description is:
Lot 7 in Block 1 of Country Lane Division No. 5, according to Plat recorded in Volume
63 of Plats at Page 92,in King County,Washington.
2. DEFINITIONS. The following words shall have the following meanings when used in
this Deed of Trust. Terms not otherwise defined in this Deed of Trust shall have the meanings
attributed to such terms in the Uniform Commercial Code.All references to dollar amounts shall
mean amounts in lawful money of the United States of America.
• Deed of Trust means this Deed of Trust among Grantor,Lender,and Trustee.
• Grantor means any and all persons and entities executing this Deed of Trust, including
without limitation Sherman&Rachel Musgrove.
• Improvements means and includes without limitation all existing and future improvements,
buildings, structures, mobile homes affixed on the Real Property, facilities, additions,
replacements and other construction on the Real Property.
e Indebtedness means indebtedness of Grantor to Lender, including all principal and interest
payable under the Note and any amounts expended or advanced by Lender to discharge
obligations of Grantor or expenses incurred by Trustee or Lender to enforce obligations of
Grantor under this Deed of Trust,together with interest on such amounts as provided in this
Deed of Trust. The word "Indebtedness" also includes all renewals, modifications,
extensions,future advances or increases in the amount of the Note.
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• Lender means the City of Federal Way,its successors and assigns.
• Note means the Promissory Note dated,August 17,2015,in the original principal amount of
$10,000.00 from Grantor to Lender, together with all renewals, extensions, modifications,
refinancing,and substitutions for this Note.
• Property means collectively the Real Property.
• Real Property means the property, interests and rights described above in the"Conveyance
and Grant"section.
• Related Documents means and includes without limitation all promissory notes, Housing
Repair Program applications and disclosures, deeds of trust, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with
the Indebtedness.
• Trustee means First American Title and any substitute or successor trustees.
THIS DEED OF TRUST IS GIVEN TO SECURE (1) PAYMENT OF THE
INDEBTEDNESS AND (2) PERFORMANCE OF ANY AND ALL OBLIGATIONS OF
GRANTOR UNDER THE NOTE, THIS DEED OF TRUST AND OTHER RELATED
LOAN DOCUMENTS. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE
FOLLOWING TERMS.
3. PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of
Trust,Grantor shall pay to Lender all amounts secured by this Deed of Trust as they become due,
and shall strictly and in a timely manner perform all of Grantor's obligations under the Note,this
Deed of Trust,and the Related Documents.
4. FORBEARANCE BY LENDER NOT A WAIVER.Extension of the time for payment
or modification of the sums secured by this Deed of Trust granted by Lender to any successor in
interest of Grantor shall not operate to release the liability of the original Grantor or Grantor'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 the sums secured
by this Deed of Trust by reason of any demand made by the original Grantor or Grantor's
successors of interest.Any forbearance by Lender in exercising any right or remedy as provided
in the Note or otherwise shall not be a waiver of or preclude the exercise of any right or remedy.
5. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that
Grantor's possession and use of the Property shall be governed by the following provisions:
5.1 Possession and Use. Grantor shall occupy, establish and use the Property as
Grantor's principal residence for a minimum of 12 continuous months prior to and at the time of
execution of this Deed of Trust.The Grantor acknowledges that this Property is subject to certain
land use and occupancy requirements,as provided in the Second Promissory Note which shall be
executed concurrently with the Deed of Trust. The Second Promissory Note restricts the
Grantor's ability to rent the Property.
5.2 Duty to Maintain. Grantor shall not destroy, damage or impair the Property,
allow the Property to deteriorate, or commit waste on the Property. Grantor shall maintain the
Property in tenantable condition and promptly perform all repairs, replacements, and
maintenance necessary to preserve its value.
5.3 Removal of Improvements. Grantor shall not demolish or remove any
Improvements from the Real Property without the prior written consent of Lender. As a
condition to the removal of any Improvements,Lender may require Grantor make arrangements
satisfactory to Lender to replace such hmprovements with Improvements of at least equal value.
5.4 Lender's Right to Enter. Lender and its agents and representatives may enter
upon the Real Property at all reasonable times to attend to Lender's interest and to inspect the
Property for purposes of Grantor's compliance with the terms and conditions of this Deed of
Trust. Lender shall give Grantor notice at the time of or prior to an inspection specifying
reasonable cause for the inspection.
5.5 Forfeiture Action. Grantor shall be in default if any forfeiture action or
proceeding,whether civil or criminal,is begun that in Lender's good faith judgment could result
in the forfeiture of the Property or otherwise materially impair the lien credited by this Deed of
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Trust. Grantor may cure such a default and reinstate,as provided in paragraph 13.11,by causing
the action or proceeding to be dismissed with a ruling that,in Lender's good faith determination,
precludes forfeiture of the Grantor's interest in the Property or other material impairment of the
lien created by this Deed of Trust.
5.6 False Application. Grantor shall be in default if Grantor, during the application
process or during the period governed by the Housing Repair Program, gave materially false or
inaccurate information or statements to Lender (or failed to provide Lender with any material
information) in connection with the loan evidenced by the Note, including, but not limited to,
representations concerning(i) Grantor's occupancy of the Property as a principal residence, and
(ii)Grantor's income;.
5.7 Hazardous Substances. Grantor shall not cause or permit the presence, use,
disposal,storage,or release of any Hazardous Substances on or in the Property. Grantor shall not
do, nor allow anyone else to do, anything affecting the Property that is in violation of any
Environmental Law.The preceding two sentences shall snot apply to the presence,use,or storage
on the Property of small quantities of Hazardous Substances that are generally recognized to be
appropriate to normal residential uses and to maintenance of the Property.
5.8 Environmental Cleanup. Grantor shall promptly comply with all statutes,
regulations, and ordinances which apply to Grantor or to the Property and with all orders,
decrees or judgments of governmental authorities or courts having jurisdiction which Grantor is
bound by, relating to the use, collection, storage, treatment, control, removal or cleanup of
hazardous or toxic substances in, on or under the Property or in, on or under any adjacent
property that becomes contaminated with hazardous or toxic substances as a result of
construction,operations or other activities on,or the contamination of,the Property,at Grantor's
expense. Lender may,but is not obligated to, enter upon the Property and take such actions and
incur such costs and expenses to effect such compliance as it deems advisable to protect its
interest as Lender; and whether or not Grantor has actual knowledge of the existence of
hazardous or toxic substances in,on or under the Property or any adjacent property as of the date
hereof, Grantor shall reimburse Lender prior to Lender acquiring title to the Property through
foreclosure or deed in lieu of foreclosure,in connection with such compliance activities.
5.9 Duty to Protect. Grantor agrees neither to vacate, abandon nor leave unattended
the Property. Grantor shall do all other acts, in addition to those acts set forth above in this
section, which from the character and use of the Property as Grantor's principal residence are
reasonable necessary to protect and preserve the Property.
5.10 Agricultural Use. Grantor agrees that the Property is not used principally or
primarily for agricultural or farming purposes.
6. SALE OR TRANSFER.The following provisions relating to the sale or transfer of the
Property are a part of this Deed of Trust.
6.1 Transfer of Property. If the Property or any part thereof, or any interest of the
Grantor therein, is sold, leased or otherwise transferred, including any voluntary or involuntary
transfer, or transfer by operation of law,upon death of the Borrower or the Borrower ceasing to
physically occupy the property as Borrower's principal residence, excluding however (a) the
creation of a lien or encumbrance on the property subordinate to the Deed of Trust, (b) the
creation of a purchase money security interest for household appliance, or(c) a transfer by gift,
devise,descent or operation of law to a surviving spouse or child(ren)of an individual Borrower
who expressly assumes this Deed of Trust and the Note secured by this Deed of Trust,or a to a
co-borrower if the Borrower is more than one individual, then Lender may declare all sums
secured by the Deed of Trust immediately due and payable. This provision shall apply to each
and every sale, transfer, conveyance or encumbrance, regardless of whether or not Lender has
consented or waived its rights, whether by action or inaction, in connection with any previous
sale,transfer,conveyance or encumbrance,whether one or more.
6.2 Grantor Notice. If Lender exercises this option, Lender shall give Grantor and
any Senior Lien Holder(s)prior written notice of acceleration. This notice shall provide a period
of not less than 30 days from the date the notice is delivered or mailed within which Grantor
must pay all sums secured by this Deed of Trust. If Grantor fails to pay these sums prior to the
expiration of this period,Lender may invoke any remedy permitted by this Deed of Trust without
further notice or demand on Grantor.
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6.3 Senior Lien Holder(s) Notice. Notwithstanding Lender's right to invoke any
remedy hereunder,Lender agrees that is will not commence foreclosure proceedings or accept a
deed in lieu of foreclosure, or exercise any other rights or remedy hereunder until it has given
any Senior Lien Holder(s)at least 60 days'prior written notice.
7. TAXES AND LIENS. The following provisions relating to the taxes and liens on the
Property are a part of this Deed of Trust.
7.1 Payment. Grantor shall pay when due(and in all events prior to delinquency) all
taxes, special taxes, assessments, charges (including water and sewer), fines and impositions
levied against or on account of the Property,and shall pay when due all claims for work done on
or for services rendered or material furnished to the Property.Grantor shall maintain the Property
free of all liens having priority over or equal to the interest of Lender under this Deed of Trust,
except for the lien of taxes and assessments not due and except as otherwise provided in this
Deed of Trust.
7.2 Evidence of Payment.Grantor shall,upon demand,furnish to Lender satisfactory
evidence of payment of the taxes or assessments and shall authorize the appropriate
governmental official to deliver to Lender at any time a written statement of the taxes and
assessments against the property.
7.3 Notice of Construction. Grantor shall notify Lender at least fifteen (15) days
before any work is commenced, any services are furnished, or any materials are supplied to the
Property,if any mechanic's lien,materialmen's lien,or other lien could be asserted on account of
the work,services,or materials.Grantor will,upon request of Lender,furnish to Lender advance
assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements.
8. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring
the Property are a part of this Deed of Trust.
8.1 Maintenance of Insurance. Grantor shall procure and maintain policies of fire
insurance with standard extended coverage endorsements on a replacement basis for the full
insurance value covering all Improvements on the Real Property in an amount sufficient to avoid
application of any coinsurance clause,and with a standard mortgagee clause in favor of Lender.
Grantor, upon request of Lender, will deliver to Lender from time to time the policies or
certificates of insurance in form reasonably satisfactory to Lender, including stipulations that
coverages will not be cancelled or diminished without at least ten(10)days' prior written notice
to Lender. Each insurance policy also shall include an endorsement providing that coverage in
favor of Lender will not be impaired in any way by any act, omission or default of Grantor or
any other person. Should the Real Property at any time become located in an area designated by
the Director of the Federal Emergency Management Agency(FEMA) as a special flood hazard
area,Grantor agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal
balance of the loan, up to the maximum policy limits set under the National Flood Insurance
Program,or as otherwise required by Lender,and to maintain such insurance for the term of the
loan.
8.2 Application of Proceeds. Grantor shall promptly notify Lender of any loss or
damage to the Property if the estimated cost of repair or replacement exceeds $5,000.00. Lender
may make proof of loss if Grantor fails to do so within fifteen(15)days of the casualty.Upon the
election of Lender, Lender may receive and retain the proceeds of any insurance and apply the
proceeds to the reduction of the Indebtedness,payment of any lien affecting the Property,or the
restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner
reasonably satisfactory to Lender.Lender shall,upon satisfactory proof of such expenditure,pay
or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor
is not in default under this Deed of trust. Any proceeds which have not been disbursed within
180 days after their receipt and which Lender has not committed to the repair or restoration of
the Property shall be used first to pay any amount owing to Lender under this Deed of Trust,then
to pay accrued interest,and the remainder,if any, shall be applied to the principal balance of the
Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such
proceeds shall be paid without interest to Grantor as Grantor's interest may appear.
8.3 Unexpired Insurance at Sale.Any unexpired insurance shall inure to the benefit
of,and pass to,the purchaser of the Property covered by this Deed of Trust at any trustee's sale
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or other sale held under the provisions of this Deed of Trust, or at any foreclosure sale of such
Property.
8.4 Grantor's Report on Insurance. Upon request of Lender, however not more
than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance
showing: (a)the name of the insurer; (b)the risks insured; (c)the amount of the policy; (d)the
property insured, the then current replacement value of such property, and the manner of
determining that value; and(e)the expiration date of the policy. Grantor shall,upon request of
Lender, have an independent appraiser reasonably satisfactory to Lender determine the cash
value replacement cost of the Property.
4. EXPENDITURES BY LENDER, If Grantor fails to comply with any provision of this
Deed of Trust, or if any action or proceeding is commenced that would materially affect
Lender's interests in the Property, Lender on Grantor's behalf may,but shall not be required to,
take any action that Lender reasonably deems appropriate. Any amount that Lender expends in
so doing will bear interest at the rate provided for in the Note from the date incurred or paid by
Lender to the date of repayment by Grantor. All such expenses, at Lender's option, will (a)be
payable on demand, (b) be added to the balance of the Note and be apportioned among and be
payable with any installment payments to become due during either(i)the term of any applicable
insurance policy or (ii)the remaining terms of the Note, or(c) be treated as a balloon payment
which will be due and payable at the Note's maturity. This Deed of Trust also will secure
payment of these amounts. The rights provided for in this paragraph shall be in addition to any
other rights or remedies to which Lender may be entitled on account of the default. Any such
action by Lender shall not be construed as curing the default so as to bar Lender from any
remedy that it otherwise would have had.
10. COMPLIANCE WITH LAWS.Grantor warrants that the Property and Grantor's use of
the Property complies with all existing applicable laws, ordinances, and regulations of
governmental authorities.
11. CONDEMNATION.The following provisions relating to condemnation proceedings are
a part of this Deed of Trust.
11.1 Application of Net Proceeds. If all or any part of the Property is condemned by
eminent domain proceedings or,by any proceeding or purchase in lieu of condemnation,Lender
may at its election require that all or any portion of the net proceeds of the award be applied to
the Indebtedness or the repair or restoration of the Property.The net proceeds of the award shall
mean the award after payment of all reasonable costs, expenses,and attorneys' fees incurred by
the Trustee or Lender in connection with the condemnation, and subject to the terms of the First
Mortgage or Deed of Trust.
11.2 Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly
notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to
defend the action and obtain the award. Grantor may be the nominal party in such proceeding,
but Lender shall be entitled to participate in the proceeding and to be represented in the
proceeding by counsel of its own choice all at Grantor's expense, and Grantor will deliver or
cause to be delivered to Lender such instruments as may be requested by it from time to time to
permit such participation.
11.3 Abandonment. If the Property is abandoned by Grantor, or if, after notice by
Lender to Grantor that the condemner offers to make an award or settle a claim for damages,and
Grantor 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 security by this Deed of trust,whether or not then due.
12. DEFAULT. Each of the following, at the option of the Lender shall constitute an event
of default("Event of Default")under this Deed of Trust:
12.1 Default on Indebtedness. Failure of Grantor to make any payment when due on
the Indebtedness or failure to perform any material obligation under the Note.
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12.2 Default on Other Payments. Failure of Grantor within the time required by this
Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to
prevent failing of or to effect discharge of any lien.
12.3 False Statements. Any warranty, representation, or statement made or furnished
to Lender by or on behalf of Grantor under this Deed of Trust,the Note or any Housing Repair
Program application or disclosure document is false or misleading in any material respect,either
now or at the time made or furnished.
12.4 Defective Collateralization.This Deed of Trust or any of the Related Documents
ceases to be in full force and effect (including failure of any collateral documents to create a
valid and perfected security interest or lien)at any time and for any reason.
12.5 Foreclosure, Forfeiture, etc. Commencement of foreclosure or forfeiture
proceedings,whether by judicial proceeding,self-help,repossession or any other method,by any
creditor of Grantor or by any governmental agency against any of the Property. However, this
subsection shall not apply in the event of a good faith dispute by Grantor as to the validity or
reasonableness of the claim which is the basis of the foreclosure or forfeiture proceeding,
provided that Grantor give Lender written notice of such claim and furnishes reserves or a surety
bond for the claim satisfactory to Lender.
12.6 Breach of Other Agreement. Any breach by Grantor under the terms of any
other agreement between Grantor and Lender, including but not limited to the Note, that is not
remedied within any grace period provided therein, including without limitation any agreement
concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or
later.
13. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of
Default and at any time thereafter,Trustee or Lender,at its option,may exercise any one or more
of the following rights and remedies,in addition to any other rights or remedies provided by law:
13.1 Accelerate Indebtedness. Lender shall have the right at its option to declare the
entire Indebtedness immediately due and payable, including any prepayment penalty which
Grantor would be required to pay.
13.2 Foreclosure.With respect to all or any part of the Real Property,the Trustee shall
have the right to exercise its power of sale and to foreclose by notice and sale,and Lender shall
have the right to foreclose by judicial foreclosure, in either case in accordance with and to the
fall extent provided by applicable law.
13.3 Appoint Receiver. Lender shall have the right to have a receiver appointed to
take possession of all or any part of the Property, with the power to protect and preserve the
Property, to operate the Property preceding or pending foreclosure or sale, and to collect the
Rents from the Property and apply the proceeds, over and above the cost of the receivership,
against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's
right to the appointment of a receiver shall exist whether or not the apparent value of the
Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not
disqualify a person from serving as a receiver.
13.4 Tenancy at Sufferance.If Grantor remains in possession of the Property after the
Property is sold as provided above or Lender otherwise becomes entitled to possession of the
Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the
purchaser of the Property and shall at Lender's option either(a) pay a reasonable rental for the
use of the Property,or(b)vacate the Property immediately upon the demand of Lender.
13.5 Other Remedies. Trustee or Lender shall have any other right or remedy
provided in this Deed of Trust or the Note or by law.
13.6 Notice of Sale. Lender shall give Grantor reasonable notice of the time and place
of any public sale of the Property or of the time after which any private sale or other intended
disposition of the Property is to be made.Reasonable notice shall mean notice given at least ten
(10)days before the time of the sale or disposition.
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13.7 Sale of Property. To the extent permitted by applicable law, Grantor hereby
waives any and all rights to have the Property marshaled. In exercising its rights and remedies,
the Trustee or Lender shall be free to sell all or any part of the Property together or separately,in
one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any
portion of the Property.
13.8 Waiver,Election of Remedies.A waiver by any party of a breach of a provision
of this Deed of Trust shall not constitute a waiver of or prejudice the party's rights otherwise to
demand strict compliance with that provision or any other provision. Election by Lender to
pursue any remedy provided in this Deed of Trust, the Note, in any Related Document, or
provided by law shall not exclude pursuit of any other remedy, and an election to make
expenditures or to take action to perform an obligation of Grantor under this Deed of Trust after
failure of Grantor to perform shall not affect Lender's right to declare a default and to exercise
any of its remedies.
13.9 Attorney's Fees,Expenses. If Lender institutes any suit or action to enforce any
of the terms of this Deed of Trust,Lender shall be entitled to recover such sum as the court may
adjudge reasonable as attorney's fees at trial on any appeal. Whether or not any court action is
involved,all reasonable expenses incurred by Lender which in Lender's opinion are necessary at
any time for the protection of its interest or the enforcement of its rights shall become a part of
the Indebtedness payable on demand and shall bear interest at the Note rate from the date of
expenditure until repaid. Expenses covered by this paragraph include, without limitation,
however subject to any limits under applicable law,Lender's attorney's fees whether or not there
is a lawsuit, including attorney's fees for bankruptcy proceedings(including efforts to modify or
vacate any automatic stay or injunction), appeals and any anticipated post judgment collection
services, the cost of searching records, obtaining title reports (including foreclosure reports),
surveyors'reports,appraisal fees,title insurance,and fees for the Trustee,to the extent permitted
by applicable law. Grantor also will pay any court costs, in addition to all other sums provided
by law.
13.10 Rights of Trustee. Trustee shall have all of the rights and duties of Lender as set
forth in this Section.
13.11 Grantor's Right to Reinstate. If Grantor meets certain conditions, Grantor shall
have the right to have enforcement of this Deed of Trust discontinued at any time prior to the
earlier of(a)five(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 Deed of Trust; or(b)
entry of a judgment enforcing this Deed of Trust. Those conditions are that the Grantor: (a)pays
Lender all sums which then would be due under this Deed of Trust and the Note as if no
acceleration had occurred; (b) cures any default of any other covenants or agreements; (c)pays
all expenses incurred in enforcing this Deed of Trust, including, but not limited to, reasonable
attorney's fees;and(d)takes such action as Lender may reasonably require to assure that the lien
of this Deed of Trust, Lender's rights in the Property and Grantor's obligation to pay the sums
secured by this Deed of Trust shall continue unchanged. Upon reinstatement by Grantor, this
Deed of trust 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
paragraph 5.
14. POWERS AND OBLIGATIONS OF THE TRUSTEE. The following provisions
relating to the powers and obligation of Trustee (pursuant to Lender's instructions) are part of
this Deed of Trust.
14.1 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 actions with respect to the Property upon the
written request of Lender and Grantor: (a)join in preparing and filing a map or plat of the Real
Property,including the dedication of streets or other rights to the public;(b)join in granting any
easement or creating any restriction on the Real Property; and (c)join in any subordination or
other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust.
14.2 Obligations to Notify. Trustee shall not be obligated to notify any other party of
a pending sale under any other trust deed or lien, or of any action or proceeding in which
Grantor, Lender, or Trustee shall be a party, unless required by applicable law, or unless the
action or proceeding is brought by Trustee.
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14.3 Trustee.Trustee shall meet all qualifications required for trustee under applicable
law. In addition to the rights and remedies set forth above with respect to all or any part of the
Property,the Trustee shall have the right to foreclose by notice and sale, and Lender shall have
the right to foreclose by judicial foreclosure, in either case in accordance with and to the full
extent provided by applicable law.
14.4 Successor Trustee. Lender,at Lender's option,may from time to time appoint a
successor trustee to any Trustee appointed hereunder by an instrument executed and
acknowledged by Lender and recorded in the office of the recorder for the County in which the
Real Property is located. The successor trustee, without conveyance of the Property, shall
succeed to all the title,power,and duties conferred upon the Trustee in this Deed of Trust and by
applicable law. This procedure for substitution of trustee shall govern to the exclusion of all
other provisions for substitution.
15. NOTICES TO GRANTOR AND OTHER PARTIES. Subject to applicable law, and
except for notice required or allowed by law to be given in another manner,any notice under this
Deed of Trust shall be in writing, may be sent by telefacsimile (unless otherwise required by
law), and shall be effective when actually delivered, or when deposited with a nationally
recognized overnight courier, or, if mailed, shall be deemed effective when deposited in the
United States mail first class, certified or registered mail, postage prepaid, directed to the
addresses shown near the beginning of this Deed of Trust. Any party may change its address for
notices under this Deed of Trust by giving formal written notice to the other parties, specifying
that the purpose of the notice is to change the parry's address.All copies of notices of foreclosure
from the holder of any lien which has priority over this Deed of Trust shall be sent to Lender's
address, as shown near the beginning of this Deed of Trust. Nothing contained in this Section
15, shall be interpreted or construed as consent of Lender to Grantor's change of residence or a
waiver of Grantor's promise and obligation to occupy of the Property.
16. MISCELLANEOUS PROVISIONS.The following miscellaneous provisions are a part
of this Deed of Trust:
16.1 Amendments. This Deed of Trust, together with any Related Documents,
constitutes the entire and final understanding and agreement of the parties as to the matters set
forth in this Deed of Trust.No alteration of or amendment to this Deed of Trust shall be effective
unless given in writing and signed by the party or parties should be to be charged or bound by
the alteration or amendment.
16.2 Applicable Law. This Deed of Trust has been delivered to Lender and accepted
by Lender in the State of Washington.This Deed of Trust shall be governed by and construed in
accordance with the laws of the State of Washington.
16.3 Caption Headings. Caption headings in this Deed of Trust are for convenience
purposes only and are not to be used to interpret or define the provisions of this Deed of Trust.
16.4 Merger.There shall be no merger of the interest or estate created by this Deed of
Trust with any other interest or estate in the Property at any time held by or for the benefit of
Lender in any capacity,without the written consent of Lender.
16.5 Successors and Assigns Bound; Joint and Several Liability; Co-signers. The
covenants and agreements of this Deed of Trust shall bind and benefit the successors and assigns
of Lender and Grantor, subject to the provisions of paragraph 6. Grantor's covenants and
agreements shall be joint and several.Any Grantor who co-signs this Deed of Trust,but does not
execute the Note: (a) is co-signing this Deed of Trust only to mortgage, grant and convey the
Grantor's interest in the Property under the terms of this deed of Trust; (b) is not personally
obligated to pay the sums secured by this Deed of Trust; and (c) agrees that Lenders and any
other Grantor may agree to extend,modify,forbear or make any accommodations with regard to
the terms of this Deed of Trust or the Note without the Grantor's consent. All obligations of
Grantor under this Deed of Trust shall be joint and several, and all references to Grantor shall
mean each and every Grantor. This means that each of the persons signing below is responsible
for all obligations in this Deed of Trust.
16.6 Severability. If a court of competent jurisdiction finds any provision of this Deed
of Trust to be invalid or unenforceable as to any person or circumstance, such finding shall not
render that provision invalid or unenforceable as to any other persons or circumstances. If
feasible, any such offending provision shall be deemed to be modified to be within the limits of
8
enforceability or validity; however,if the offending provision cannot be so modified, it shall be
stricken and all other provisions of this Deed of Trust in all other respects shall remain valid and
enforceable.
16.7 Successor and Assigns. Subject to the limitations stated in this Deed of Trust on
transfer of Grantor's interest,this Deed of Trust shall be binding upon and inure to the benefit of
the parties,their successors and assigns.If ownership of the Property becomes vested in a person
other than Grantor, Lender,without notice to Grantor,may deal with Grantor's successors with
reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without
releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness.
16.8 Grantor's Copy.Grantor shall be given a copy of the Note,of this Deed of Trust.
16.9 Waivers and Consents. Lender shall not be deemed to have waived any rights
under this Deed of Trust(or under the Related Documents)unless such waiver is in writing and
signed by Lender. No delay or omission on the part of Lender in exercising any right shall
operate as a waiver of such right or any other right.A waiver by any party of a provision of this
Deed of Trust shall not constitute a waiver of or prejudice the party's right otherwise to demand
strict compliance with that provision or any other provision.No prior waiver by Lender,not any
course of dealing between Lender and Grantor,shall constitute a waiver of any of Lender's rights
or any of Grantor's obligations as to any future transactions. Whenever consent by Lender is
required in this Deed of Trust,the granting of such consent by Lender in any instance shall not
constitute continuing consent to subsequent instances where such consent is required.
16.10 Applicability. This Deed of Trust applies to, inures to the benefit of, and is
binding not only on the parties hereto, but on their heirs, devisees, legatees, administrators,
executors,successors and assigns.The term Lender shall mean the holder and owner of the Note
secured hereby,whether or not named as Lender herein.
EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF
THIS DEED OF TRUST,AND EACH GRANTOR AGREES TO ITS TERMS.
GRA TO,
N1@ .tIIR gCMatt1 "N.. ,_m
Sherman Gil isgrove Rachel Musgrove
............._....__._.._ ._.. ..
Printed Name Printed Name
STATE OF WASHINGTON )
ss.
COUNTY OF )
On this day personally appeared before me,.Sherman&Rachel_Musgro_v_e�,to me known to be the
individual(s)described in and who executed the foregoing instrument,and on oath swore that he/she/they
executed the foregoing instrument as his/her/their free and voluntary act and deed for the uses and
purposes therein mentioned.
GIVEN my hand and official seat this day of - --,-,MAA f 20 0
* 1�k0.k��lii Notary Signature x,
CN
Notary Printed Name
„" Notary l ulilic in and for the State ail Wawhivagtotr.
rAIPA " My commission expires
9
RETURN TO: Jeri -Lynn Clark EXT: 2401
CITY OF FEDERAL WAY LAW DEPARTMENT ROUTING FORM
1. ORIGINATING DEPT. /DIV: CED /COMMUNITY SERVICES
2. ORIGINATING STAFF PERSON: JER1 -LYNN CLARK EXT: 2401 3. DATE REQ. BY:
4. TYPE OF DOCUMENT (CHECK ONE):
❑ CONTRACTOR SELECTION DOCUMENT (E.G., RFB, RFP, RFQ)
❑ PUBLIC WORKS CONTRACT ❑ SMALL OR LIMITED PUBLIC WORKS CONTRACT
❑ PROFESSIONAL SERVICE AGREEMENT ❑ MAINTENANCE AGREEMENT
❑ GOODS AND SERVICE AGREEMENT ❑ HUMAN SERVICES/ CDBG
• REAL ESTATE DOCUMENT ❑ SECURITY DOCUMENT (E.G. BOND RELATED DOCUMENTS)
• ORDINANCE ❑ RESOLUTION
❑ CONTRACT AMENDMENT (AG #): ❑ INTERLOCAL
❑ OTHER
5. PROJECT NAME: HOUSING REPAIR DEED OF TRUST & PROMISSORY NOTE
6. NAME OF HOME OWNER: SHERMAN & RACHEL MUSGROVE
ADDRESS: 404 SW 305TH ST, FEDERAL WAY, WA 98023 TELEPHONE 206 - 331 -3794
E -MAIL: FAX:
SIGNATURE NAME: SHERMAN & RACHEL MUSGROVE TITLE: HOMEOWNERS
7. EXHIBITS AND ATTACHMENTS: ❑ SCOPE, WORK OR SERVICES ❑ COMPENSATION ❑ INSURANCE REQUIREMENTS /CERTIFICATE ❑ ALL
OTHER REFERENCED EXHIBITS ❑ PROOF OF AUTHORITY TO SIGN ❑ REQUIRED LICENSES ❑ PRIOR CONTRACT /AMENDMENTS
8. TERM: COMMENCEMENT DATE: 8/17/15 COMPLETION DATE 8/17/2020
9. TOTAL COMPENSATION $ 10.000 (INCLUDE EXPENSES AND SALES TAX, IF ANY)
(IF CALCULATED ON HOURLY LABOR CHARGE - ATTACH SCHEDULES OF EMPLOYEES TITLES AND HOLIDAY RATES)
REIMBURSABLE EXPENSE: ❑ YES ❑ NO IF YES, MAXIMUM DOLLAR AMOUNT: $
IS SALES TAX OWED ❑ YES ❑ NO IF YES, $ PAID BY: ❑ CONTRACTOR ❑ CITY
❑ PURCHASING: PLEASE CHARGE TO: 119- 7300 - 996 - 331 -14 -218
10. DOCUMENT /CONTRACT REVIEW D9f I / D AT E RE IEW W INITIAL / DATE APPROVED
❑ PROJECT MANAGER
❑ DIRECTOR
❑ RISK MANAGEMENT (IF APPLICABLE)
❑ LAW
11. COUNCIL APPROVAL (IF APPLICABLE) COMMITTEE APPROVAL DATE: COUNCIL APPROVAL DATE:
12. CONTRACT SIGNATURE ROUTING
❑ SENT TO VENDOR/CONTRACTOR DATE SENT: DATE REC'D:
• ATTACH: SIGNATURE AUTHORITY, INSURANCE CERTIFICATE, LICENSE, EXHIBITS
ITIAL / DATE SIGNED
• LAW DEPARTMENT f"
❑ CHIEF OF STAFF
SIGNATORY (MAYOR OR DIRECTOR)
❑ CITY CLERK M) qL14-46
❑ ASSIGNED AG# AG# /'5-
❑ SIGNED COPY RETURNED DATE SENT g //5—h 15-
COMMENTS:
CITY OF CITY HALL
Federal Way 33325 8th Avenue South
Federal Way, WA 98003 -6325
�►...� (253) 835 -7000
www crtyoffederahvay com
PROMISSORY NOTE
City of Federal Way Housing Repair Program (HRP)
LENDER: City of Federal Way, a Municipal corporation
33325 81hAvenue South
Federal Way, WA 98003
BORROWER: Sherman & Rachel Musgrove,
Homeowner(s)
HRP RESIDENCE: 404 SW 305th St
Federal Way, WA 98023
PRINCIPAL $10,000.00
AMOUNT:
LOAN DATE: August 17, 2015
DUE DATE: The earlier of "Default Date" or August 17, 2020
In consideration for the mutual undertakings and covenants contained in this Promissory
Note (the "Note "), Lender (also referred to hereinafter as the "City ") and Borrower agree as
follows:
1. Purpose for Loan. Borrower is eligible to participate in Lender's Housing Repair Program
( "HRP "), a program to assist eligible homeowners with home repair needs that maybe of an
emergency nature due to unforeseen circumstances that require immediate action to protect the
health and safety of its occupants, or that will improve the living conditions for the homeowner
and enhance the surrounding neighborhood. The program is funded by Community Development
Block Grant funds that have been made available to the City. Loan proceeds are being used to
fund repairs and improvements at the borrower's principal residence. Borrower's application for
a Housing Repair Program loan has been approved and the City is prepared to fund the loan upon
Borrower's execution of the "Loan Documents," which include this Promissory Note and a Deed
of Trust.
2. Promise to Pay. For value received, on or before the Due Date, Borrower, including its
assigns and successors, promises to pay Lender in lawful money of the United States of America,
at Lender's principal place of business, or such other place as Lender may designate in writing
from time to time, the Principal Amount listed above and, as shall have been advanced by Lender
to or on behalf of Borrower under this Note, plus interest (in the event of Default) as provided in
this Note.
3. Interest Rate. The unpaid Principal Amount shall bear interest at the rate of Zero Percent
(0 %) per annum (the "Effective Interest Rate ") unless or until a Default.
4. Payments. No payments will be required to be made on the Principal Amount unless or until
a Default occurs. In the event of Default, the entire unpaid balance of the Principal Amount as of
PROMISSORY NOTE 8/2015
HOUSING REPAIR PROGRAM Page 1
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835 -7000
www cayo(iederahvay com
the date of Default shall immediately become due and payable and interest on the unpaid balance
shall commence to accrue at the "Default Interest Rate" on the date of Default.
5. Loan Account. All advances made to or on behalf of Borrower under this Note shall be
charged to a loan account in Borrower's name on Lender's books ( "Loan Account ") and Lender
shall debit to Borrower's Loan Account the amount of each advance, and credit the amount of
each repayment made by Borrower or "Forgiveness of Debt" granted by Lender.
6. Forgiveness of Debt. Commencing upon the date on which the Lender issues the last
advance of funds to, or on behalf of, Borrower under this Note (the "Repayment Commencement
Date "), Borrower shall be entitled to receive, and Lender shall grant, forgiveness of Twenty
Percent (20 %) of the Principal Amount for each consecutive twelve -month period after the
Repayment Commencement Date (a "Repayment Year ") that Borrower actually occupies the
Residence identified above as Borrower's principal place of residence. If Borrower resides in
the Residence for five (5) Consecutive Repayment Years, the entire Principal Amount shall be
forgiven and this Note shall be satisfied in full. If Borrower fails for any reason to live in the
Residence for five (5) Repayment Years, this Note shall be in Default as of the date upon which
Borrower no longer resides in the Residence. For purposes of calculating the amount of
forgiveness, if any, to which Borrower may be entitled for the Repayment Year in which
Borrower vacates the Residence, the amount of forgiveness to which Borrower would be entitled
for that Repayment Year shall be prorated for the number of days that Borrower actually
occupied the Residence in that Repayment Year.
7. Occupancy/Use. The property cannot be used as a rental home and must be the Borrowers
primary residence.
8. Default. Upon the occurrence of any of the following events ( "Events of Default "), Lender,
at its option, and without notice to Borrower, may declare the entire unpaid Principal Amount to
be immediately due and payable:
a. The Borrower rents out the home during the loan period. See Deed of Trust language 5.1.
b. The Borrower fails to comply with City Codes and Land Use regulations.
c. The Borrower no longer occupies the Residence as Borrower's primary residence;
d. The Borrower sells the Residence or conveys the Residence in lieu foreclosure, or forfeits
the Residence in foreclosure, bankruptcy or other insolvency proceeding;
e. The Borrower makes, or is deemed to have made, any materially incorrect, false,
fraudulent or misleading representation, warranty or certificate to the Lender, or makes, or is
deemed to have made, any materially incorrect, false, fraudulent, or misleading representation in
any statement or application to Lender in connection with Lender's consideration of Borrower's
EHRP application;
f. The Borrower defaults under the terms of this Note or the Deed of Trust granted in
connection herewith;
g. The Borrower is enjoined, restrained or in any way prevented by court order from
continuing to reside in the Residence;
h. Formal charges are fled against the Borrower under any federal, state or municipal
statute, law or ordinance for which forfeiture of the Residence is a potential penalty, or the
Residence is in fact so seized or forfeited;
PROMISSORY NOTE 8/2015
HOUSING REPAIR PROGRAM Page 2
CITY OF
At
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835 -7000
www cityofledera/way com
i. The Borrower fails to maintain the Residence, commits waste upon the Residence
property or allows the Residence or Residence property to become a nuisance;
j. The Borrower (1) makes an assignment for the benefit of creditors, (2) consents to the
appointment of a custodian, receiver or trustee for itself or for a substantial part of its assets or
(3) commences, consents to the commencement or continuation of, or has commenced upon it,
voluntarily or involuntarily, any proceeding under any bankruptcy, insolvency or similar laws of
any jurisdiction;
k. The Borrower defaults under the deed of trust executed in connection with this Note, it
being understood and agreed that this Note and the deed of trust shall be interpreted and
construed as a single integrated agreement between Lender and Borrower; or
1. The Borrower dies.
The term "Default Date" shall mean the date on which an Event of Default has occurred or the
date Borrower is no longer entitled to cure the Event of Default under the terms of this Note.
9. Default Interest Rate. Upon the occurrence of any Event of Default, the unpaid Principal
Amount balance shall bear interest at the per annum interest rate for judgments provided by
Washington law until the Note is satisfied in full.
10. Security. This Note is secured by and relates to a deed of trust of even date encumbering the
Residence.
11. Default Remedies. Upon the occurrence of any Event of Default, Lender shall have and may
exercise any one or more of the rights and remedies provided in this Note and the deed of trust
relating to this Note. The remedies provided in this Note and deed of trust are cumulative to the
full extent provided by law.
12. Application of Payments. All payments received on this Note shall first be applied against
accrued and unpaid interest and "Costs and Fees" owed to Lender under this Note, and the
balance against unpaid Principal Amount. Borrower expressly assumes all risks of loss or delay
in the delivery of any payments made by mail, and no course of conduct or dealing shall affect
Borrower's assumption of these risks.
13. Costs and Fees. Borrower agrees to pay all of Lender's costs incurred in the collection,
modification, review, monitoring, or termination of this Note, including actual attorney fees and
those incurred in any foreclosure, bankruptcy, or other similar insolvency proceeding.
14. No Waiver. Acceptance by Lender of any payment in an amount less than the amount then
due shall be deemed an acceptance on account only, and Lender's acceptance of any such partial
payment shall not constitute a waiver of Lender's right to receive the entire amount due.
15. Consent. Borrower hereby jointly and severally (i) waives presentment for payment,
demand, notice of non - payment, notice of protest or protest of this Note, (ii) waives Lender's
diligence in collection or bringing suit, and (iii) waives consent to any and all extensions of time,
renewals, waivers or modifications as may be granted by Lender with respect to payment or any
other provisions of this Note. The liability of the Borrower under this Note shall be absolute and
unconditional, without regard to the liability of any other party.
16. Governing Law and Venue. This Note shall be interpreted, construed and governed by, and
in accordance with, the laws of the State of Washington. Venue for any action commenced by
PROMISSORY NOTE 8/2015
HOUSING REPAIR PROGRAM Page 3
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835 -7000
www o1yolfedera/way com
Borrower or Lender to interpret or enforce this Note or the deed of trust shall be in the Superior
Court of the State of Washington, For King County, at the Maleng Regional Justice Center,
Kent, Washington.
17. Entire Agreement. Except as otherwise expressly provided in this Note, this Note and the
deed of trust constitute the entire agreement of the Borrower and the Lender relating to its
subject matter.
ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND
CREDIT. OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE
NOT ENFORCEABLE UNDER WASHINGTON LAW.
PROMISSORY NOTE 8/2015
HOUSING REPAIR PROGRAM Page 4
CITY OF CITY HALL
Federal Wa 33325 8th Avenue 8003
Way 33325 Way, WA 98003 6325
(253) 835 -7000
www cayofiederalway com
Agreed to and accepted by:
LENDER:
CITY OE-FEDERAL WAY ATTEST:
APPROVED AS TO FORM:
4V464�
for City Attorney, Amy Jo Pearsall
Printed Name
STATE OF WASHINGTON )
ss.
COUNTY OF )
(9y Jerk, Stephanie C rt ey, CMC
Signa e
Rachel Musgrove
Printed Name
On this day personally appeared before me, Sherman & Rachel Musgrove to me known to be the
individual(s) described in and who executed the foregoing instrument, and on oath swore that he /she /they
executed the foregoing instrument as his /her /their free and voluntary act and deed for the uses and
purposes therein mentioned.
GIVEN my hand and official seal this 20 da of 0,4 1 , 20
����•LYNNC Notary
�s signature
Q� , Notary's printed name ✓l
T,4 Notary Public in and for the State of Washington.
My commission expires `f 20 (1
�_ '•. ws
i A i
O� 1 20-11
fill A�
PROMISSORY NOTE 8/2015
HOUSING REPAIR PROGRAM Page 5
DUPLLCATE DUPLICATE DUPLICATE DUPLICATE
CITY OF FEDERAL WAY
CITY HALL
MANAGEMENT SERVICES
33325 8TH AVE S
FEDERAL WAY WA. 98003
********* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
Reg# # /Rcpt #: 001 - 00100535 [ TC ]
Accounting Date: Mon, May 18, 2015
Date /Time: Mon, May 18, 2015 4:20 PM
********* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
9001 \EXPENDITURE POSTING -MISC
119 - 7300 - 996- 594 -41 -410
MUSGROVE SEPTIC REPAIR
FEE AMOUNT: $ 589.80
RECEIPT TOTAL = $ 589.80
********* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
Payment Data:
Pmt# :1
Payer: RACHEL MUSGROVE
Method: CK
Ref #: 5089
AMOUNT = $ 589.80
********* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
RECEIPT SUMMARY
********* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
TOTAL TENDERED = $ 589.80
RECEIPT TOTAL = $ 589.80
--------------- - --
CHANGE DUE _ $ 0.00
********* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
HAVE A NICE DAY!
********* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
DUPLICATE DUPLICATE DUPLICATE DUPLICATE
v:1.0.3980
Vropu ,5al aub Contract
LEE'S SANITATION SERVICE, LLC
(253) 735 -6167 * (253) 735 -0968 Fax
P O Box 930
Sumner, Washington 98390
Pace 1 of 3
PROPOSAL SUBMITTED TO:
PHONE:
DATE:
Sherman & Rachael Musgrove
253- 835 -2401
STREET:
FAX #:
JOB PHONE:
404 SW 305th St
206 -465 -1506
CITY, STATE AND ZIP CODE:
JOB LOCATION:
Federal Way, WA. 98023
Same
ATTENTION:
E -MAIL:
Jerri -L nn
rrri- i !.Clfk�Ci`u�ffCC @�aiv�Ja .cam
We hereby submit specifications and estimate for:
Nan - conforming Septic System Repair Consisting of the following:
1. Submit Drawing to Health Department by Cole Septic Design
2. Dig Test Hole
3. Record Non - Conforming Affidavit
4. Recording Fee
5. Riser on Tank Inlet
6. Riser, Filter & Outlet Baffle on Tank Outlet
7. Up to 65 LF 4" Tight Line
8. New D -Box with Riser
9. Up to 150 LF 36" Wide Chambers
10. 8 each End Plates
11. 4 each Monitoring Ports
12. Submit As -built to Health Department by Cole Septic Design
13. Rough Backfill After Inspection
14. Pump Out Septic Tank (short load)
L.S. $6,320.00
Permit 691.00
9.5% Sales Tax 600.40
$ 7,611.40
Note: If soil conditions in back yard do not have adequate soils,
an alternate drainfield would be across driveway on the end of the house.
Additional costs would be:
1. Saw -cut and remove concrete
2. 25 If tight line
3. Replace concrete
L.S. $2,720.00
9.5% Sales Tax 258,40
2,978.40
Note: Job to be machine dug and backfilled. No lawn, tree or shrub replacement.
Terms: 1/2 down, balance due upon completion
Total &
We accept Visa /MasterCard /American Express /Discover 0
$10,588 9.80
t ` f Customer
Lee's Signature X
Project: Musgrove
EXCLUSIONS
1. All permits, taxes, fees and bonds.
2. Soils testing and construction staking and DOE stormwater runoff monitoring.
Page 3 of 3
3. Street lights, street signs, pond and wetland plantings, plants and landscaping except what is stated herein.
4. No import or export other than what is stated herein.
5. No rock excavation or abnormal dewatering pumping or treatment of runoff water (no Baker tank if required).
6. Conflicts with power poles, water meters, utilities and other objects to be removed by others prior to
construction. Removal of silt fence at end of the job is done on a time and material basis.
7. All hazardous materials to be removed by others prior to construction.
8. All demolition by others unless otherwise stated herein.
9. Prices based on non prevailing wage rates unless otherwise stated herein.
10. No monumentation included. No asphalt striping included unless otherwise stated herein
11. No catch basin stencils unless otherwise stated herein.
12. Not responsible for building locations or elevations.
13. Any electrical connections must be done by a certified electrician, not responsibility of Lee's.
14. Hydroseeding and straw covering as required to be billed time and material.
15. T V inspection of lines required to release bonds shall be paid by the owner.
16. Asphalt prices good for 30 days unless noted herein.
17. Pricing does not include potholing of existing utilities to determine grade conflicts
NOTICE TO CUSTOMER
This contractor, Lee's Sanitation Service, LLC, is registered with the State of Washington. Registration No_ LEESSSS8910A and has posted with the
state a bond or cash deposit of $12,000.00 for the purpose of satisfying claims against the contractor for breach of contract including negligent or
improper work in the conduct of the contractor's business. The expiration date of the contractor's registration is 813012015.
THIS BOND OR CASH DEPOSIT MAY NOT BE SUFFICIENT TO COVER A CLAIM THST MIGHT ARISE FROM THE WORK CONE UNDER
YOUR CONTRACT.
This bond or deposit is not for your exclusive use because it covers all work performed by this contractor_ The bond of deposit is intended to pay valid
claims up to $12,000.00 the you and other customers, suppliers, subcontractors, or taxing authorities may have.
FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT.
You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you
and help insure that your project will be completed as required by your contract.
YOUR PROPERTY MAY BE LIENED.
If a supplier of materials used in your construction project or any employee or subcontractor is not paid, your property may be liened to force payment
and you could pay twice for the same work.
FOR ADDITIONAL PROTECTION, YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL "UEN RELEASE'
DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT.
The contractor is required to provide you with further information about lien release documents if you request it. General information is also available
from the Department of Labor and industries.
Rcceptance of fropatal:
The above prices, specifications and conditions are satisfactory and are hereby accepted, together with the special conditions attached hereto. Your
signature also acknowledges you've read our'notice to customer statement above.
Lee's Sanitation Service, LLC Customer
Authorized ` 1-1
Signature:
Signature:
Customer
Don Olson
Signature:
CC
Date: J �` — /_5-�
Date:
Note: 1. This proposal may be withdrawn if not accepted within 30 days.
2. This proposal is subject to permanent material increases after 30 days.
Lee's Sanitation Service, LLC
TERMS AND CONDITIONS
ENTIRE AGREEMENT:
The Contract, formed by Purchaser's acceptance of this
proposal prior to expiration, shall consist of all
documentation contained on both sides hereof and the exhibits
and riders, if any, attached hereto and forming a part hereof.
Purchaser may execute a separate Purcha3e Order, which
must include the following statement "Subject to Terms and
Conditions of the proposal of "Lee's Sanitation, Service, LLC"
This proposal, along with the exhibits, riders, and Purchase
Order, if any, represents the entire and integrmt_d agreement
between Lee's Sanitation Service, LLC and Purchaser and
supersedes prior negotiations, representatiors, Dr agreements,
either written or oral. No subsequent alteration of this proposal
whatsoever shall be binding upon Lee's Sanitation Service,
LLC unless agreed upon in writing by both Lee "s Sanitation
Service, LLC arid Purchaser.
2. PROPOSAL ACCEPTANCE PERIOD:
The prices and terms quoted are firm, fora period of twenty
(20) days after 'he date of quotation appearing on the
reverse hereof. Thereafter, said prices and terms are subject
to change by Seller.
3. PRICES:
Prices do not include permits, street repair or state sales
tax. Any alteration or deviation from the scope cf work described
in the Contract that requires additional material nr labor will result
in an extra charge over the stated price.
Q. EXCEPTIONS:
No lawn, tree or shrub replacement_ Not resfansible for
unlocated lines, water, gas electric, phone or sp-inkler systems.
5. TAXES:
All federal, state and local taxes, assessmens, fees, duties
and charges levied by reason of this Propcsa are in addition
to the prices quoted herein and shall be pair by the
Purchaser.
6. PERFORMANCE:
In the absence of a specific performance date on the reverse
side hereof, Lee's Sanitation Service, LLC will commence
performance of this contract on a date and at a rate mutually
agreed upon by both Lee's Sanitation Service, LLC and
Purchaser, subject to all other terms and conditions of this
proposal.
7'. CLAIMS:
All of the work, to be completed in a subs.antial and
workmanlike mariner according to standard practices on a
timely basis barring an act of God, labor disputes, unavailability
of materials, or other causes beyond the contra of the
Contractor. Under no circumstances shall Lee's Sanitation
Service, LLC be liable for consequential, or i-icidental damages
including but not necessarily limited to, damages for rental
expenses, or loss of use, opportunity, income, profit, sales,
business, financing, or reputation.
CONDITIONS PRECEDENT TO SELLER'S OBLIGATION TO
PERFORM:
Any and all credit terms of payment must be set forth in this
Contract. In the absence of any such credit tents, the total
amount of the Contract shall be paid in advance. Purchaser
agrees upon request 'o furnish Lee's Sanitation Service, LLC
such information as is reasonably necessary for Lee's
Sanitation Service, LLC to determine Purchaser's financial
condition.
9. TERMS OF PAYMENT:
Purchaser shall make all payments due hereunder in lawful
money of the United States and in accordance with the terms
hereof, without any right of retention and without regard to any
agreement Purchaser may have with other parties. If any
payment is not received when due, Lee's Sanitation Service,
LLC may, at its option, assess an additional charge equal to
one and one -half percent (1'h %) per month or proration
thereof, to cover Lee's Sanitation Service, LLC's increased
costs, and, at Lee's Sanitation Service, LLC's option, upon
notice to Purchaser, cancel the portion of this Contract which
remains to be performed.
10. PAST DUE ACCOUNTS:
Should purchaser fail to pay when due any amounts payable
to Lee's Sanitation Service, LLC under the terms of this
Contract or should Purchaser's financial ccndition become
impaired or unsatisfactory to Lee's Sanitation Service, LLC, it
may, at its option, make written demand upon Purchaser for:
(a) Immediate payment of all amounts then due and owing to
Seller under this Contract.
(b) Payment in advance of future amounts to become due
under this Contract and/or
(c) Such other assurances as Lee's Sanitation Service,
LLC may deem necessary to adequately assure Seller
that Purchaser will perform its obligations under this
Contract.
If Lee's Sanitation Service, LLC has not received same
within ton (10) days of demand, it may suspend its performance
of this Contract, within a reasonable time not exceeding thirty
(30) days. Lee's Sanitation Service, LLC Wray, at its option,
deem this Contract to have been repudiated by Purchaser, and
Purchaser further agrees to pay Lee's Sanitation Service, LLC
interest on all past due amounts at the rate of eighteen percent
(18 %) per annum, and to pay any and all collection fees incurred
by Lee's Sanitation Service, LLC in collecting any amounts
due under the Contract.
11. INDEPENDENT DUTY:
The relationship between Lee's Sanitation Service, LLC and
Purchaser, including without limitation their rights, obligations,
and remedies and rights to damages (if any), shall be governed
exclusively by the terms of the Contract (collectively the
"economic loss obligations "), except for rights, obligations,
remedies and rights to damages (if any) that arise by statute or
that arise in law due to property damage or personal injury
caused by one party to the other_
Subject to the above - stated exception, each party expressly
disclaims any tort duty owed by one to the other that is
independent of the Contract.
12. THIRD -PARTY BENEFICIARY
Lee's Sanitation Service, LLC 's performance is for the
benefit of the Purchaser only. Lee's Sanitation Service, LLC
expressly disclaims any obligation or benefit to third - parties who
are not a party to the Contract. Any third -party reliance on Don
Lee's Sanitation Service, LLC 's performance is done so at the
third - party's own risk.
Purchaser's Initials: