AG 16-042 - Valencia & Pansy ClaxtonRETURN TO: Jeri-Lynn EXT: 2401
CITY OF FEDERAL WAY LAW DEPARTMENT ROUTING FORM
1.
ORIGINATING DEPT. /DIV: COMMUNITY SERVICES
2. ORIGINATING STAFF PERSON: JERI -LYNN CLARK _ EXT: 2401
4. TYPE OF DOCUMENT (CHECK ONE):
❑ CONTRACTOR SELECTION DOCUMENT (E.G., RFB, RFP, RFQ)
❑ PUBLIC WORKS CONTRACT ❑ SMALL OR LIMITED PUBLIC WORKS CONTRACT
3. DATE REQ. BY:
❑ PROFESSIONAL SERVICE AGREEMENT
❑ GOODS AND SERVICE AGREEMENT
❑ REAL ESTATE DOCUMENT
❑ ORDINANCE
❑ CONTRACT AMENDMENT (AG #): 16 -042 _
❑ OTHER
❑ MAINTENANCE AGREEMENT
❑ HUMAN SERVICES / CDBG
❑ SECURITY DOCUMENT (E.G. BOND RELATED DOCUMENTS)
❑ RESOLUTION
❑ INTERLOCAL
5. PROJECT NAME: HOUSING REPAIR PROGRAM DEED OF TRUST, PROMISSORY NOTE, LOAN AGREEMENT, &
HOMEOWNER/CONTRACTOR AGREEMENT - FINAL
6. NAME OF CONTRACTOR: VALENCIA CLAXTON & PANSY CLAXTON - FRONT PORCH REPAIR
ADDRESS: 30218 29TH AVE S, FEDERAL WAY, WA 98003 TELEPHONE 253- 839 -1554
E -MAIL: FAX:
SIGNATURE NAME: VALENCIA CLAXTON & PANSY CLAXTON TITLE: OWNER
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: 3/9/16 COMPLETION DATE UPON SALE OF HOME
9. TOTAL COMPENSATION $ 5,685.10 (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: * *THEY PAY US **
10. DOCUMENT /CONTRACT REVIEW
PROJECT MANAGER
�I1 DIRECTOR
❑ RISK MANAGEMENT (IF APPLICABLE)
❑ LAW
11. COUNCIL APPROVAL (IF APPLICABLE) COMMITTEE APPROVAL DATE:
12. CONTRACT SIGNATURE ROUTING
❑ SENT TO VENDOR/CONTRACTOR
DATE SENT:
INITIAL / DATE APPROVED
l
COUNCIL APPROVAL DATE:
DATE REC'D:
❑ ATTACH: SIGNATURE AUTHORITY, INSURANCE CERTIFICATE, LICENSE, EXHIBITS
1.0i LAW DEPARTMENT
CHIEF OF STAFF
SIGNATORY (MAYOR OR DIRECTOR)
❑ CITY CLERK
❑ ASSIGNED AG#
❑ SIGNED COPY RETURNED
INITIAL / D E S NED
.� -1
6/_1P1
AG# Ap -042 A
DATE SENT 0i .Z 8 -110
COMMENTS:
C A i 5 ao 1 \ir cc wto u. vC[-
KL 1 UKN 1 V: Jeri -Lynn
I✓A1:24U1
CITY OF FEDERW WAY LAW DEPARTMEN'1 OUTING FORM
1.
ORIGINATING DEPT./DIV: COMMUNITY SERVICES
2. ORIGINATING STAFF PERSON: JERI -LYNN CLARK
4. TYPE OF DOCUMENT (CHECK ONE):
❑ CONTRACTOR SELECTION DOCUMENT (E
❑ PUBLIC WORKS CONTRACT
❑ PROFESSIONAL SERVICE AGREEMENT
❑ GOODS AND SERVICE AGREEMENT
❑ REAL ESTATE DOCUMENT
❑ ORDINANCE
❑ CONTRACT AMENDMENT (AG #):
❑ OTHER
EXT: 2401 3. DATE REQ. BY:
.G., RFB, RFP, RFQ)
❑ SMALL OR LIMITED PUBLIC WORKS CONTRACT
❑ MAINTENANCE AGREEMENT
❑ HUMAN SERVICES / CDBG
❑ SECURITY DOCUMENT (E.G. BOND RELATED DOCUMENTS)
❑ RESOLUTION
❑ INTERLOCAL
5. PROJECT NAME: HOUSING REPAIR PROGRAM DEED OF TRUST, PROMISSORY NOTE, LOAN AGREEMENT, &
HOMEOWNER/CONTRACTOR AGREEMENT
6. NAME OF CONTRACTOR: VALENCIA CLAXTON & PANSY CLAXTON - FRONT PORCH REPAIR
ADDRESS: 30218 29Th AVE S, FEDERAL WAY, WA 98003 TELEPHONE 253- 839 -1554
E -MAIL: FAX:
SIGNATURE NAME: VALENCIA CLAXTON & PANSY CLAXTON TITLE: OWNER
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: 3/9/1(p COMPLETION DATE ( gI' Mlle.
J. TOTAL COMPENSATION $ 6,775.85 (INCLUDE EXPENSES AND SALES TAX, W ANY) 1
(W 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: * *THEY PAY US **
10. DOCUMENT /CONTRACT REVIEW
❑ PROJECT MANAGER
❑ DIRECTOR
❑ RISK MANAGEMENT (IF APPLICABLE)
❑ LAW
11. COUNCIL APPROVAL (IF APPLICABLE)
12. CONTRACT SIGNATURE ROUTING
❑ SENT TO VENDOR/CONTRACTOR
► 1$i. ,•) TE ' V WED
tyI_v.,
/i(f/M
COMMITTEE APPROVAL DATE:
DATE SENT:
INITIAL / DATE APPROVED
COUNCIL APPROVAL DATE:
DATE REC'D:
❑ ATTACH: SIGNATURE AUTHORITY, INSURANCE CERTIFICATE, LICENSE, EXHIBITS
INIT,AL TATE SIGNED
❑ LAW DEPARTMENT
❑ CHIEF OF STAFF
SIGNATORY (MAYOR OR DIRECTOR)
CITY CLERK
ASSIGNED AG#
❑ SIGNED COPY RETURNED
-2OMMENTS:
Please review the changes made to the HRP Deed of Trust and Promissory Notes.
CIT OF
Arn∎_,
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
CITY OF FEDERAL WAY
HOME REPAIR PROGRAM (CDBG)
HOMEOWNER LOAN AGREEMENT
FINAL
THIS LOAN AGREEMENT ( "Agreement ") is made this 9th day of March, 2016, between the CITY
OF FEDERAL WAY, a municipal corporation ( "City "), and Valencia Claxton & Pansy Claxton
( "Borrowers ").
RECITALS
A. The CITY OF FEDERAL WAY is a municipal corporation and designated as an entitlement city in
the United States Department of Housing and Urban Development (HUD) Community Development
Block Grant (CDBG) Program to carry out federal CDBG grants and programs.
B. The CITY OF FEDERAL WAY has undertaken the administration and execution of various
programs utilizing funds made available from the HUD, which have as their objective, the repair of
owner - occupied housing (Home Repair Program) for qualifying low- and moderate - income persons
and families residing in the city limits of Federal Way.
C. The City is willing to provide the Borrowers a loan, to be used by the Borrowers for repair work at
the Borrower's property located at 30218 29th Ave S, Federal Way, King County, Washington
( "Property "), and more particularly described in Exhibit A attached hereto. The amount and terms of
the loan are specified in the Promissory Note found in Exhibit B, and by this reference made a part
hereof.
AGREEMENT
In consideration of the mutual promises herein, the Borrowers and the City agree as follows:
1. Total Rehabilitation Cost.
The total cost of rehabilitation for this property is $5,685.10, which includes costs, fees, and expenses
listed in paragraph 6 of this Loan Document. Of this, $5,685.10 is a loan, as provided herein and
subject to the Promissory Note and the Deed of Trust attached hereto as Exhibit C.
2. Loan. The City agrees to make, and the Borrowers agree to take the Loan as provided herein. The
Borrowers agree to have the Loan proceeds used to complete the work in accordance with all
applicable code requirements and work plans described in the Homeowners & Contractor Agreement
for Housing Repair Program attached hereto as Exhibit D. The loan will be evidenced by a
Promissory Note (the "Note ") to be executed by the Borrowers.
HRP Homeowners Loan Agreement
1 01/2016
CIT F
Y O
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www c,tyoffederalway com
3. Purpose of Loan. The Loan is to be used exclusively in connection with the repair of the Property
in accordance with the objectives of the Home Repair Program and the applicable guidelines thereof.
4. Security.
a) Deed of Trust. As a security for the Note, Borrowers shall make, execute, and deliver to the City,
as Beneficiary, a Deed of Trust on the Property in form and substance satisfactory to the City in
the full amount of the Loan. This Deed of Trust shall be subject to the following:
i. A Deed of Trust to Bank of America, N.A. in the principal amount of One hundred fifty six
thousand two hundred twenty -six and 00 /100 Dollars ($156,226.00), recorded August 4,
2006, under King County Auditor's File No.20060804000726; and
ii. A Deed of Trust to Bank of America, N.A. in the principal amount of Seventy nine
thousand eight hundred ninety -eight and 00 /100 Dollars ($79,898.00), recorded March 20,
2007, under King County Auditor's File No.20070320001055; and
iii. A Mortgage to King County in the principal amount of Twenty six thousand six hundred
sixty -nine and 84/100 Dollars ($26,669.84), recorded March 20, 2007, under King County
Auditor's File No.20060628000160; and
A Judgment to Midland Credit Management in the principal amount of Eight thousand three
hundred ninety -four and 85/100 Dollars ($8,394.85), recorded February 12, 2004, under
King County Auditor's File No. 20040225000518; and
iv. Such additional encumbrances as the City may hereafter approve or waive in writing.
b) Title and Fire Insurance. Borrower shall, at Borrower's expense, furnish the City with an
acceptable Mortgagee's Prime Title Insurance Policy insuring the City in the amount of $6,218.47
and shall provide and maintain fire and extended coverage insurance on the Property in the
amount of Six thousand two hundred eighteen and 47/100 dollars ($6,218.47), naming the City as
the beneficiary and additional loss payee, as its interests may appear and requiring the City be
given thirty (30) days prior notice of any cancellation thereof.
5. Loan Proceeds.
a) Upon execution of the Note and recording of the Deed of Trust and other required security
instruments, and the satisfaction of any other conditions precedent applicable to the Loan
disbursement, the Loan proceeds will be disbursed in accordance with this Agreement. The
Borrowers has no right to the monies, other than to have the same disbursed in accordance with
the terms of this agreement. The Loan will be disbursed in one payment as required under this
Agreement (refer to Homeowner /contractor agreement Exhibit D) on disbursement requests
approved by the Borrowers and the City.
b) The Borrowers shall allow the Work to be accomplished through a licensed General Contractor
(Contractor) pursuant to a written contract (Contract) with the Contractor, in form provided by the
HRP Homeowners Loan Agreement
2 01/2016
CITY OF
. Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway corn
City, and through such written subcontracts as may be let by the Contractor with the prior
concurrence of the City. The proceeds of the Loan shall be used only as necessary for payment of
costs and expenses incurred in connection with administration of the loan and for payment of
indebtedness incurred for labor performed and materials incorporated into the Work.
Disbursements shall be made upon certification of completion of the Work.
c) Before making any disbursements, the City shall be entitled to receive a true and correct
statement of all costs incurred for the labor performed and materials ordered and/or delivered and
shall have the right to inspect all records, books and accounts relating to the Work. The City may
require lien waivers, releases, or receipts from the Contractor substantiating payment for all work,
services, and labor performed and materials supplied.
d) The City shall make any such payments to the Contractor engaged in rendering labor or materials
in connection with the Work.
e) Requests for payment shall be made through the City on forms acceptable to the City.
f) No assignment may be made of any City Loan funds to be disbursed hereunder or of any rights of
the Borrower under this Agreement, except upon prior written consent of the City.
g)
All change orders shall be subject to approval of the City prior to execution by the Borrowers and
the Contractor. If, as a result of the discovery of latent defects, or unforeseen conditions or health
and safety hazards, it is necessary to make a change order or orders which exceed the original
Contract price, the City has the right, at its option, and after consultation with the Borrower(s), to
reevaluate the scope of assistance to be provided and, in conjunction therewith, order the
elimination or reduction of certain work items set forth in the work schedule or work write -up, or
increase the amount of the loan.
h) These requirements are for the benefit of the City, and the City, as its option, shall have the right
to waive such requirements.
6. Loan Documents; Fees. The Borrowers shall execute at or prior to closing such documents, in form
and content satisfactory to the City, including but not limited to, the Note, the Deed of Trust, this
Agreement, and the Contract (collectively called "Loan Documents "). The Borrowers shall be
responsible for all of the City's costs in connection with the closing of the Loan, including, without
limitation, recording fees, escrow fees, attorney's fees, loan fees, and other expenses associated with
the Loan. Such fees are in addition to the cost for the Work and shall be added to the financial
amount of the Loan and included in the total amount shown on and due in the Note.
7. Loan Repayment.
Borrowers agree to repay the full loan amount in accordance with the terms of the Promissory Note
attached as Exhibit C.
8. Cancellation of Commitment; Acceleration.
HRP Homeowners Loan Agreement
3 01/2016
CITY F
O
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
a) At its option, the City reserves the right to cancel the Loan and terminate its obligation hereunder
and under any other Loan Documents evidencing the Loan if, for a period of sixty (60) days from
the date of execution of the this Agreement and Note, the Borrowers shall have failed or refused
to cause the commencement of the Work, or if the Borrowers shall have failed or refused to allow
completion the Work within a reasonable time as determined by the City, after commencing the
Work. The City shall exercise this cancellation by sending written notice thereof to the
Borrowers at their mailing address set forth below. The City's failure to exercise this right of
cancellation shall not be deemed a waiver thereof as long as the work remains incomplete.
b) The entire principal amount of the Note, and any other amounts secured by the Deed of Trust,
shall become due and payable, at the option of the City, upon the Borrower's breach of, or failure
to comply with, any covenant, agreement, term, or condition contained in this Agreement or any
of the Loan Documents, or upon the occurrence of any of the following:
i. An event of default as specified in the Note;
ii. Failure to complete the Work within the sixty days specified in paragraph 8a as determined
by the City; and
iii. Borrower's death or if Borrower is a spouse or partner forming an acknowledged
relationship, the death of both individuals.
9. Bidding Process.
The City will acquire formal bids for Work to be completed and award the bid to the best - qualified
low bidder. The successful bidder will be required to execute a Contract Agreement with the City.
The Borrower will be required to execute a Contractor Agreement for the Housing Repair Program
with the Contractor.
10. Accomplishment of Work.
a) The Borrowers shall allow a licensed general contractor to carry out all Work specified in the
approved bids. Borrowers specifically agree to approve all Work that, in the good faith opinion
of the Contractor and the City, has been accomplished in accordance with generally accepted
construction industry standards.
b) The Borrowers agree that the Contractor will be paid only for the Contractor's actual cost of
performing the Work. The Borrowers represent and warrant that the Borrowers will require the
Contractor to so agree and provide such documentation as the City may reasonably require
showing that the Contractor does not receive any payment in excess of the Contractor's approved
contract amount for the completion of the Work.
11. Inspection of the Work. The City will have the right to inspect the Work at all reasonable times for
the purpose of ascertaining whether the Work is in accordance with the requirements of the Contract
and applicable laws and codes. The City, in order to protect its interest and the interest of the
general public, will endeavor to bring to the attention of the Borrower and the Contractor work
which is not performed in accordance with the Contract and applicable codes. It is understood and
agreed that neither the City, nor their respective agents or employees shall be responsible for the
HRP Homeowners Loan Agreement
4 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway corn
Borrower's or Contractor's failure to perform the work in accordance with the Contract, or for the
acts or omissions of the Borrower(s), the Contractor, subcontractors, any of their agents or
employees, or any others performing any work. The Borrowers shall take all steps necessary to
assure that the City or its designee is permitted to examine and inspect the Work and all contracts,
materials, equipment, payrolls, and conditions of employment pertaining to the Work, including all
relevant data and records.
12. Warranty for Work.
The Borrowers will require that the contractor give to the Borrowers and the City a one (1) year
unconditional warranty of the labor and materials used in the Work, on such forms as the City shall
designate.
13. Records.
The Borrowers agree to keep such records as may be required by HUD regarding the Work and
agree to keep such records as may be required by HUD or the City. The Borrowers will, at any time
during normal business hours, and as often as the Secretary of HUD or an authorized representative
of the City, may deem necessary, permit the Secretary and/or City officials, to have full and free
access to the Borrowers records with respect to the utilization of the proceeds of the Loan, and will
permit the Secretary and /or City Officials, to audit, examine and make excerpts or transcripts from
Borrower's records and to review, inspect and make audits of all Work, contracts, invoices,
materials, payrolls, records of personnel, conditions of employment, books of record and other
documented data pertaining to the Loan and grant and Work.
14. Compliance with Applicable Laws and Requirements.
In the performance of this Agreement and the completion of the Work, the Borrowers shall comply,
in all material respects with applicable Federal and State laws, orders, rules and regulations as
determined by HUD or other agency having jurisdiction thereof, and the Borrowers shall defend,
protect and save harmless the City, their officers and employees, from and against all claims, suits,
and actions, liability, loss, damage and expense arising from any failure of the Borrowers or their
architect, agent, contractor or subcontractors to comply with the same. Any such requirement under
the applicable federal grant agreement, is required to be set forth in this Agreement is by this
reference incorporated herein as though fully set forth at this point.
15. Limit of Liability, Property Maintenance, and Recapture Provisions.
a) Limit of Liability. All liability and obligation of the City arising pursuant to this Agreement
and any payment to be made by the City pursuant to this Agreement shall be satisfied
exclusively and solely from federal funds made available for such purpose, and no creditor or
other person or entity of whatever nature shall have any recourse to the assets, credits, or
services of the City by reason of any liability or obligation arising out of this Agreement, and
neither this Agreement nor any Note, Loan, or other documents hereunder shall constitute a debt
or indebtedness of the City within the meaning of any constitutional, statutory, local, or charter
provision.
b) Borrowers agree:
HRP Homeowners Loan Agreement
5 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www atyoffederalway com
i. Keep in Good Condition. To keep the property in good condition and repair; to complete any
building, structure, or improvement being built or about to be built thereon; to restore
promptly any building, structure, or improvement thereon which may be damaged or
destroyed; and to comply with all laws, ordinances, regulations, covenants, conditions, and
restrictions affecting the property.
ii. Insurance. To keep all buildings now or hereafter erected on the property described herein
continuously insured against loss by fire in an amount not less than the total debt represented
by this Loan Agreement.
iii. Pay Taxes and Other Obligations. To pay before delinquent all lawful taxes, assessments,
insurance premiums, liens, encumbrances, obligations and other charges against or secured
by the property.
iv. Recapture Provisions.
1. Superior Interest. If the interest of the Borrowers and City is subordinate to a superior
interest enforceable against the property, including but not limited to taxes and any interest
secured by a prior Deed of Trust, and if there should be a sale based upon non - payment of
taxes, or foreclosure or transfer in lieu of foreclosure based upon a default in the obligation
secured by the prior Deed of Trust, or any other seizure of the property in satisfaction of a
superior interest, then in that event the Borrowers' obligation to repay this loan is reduced
and shall not exceed the amount of the net proceeds available to the Borrowers after the
sale, foreclosure, or transfer in lieu of foreclosure.
2. CITY OF FEDERAL WAY's Interest. If the Borrowers default in any obligation due the
City, and the City begins a non judicial foreclosure and conducts a trustee's sale or accepts
a deed or transfer in lieu of foreclosure, then in that event the Borrowers' obligation to
repay this loan is reduced and shall not exceed the amount of the net proceeds available to
the Borrowers after the sale or transfer in lieu of foreclosure.
16. Waiver of Personal Liability of Individuals. No member or employee of the City shall be
personally liable to the Borrowers or any successor in interest in the event of any default or breach
by the City, for any amount which may become due to the Borrowers or successor, or on any
obligation under the terms of this Agreement.
17. Notices and Demands. Any notice or demand which either party hereto is required or desires to
give to or make upon the other shall be in writing and shall be delivered or made by United States
registered or certified mail, return receipt requested, postage repaid, addressed in the case of the City
to:
HRP Homeowners Loan Agreement
6 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www crtyoffederalway com
CITY OF FEDERAL WAY Community Development Department - CDBG
33325 8th Ave South
Federal Way, WA 98003
And addressed in the case of the Borrowers to:
Valencia Claxton & Pansy Claxton
30218 29th Ave S
Federal Way, WA 98003
subject to the right of any such party to designate a different address by notice similarly given. Any
notice or demand so sent shall be deemed to have been given or made when delivered as evidenced
by the return receipt.
18. Successor and Assigns. The terms of this Agreement shall be binding upon the parties hereto, their
respective successors and assigns; it being agreed, however, the Borrowers shall not assign or
transfer any of their rights, duties, benefits, obligations, liabilities, or responsibilities under this
Agreement without the express written consent of the City.
19. Conditions Precedent to the Obligation of the City to Provide Funds. The obligation of the City
to provide or release any portion of the Loan funds under this Agreement shall, subject to such other
terms and conditions of the Agreement as may be applicable thereto, also be contingent upon:
a) Approval and execution of all Loan Documents relating to this Loan.
b) Submission by the Borrowers of a copy of the Contract between the Borrowers and the
Contractor for the work, which Contract shall bind the Contractor to complete the work at a cost
not to exceed the amounts specified in such Contract.
c) Receipt by the City of the ALTA Mortgagee's policy of Title Insurance as required by this
Agreement. At the City's option, but at the Borrowers expense, the City may request the Title
Company to endorse its policy of Title Insurance at and as of the date of any disbursement by
the City of Loan proceeds.
d) Submission to the City as required by this Agreement of such forms of insurance policies in
form acceptable to the City, including the City thereon as an additional insured as its interest
may appear, which policies shall be continuously maintained at no cost to the City.
e) Confirmation by the City that prior to the date of recording of the Deed of Trust no lienable
work has been performed on, or materials delivered to or for the Property, or that all such work
and materials have been fully paid for.
IN WITNESS WHEREOF, the parties hereto have executed this document as of the day and year first
written above.
HRP Homeowners Loan Agreement
7 01/2016
CITY OF
Federal Way
LENDER:
CITY OF FEDERAL WAY:
Ji ► I - ell, Mayor
APPROVED AS TO FORM:
()X
City Attorney,.Am eafsall-
BORROWERS:
�lc�
Sign ture
Valencia Claxton
4x2)
Printed Name
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www crtyoffederalway com
ATTEST:
lerk, Stephanie C ey, CMC
Pansy Claxton
Printed Name
STATE OF WASHINGTON )
) ss.
COUNTY OF 16(11^t )
On this day personally appeared before me, Valencia Claxton & Pansy Claxton, to me known to be the
individuals described in and who executed the foregoing instrument, and on oath swore that they
executed the foregoing instrument as their free and voluntary act and deed for the uses and purposes
therein mentioned.
GIVEN my hand and official seal this
�•(NN C� phi
Notary's signature _
Notary's printed name l —` 11 J °lc
P1 h (_1.00
Notary Public in and for the State of Washington.
My commission expires q/1-01/
d'01-
ay of
,20/6
HRP Homeowners Loan Agreement
8 01/2016
Federal Way
EXHIBIT A
Legal Description
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
Lot 31, Steel Lake Glen, according to the plat thereof, recorded in Volume 115 of Plats, Pages 90 and 91,
in King County, Washington.
HRP Homeowners Loan Agreement
9 01/2016
CITY OF
'"k6- Federal Way
LENDER:
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www.cityoffederalway.com
EXHIBIT B
PROMISSORY NOTE
City of Federal Way Housing Repair Program (HRP)
City of Federal Way, a Municipal corporation
33325 8thAvenue South
Federal Way, WA 98003
BORROWER: Valencia Claxton & Pansy Claxton,
Homeowners
HRP RESIDENCE: 30218 29th Ave South
Federal Way, WA 98003
PRINCIPAL $5,333.75
AMOUNT: Fees: $351.35
Total $5,685.10
LOAN DATE: March 9, 2016
DUE DATE: The loan shall be due in accordance with the terms specified herein.
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 agrees 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 ( "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, the Homeowner Loan Agreement, 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.
HRP Homeowners Loan Agreement
10 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www c,tyofederalway com
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 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. Repayment of loan. The loan is due upon sale of the property, quit claim deed, death of the
borrower, or in the event of default, as defined in paragraph 7.
6. Occupancy/Use. The property must be the Borrowers primary residence, and cannot be used as a
rental home.
7. 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, paragraph 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 of 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
the Lender in connection with the Lender's consideration of Borrower's HRP 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 filed 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;
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: (i) makes an assignment for the benefit of creditors; (ii) consents to the
appointment of a custodian, receiver, or trustee for itself or for a substantial part of its assets; or (iii)
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, Homeowner Loan Agreement, and the Deed of Trust shall be
interpreted and construed as a single integrated agreement between Lender and Borrower; or
1. Borrower's death, or if Borrower is a spouse or partner forming an acknowledged relationship,
the death of both individuals.
m. Any event of default specified in the Deed of Trust.
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.
HRP Homeowners Loan Agreement
11 01/2016
414■_. Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityotfederatway com
8. 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.
9. Security. This Note is secured by and relates to a Deed of Trust of even date encumbering the
Residence.
10. 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.
11. 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 any
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.
12. 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.
13. 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.
14. Consent. Borrower hereby jointly and severally: (a) waives presentment for payment, demand, notice
of non - payment, notice of protest, or protest of this Note; (b) waives Lender's diligence in collection or
bringing suit; and (c) 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.
15. 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 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.
16. Entire Agreement. Except as otherwise expressly provided in this Note, the Homeowner Loan
Agreement, 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.
HRP Homeowners Loan Agreement
12 01/2016
CITY OF
...,� Federal Way
Agreed to and accepted by:
LENDER:
CITY OF FEDERAL WAY
Jim ell, Mayor
APPROVED AS TO FORM:
eXL
City Attorney, Am y o Pearsall
BORROWERS:
)4AA
Sign furs
Valencia Claxton
Printed Name
STATE OF WASHINGTON )
) ss.
COUNTY OF
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityofedera/way com
ATTEST:
Ci 1brk, Stephanie Courtn MC
Signature
Pansy Claxton
Printed Name
On this day personally appeared before me, Valencia Claxton & Pansy Claxton, to me known to be the
individuals described in and who executed the foregoing instrument, and on oath swore that they
executed the foregoing instrument as their free and voluntary act and deed for the uses and purposes
therein mentioned.
GIVEN my hand and official seal this da
N1114..11/
sit/ Notary's signature
�oN'A � Notary's printed name
OF �'Wti.C_
, 20A,
s . 1f 0tA4 �,,, /. Notary Public in and for the State of Washington.
_ • _ My commission expires
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HRP Homeowners Loan Agreement
13
01/2016
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Federal Way
33325 8th Ave S
Federal Way, WA 98003 -6325
Attn: Jeri-Lynn Clark
EXHIBIT C
DEED OF TRUST
Property Address: 30218 29th Ave S, Federal Way, WA 98003
Grantor (s): Claxton, Valencia & Claxton, Pansy
Beneficiary: CITY OF FEDERAL WAY, a Washington Municipal Corporation
Property Legal Description (abbreviated): Lot 31, Steel Lake Glen
Complete Legal Description indicated below.
Assessor's Tax Parcel ID#(s): 798380 -0310
THIS DEED OF TRUST IS DATED March 9, 2016, between Valencia Claxton & Pansy
Claxton, (referred to below as "Grantor "), whose address is 30218 29th Ave S, Federal Way, WA 98003;
CITY OF FEDERAL WAY, whose address is 33325 8th Ave S, Federal Way, WA 98003 (referred to
below as "Lender"); and First American Title whose mailing address is 33600 6th 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 30218 29'h Ave S 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 31, Steel Lake Glen, according to the plat thereof, recorded in Volume 115 of Plats, Pages 90
and 91, 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 Valencia Claxton & Pansy Claxton.
• Homeowner Loan Agreement means that agreement between the Grantor and the Lender for funds
used in connection with home repairs for the property that is the subject of this Deed of Trust.
• 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.
• 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.
• Lender means the City of Federal Way, its successors and assigns.
• Note means the Promissory Note dated, March 9, 2016, in the original principal amount of $5,685.10
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 the Homeowner Loan Agreement, 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 Homeowner Loan Agreement and the Promissory Note, which shall be
executed concurrently with the Deed of Trust. The 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
Improvements 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 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 not 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
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.
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.
73 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 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.
9. 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.
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 full 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.
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.
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 party'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 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.
GRANTOR(S):
OA,i24/14X4--
Signature
Valencia Claxton
Printed Name
STATE OF WASHINGTON
COUNTY OF
) ss.
Signature
Pansy Claxton
Printed Name
On this day personally appeared before me, Valencia Claxton & Pansy Claxton, to me known to be the
individual(s) described in and who executed the foregoing instrument, and on oath swore that they
executed the foregoing instrument as their free and voluntary act and deed for the uses and purposes
therein mentioned.
GIVEN my hand and official seat this
-LYNN / i
Notary Signature
_ ,;,ss o y C/y 1 / /,, Notary Printed Name
ame
or dpi m A f,
-
';:i.
Notary Public in and for the Stag of Washington.
My commission expires 112A111-
II RETURN TO: Jeri -Lynn
EXT: 2401
CITY OF FEDERIW WAY LAW DEPARTMEN'1 OUTING FORM
1.
ORIGINATING DEPT./DIV: COMMUNITY SERVICES
2. ORIGINATING STAFF PERSON: JERI -LYNN CLARK
4. TYPE OF DOCUMENT (CHECK ONE):
❑ CONTRACTOR SELECTION DOCUMENT (E.G., RFB, RFP, RFQ)
❑ PUBLIC WORKS CONTRACT
❑ PROFESSIONAL SERVICE AGREEMENT
❑ GOODS AND SERVICE AGREEMENT
❑ REAL ESTATE DOCUMENT
❑ ORDINANCE
❑ CONTRACT AMENDMENT (AG #):
❑ OTHER
EXT: 2401 3. DATE REQ. BY:
❑ SMALL OR LIMITED PUBLIC WORKS CONTRACT
❑ MAINTENANCE AGREEMENT
❑ HUMAN SERVICES / CDBG
❑ SECURITY DOCUMENT (E.G. BOND RELATED DOCUMENTS)
❑ RESOLUTION
❑ INTERLOCAL
5. PROJECT NAME: HOUSING REPAIR PROGRAM DEED OF TRUST, PROMISSORY NOTE, LOAN AGREEMENT, &
HOMEOWNER/CONTRACTOR AGREEMENT
6. NAME OF CONTRACTOR: VALENCIA CLAXTON & PANSY CLAXTON - FRONT PORCH REPAIR
ADDRESS: 30218 29TH AVE S, FEDERAL WAY, WA 98003 TELEPHONE 253- 839 -1554
E -MAIL: FAX:
SIGNATURE NAME: VALENCIA CLAXTON & PANSY CLAXTON TITLE: OWNER
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: 3/c1/11p COMPLETION DATE ('17 @ �C 0r *Re .
9. TOTAL COMPENSATION $ 6,775.85 (INCLUDE EXPENSES AND SALES TAX, IF ANY) j
(W 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:
10. DOCUMENT /CONTRACT REVIEW
❑ PROJECT MANAGER
❑ DIRECTOR
❑ RISK MANAGEMENT (IF APPLICABLE)
❑ LAW
11. COUNCIL APPROVAL (IF APPLICABLE)
12. CONTRACT SIGNATURE ROUTING
❑ SENT TO VENDOR/CONTRACTOR
* *THEY PAY US **
■i,,,pD 'TE • V WED
gfilMWM
INITIAL / DATE APPROVED
COMMITTEE APPROVAL DATE: COUNCIL APPROVAL DATE:
DATE SENT:
DATE REC'D:
❑ ATTACH: SIGNATURE AUTHORITY, INSURANCE CERTIFICATE, LICENSE, EXHIBITS
INIT)AL TATE SIGNED
❑ LAW DEPARTMENT
❑ CHIEF OF STAFF
SIGNATORY (MAYOR OR DIRECTOR)
CITY CLERK
ASSIGNED AG#
❑ SIGNED COPY RETURNED
COMMENTS:
Please review the changes made to the HRP Deed of Trust and Promissory Notes.
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www atyoffederaiway com
CITY OF FEDERAL WAY
HOME REPAIR PROGRAM (CDBG)
HOMEOWNER LOAN AGREEMENT
THIS LOAN AGREEMENT ( "Agreement ") is made this 9th day of March, 2016, between the CITY
OF FEDERAL WAY, a municipal corporation ( "City "), and Valencia Claxton & Pansy Claxton
( "Borrowers ").
RECITALS
A. The CITY OF FEDERAL WAY is a municipal corporation and designated as an entitlement city in
the United States Department of Housing and Urban Development (HUD) Community Development
Block Grant (CDBG) Program to carry out federal CDBG grants and programs.
B. The CITY OF FEDERAL WAY has undertaken the administration and execution of various
programs utilizing funds made available from the HUD, which have as their objective, the repair of
owner - occupied housing (Home Repair Program) for qualifying low- and moderate- income persons
and families residing in the city limits of Federal Way.
C. The City is willing to provide the Borrowers a loan, to be used by the Borrowers for repair work at
the Borrower's property located at 30218 29th Ave S, Federal Way, King County, Washington
( "Property "), and more particularly described in Exhibit A attached hereto. The amount and terms of
the loan are specified in the Promissory Note found in Exhibit B, and by this reference made a part
hereof.
AGREEMENT
In consideration of the mutual promises herein, the Borrowers and the City agree as follows:
1. Total Rehabilitation Cost.
The total cost of rehabilitation for this property is $6,218.47, which includes costs, fees, and expenses
listed in paragraph 6 of this Loan Document. Of this, $6,218.47 is a loan, as provided herein and
subject to the Promissory Note and the Deed of Trust attached hereto as Exhibit C.
2. Loan. The City agrees to make, and the Borrowers agree to take the Loan as provided herein. The
Borrowers agree to have the Loan proceeds used to complete the work in accordance with all
applicable code requirements and work plans described in the Homeowners & Contractor Agreement
for Housing Repair Program attached hereto as Exhibit D. The loan will be evidenced by a
Promissory Note (the "Note ") to be executed by the Borrowers.
HRP Homeowners Loan Agreement
1 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way. WA 98003 -6325
(253) 835-7000
www atyofederahvay com
3. Purpose of Loan. The Loan is to be used exclusively in connection with the repair of the Property
in accordance with the objectives of the Home Repair Program and the applicable guidelines thereof.
4. Security.
a) Deed of Trust. As a security for the Note, Borrowers shall make, execute, and deliver to the City,
as Beneficiary, a Deed of Trust on the Property in form and substance satisfactory to the City in
the full amount of the Loan. This Deed of Trust shall be subject to the following:
i. A Deed of Trust to Bank of America, N.A. in the principal amount of One hundred fifty six
thousand two hundred twenty -six and 00 /100 Dollars ($156,226.00), recorded August 4,
2006, under King County Auditor's File No.20060804000726; and
ii. A Deed of Trust to Bank of America, N.A. in the principal amount of Seventy nine
thousand eight hundred ninety -eight and 00 /100 Dollars ($79,898.00), recorded March 20,
2007, under King County Auditor's File No.20070320001055; and
iii. A Mortgage to King County in the principal amount of Twenty thousand six hundred sixty -
nine and 84/100 Dollars ($26,669.84), recorded March 20, 2007, under King County
Auditor's File No.20060628000160; and
A Judgment to Midland Credit Management in the principal amount of Eight thousand three
hundred ninety -four and 85/100 Dollars ($8,394.85), recorded February 12, 2004, under
King County Auditor's File No. 20040225000518; and
iv. Such additional encumbrances as the City may hereafter approve or waive in writing.
b) Title and Fire Insurance. Borrower shall, at Borrower's expense, furnish the City with an
acceptable Mortgagee's Prime Title Insurance Policy insuring the City in the amount of $6,218.47
and shall provide and maintain fire and extended coverage insurance on the Property in the
amount of Six thousand two hundred eighteen and 47/100 dollars ($6,218.47), naming the City as
the beneficiary and additional loss payee, as its interests may appear and requiring the City be
given thirty (30) days prior notice of any cancellation thereof.
5. Loan Proceeds.
a) Upon execution of the Note and recording of the Deed of Trust and other required security
instruments, and the satisfaction of any other conditions precedent applicable to the Loan
disbursement, the Loan proceeds will be disbursed in accordance with this Agreement. The
Borrowers has no right to the monies, other than to have the same disbursed in accordance with
the terms of this agreement. The Loan will be disbursed in one payment as required under this
Agreement (refer to Homeowner /contractor agreement Exhibit D) on disbursement requests
approved by the Borrowers and the City.
b) The Borrowers shall allow the Work to be accomplished through a licensed General Contractor
(Contractor) pursuant to a written contract (Contract) with the Contractor, in form provided by the
HRP Homeowners Loan Agreement
2 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www crtyoffederatway com
City, and through such written subcontracts as may be let by the Contractor with the prior
concurrence of the City. The proceeds of the Loan shall be used only as necessary for payment of
costs and expenses incurred in connection with administration of the loan and for payment of
indebtedness incurred for labor performed and materials incorporated into the Work.
Disbursements shall be made upon certification of completion of the Work.
c) Before making any disbursements, the City shall be entitled to receive a true and correct
statement of all costs incurred for the labor performed and materials ordered and/or delivered and
shall have the right to inspect all records, books and accounts relating to the Work. The City may
require lien waivers, releases, or receipts from the Contractor substantiating payment for all work,
services, and labor performed and materials supplied.
d) The City shall make any such payments to the Contractor engaged in rendering labor or materials
in connection with the Work.
e) Requests for payment shall be made through the City on forms acceptable to the City.
f) No assignment may be made of any City Loan funds to be disbursed hereunder or of any rights of
the Borrower under this Agreement, except upon prior written consent of the City.
g)
All change orders shall be subject to approval of the City prior to execution by the Borrowers and
the Contractor. If, as a result of the discovery of latent defects, or unforeseen conditions or health
and safety hazards, it is necessary to make a change order or orders which exceed the original
Contract price, the City has the right, at its option, and after consultation with the Borrower(s), to
reevaluate the scope of assistance to be provided and, in conjunction therewith, order the
elimination or reduction of certain work items set forth in the work schedule or work write -up, or
increase the amount of the loan.
h) These requirements are for the benefit of the City, and the City, as its option, shall have the right
to waive such requirements.
6. Loan Documents; Fees. The Borrowers shall execute at or prior to closing such documents, in form
and content satisfactory to the City, including but not limited to, the Note, the Deed of Trust, this
Agreement, and the Contract (collectively called "Loan Documents "). The Borrowers shall be
responsible for all of the City's costs in connection with the closing of the Loan, including, without
limitation, recording fees, escrow fees, attorney's fees, loan fees, and other expenses associated with
the Loan. Such fees are in addition to the cost for the Work and shall be added to the financial
amount of the Loan and included in the total amount shown on and due in the Note.
7. Loan Repayment.
Borrowers agree to repay the full loan amount in accordance with the terms of the Promissory Note
attached as Exhibit C.
8. Cancellation of Commitment; Acceleration.
HRP Homeowners Loan Agreement
3 01/2016
CITY OF
4•....- Federal Way •
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
a) At its option, the City reserves the right to cancel the Loan and terminate its obligation hereunder
and under any other Loan Documents evidencing the Loan if, for a period of sixty (60) days from
the date of execution of the this Agreement and Note, the Borrowers shall have failed or refused
to cause the commencement of the Work, or if the Borrowers shall have failed or refused to allow
completion the Work within a reasonable time as determined by the City, after commencing the
Work. The City shall exercise this cancellation by sending written notice thereof to the
Borrowers at their mailing address set forth below. The City's failure to exercise this right of
cancellation shall not be deemed a waiver thereof as long as the work remains incomplete.
b) The entire principal amount of the Note, and any other amounts secured by the Deed of Trust,
shall become due and payable, at the option of the City, upon the Borrower's breach of, or failure
to comply with, any covenant, agreement, term, or condition contained in this Agreement or any
of the Loan Documents, or upon the occurrence of any of the following:
i. An event of default as specified in the Note;
ii. Failure to complete the Work within the sixty days specified in paragraph 8a as determined
by the City; and
iii. Borrower's death or if Borrower is a spouse or partner forming an acknowledged
relationship, the death of both individuals.
9. Bidding Process.
The City will acquire formal bids for Work to be completed and award the bid to the best - qualified
low bidder. The successful bidder will be required to execute a Contract Agreement with the City.
The Borrower will be required to execute a Contractor Agreement for the Housing Repair Program
with the Contractor.
10. Accomplishment of Work.
a) The Borrowers shall allow a licensed general contractor to carry out all Work specified in the
approved bids. Borrowers specifically agree to approve all Work that, in the good faith opinion
of the Contractor and the City, has been accomplished in accordance with generally accepted
construction industry standards.
b) The Borrowers agree that the Contractor will be paid only for the Contractor's actual cost of
performing the Work. The Borrowers represent and warrant that the Borrowers will require the
Contractor to so agree and provide such documentation as the City may reasonably require
showing that the Contractor does not receive any payment in excess of the Contractor's approved
contract amount for the completion of the Work.
11. Inspection of the Work. The City will have the right to inspect the Work at all reasonable times for
the purpose of ascertaining whether the Work is in accordance with the requirements of the Contract
and applicable laws and codes. The City, in order to protect its interest and the interest of the
general public, will endeavor to bring to the attention of the Borrower and the Contractor work
which is not performed in accordance with the Contract and applicable codes. It is understood and
agreed that neither the City, nor their respective agents or employees shall be responsible for the
HRP Homeowners Loan Agreement
4 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
Borrower's or Contractor's failure to perform the work in accordance with the Contract, or for the
acts or omissions of the Borrower(s), the Contractor, subcontractors, any of their agents or
employees, or any others performing any work. The Borrowers shall take all steps necessary to
assure that the City or its designee is permitted to examine and inspect the Work and all contracts,
materials, equipment, payrolls, and conditions of employment pertaining to the Work, including all
relevant data and records.
12. Warranty for Work.
The Borrowers will require that the contractor give to the Borrowers and the City a one (1) year
unconditional warranty of the labor and materials used in the Work, on such forms as the City shall
designate.
13. Records.
The Borrowers agree to keep such records as may be required by HUD regarding the Work and
agree to keep such records as may be required by HUD or the City. The Borrowers will, at any time
during normal business hours, and as often as the Secretary of HUD or an authorized representative
of the City, may deem necessary, permit the Secretary and/or City officials, to have full and free
access to the Borrowers records with respect to the utilization of the proceeds of the Loan, and will
permit the Secretary and /or City Officials, to audit, examine and make excerpts or transcripts from
Borrower's records and to review, inspect and make audits of all Work, contracts, invoices,
materials, payrolls, records of personnel, conditions of employment, books of record and other
documented data pertaining to the Loan and grant and Work.
14. Compliance with Applicable Laws and Requirements.
In the performance of this Agreement and the completion of the Work, the Borrowers shall comply,
in all material respects with applicable Federal and State laws, orders, rules and regulations as
determined by HUD or other agency having jurisdiction thereof, and the Borrowers shall defend,
protect and save harmless the City, their officers and employees, from and against all claims, suits,
and actions, liability, loss, damage and expense arising from any failure of the Borrowers or their
architect, agent, contractor or subcontractors to comply with the same. Any such requirement under
the applicable federal grant agreement, is required to be set forth in this Agreement is by this
reference incorporated herein as though fully set forth at this point.
15. Limit of Liability, Property Maintenance, and Recapture Provisions.
a) Limit of Liability. All liability and obligation of the City arising pursuant to this Agreement
and any payment to be made by the City pursuant to this Agreement shall be satisfied
exclusively and solely from federal funds made available for such purpose, and no creditor or
other person or entity of whatever nature shall have any recourse to the assets, credits, or
services of the City by reason of any liability or obligation arising out of this Agreement, and
neither this Agreement nor any Note, Loan, or other documents hereunder shall constitute a debt
or indebtedness of the City within the meaning of any constitutional, statutory, local, or charter
provision.
b) Borrowers agree:
HRP Homeowners Loan Agreement
5 01/2016
44k.-- CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www atyotfederalway com
i. Keep in Good Condition. To keep the property in good condition and repair; to complete any
building, structure, or improvement being built or about to be built thereon; to restore
promptly any building, structure, or improvement thereon which may be damaged or
destroyed; and to comply with all laws, ordinances, regulations, covenants, conditions, and
restrictions affecting the property.
ii. Insurance. To keep all buildings now or hereafter erected on the property described herein
continuously insured against loss by fire in an amount not less than the total debt represented
by this Loan Agreement.
iii. Pay Taxes and Other Obligations. To pay before delinquent all lawful taxes, assessments,
insurance premiums, liens, encumbrances, obligations and other charges against or secured
by the property.
iv. Recapture Provisions.
1. Superior Interest. If the interest of the Borrowers and City is subordinate to a superior
interest enforceable against the property, including but not limited to taxes and any interest
secured by a prior Deed of Trust, and if there should be a sale based upon non - payment of
taxes, or foreclosure or transfer in lieu of foreclosure based upon a default in the obligation
secured by the prior Deed of Trust, or any other seizure of the property in satisfaction of a
superior interest, then in that event the Borrowers' obligation to repay this loan is reduced
and shall not exceed the amount of the net proceeds available to the Borrowers after the
sale, foreclosure, or transfer in lieu of foreclosure.
2. CITY OF FEDERAL WAY's Interest. If the Borrowers default in any obligation due the
City, and the City begins a non judicial foreclosure and conducts a trustee's sale or accepts
a deed or transfer in lieu of foreclosure, then in that event the Borrowers' obligation to
repay this loan is reduced and shall not exceed the amount of the net proceeds available to
the Borrowers after the sale or transfer in lieu of foreclosure.
16. Waiver of Personal Liability of Individuals. No member or employee of the City shall be
personally liable to the Borrowers or any successor in interest in the event of any default or breach
by the City, for any amount which may become due to the Borrowers or successor, or on any
obligation under the terms of this Agreement.
17. Notices and Demands. Any notice or demand which either party hereto is required or desires to
give to or make upon the other shall be in writing and shall be delivered or made by United States
registered or certified mail, return receipt requested, postage repaid, addressed in the case of the City
to:
HRP Homeowners Loan Agreement
6 01/2016
CITY of
,,. Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
CITY OF FEDERAL WAY Community Development Department - CDBG
33325 8th Ave South
Federal Way, WA 98003
And addressed in the case of the Borrowers to:
Valencia Claxton & Pansy Claxton
30218 29th Ave S
Federal Way, WA 98003
subject to the right of any such party to designate a different address by notice similarly given. Any
notice or demand so sent shall be deemed to have been given or made when delivered as evidenced
by the return receipt.
18. Successor and Assigns. The terms of this Agreement shall be binding upon the parties hereto, their
respective successors and assigns; it being agreed, however, the Borrowers shall not assign or
transfer any of their rights, duties, benefits, obligations, liabilities, or responsibilities under this
Agreement without the express written consent of the City.
19. Conditions Precedent to the Obligation of the City to Provide Funds. The obligation of the City
to provide or release any portion of the Loan funds under this Agreement shall, subject to such other
terms and conditions of the Agreement as may be applicable thereto, also be contingent upon:
a) Approval and execution of all Loan Documents relating to this Loan.
b) Submission by the Borrowers of a copy of the Contract between the Borrowers and the
Contractor for the work, which Contract shall bind the Contractor to complete the work at a cost
not to exceed the amounts specified in such Contract.
c) Receipt by the City of the ALTA Mortgagee's policy of Title Insurance as required by this
Agreement. At the City's option, but at the Borrowers expense, the City may request the Title
Company to endorse its policy of Title Insurance at and as of the date of any disbursement by
the City of Loan proceeds.
d) Submission to the City as required by this Agreement of such forms of insurance policies in
form acceptable to the City, including the City thereon as an additional insured as its interest
may appear, which policies shall be continuously maintained at no cost to the City.
e) Confirmation by the City that prior to the date of recording of the Deed of Trust no lienable
work has been performed on, or materials delivered to or for the Property, or that all such work
and materials have been fully paid for.
IN WITNESS WHEREOF, the parties hereto have executed this document as of the day and year first
written above.
HRP Homeowners Loan Agreement
7 01/2016
CITY OF
4tk Federal Way
LENDER:
CITY OF FEDERAL WAY:
, Mayor
APPROVED AS TO FORM:
thz Ca
.J/ City Attorney, Amy Jo Pearsall
B RROWERS:
(VIa)(6'\)
i>tature
Valencia Claxton
Printed Name
STATE OF WASHINGTON )
) ss.
COUNTY OF )
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederatway com
ATTEST:
Pansy Claxton
Printed Name
On this day personally appeared before me, Valencia Claxton & Pansy Claxton, to me known to be the
individuals described in and who executed the foregoing instrument, and on oath swore that they
executed the foregoing instrument as their free and voluntary act and deed for the uses and purposes
therein mentioned. �y
GIVEN my hand and official seal this 9 day f , 20 / �p
Notary's signature
Notary's printed name
Notary Public in and for the State of Washington.
My commission expires
HRP Homeowners Loan Agreement 8
LilLo
01/2016
CITY OF
&1■• Federal Way
EXHIBIT A
Legal Description
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www alyoffederalway corn
Lot 31, Steel Lake Glen, according to the plat thereof, recorded in Volume 115 of Plats, Pages 90 and 91,
in King County, Washington.
HRP Homeowners Loan Agreement
9 01/2016
LENDER:
CITY OF
Federal Way
EXHIBIT B
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www atyoffederalway com
PROMISSORY NOTE
City of Federal Way Housing Repair Program (HRP)
City of Federal Way, a Municipal corporation
33325 8thAvenue South
Federal Way, WA 98003
BORROWER: Valencia Claxton & Pansy Claxton,
Homeowners
HRP RESIDENCE: 30218 29th Ave South
Federal Way, WA 98003
PRINCIPAL $5,867.12
AMOUNT: Fees: $351.35
Total $6,218.47
LOAN DATE: March 9, 2016
DUE DATE: The loan shall be due in accordance with the terms specified herein.
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 agrees 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 ( "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, the Homeowner Loan Agreement, 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.
HRP Homeowners Loan Agreement
10 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
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 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. Repayment of loan. The loan is due upon sale of the property, quit claim deed, death of the
borrower, or in the event of default, as defined in paragraph 7.
6. Occupancy/Use. The property must be the Borrowers primary residence, and cannot be used as a
rental home.
7. 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, paragraph 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 of 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
the Lender in connection with the Lender's consideration of Borrower's HRP 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 filed 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;
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: (i) makes an assignment for the benefit of creditors; (ii) consents to the
appointment of a custodian, receiver, or trustee for itself or for a substantial part of its assets; or (iii)
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, Homeowner Loan Agreement, and the Deed of Trust shall be
interpreted and construed as a single integrated agreement between Lender and Borrower; or
1. Borrower's death, or if Borrower is a spouse or partner forming an acknowledged relationship,
the death of both individuals.
m. Any event of default specified in the Deed of Trust.
The "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.
HRP Homeowners Loan Agreement
11 01/2016
CITY f
O
,., Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www alyofederalway com
8. 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.
9. Security. This Note is secured by and relates to a Deed of Trust of even date encumbering the
Residence.
10. 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.
11. 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 any
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.
12. 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.
13. 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.
14. Consent. Borrower hereby jointly and severally: (a) waives presentment for payment, demand, notice
of non - payment, notice of protest, or protest of this Note; (b) waives Lender's diligence in collection or
bringing suit; and (c) 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.
15. 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 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.
16. Entire Agreement. Except as otherwise expressly provided in this Note, the Homeowner Loan
Agreement, 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.
HRP Homeowners Loan Agreement
12 01/2016
CITY OF
Federal Way
Agreed to and accepted by:
LENDER:
CITY OF FEDERAL WAY
APPROVED AS TO FORM:
(City Attorney, Amy Jo Pearsall
BORROWERS:
d&a(
Signature
Valencia Claxton
Printed Name
STATE OF WASHINGTON )
) ss.
COUNTY OF I� )
ATTEST:
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
AlkAk
tephanie Courtney, CMC
u
PON1421
Signature
Pansy Claxton
Printed Name
On this day personally appeared before me, Valencia Claxton & Pansy Claxton, to me known to be the
individuals described in and who executed the foregoing instrument, and on oath swore that they
executed the foregoing instrument as their free and voluntary act and deed for the uses and purposes
therein mentioned.
GIVEN my hand and official seal this
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Notary's signature
Notary's printed name - A 4 1 \ & i Gc.A4C. -
Notary Public in and for the State, of Washington.
My commission expires '1( /IA [ �-
day of CYl,vtk__ , 2d '.
HRP Homeowners Loan Agreement
13 01/2016
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Federal Way
33325 8th Ave S
Federal Way, WA 98003 -6325
Attn: Jeri-Lynn Clark
llHIHI II llllllHllH II
20160721000321
CITY OF FEDERA DT 81.00
PAGE -001 OF 008
07/21/2016 09:42
KING COUNTY, WA
EXHIBIT C
DEED OF TRUST
Property Address: 30218 29th Ave S, Federal Way, WA 98003
Grantor (s): Claxton, Valencia & Claxton, Pansy
Beneficiary: CITY OF FEDERAL WAY, a Washington Municipal Corporation
Property Legal Description (abbreviated): Lot 31, Steel Lake Glen
Complete Legal Description indicated below.
Assessor's Tax Parcel ID #(s): 798380 -0310
1
i
THIS DEED OF TRUST IS DATED March 9, 2016, between Valencia Claxton & Pansy
Claxton, (referred to below as "Grantor "), whose address is 30218 29th Ave S, Federal Way, WA 98003;
CITY OF FEDERAL WAY, whose address is 33325 8th Ave S, Federal Way, WA 98003 (referred to
below as "Lender "); and First American Title whose mailing address is 33600 6th 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 30218 29th Ave S 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 31, Steel Lake Glen, according to the plat thereof, recorded in Volume 115 of Plats, Pages 90
and 91, 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 Valencia Claxton & Pansy Claxton.
• Homeowner Loan Agreement means that agreement between the Grantor and the Lender for funds
used in connection with home repairs for the property that is the subject of this Deed of Trust.
• 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.
• 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.
• Lender means the City of Federal Way, its successors and assigns.
Deed of Trust. The word "Indebtedness" also includes all renewals, modifications,
extensions, future advances or increases in the amount of the Note.
• Lender means the City of Federal Way, its successors and assigns.
• Nqte means the Promissory Note dated, March 9, 2016, in the original principal amount of
$6,218.47 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 the Homeowner Loan
Agreement, 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 Homeowner Loan Agreement and the
Promissory Note, which shall be executed concurrently with the Deed of Trust. The 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 Improvements 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
HRP Homeowners Loan Agreement
15 01/2016
in the forfeiture of the Property or otherwise materially impair the lien credited by this Deed of
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 not 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 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.
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
HRP Homeowners Loan Agreement
16 01/2016
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
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
HRP Homeowners Loan Agreement 17 01/2016
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.
9. 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.
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.
HRP Homeowners Loan Agreement
18 01/2016
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
full 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.
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
HRP Homeowners Loan Agreement
19 01/2016
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.
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
HRP Homeowners Loan Agreement 20 01/2016
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 party'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
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.
HRP Homeowners Loan Agreement
21 01/2016
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.
GRANTOR(S):
ACIAAA-
Signature
Valencia Claxton
Printed Name
STATE OF WASHINGTON )
) ss.
COUNTY OF
f0/1441
Signature
Pansy Claxton
Printed Name
On this day personally appeared before me, Valencia Claxton & Pansy Claxton, to me known to
be the individual(s) described in and who executed the foregoing instrument, and on oath swore
that they executed the foregoing instrument as their free and voluntary act and deed for the uses
and purposes therein mentioned.
my day of �»v, 20 .
GIVEN m hand and official seat this
Notary Signature
Notary Printed Name
HRP Homeowners Loan Agreement
MEW& aZc.
Notary Public in and for t e Startle pf Washington.
My commission expires //201i
22 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www.cityoffederalway.com
EXHIBIT D
HOMEOWNERS & CONTRACTOR AGREEMENT FOR
HOUSING REPAIR PROGRAM
FRONT PORCH REPAIR
This Housing Repair Program ( "HRP ") Contractor Agreement ( "Agreement ") is made between the
Valencia Claxton & Pansy Claxton ( "Homeowners "), and M.A.D. Construction, LLC, a Limited
Liability Company ( "Contractor "). The Homeowners and Contractor (together "Parties ") are located and
do business at the below addresses which shall be valid for any notice required under this Agreement:
M.A.D. CONSTRUCTION, LLC:
Kevin Young
22002 38th Ave E
Spanaway, WA 98387
253- 846 -1265 (telephone)
253- 375 -7811 (facsimile)
madconst@,live.com
HOMEOWNERS:
Valencia Claxton
Pansy Claxton
30218 29th Ave S
Federal Way, WA 98003
253- 839 -1554 (telephone)
The Parties agree as follows:
1. RECITALS.
1.1 Homeowners are the owners of residential real property located at 30218 29th Ave S,
Federal Way, WA 98003 ( "Property ").
1.2 Homeowners and the City of Federal Way ( "City" or "Lender ") have agreed that
Homeowners will borrow money from Lender, and Lender will lend money to Homeowners, to
rehabilitate the Property.
1.3 Lender, acting through the City of Federal Way Housing Repair Programs, in the
operation of its program of housing rehabilitation loans, is involved in the Project, as defined below, in
its limited role as a lender administering home rehabilitation loans.
1.4 The Homeowners have selected and agreed to hire the Contractor, and the Contractor has
agreed to engagement by the Homeowners, to accomplish the rehabilitation Work on the Property.
1.5 Homeowners wish to hire Contractor, and Contractor wishes to work for Homeowners,
with regard to certain general contractor services on the Property pursuant to the terms and conditions set
forth below.
1.6 Contractor is a general contractor registered in the State of Washington.
2. DEFINITIONS.
HRP Homeowners Loan Agreement
23 01/2016
CITY '4Of
*.∎ Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway corn
2.1 Certificate of Acceptance shall mean a written statement issued by the City and signed by
the City's inspector to be delivered to the Homeowners for execution stating that all Work has been
generally completed in accordance with the Work Write -up for an Identified Project.
2.2 Change Order shall mean an amendment to the Work and/or Contract Price pertaining to
an Identified Project, submitted by Contractor and approved by a Homeowners and the City in
accordance with the Project Documents and the HRP Guidelines.
2.3 City shall mean the City of Federal Way, and shall include its various departments,
officers, employees, legal representatives, agents, and third party vendors.
2.4 Competitive Sealed Proposal shall refer to the project delivery method authorized by
Chapter 39.04 RCW and the adopted City of Federal Way Contract and Purchasing Manual, Chapter 5,
Section E (Limited Public Works Process) and required in connection with Reconstruction or
Rehabilitation Projects under the Housing Repair Program (HRP), except in the cases of emergency
conditions, at which time the City shall select a vendor based upon availability and/or price and as
outlined in the City of Federal Way Contract and Purchasing Manual, Chapter 2, Section D.
2.5 Contract Price shall mean the price to be paid by the City to the Contractor for the
performance of the Work in connection with an Identified Project. Any changes in the Contract Price
shall result only from authorized Change Orders. The Contract Price shall be paid in the form of a single
payment at the completion of the Work in accordance with the Notice to Proceed.
2.6 Contractor shall mean the contractor designated in the introductory paragraph of this
Agreement. For Reconstruction Projects, the Contractor shall be selected utilizing the Competitive
Sealed Proposal method, with sealed work plans and specifications in accordance with applicable laws
and procedures, including the HRP Guidelines.
2.7 Contractor's Application for Payment shall mean that certain Application and Certificate
for Payment submitted by Contractor requesting payment in accordance with the Notice to Proceed. Such
Contactor's Application for Payment shall reflect the cost for successful delivery of the entire Work
completed by Contractor, include the notarized signature of the Contractor, and otherwise be in form and
substance acceptable to the City.
2.8 HRP shall mean the City's Housing Repair Program, funded by the Community
Development Block Grant Program and being implemented by the City pursuant to Grant No. B- 12 -MC-
53 -0015 between the City and the U.S. Department of Housing and Urban Development.
2.9 HRP Guidelines shall mean Housing Repair Guidelines adopted by CSD Community
Services Division.
2.10 CSD shall mean the City's Community Services Division.
2.11 Homeowners shall mean the Homeowners of a Residence that qualifies under the HRP for
the Rehabilitation of its Residence located on the Homeowners' Property.
HRP Homeowners Loan Agreement
24 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835 -7000
www cityofiederalway com
2.12 Homeowner Loan Agreement shall mean the agreement by and between a Homeowners
and the City, governing and executed in connection with an Identified Project.
2.13 Homeowner's Property shall mean the land of the Homeowners, all rights and
appurtenances thereto; all improvements now or hereafter attached to the land or improvements, and all
substitutions and replacements thereof, and additions and successions thereto.
2.14 HUD shall mean the U.S. Department of Housing and Urban Development and any
successor government agency.
2.15 Identified Project shall mean the Rehabilitation of a specified Residence located on a
specified Homeowners' Property pursuant to the HRP. The Identified Project shall be subject to and
governed by the terms and provisions of this Agreement and the Project Documents.
2.16 Manager shall mean the Manager of CSD or any other person(s) that may be designated to
perform the various functions assigned to the Manager.
2.17 Notice to Proceed shall mean the written authorization issued by the City for the
Contractor to proceed with the Work set forth in the Work Write -up for an Identified Project.
2.18 Payment Request shall mean the form prepared, signed and submitted to CSD by the
Contractor. The Payment Request shall reflect the value of all the completed and approved Work on the
specified line items by trade, the total of the line -item cost of all of the completed Work by trade listed.
2.19 Plans and Specifications shall mean a detailed itemized list approved by the City that
provides instructions to the Contractor for an Identified Project, which may include drawings as
applicable. Plans and Specifications may be amended by authorized Change Orders.
2.20 Project Documents shall mean this Agreement, the Homeowner Loan Agreement, the
Plans and Specifications, the Notice to Proceed, the Final Inspection Form, and all other documents
pertaining to, or executed in connection with, an Identified Project.
2.21 Rehabilitation Project shall mean those repairs required to remove life, health, or safety
hazards to a Residence on a Homeowner's Property.
2.22 Residence shall mean a single family detached dwelling located on, or to be rehabilitated
on a Homeowner's Property, or a unit in a multi - family ownership complex, such as a condominium.
2.23 Subcontractor shall mean any person or entity that, pursuant to this Agreement, will
perform Work at a Residence at the request of the Contractor.
2.24 Survey shall mean an identification of all relevant characteristics of a Homeowner's
Property, including but not limited to a Homeowner's Property location, the location of improvements,
and a description of a Homeowner's Property.
2.25 Work shall mean the labor and the materials necessary to complete the Identified Project
pursuant to the Project Documents.
HRP Homeowners Loan Agreement
25 01/2016
CITY OF
.'�.., Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffedera!way com
2.26 Work Write -up shall mean the form that specifies and quantifies the Work to be done in
connection with an Identified Project, and includes the Plans and Specifications.
3. TERM. The term of this Agreement shall commence upon the effective date of this Agreement,
which shall be the date of mutual execution, and shall continue until the completion of the Work, but in
any event no later than April 30, 2016 ( "Term "). This Agreement may be extended for additional periods
of time upon the mutual written agreement of the Homeowners, the Contractor, and the City.
4. WORK.
4.1 Work. The Contractor shall provide goods, materials, labor and services and otherwise
perform the work more specifically described in Attachment A, attached hereto and incorporated by this
reference ( "Work" or "Identified Project "), performed to the Homeowners and City's satisfaction, within
the time period prescribed by the Homeowners and City.
4.2 Side Agreements. All work to be performed and all specifications pertaining thereto will
be identified in the Project Documents. CONTRACTOR SHALL PERFORM NO OTHER WORK
UNLESS CHANGE ORDERS FOR ADDITIONAL WORK OR MATERIALS ARE ISSUED IN
ACCORDANCE WITH THIS AGREEMENT AND THE PROJECT DOCUMENTS. All properly
approved and executed Change Orders shall be made a part of Project Documents. The Contractor agrees
not to enter into any side agreements for additional work or materials for a Residence over and above
those specified in the Work Write -up, where such labor is to be performed or material to be supplied or
installed prior to the issuance of a Certificate of Acceptance.
4.3 Warranties. The Contractor warrants that it has the requisite training, skill, and experience
necessary to provide the Work and is appropriately accredited and licensed by all applicable agencies and
governmental entities, including but not limited to obtaining a City of Federal Way business registration.
The Contractor warrants it will provide services in a manner consistent with the accepted practices for
other similar services within the Puget Sound region in effect at the time those services are performed.
The Contractor warrants goods are merchantable, are fit for the particular purpose for which they were
obtained, and will perform in accordance with their specifications and Contractor's representations to
Homeowners and the City. The Contractor shall, at its sole cost and expense, correct all Work performed
which the Homeowners and the City deems to have defects in workmanship and material discovered
within one (1) year after the Homeowners and the City's final acceptance of the Work. This Agreement
is subject to all warranty provisions established under the Uniform Commercial Code, Title 62A RCW.
The Contractor shall furnish the Homeowners and the City with all manufacturer's and supplier's written
guarantees, warranties and operating instructions covering materials and equipment furnished under the
Project Documents for each Identified Project, together with any documentation required for validation.
In the event any part of the goods is repaired, only original replacement parts shall be used; rebuilt or
used parts are not acceptable. When defects are corrected, the warranty for that portion of the work shall
extend for one (1) year from the date such correction is completed and accepted by the Homeowners and
the City. The Contractor shall begin to correct any defects within seven (7) calendar days of its receipt of
notice from the Homeowners and the City of the defect at no additional expense to the City or the
Homeowners. If the Contractor does not accomplish the corrections within a reasonable time as
determined by the City, the City may complete the corrections and the Contractor shall pay all costs
incurred by the City in order to accomplish the correction.
HRP Homeowners Loan Agreement
26 01/2016
CITY OF
.�..,, Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
4.4 Time, Documentation, and Inspection. The Work to be performed in connection with each
Identified Project shall commence on the date specified in the Notice to Proceed issued in connection
with such Identified Project. The Work shall be completed within the time period specified in said Notice
to Proceed. Work shall be subject, at all times, to observation and inspection by and with approval of the
Homeowners and the City, but the making (or failure or delay in making) of such inspection or approval
shall not relieve Contractor of responsibility for performance of the Work in accordance with this
Agreement, notwithstanding the City's knowledge of defective or non - complying performance, its
substantiality, or the ease of its discovery.
4.5 Clean Up. At any time ordered by the Homeowners and the City and immediately after
completion of the Work, the Contractor shall, at its own expense, clean up and remove all refuse and
unused materials of any kind resulting from the Work. In the event the Contractor fails to perform the
necessary clean up, the City may, but in no event is it obligated to, perform the necessary clean up and
the costs thereof shall be immediately paid by the Contractor to the City and/or the City may deduct its
costs from any remaining payments due to the Contractor.
5. TERMINATION.
5.1 Termination with Cause.
5.1.1 The Homeowners and the City may terminate this Agreement for cause by giving
written notice to the Contractor under any of the following circumstances:
a. If Contractor neglects to perform the Work in connection with the Identified
Project properly, or in a timely manner, or refuses or neglects to supply proper or sufficient materials or
workers, or fails to perform any provision of any of the Project Documents pertaining to the Identified
Project;
b. If Contractor is adjudged bankrupt, makes a general assignment for the benefit of
his creditors, or if a receiver is appointed on account of insolvency;
c. If Contractor fails to make prompt payment to any Subcontractor for material or
labor; or
d. Contractor violates any public law or ordinance.
5.1.2. If the Homeowners and the City terminate this Agreement for cause, the
Homeowners and the City may take possession of the Identified Project site or sites and utilize any and
all materials and appliances to be provided under the respective Project Documents which are located on
the site or sites to finish the Work. The Homeowners and the City shall not prejudice any of the
Homeowners and the City's rights or remedies under this Agreement or the respective Project
Documents, or by law, by terminating this Agreement for cause or by taking possession of the site or
sites.
5.1.3. In case of termination of this Agreement for the Identified Project for cause pursuant to
this subsection, the Contractor shall not be entitled to receive any payment for the Identified Project until
the Work for such Identified Project is completed. Upon completion of the Identified Project, the
Contractor shall be given any balance of the Contract Price less any damages and less the amount of
expenses incurred by the Homeowners and the City in finishing the Work for the Identified Project,
including any costs in addition to or in excess of those originally contemplated in the Project Documents
HRP Homeowners Loan Agreement
27 01/2016
CITY OF
'�...., Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
for the Identified Project. If the cost in completing the Work for the Identified Project is greater than the
original Contract Price, the Contractor shall pay the difference to the Homeowners and the City upon ten
(10) days' written demand.
5.2 Termination Without Cause. The Homeowners and the City may terminate this
Agreement in its entirety for the Identified Project without cause by giving written notice of said
termination to the Contractor. In case of termination of this Agreement in its entirety for the Identified
Project without cause pursuant to this subsection, the Contractor shall submit its final statement for all
Work performed through the date of termination for the respective Identified Project or, in the case of the
termination of this Agreement in its entirety, which shall be payable in the manner provided in Section 6
of this Agreement.
5.3 Acceptance of Inferior Work. In connection with the Identified Project, the Homeowners
and the City may accept Work that appears to be incorrect if, in the City's opinion, it is impractical to
have the Work corrected. In such case, the Homeowners and the City does not waive the defect, but
rather may deduct a reasonable amount for the loss sustained from the Contract Price for said Identified
Project. This subsection is not intended to limit the right of the Homeowners and the City to recover
additional damages as may be permitted under this Agreement, the respective Project Documents, or by
law.
5.4 Cessation of Work. Upon receipt of a notice to terminate from the Homeowners and the
City, the Contractor shall discontinue all Work under this Agreement and all Project Documents for the
Identified Project, unless the notice specifies a later termination date or that specific Work be completed
prior to termination.
6. COMPENSATION AND APPROVAL OF WORK.
6.1 Contract Price. In return for the Work, the City shall pay the Contractor on behalf of the
Homeowners an amount not to exceed a maximum amount and according to a rate or method as
delineated in Attachment B, attached hereto and incorporated by this reference. The Contractor agrees
that any hourly or flat rate charged by it for its services contracted for herein shall remain locked at the
negotiated rate(s) for the Term. Except as otherwise provided in Attachment B, the Contractor shall
solely be responsible for the payment of any taxes imposed by any lawful jurisdiction as a result of the
performance and payment of this Agreement.
6.2 Change Orders. If the Contractor determines that a change in the Work or Contract Price
is required; the Contractor may submit an estimate for increases or decreases due to such change. The
Homeowners and the City shall review the requested change. If the Homeowners and the City elects to
authorize the change, the Homeowners and the City will compute the reduction from or addition to the
Contract Price due to said change and will authorize such change in writing by the issuance of a Change
Order. The Contractor will not, and shall not have any obligation to, perform any change in the Work
until a Change Order has been authorized and issued by the Homeowners and the City. Under no
circumstances may the amount of the Contract Price, plus Change Orders exceed the maximum amount
of assistance authorized under the HRP Guidelines.
6.2 Method of Payment. Once the Work has been completed, the Contractor shall submit a
Payment Request in the form specified by the City, including a description of what Work have been
HRP Homeowners Loan Agreement
28 01/2016
CITY
1.. OF Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffedera!way com
performed, the name of the personnel performing such Work, and any hourly labor charge rate for such
personnel. The Contractor will then schedule and conduct a walk - through inspection of the Residence
together with the Homeowners, the City, and the Contractor. During the final inspection, the City's
inspector will prepare a field report in which the City's inspector determines whether the Work has been
satisfactorily completed in accordance with the Project Documents. He will discuss the warranty and any
other outstanding issues with the Homeowners. The City's inspector and the Homeowners will make a
list of items that are in need of correction or completion, based upon the Project Documents (the "Punch
List "). The City's inspector will provide the Homeowners and Contractor with a copy of the Punch List.
The Contractor will schedule and complete the Work on the Punch List within five (5) days of receipt
thereof. When the Work on the Punch List is complete, the Contractor, Homeowners and City's inspector
will verify that all such Work has been completed. Upon completion of all Work on the Punch List and
verification of the completion by the Contractor, the City's Inspector and the Homeowners, the City's
Inspector will sign and forward the Payment Request for the final payment to the City CSD office for
processing and payment, which final payment will be made to the Contractor after thirty (30) days from
the date of the Payment Request. If the Work does not meet the requirements of this Agreement, the
Contractor will correct or modify the work to comply with the Agreement. The City may withhold
payment for such Work until the Work meets the requirements of the Agreement.
6.3 Defective or Unauthorized Work. If any goods, materials, or services provided under this
Agreement are either defective, unauthorized, or otherwise do not meet the requirements of this
Agreement, the Contractor will correct or modify the work to comply with the Agreement, and the
Homeowners and the City reserves the right to withhold payment from the Contractor until the goods,
materials, or services are acceptable to the Homeowners and the City. If the Contractor is unable, for any
reason, to complete any part of this Agreement, the Homeowners and the City may obtain the goods,
materials, or services from other sources, and the Contractor shall be liable to the Homeowners and the
City for any additional costs incurred by the Homeowners and the City. "Additional costs" shall mean all
reasonable costs, including legal costs and attorney fees, incurred by the Homeowners and the City
beyond the maximum Contract Price specified above and in Attachment B. The Homeowners and the
City further reserve the right to deduct these additional costs incurred to fulfill this agreement with other
sources, from any and all amounts due or to become due the Contractor.
6.4 Non - Appropriation of Funds. If sufficient funds are not appropriated or allocated for
payment under this Agreement for any future fiscal period, the Homeowners and the City will not be
obligated to make payments for Work or amounts incurred after the end of the current fiscal period, and
this Agreement will terminate upon the completion of all remaining Work for which funds are allocated.
No penalty or expense shall accrue to the Homeowners and the City in the event this provision applies.
6.5 Final Payment: Waiver of Claims. Contractor's acceptance of final payment shall
constitute a waiver of any and all claims, except those previously and properly made and identified by
Contractor as unsettled at the time request for final payment is made.
7. INDEMNIFICATION.
7.1 Contractor Indemnification. The Contractor agrees to release indemnify, defend, and hold
the Homeowners and the City, its elected officials, officers, employees, agents, representatives, insurers,
attorneys, and volunteers harmless from any and all claims, demands, actions, suits, causes of action,
arbitrations, mediations, proceedings, judgments, awards, injuries, damages, liabilities, taxes, losses,
HRP Homeowners Loan Agreement
29 01/2016
�► Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
fines, fees, penalties expenses, attorneys' fees, costs, and/or litigation expenses to or by any and all
persons or entities, including, without limitation, their respective agents, licensees, or representatives,
arising from, resulting from, or in connection with this Agreement or the performance of this Agreement,
except for that portion of the claims caused by the Homeowners and the City's sole negligence. Should a
court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the
event of liability for damages arising out of bodily injury to persons or damages to property caused by or
resulting from the concurrent negligence of the Contractor and the Homeowners and the City, the
Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. Contractor
shall ensure that each sub - contractor shall agree to defend and indemnify the Homeowners and the City,
its elected officials, officers, employees, agents, representatives, insurers, attorneys, and volunteers to the
extent and on the same terms and conditions as the Contractor pursuant to this paragraph. The
Homeowners and the City's inspection or acceptance of any of Contractor's work when completed shall
not be grounds to avoid any of these covenants of indemnification.
7.2 Industrial Insurance Act Waiver. It is specifically and expressly understood that the
Contractor waives any immunity that may be granted to it under the Washington State industrial
insurance act, Title 51 RCW, solely for the purposes of this indemnification. Contractor's
indemnification shall not be limited in any way by any limitation on the amount of damages,
compensation or benefits payable to or by any third party under workers' compensation acts, disability
benefit acts or any other benefits acts or programs. The Parties further acknowledge that they have
mutually negotiated this waiver.
7.3 Homeowners and City Indemnification. The Homeowners and the City agree to release,
indemnify, defend and hold the Contractor, its officers, directors, shareholders, partners, employees,
agents, representatives, and subcontractors harmless from any and all claims, demands, actions, suits,
causes of action, arbitrations, mediations, proceedings, judgments, awards, injuries, damages, liabilities,
losses, fines, fees, penalties expenses, attorneys' fees, costs, and/or litigation expenses to or by any and
all persons or entities, including without limitation, their respective agents, licensees, or representatives,
arising from, resulting from or connected with this Agreement to the extent solely caused by the
negligent acts, errors, or omissions of the Homeowners and the City.
7.4 Survival. The provisions of this Section shall survive the expiration or termination of this
Agreement with respect to any event occurring prior to such expiration or termination.
8. INSURANCE. The Contractor agrees to carry insurance for liability which may arise from or in
connection with the performance of the services or work by the Contractor, their agents, representatives,
employees or subcontractors performed under the Project Documents for the Identified Project for the
duration of the Agreement and thereafter with respect to any event occurring prior to such expiration or
termination as follows:
8.1. Minimum Limits. The Contractor agrees to carry as a minimum, the following insurance,
in such forms and with such carriers who have a rating that is satisfactory to the City:
a. Commercial general liability insurance covering liability arising from premises,
operations, independent contractors, products - completed operations, stop gap liability, personal injury,
bodily injury, death, property damage, products liability, advertising injury, and liability assumed under
an insured contract with limits no less than $1,000,000 for each occurrence and $2,000,000 general
aggregate.
HRP Homeowners Loan Agreement
30 01/2016
CITY OF
.. Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityotiederatway cam
b. Workers' compensation and employer's liability insurance in amounts sufficient
pursuant to the laws of the State of Washington;
c. Automobile liability insurance covering all owned, non - owned, hired and leased
vehicles with a minimum combined single limits in the minimum amounts required to drive under
Washington State law per accident for bodily injury, including personal injury or death, and property
damage.
8.2. No Limit of Liability. Contractor's maintenance of insurance as required by the agreement
shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance,
or otherwise limit the City's recourse to any remedy available at law or in equity. The Contractor's
insurance coverage shall be primary insurance with respect to the City. Any insurance, self - insurance, or
insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall
not contribute with Contractor's insurance.
8.3. Additional Insured, Verification. The City shall be named as additional insured on all
commercial general liability insurance policies. Concurrent with the execution of this Agreement,
Contractor shall provide certificates of insurance for all commercial general liability policies attached
hereto as Attachment C and incorporated by this reference. At City's request, Contractor shall furnish the
City with copies of all insurance policies and with evidence of payment of premiums or fees of such
policies. If Contractor's insurance policies are "claims made," Contractor shall be required to maintain
tail coverage for a minimum period of three (3) years from the date this Agreement is terminated or upon
project completion and acceptance by the City.
8.4
Agreement.
Survival. The provisions of this Section shall survive the expiration or termination of this
9. CONFIDENTIALITY. All information regarding the City obtained by Contractor in its
performance of this Agreement shall be considered confidential subject to applicable laws. Breach of
confidentiality by the Contractor may be grounds for immediate termination. All records submitted by
the City to the Contractor will be safeguarded by the Contractor. The Contractor will fully cooperate with
the City in identifying, assembling, and providing records in case of any public records request.
10. WORK PRODUCT. All originals and copies of work product, including plans, sketches,
layouts, designs, design specifications, records, files, computer disks, magnetic media or material which
may be produced or modified by Contractor while performing the Work shall belong to the City upon
delivery. The Contractor shall make such data, documents, and files available to the City and shall
deliver all needed or contracted for work product upon the City's request. At the expiration or
t iniination of this Agreement, all originals and copies of any such work product remaining in the
possession of Contractor shall be delivered to the City.
11. BOOKS AND RECORDS. The Contractor agrees to maintain books, records, and documents
which sufficiently and properly reflect all direct and indirect costs related to the performance of the Work
and maintain such accounting procedures and practices as may be deemed necessary by the City to assure
proper accounting of all funds paid pursuant to this Agreement. These records shall be subject, at all
reasonable times, to inspection, review or audit by the City, its authorized representative, the State
Auditor, or other governmental officials authorized by law to monitor this Agreement.
12. INDEPENDENT CONTRACTOR / EMPLOYEE CONDITIONS.
HRP Homeowners Loan Agreement
31 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityofederalway com
12.1 Independence. The Parties intend that the Contractor shall be an independent contractor
and that the Contractor has the ability to control and direct the performance and details of its work, the
City being interested only in the results obtained under this Agreement. The City shall be neither liable
nor obligated to pay Contractor sick leave, vacation pay or any other benefit of employment, nor to pay
any social security, income, or other tax which may arise as an incident of employment, except as
specifically provided in Section 4. Industrial or any other insurance that is purchased for the benefit of
the City, regardless of whether such may provide a secondary or incidental benefit to the Contractor,
shall not be deemed to convert this Agreement to an employment contract. If the Contractor is a sole
proprietorship or if this Agreement is with an individual, the Contractor agrees to notify the City and
complete any required form if the Contractor retired under a State of Washington retirement system and
agrees to indemnify any losses the City may sustain through the Contractor's failure to do so.
12.2 Safety. Contractor shall take all necessary precautions and shall be responsible for the
safety of its employees, agents, and subcontractors at the work site and in the performance of the contract
work and shall utilize all protection necessary for that purpose. Contractor shall comply with all
applicable provisions of federal, state, and local safety and health laws and codes, including without
limitation, all OSHA/WISHA requirements, Safety and Health Standards for Construction Work
(Chapter 296 -155 WAC), General Safety and Health Standards (Chapter 296 -24 WAC), and General
Occupational Health Standards (Chapter 296 -62 WAC). Contractor shall erect and properly maintain, at
all times: all necessary guards, barricades, signals and other safeguards at all unsafe places at or near the
site for the protection of its employees and the public; safe passageways at all road crossings, crosswalks,
street intersections; and post danger signs warning against known or unusual hazards and do all other
things necessary to prevent accident or loss of any kind. Contractor shall protect from damage all water,
sewer, gas, steam, or other pipes or conduits, and all hydrants and all other property that is likely to
become displaced or damaged by the performance of the Work. The Contractor shall, at its own expense,
secure and maintain a safe storage place for its materials and equipment and is solely responsible for the
same.
12.3 Risk of Work. All work shall be done at Contractor's own risk, and Contractor shall be
responsible for any loss of or damage to materials, tools, or other articles used or held for use in
connection with the work. Industrial or any other insurance that is purchased for the benefit of the
Homeowners and the City, regardless of whether such may provide a secondary or incidental benefit to
the Contractor, shall not be deemed to convert this Agreement to an employment contract. Even though
Contractor is an independent contractor, the work must meet the approval of the City and shall be subject
to the City's general right of inspection to secure satisfactory completion.
13. CONFLICT OF INTEREST. It is recognized that Contractor may or will be performing
professional services during the Term for other parties; however, such performance of other services
shall not conflict with or interfere with Contractor's ability to perform the Services required under this
Agreement. Contractor agrees to resolve any such conflicts of interest in favor of the City and
Homeowners. Contractor confirms that Contractor does not have a business interest or a close family
relationship with the Homeowners or City officer or employee who was, is, or will be involved in the
Contractor's selection, negotiation, drafting, signing, administration, or evaluation of the Contractor's
performance.
HRP Homeowners Loan Agreement
32 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835 -7000
www cityoffederatway com
14. EQUAL OPPORTUNITY EMPLOYER. In all services, programs, activities, hiring, and
employment made possible by or resulting from this Agreement or any subcontract, there shall be no
discrimination by Contractor or its subcontractors of any level, or any of those entities' employees,
agents, subcontractors, or representatives against any person because of sex, age (except minimum age
and retirement provisions), race, color, religion, creed, national origin, marital status, or the presence of
any disability, including sensory, mental or physical handicaps, unless based upon a bona fide
occupational qualification in relationship to hiring and employment. This requirement shall apply to, but
not be limited to, the following: employment, advertising, layoff or termination, rates of pay or other
forms of compensation, and selection for training, including apprenticeship. Contractor shall comply with
and shall not violate any of the terms of Chapter 49.60 RCW, Title VI of the Civil Rights Act of 1964,
the Americans With Disabilities Act, Section 504 of the Rehabilitation Act of 1973, 49 CFR Part 21, 21.5
and 26, or any other applicable federal, state, or local law or regulation regarding nondiscrimination.
15. GENERAL PROVISIONS.
15.1 Interpretation and Modification. This Agreement, together with any attached Exhibits,
contains all of the agreements of the Parties with respect to any matter covered or mentioned in this
Agreement and no prior statements or agreements, whether oral or written, shall be effective for any
purpose. Should any language in any Attachments to this Agreement conflict with any language in this
Agreement, the terms of this Agreement shall prevail. The respective captions of the Sections of this
Agreement are inserted for convenience of reference only and shall not be deemed to modify or
otherwise affect any of the provisions of this Agreement. Any provision of this Agreement that is
declared invalid, inoperative, null and void, or illegal shall in no way affect or invalidate any other
provision hereof and such other provisions shall remain in full force and effect. Any act done by either
Party prior to the effective date of the Agreement that is consistent with the authority of the Agreement
and compliant with the terms of the Agreement, is hereby ratified as having been performed under the
Agreement. No provision of this Agreement, including this provision, may be amended, waived, or
modified except by written agreement signed by duly authorized representatives of the Parties.
15.2 Assignment and Beneficiaries. Neither the Contractor nor the City shall have the right to
transfer or assign, in whole or in part, any or all of its obligations and rights hereunder without the prior
written consent of the other Party. If the non - assigning party gives its consent to any assignment, the
terms of this Agreement shall continue in full force and effect and no further assignment shall be made
without additional written consent. Subject to the foregoing, the rights and obligations of the Parties shall
inure to the benefit of and be binding upon their respective successors in interest, heirs and assigns. This
Agreement is made and entered into for the sole protection and benefit of the Parties hereto. No other
person or entity shall have any right of action or interest in this Agreement based on any provision set
forth herein.
HRP Homeowners Loan Agreement
33 01/2016
CITY OF
A`•*.s., Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
15.3 Applicable Law. This Agreement is subject to all laws, regulations, and ordinances of the
United States of America, the State of Washington, and the City, and all rules and regulations of any
regulatory body or office having jurisdiction and in particular, without limitation, the federal regulations
codified at 24 CFR Parts 92 and 570.
15.4 Compliance with Laws. The Contractor shall comply with and perform the Services in
accordance with all applicable federal, state, local, and city laws including, without limitation, all City
codes, ordinances, resolutions, regulations, rules, standards and policies, as now existing or hereafter
amended, adopted, or made effective. If a violation of the City's Ethics Resolution No. 91 -54, as
amended, occurs as a result of the formation or performance of this Agreement, this Agreement may be
rendered null and void, at the City's sole option.
15.5 Enforcement. Time is of the essence of this Agreement and each and all of its provisions
in which performance is a factor. Adherence to completion dates set forth in the description of the Work
is essential to the Contractor's performance of this Agreement. Any notices required to be given by the
Parties shall be delivered at the addresses set forth at the beginning of this Agreement. Any notices may
be delivered personally to the addressee of the notice or may be deposited in the United States mail,
postage prepaid, to the address set forth above. Any notice so posted in the United States mail shall be
deemed received three (3) days after the date of mailing. Any remedies provided for under the terms of
this Agreement are not intended to be exclusive, but shall be cumulative with all other remedies available
to the City at law, in equity or by statute. The failure of the City to insist upon strict performance of any
of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this
Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those
covenants, agreements or options, and the same shall be and remain in full force and effect. Failure or
delay of the City to declare any breach or default immediately upon occurrence shall not waive such
breach or default. Failure of the City to declare one breach or default does not act as a waiver of the
City's right to declare another breach or default. This Agreement shall be made in, governed by, and
interpreted in accordance with the laws of the State of Washington. If the Parties are unable to settle any
dispute, difference or claim arising from this Agreement, the exclusive means of resolving that dispute,
difference, or claim, shall be by filing suit under the venue, rules and jurisdiction of the King County
Superior Court, King County, Washington, unless the parties agree in writing to an alternative process. If
the King County Superior Court does not have jurisdiction over such a suit, then suit may be filed in any
other appropriate court in King County, Washington. Each party consents to the personal jurisdiction of
the state and federal courts in King County, Washington and waives any objection that such courts are an
inconvenient forum. If either Party brings any claim or lawsuit arising from this Agreement, each Party
shall pay all its legal costs and attorneys' fees and expenses incurred in defending or bringing such claim
or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided,
however, nothing in this paragraph shall be construed to limit the Parties' rights to indemnification under
Section 7 of this Agreement.
15.6 Execution. Each individual executing this Agreement on behalf of the City and Contractor
represents and warrants that such individual is duly authorized to execute and deliver this Agreement.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original and with the same effect as if all Parties hereto had signed the same document. All such
counterparts shall be construed together and shall constitute one instrument, but in making proof hereof it
shall only be necessary to produce one such counterpart. The signature and acknowledgment pages from
such counterparts may be assembled together to form a single instrument comprised of all pages of this
HRP Homeowners Loan Agreement
34 01/2016
CITY OF
Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityofederalway com
Agreement and a complete set of all signature and acknowledgment pages. The date upon which the last
of all of the Parties have executed a counterpart of this Agreement shall be the "date of mutual
execution" hereof.
HRP Homeowners Loan Agreement
[Signature page follows]
35 01/2016
CITY OF
∎, Federal Way
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cilyofrederalway com
IN WITNESS, the Parties execute this Agreement below, effective the last date written below.
HOMEOWNERS:
gnature Valencia Claxton
Signature ` ansy Claxton
i'at(e
STATE OF WASHINGTON )
) ss.
COUNTY OF )
On this day personally appeared before me, Valencia Claxton & Pansy Claxton, to me known to be the
individual(s) described in and who executed the foregoing instrument, and on oath swore that they
executed the foregoing instrument as their free and voluntary act and deed for the uses and purposes
therein mentioned.
GIVEN my hand and official seal this
HRP Homeowners Loan Agreement
day of , 20 1
Notary's signature
Notary's printed name -fit ✓
Notary Public in and for the State of
Washington. (112-6
My commission expires
36 01/2016
�► Federal Way
M.A.D. CONSTRUCTION, LLC:
By:
Printed Name: qj
CITY OF
�...� Federal Way
ATTACHMENT A
WORK
Identified Project
Project Number: 15 -003R
Scope: See attached
HRP Homeowners Loan Agreement 38
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
01/2016
CITY OF
Federal Way
ATTACHMENT B
COMPENSATION
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835 -7000
www cityoffederahvay com
Total Compensation: In return for the Work, the City shall pay the Contractor an amount not to exceed
Five thousand eight hundred sixty -seven and 12 /100 Dollars ($5,867.12), which includes a 10 percent
contingency fee for unforseen repairs with approval by City of Federal Way Housing Repair staff.
HRP Homeowners Loan Agreement
39 01/2016
M.A.D. Construction, LLC
2002 38TH AVE E
5PANAWAY, WA 98387
O{{ce 253 -846 -1265
fax 253- 375 -7811
Phone # 253 -846 -1265
Edx # 253- 375 -7811
Name / Address
Federal Way City Hall
Community Services
(Mayor's Office)
33325 8th Avenue 5
Federal Way, WA 98003
madconst@I ive.corn
Es
ate
Date
Estimate #
8/17/2015
10901400 -A
Ship To
Valencia Claxton
30218 29th Ave S
Federal Way, WA 98023
15 -003
Item
Description
Total
10 Exterior Trim ft Decks
Front Porch - Rebuild steps and porch to current code
4,871.00T
Demo existing deck with steps at two (2) locations.
Frame- deck with pressure treated 2x6, flashing at the rim board three (3) sides, 4x4
post, 4x6 beam, pier blocks, galvanized 2x6 hangers, 5/4" x4 decking
If needed, additional cost to conduct lead test is $500.00
Includes
Includes: Daily job site clean -up, PPE, intent /affidavit, plans and permit
0.00T
Exclusions
EXCLUSIONS: Water, power, honey bucket, special inspection, forklift, traffic
control, lifting hoisting, DT,OT, Based on straight time, damage to landscape or
driveway for deliver or uses of heavy equipment, unforeseen or act of god, hazard
material removal and /or testing
0.00
Subtotal
$4,871.00
Sales Tax (9.5%)
$462.75
Total
$5,333.75
Signature
4-1,01.0 X33
5-310-?-. )2
Federal Way
HRP Homeowners Loan Agreement
ATTACHMENT C
INSURANCE CERTIFICATE
(to be provided by Contractor)
CITY HALL
33325 8th Avenue South
Federal Way, WA 98003 -6325
(253) 835-7000
www cityoffederalway com
40 01/2016
Phone: (253)825 -7000
ACORN® CERTIFICATE OF LIABILITY INSURANCE
‘,...----"
DATE(MM/DDIYYYY)
03/07/2016
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).
PRODUCER
Brayer Insurance Services, LLC
1501 Parker Way, Suite 108
Mount Vernon, WA 98273
CONTACT AM Sky Hamilton
A /C. NO, E,c): 360- 424 -3000 FAX , No):
866- 419
-3909
NAIC it
ADDRESS: sky@brayerinsurance.com
INSURER(S) AFFORDING COVERAGE
INSURER A: Colony Ins Company
11165
INSURED
M A D CONSTRUCTION, LLC
22002 38TH AVE E
SPANAWAY, WA 98387 -6875
INSURER B : Ohio Security Insurance Company -
24082
INSURERC: National Union Fire Ins Co
11165
INSURER D: Rockhill Ins Company
CLAIMS -MADE X ., OCCUR
INSURER E:
$ 100,000
$ 5,000
INSURER F :
COVERAGES
CERTIFICATE NUMBER: 00000000- 1738080
REVISION NUMBER: 12
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
LTR
TYPE OF INSURANCE
ADDL
INSD
SUBRI,
WVD ; POLICY NUMBER
POLICY EFF
(MM/DO/YYYY)
POUCY EXP
(MM/DD /YYYY)
LIMITS
A
X
COMMERCIAL GENERAL LIABILITY
Y
Y 103 GL 0012807 -00
02/11/2016
02/11/2017
EACH OCCURRENCE
$ 1,000,000
CLAIMS -MADE X ., OCCUR
AMAGE TO
PREMISES (Ea RENTED
$ 100,000
$ 5,000
MED EXP (Any one person)
PERSONAL &ADVINJURY
$ 1,000,000
GENII_
AGGREGATE LIMIT APPLIES PER
POLICY X JECT ( 1 LOC
OTHER:
GENERAL AGGREGATE
$ 2,000,000
PRODUCTS - COMP/OP AGG
$ 2,000,000
$
B
AUTOMOBILE LIABILITY
ANY AUTO
ALL OWNED X HEDU
SCHEDULED
NON -OWNED
X HIRED AUTOS X AUTOS
Y
Y ' BAS54761858
I
02/11/2016 !; 02/11/2017
(Ea adtSWGLE LIMIT
$ 1,000,000
BODILY INJURY (Per person)
$
BODILY INJURY (Per accident)
$
PROPERTY DAMAGE
(Per accident)
$
$
C
X
UMBRELLA LIAB X OCCUR
EXCESS LIAB CLAIMS -MADE
i BE 018257841
02/11/2015 02/11/2016
EACH OCCURRENCE
$ 1,000,000
AGGREGATE
$ 1,000,000
DED RETENTION $
$
A
WORKERS
AND
ANY
OFFICER/MEMBER
(Mandatory
If yes,
DESCRIPTION
COMPENSATION
EMPLOYERS' LIABILITY Y / N
N / A
Y
103 GL 0012807 -00
02/11/2016 02/11/2017
X STATUTE OTH-
ER
Stop Gap
E.L. EACH ACCIDENT
$ 1,000,000
PROPRIETOR/PARTNER/EXECUTIVE
EXCLUDED?
E.L. DISEASE - EA EMPLOYEE
$ 1,000,000
in NH)
describe under.
OF OPERATIONS below
E.L. DISEASE - POLICY LIMIT
$ 1,000,000
D
Pollution
, ENVP008245 -02
02/11/2016 02/11/2017
Poll. Liability Agg
2,000,000
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached If more space is required)
Certificate Holder is added as an Additional Insured as their interest may appear per written contract
Endorsement Forms attached
CERTIFICATE HOLDER
CANCELLATION
City Of Federal Way
33325 8th Ave S
Federal Way, WA 98003 -6325
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
AUTOO D REPRESENTATIVE
(SCH)
ACORD 25 (2014/01)
1988 -2014 ACORD CORPORATION. All rights reserved.
The ACORD name and logo are registered marks of ACORD
Printed by SCH on March 07, 2016 at 09:30AM
First American
Loan Policy
Loan Policy of Title Insurance
ISSUED BY
First American Title Insurance Company
POLICY NUMBER
5011353 - 2580637
Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be
given to the Company at the address shown in Section 17 of the Conditions.
COVERED RISKS
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS,
FIRST AMERICAN TITLE INSURANCE COMPANY, a Nebraska corporation (the "Company ") insures as of Date of Policy and, to the extent stated
in Covered Risks 11, 13, and 14, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the
Insured by reason of:
1. Title being vested other than as stated in Schedule A.
2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from
(a) A defect in the Title caused by
(i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation;
(ii) failure of any person or Entity to have authorized a transfer or conveyance;
(iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered;
(iv) failure to perform those acts necessary to create a document by electronic means authorized by law;
(v) a document executed under a falsified, expired, or otherwise invalid power of attorney;
(vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic
means authorized by law; or
(vii) a defective judicial or administrative proceeding.
(b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid.
(c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an
accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located
on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.
3. Unmarketable Title.
4. No right of access to and from the Land.
(Covered Risks Continued on Page 2)
In Witness Whereof, First American Title Insurance Company has caused its corporate name to be hereunto affixed by its authorized officers as of
Date of Policy shown in Schedule A.
First American Tide insurance Company
Jeffrey S Robinson
Secretary
(This Policy is valid only when Schedules A and B are attached)
This Jacket was created electronically and constitutes an original document
Copyright 2006 -2009 American Land Title Association. All rights reserved. The use of this form is restricted to ALTA licensees and ALTA members in good standing as of the date of use.
All other uses are prohibited. Reprinted under license from the American Land Title Association.
(Form 5011353 (7 -1 -14) 'Page 1 of 12
Policy Number: 2580637 ALTA Loan Policy of Title Insurance (6- 17 -06)i
Washington
COVERED RISKS (Continued)
5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning)
restricting, regulating, prohibiting, or relating to
(a) the occupancy, use, or enjoyment of the Land;
(b) the character, dimensions, or location of any improvement erected on the Land;
(c) the subdivision of land; or
(d) environmental protection
if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to
the extent of the violation or enforcement referred to in that notice.
6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement
action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that
notice.
7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records.
8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge.
9. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. This Covered Risk includes but is not limited to
insurance against loss from any of the following impairing the lien of the Insured Mortgage
(a) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation;
(b) failure of any person or Entity to have authorized a transfer or conveyance;
(c) the Insured Mortgage not being properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered;
(d) failure to perform those acts necessary to create a document by electronic means authorized by law;
(e) a document executed under a falsified, expired, or otherwise invalid power of attorney;
(f) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means
authorized by law; or
(g) a defective judicial or administrative proceeding.
10. The lack of priority of the lien of the Insured Mortgage upon the Title over any other lien or encumbrance.
11. The lack of priority of the lien of the Insured Mortgage upon the Title
(a) as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for services,
labor, or material arising from construction of an improvement or work related to the Land when the improvement or work is either
(i) contracted for or commenced on or before Date of Policy; or
(ii) contracted for, commenced, or continued after Date of Policy if the construction is financed, in whole or in part, by proceeds of
the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on Date of Policy to advance; and
(b) over the lien of any assessments for street improvements under construction or completed at Date of Policy.
12. The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the
failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all
liens.
13. The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title
(a) resulting from the avoidance in whole or in part, or from a court order providing an alternative remedy, of any transfer of all or any
part of the title to or any interest in the Land occurring prior to the transaction creating the lien of the Insured Mortgage because that
prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights
laws; or
(b) because the Insured Mortgage constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights
laws by reason of the failure of its recording in the Public Records
(i) to be timely, or
(ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor.
14. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 13 that has been created or
attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the Insured
Mortgage in the Public Records.
The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this Policy, but only to
the extent provided in the Conditions.
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of
this policy, and the Company will not pay loss or damage, costs,
attorneys' fees, or expenses that arise by reason of:
1. (a) Any law, ordinance, permit, or governmental regulation
(including those relating to building and zoning) restricting,
regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any
improvement erected on the Land;
(iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or
governmental regulations. This Exclusion 1(a) does not modify or limit
the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does
not modify or limit the coverage provided under Covered Risk 6.
2. Rights of eminent domain. This Exclusion does not modify or limit
the coverage provided under Covered Risk 7 or 8.
(Form 5011353 (7 -1 -14) Page 2 of 12
!Policy Number: 2580637
ALTA Loan Policy of Title Insurance (6- 17 -06)
Washington!
EXCLUSIONS FROM COVERAGE (Continued)
3. Defects, liens, encumbrances, adverse claims, or other matters
(a) created, suffered, assumed, or agreed to by the Insured
Claimant;
(b) not Known to the Company, not recorded in the Public
Records at Date of Policy, but Known to the Insured Claimant and
not disclosed in writing to the Company by the Insured Claimant
prior to the date the Insured Claimant became an Insured under
this policy;
(c) resulting in no loss or damage to the Insured Claimant;
(d) attaching or created subsequent to Date of Policy
(however, this does not modify or limit the coverage provided
under Covered Risk 11, 13, or 14); or
(e) resulting in loss or damage that would not have been
sustained if the Insured Claimant had paid value for the Insured
Mortgage.
4. Unenforceability of the lien of the Insured Mortgage because
of the inability or failure of an Insured to comply with applicable
doing- business laws of the state where the Land is situated.
5. Invalidity or unenforceability in whole or in part of the lien of the
Insured Mortgage that arises out of the transaction evidenced by the
Insured Mortgage and is based upon usury or any consumer credit
protection or truth -in- lending law.
6. Any claim, by reason of the operation of federal bankruptcy,
state insolvency, or similar creditors' rights laws, that the transaction
creating the lien of the Insured Mortgage, is
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered
Risk 13(b) of this policy.
7. Any lien on the Title for real estate taxes or assessments
imposed by governmental authority and created or attaching between
Date of Policy and the date of recording of the Insured Mortgage in
the Public Records. This Exclusion does not modify or limit the
coverage provided under Covered Risk 11(b).
CONDITIONS
1. DEFINITION OF TERMS
The following terms when used in this policy mean:
(a) "Amount of Insurance ": The amount stated in Schedule
A, as may be increased or decreased by endorsement to this policy,
increased by Section 8(b) or decreased by Section 10 of these
Conditions.
(b) "Date of Policy ": The date designated as "Date of Policy"
in Schedule A.
(c) "Entity": A corporation, partnership, trust, limited liability
company, or other similar legal entity.
(d) "Indebtedness ": The obligation secured by the Insured
Mortgage including one evidenced by electronic means authorized
by law, and if that obligation is the payment of a debt, the
Indebtedness is the sum of
(i) the amount of the principal disbursed as of Date of
Policy;
(ii) the amount of the principal disbursed subsequent to
Date of Policy;
(iii) the construction loan advances made subsequent to
Date of Policy for the purpose of financing in whole or in part
the construction of an improvement to the Land or related to
the Land that the Insured was and continued to be obligated
to advance at Date of Policy and at the date of the advance;
(iv) interest on the loan;
(v) the prepayment premiums, exit fees, and other
similar fees or penalties allowed by law;
(vi) the expenses of foreclosure and any other costs of
enforcement;
(vii) the amounts advanced to assure compliance with
laws or to protect the lien or the priority of the lien of the
Insured Mortgage before the acquisition of the estate or
interest in the Title;
(viii) the amounts to pay taxes and insurance; and
(ix) the reasonable amounts expended to prevent
deterioration of improvements;
but the Indebtedness is reduced by the total of all payments
and by any amount forgiven by an Insured.
(e) "Insured ": The Insured named in Schedule A.
(i) The term "Insured" also includes
(A) the owner of the Indebtedness and each
successor in ownership of the Indebtedness, whether the
owner or successor owns the Indebtedness for its own
account or as a trustee or other fiduciary, except a
successor who is an obligor under the provisions of Section
12(c) of these Conditions;
(B) the person or Entity who has "control" of the
"transferable record," if the Indebtedness is evidenced by a
"transferable record," as these terms are defined by
applicable electronic transactions law;
(C) successors to an Insured by dissolution, merger,
consolidation, distribution, or reorganization;
(D) successors to an Insured by its conversion to
another kind of Entity;
(E) a grantee of an Insured under a deed delivered
without payment of actual valuable consideration conveying
the Title
(1) if the stock, shares, memberships, or other
equity interests of the grantee are wholly -owned by
the named Insured,
(2) if the grantee wholly owns the named
Insured, or
(3) if the grantee is wholly -owned by an affiliated
Entity of the named Insured, provided the affiliated
Entity and the named Insured are both wholly -owned
by the same person or Entity;
(F) any government agency or instrumentality that is
an insurer or guarantor under an insurance contract or
guaranty insuring or guaranteeing the Indebtedness
secured by the Insured Mortgage, or any part of it, whether
named as an Insured or not;
(ii) With regard to (A), (B), (C), (D), and (E) reserving,
however, all rights and defenses as to any successor that the
Company would have had against any predecessor Insured,
unless the successor acquired the Indebtedness as a purchaser
for value without Knowledge of the asserted defect, lien,
encumbrance, or other matter insured against by this policy.
(f) "Insured Claimant ": An Insured claiming loss or damage.
(g) "Insured Mortgage ": The Mortgage described in paragraph 4
of Schedule A.
(h) "Knowledge" or "Known ": Actual knowledge, not constructive
knowledge or notice that may be imputed to an Insured by reason of
the Public Records or any other records that impart constructive notice
of matters affecting the Title.
'Form 5011353 (7 -1 -14) Page 3 of 12 Policy Number: 2580637
ALTA Loan Policy of Title Insurance (6- 17 -06)
Washington
CONDITIONS (Continued)
(i) "Land ": The land described in Schedule A, and affixed
improvements that by law constitute real property. The term "Land"
does not include any property beyond the lines of the area
described in Schedule A, nor any right, title, interest, estate, or
easement in abutting streets, roads, avenues, alleys, lanes, ways,
or waterways, but this does not modify or limit the extent that a
right of access to and from the Land is insured by this policy.
(j) "Mortgage ": Mortgage, deed of trust, trust deed, or other
security instrument, including one evidenced by electronic means
authorized by law.
(k) "Public Records ": Records established under state
statutes at Date of Policy for the purpose of imparting constructive
notice of matters relating to real property to purchasers for value
and without Knowledge. With respect to Covered Risk 5(d), "Public
Records" shall also include environmental protection liens filed in
the records of the clerk of the United States District Court for the
district where the Land is located.
(I) "Title ": The estate or interest described in Schedule A.
(m) "Unmarketable Title ": Title affected by an alleged or
apparent matter that would permit a prospective purchaser or
lessee of the Title or lender on the Title or a prospective purchaser
of the Insured Mortgage to be released from the obligation to
purchase, lease, or lend if there is a contractual condition requiring
the delivery of marketable title.
2. CONTINUATION OF INSURANCE
The coverage of this policy shall continue in force as of Date of
Policy in favor of an Insured after acquisition of the Title by an
Insured or after conveyance by an Insured, but only so long as the
Insured retains an estate or interest in the Land, or holds an
obligation secured by a purchase money Mortgage given by a
purchaser from the Insured, or only so long as the Insured shall
have liability by reason of warranties in any transfer or conveyance
of the Title. This policy shall not continue in force in favor of any
purchaser from the Insured of either (i) an estate or interest in the
Land, or (ii) an obligation secured by a purchase money Mortgage
given to the Insured.
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED
CLAIMANT
The Insured shall notify the Company promptly in writing (i) in
case of any litigation as set forth in Section 5(a) of these
Conditions, (ii) in case Knowledge shall come to an Insured of any
claim of title or interest that is adverse to the Title or the lien of the
Insured Mortgage, as insured, and that might cause loss or damage
for which the Company may be liable by virtue of this policy, or (iii)
if the Title or the lien of the Insured Mortgage, as insured, is
rejected as Unmarketable Title. If the Company is prejudiced by the
failure of the Insured Claimant to provide prompt notice, the
Company's liability to the Insured Claimant under the policy shall be
reduced to the extent of the prejudice.
4. PROOF OF LOSS
In the event the Company is unable to determine the amount
of loss or damage, the Company may, at its option, require as a
condition of payment that the Insured Claimant furnish a signed
proof of loss. The proof of loss must describe the defect, lien,
encumbrance, or other matter insured against by this policy that
constitutes the basis of loss or damage and shall state, to the
extent possible, the basis of calculating the amount of the loss or
damage.
5. DEFENSE AND PROSECUTION OF ACTIONS
(a) Upon written request by the Insured, and subject to the
options contained in Section 7 of these Conditions, the Company,
at its own cost and without unreasonable delay, shall provide for the
defense of an Insured in litigation in which any third party asserts a
claim covered by this policy adverse to the Insured. This obligation is
limited to only those stated causes of action alleging matters insured
against by this policy. The Company shall have the right to select
counsel of its choice (subject to the right of the Insured to object for
reasonable cause) to represent the Insured as to those stated causes
of action.
It shall not be liable for and will not pay the fees of any other
counsel. The Company will not pay any fees, costs, or expenses
incurred by the Insured in the defense of those causes of action that
allege matters not insured against by this policy.
(b) The Company shall have the right, in addition to the options
contained in Section 7 of these Conditions, at its own cost, to institute
and prosecute any action or proceeding or to do any other act that in
its opinion may be necessary or desirable to establish the Title or the
lien of the Insured Mortgage, as insured, or to prevent or reduce loss
or damage to the Insured. The Company may take any appropriate
action under the terms of this policy, whether or not it shall be liable
to the Insured. The exercise of these rights shall not be an admission
of liability or waiver of any provision of this policy. If the Company
exercises its rights under this subsection, it must do so diligently.
(c) Whenever the Company brings an action or asserts a
defense as required or permitted by this policy, the Company may
pursue the litigation to a final determination by a court of competent
jurisdiction, and it expressly reserves the right, in its sole discretion, to
appeal any adverse judgment or order.
6. DUTY OF INSURED CLAIMANT TO COOPERATE
(a) In all cases where this policy permits or requires the
Company to prosecute or provide for the defense of any action or
proceeding and any appeals, the Insured shall secure to the Company
the right to so prosecute or provide defense in the action or
proceeding, including the right to use, at its option, the name of the
Insured for this purpose. Whenever requested by the Company, the
Insured, at the Company's expense, shall give the Company all
reasonable aid (i) in securing evidence, obtaining witnesses,
prosecuting or defending the action or proceeding, or effecting
settlement, and (ii) in any other lawful act that in the opinion of the
Company may be necessary or desirable to establish the Title, the lien
of the Insured Mortgage, or any other matter as insured. If the
Company is prejudiced by the failure of the Insured to furnish the
required cooperation, the Company's obligations to the Insured under
the policy shall terminate, including any liability or obligation to
defend, prosecute, or continue any litigation, with regard to the
matter or matters requiring such cooperation.
(b) The Company may reasonably require the Insured Claimant
to submit to examination under oath by any authorized representative
of the Company and to produce for examination, inspection, and
copying, at such reasonable times and places as may be designated
by the authorized representative of the Company, all records, in
whatever medium maintained, including books, ledgers, checks,
memoranda, correspondence, reports, e- mails, disks, tapes, and
videos whether bearing a date before or after Date of Policy, that
reasonably pertain to the loss or damage. Further, if requested by
any authorized representative of the Company, the Insured Claimant
shall grant its permission, in writing, for any authorized representative
of the Company to examine, inspect, and copy all of these records in
the custody or control of a third party that reasonably pertain to the
loss or damage. All information designated as confidential by the
Insured Claimant provided to the Company pursuant to this Section
shall not be disclosed to others unless, in the reasonable judgment
Form 5011353 (7 -1 -14) ;Page 4 of 12
!Policy Number: 2580637
ALTA Loan Policy of Title Insurance (6- 17 -06)'
Washington;
CONDITIONS (Continued)
of the Company, it is necessary in the administration of the claim.
Failure of the Insured Claimant to submit for examination under
oath, produce any reasonably requested information, or grant
permission to secure reasonably necessary information from third
parties as required in this subsection, unless prohibited by law or
governmental regulation, shall terminate any liability of the
Company under this policy as to that claim.
7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS;
TERMINATION OF LIABILITY
In case of a claim under this policy, the Company shall have
the following additional options:
(a) To Pay or Tender Payment of the Amount of Insurance or
to Purchase the Indebtedness.
(i) To pay or tender payment of the Amount of
Insurance under this policy together with any costs, attorneys'
fees, and expenses incurred by the Insured Claimant that were
authorized by the Company up to the time of payment or
tender of payment and that the Company is obligated to pay;
or
(ii) To purchase the Indebtedness for the amount of the
Indebtedness on the date of purchase, together with any
costs, attorneys' fees, and expenses incurred by the Insured
Claimant that were authorized by the Company up to the time
of purchase and that the Company is obligated to pay.
When the Company purchases the Indebtedness, the Insured
shall transfer, assign, and convey to the Company the Indebtedness
and the Insured Mortgage, together with any collateral security.
Upon the exercise by the Company of either of the options
provided for in subsections (a)(i) or (ii), all liability and obligations
of the Company to the Insured under this policy, other than to
make the payment required in those subsections, shall terminate,
including any liability or obligation to defend, prosecute, or continue
any litigation.
(b) To Pay or Otherwise Settle With Parties Other Than the
Insured or With the Insured Claimant.
(i) to pay or otherwise settle with other parties for or in
the name of an Insured Claimant any claim insured against
under this policy. In addition, the Company will pay any costs,
attorneys' fees, and expenses incurred by the Insured
Claimant that were authorized by the Company up to the time
of payment and that the Company is obligated to pay; or
(ii) to pay or otherwise settle with the Insured Claimant
the loss or damage provided for under this policy, together
with any costs, attorneys' fees, and expenses incurred by the
Insured Claimant that were authorized by the Company up to
the time of payment and that the Company is obligated to pay.
Upon the exercise by the Company of either of the options
provided for in subsections (b)(i) or (ii), the Company's obligations
to the Insured under this policy for the claimed loss or damage,
other than the payments required to be made, shall terminate,
including any liability or obligation to defend, prosecute, or continue
any litigation.
8. DETERMINATION AND EXTENT OF LIABILITY
This policy is a contract of indemnity against actual monetary
loss or damage sustained or incurred by the Insured Claimant who
has suffered loss or damage by reason of matters insured against
by this policy.
(a) The extent of liability of the Company for loss or damage
under this policy shall not exceed the least of
(i) the Amount of Insurance,
(ii) the Indebtedness,
(iii) the difference between the value of the Title as insured
and the value of the Title subject to the risk insured against by
this policy, or
(iv) if a government agency or instrumentality is the
Insured Claimant, the amount it paid in the acquisition of the
Title or the Insured Mortgage in satisfaction of its insurance
contract or guaranty.
(b) If the Company pursues its rights under Section 5 of these
Conditions and is unsuccessful in establishing the Title or the lien of
the Insured Mortgage, as insured,
(i) the Amount of Insurance shall be increased by 10 %,
and
(ii) the Insured Claimant shall have the right to have the
loss or damage determined either as of the date the claim was
made by the Insured Claimant or as of the date it is settled and
paid.
(c) In the event the Insured has acquired the Title in the
manner described in Section 2 of these Conditions or has conveyed
the Title, then the extent of liability of the Company shall continue as
set forth in Section 8(a) of these Conditions.
(d) In addition to the extent of liability under (a), (b), and (c),
the Company will also pay those costs, attorneys' fees, and expenses
incurred in accordance with Sections 5 and 7 of these Conditions.
9. LIMITATION OF LIABILITY
(a) If the Company establishes the Title, or removes the alleged
defect, lien, or encumbrance, or cures the lack of a right of access to
or from the Land, or cures the claim of Unmarketable Title, or
establishes the lien of the Insured Mortgage, all as insured, in a
reasonably diligent manner by any method, including litigation and the
completion of any appeals, it shall have fully performed its obligations
with respect to that matter and shall not be liable for any loss or
damage caused to the Insured.
(b) In the event of any litigation, including litigation by the
Company or with the Company's consent, the Company shall have no
liability for loss or damage until there has been a final determination
by a court of competent jurisdiction, and disposition of all appeals,
adverse to the Title or to the lien of the Insured Mortgage, as insured.
(c) The Company shall not be liable for loss or damage to the
Insured for liability voluntarily assumed by the Insured in settling any
claim or suit without the prior written consent of the Company.
10. REDUCTION OF INSURANCE; REDUCTION OR
TERMINATION OF LIABILITY
(a) All payments under this policy, except payments made for
costs, attorneys' fees, and expenses, shall reduce the Amount of
Insurance by the amount of the payment. However, any payments
made prior to the acquisition of Title as provided in Section 2 of these
Conditions shall not reduce the Amount of Insurance afforded under
this policy except to the extent that the payments reduce the
Indebtedness.
(b) The voluntary satisfaction or release of the Insured
Mortgage shall terminate all liability of the Company except as
provided in Section 2 of these Conditions.
11. PAYMENT OF LOSS
When liability and the extent of loss or damage have been
definitely fixed in accordance with these Conditions, the payment shall
be made within 30 days.
Form 5011353 (7 -1 -14) Page 5 of 12
i e
Policy Number: 2580637
ALTA Loan Policy of Title Insurance (6- 17 -06)'
Washington
CONDITIONS (Continued)
12. RIGHTS OF RECOVERY UPON PAYMENT OR
SETTLEMENT
(a) The Company's Right to Recover
Whenever the Company shall have settled and paid a claim
under this policy, it shall be subrogated and entitled to the rights of
the Insured Claimant in the Title or Insured Mortgage and all other
rights and remedies in respect to the claim that the Insured
Claimant has against any person or property, to the extent of the
amount of any loss, costs, attorneys' fees, and expenses paid by the
Company. If requested by the Company, the Insured Claimant shall
execute documents to evidence the transfer to the Company of
these rights and remedies. The Insured Claimant shall permit the
Company to sue, compromise, or settle in the name of the Insured
Claimant and to use the name of the Insured Claimant in any
transaction or litigation involving these rights and remedies.
If a payment on account of a claim does not fully cover the loss
of the Insured Claimant, the Company shall defer the exercise of its
right to recover until after the Insured Claimant shall have recovered
its loss.
(b) The Insured's Rights and Limitations
(i) The owner of the Indebtedness may release or
substitute the personal liability of any debtor or guarantor,
extend or otherwise modify the terms of payment, release a
portion of the Title from the lien of the Insured Mortgage, or
release any collateral security for the Indebtedness, if it does
not affect the enforceability or priority of the lien of the Insured
Mortgage.
(ii) If the Insured exercises a right provided in (b)(i), but
has Knowledge of any claim adverse to the Title or the lien of
the Insured Mortgage insured against by this policy, the
Company shall be required to pay only that part of any losses
insured against by this policy that shall exceed the amount, if
any, lost to the Company by reason of the impairment by the
Insured Claimant of the Company's right of subrogation.
(c) The Company's Rights Against Non - insured Obligors
The Company's right of subrogation includes the Insured's
rights against non - insured obligors including the rights of the
Insured to indemnities, guaranties, other policies of insurance, or
bonds, notwithstanding any terms or conditions contained in those
instruments that address subrogation rights.
The Company's right of subrogation shall not be avoided by
acquisition of the Insured Mortgage by an obligor (except an obligor
described in Section 1(e)(i)(F) of these Conditions) who acquires the
Insured Mortgage as a result of an indemnity, guarantee, other
policy of insurance, or bond, and the obligor will not be an Insured
under this policy.
13. ARBITRATION
Either the Company or the Insured may demand that the claim
or controversy shall be submitted to arbitration pursuant to the Title
Insurance Arbitration Rules of the American Land Title Association
( "Rules "). Except as provided in the Rules, there shall be no joinder
or consolidation with claims or controversies of other persons.
Arbitrable matters may include, but are not limited to, any
controversy or claim between the Company and the Insured arising
out of or relating to this policy, any service in connection with its
issuance or the breach of a policy provision, or to any other
controversy or claim arising out of the transaction giving rise to this
policy. All arbitrable matters when the Amount of Insurance is
$2,000,000 or less shall be arbitrated at the option of either the
Company or the Insured. All arbitrable matters when the Amount of
Insurance is in excess of $2,000,000 shall be arbitrated only when
agreed to by both the Company and the Insured. Arbitration pursuant
to this policy and under the Rules shall be binding upon the parties.
Judgment upon the award rendered by the Arbitrator(s) may be
entered in any court of competent jurisdiction.
14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE
CONTRACT
(a) This policy together with all endorsements, if any, attached
to it by the Company is the entire policy and contract between the
Insured and the Company. In interpreting any provision of this policy,
this policy shall be construed as a whole.
(b) Any claim of loss or damage that arises out of the status of
the Title or lien of the Insured Mortgage or by any action asserting
such claim shall be restricted to this policy.
(c) Any amendment of or endorsement to this policy must be in
writing and authenticated by an authorized person, or expressly
incorporated by Schedule A of this policy.
(d) Each endorsement to this policy issued at any time is made
a part of this policy and is subject to all of its terms and provisions.
Except as the endorsement expressly states, it does not (i) modify any
of the terms and provisions of the policy, (ii) modify any prior
endorsement, (iii) extend the Date of Policy, or (iv) increase the
Amount of Insurance.
15. SEVERABILITY
In the event any provision of this policy, in whole or in part, is
held invalid or unenforceable under applicable law, the policy shall be
deemed not to include that provision or such part held to be invalid,
but all other provisions shall remain in full force and effect.
16. CHOICE OF LAW; FORUM
(a) Choice of Law: The Insured acknowledges the Company
has underwritten the risks covered by this policy and determined the
premium charged therefor in reliance upon the law affecting interests
in real property and applicable to the interpretation, rights, remedies,
or enforcement of policies of title insurance of the jurisdiction where
the Land is located.
Therefore, the court or an arbitrator shall apply the law of the
jurisdiction where the Land is located to determine the validity of
claims against the Title or the lien of the Insured Mortgage that are
adverse to the Insured and to interpret and enforce the terms of this
policy. In neither case shall the court or arbitrator apply its conflicts
of law principles to determine the applicable law.
(b) Choice of Forum: Any litigation or other proceeding brought
by the Insured against the Company must be filed only in a state or
federal court within the United States of America or its territories
having appropriate jurisdiction.
17. NOTICES, WHERE SENT
Any notice of claim and any other notice or statement in writing
required to be given to the Company under this policy must be given
to the Company at First American Title Insurance Company,
Attn: Claims National Intake Center, 1 First American Way;
Santa Ana, CA 92707. Phone: 888 - 632 -1642.
,Form 5011353 (7 -1 -14) lPage 6 of 12 (Policy Number: 2580637
ALTA Loan Policy of Title Insurance (6- 17 -06Y
Washington
First American
Schedule A
Loan Policy of Title Insurance
ISSUED BY
First American Title Insurance Company
POLICY NUMBER
2580637
Name and Address of Title Insurance Company:
First American Title Insurance Company, 1 First American Way, Santa Ana, CA 92707.
File No.: 4209- 2580637
Loan Number:
Address Reference: 30218 29th Avenue S, Federal Way, WA 98003
Amount of Insurance: $5,685.10 Premium: $90.00
Date of Policy: July 21, 2016 at 5:00 p.m.
1. Name of Insured:
City of Federal Way, its successors and /or assigns as their interests may appear as defined in the
Conditions of this policy.
2. The estate or interest in the Land that is encumbered by the Insured Mortgage is:
A fee simple
3. Title is vested in:
Valencia Claxton and Pansy Claxton, each as their separate estate
4. The Insured Mortgage, and its assignments, if any, are described as follows:
Deed of Trust /Mortgage:
Grantor/Trustor: Valencia Claxton & Pansy Claxton
Trustee: First American Title
Grantee /Beneficiary: City of Federal Way
Original Amount: $5,685.10
Dated: March 09, 2016
Recorded: July 21, 2016
Recording No.: 20160721000321
5. The Land referred to in this policy is described as follows:
LOT 31 OF STEEL LAKE GLEN, ACCORDING TO THE PLAT RECORDED IN VOLUME 115 OF PLATS
AT PAGE(S) 90 AND 91, IN KING COUNTY, WASHINGTON.
APN: 798380031004
Form 5011353 (7 -1 -14)
Page 7 of 12
Policy Number: 2580637
ALTA Loan Policy of Title Insurance (6- 17 -06):
Washington
6. This policy incorporates by reference those ALTA endorsements selected below:
[ ] 4 -06 (Condominium)
[ ] 4.1 -06 (Condominium)
[ ] 5 -06 (Planned Unit Development)
[ ] 5.1 -06 (Planned Unit Development)
[ ] 6 -06 (Variable Rate)
[ ] 6.2 -06 (Variable Rate -- Negative Amortization)
[ ] 8.1 -06 (Environmental Protection Lien) Paragraph b refers to the following state
statute(s):
[ ] 9 -06 (Restrictions, Encroachments, Minerals)
[ ] 13.1 -06 (Leasehold Loan)
[ ] 14 -06 (Future Advance - Priority)
[ ] 14.1 -06 (Future Advance - Knowledge)
[ ] 14.3 -06 (Future Advance - Reverse Mortgage)
[ ] 22 -06 (Location) The type of improvement is a , and the street address is shown
above.
Form 5011353 (7 -1 -14) 'Page 8 of 12
Policy Number: 2580637 ALTA Loan Policy of Title Insurance (6- 17 -06)'
Washington]
First American
Schedule B
Loan Policy of Title Insurance
ISSUED BY
First American Title Insurance Company
POLICY NUMBER
2580637
File No.: 4209 - 2580637
EXCEPTIONS FROM COVERAGE
This Policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees,
or expenses that arise by reason of:
PART I
Section One:
1. Taxes or assessments which are not shown as existing liens by the records of any taxing
authority that levies taxes or assessments on real property or by the public records.
2. Any facts, rights, interests, or claims which are not shown by the public records but which could
be ascertained by an inspection of said land or by making inquiry of persons in possession
thereof.
3. Easements, claims of easement or encumbrances which are not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts
which a correct survey would disclose, and which are not shown by the public records.
5. Any lien, or right to a lien, for services, labor or materials or medical assistance heretofore or
hereafter furnished, imposed by law and not shown by the public records.
6. (A) Unpatented mining claims; (B) Reservations or exceptions in patents or in Acts authorizing
the issuance thereof; (C) Water rights, claims or title to water; whether or not the
matters excepted under (A), (B) or (C) are shown by the public records; (D) Indian
Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or
equitable servitudes.
7. Any service, installation, connection, maintenance, construction, tap or reimbursement
charges /costs for sewer, water, garbage or electricity.
Form 5011353 (7 -1 -14) !Page 9 of 12
Policy Number: 2580637
ALTA Loan Policy of Title Insurance (6- 17 -06)
Washington;
Section Two:
1. General Taxes for the year 2016, now payable, but not delinquent.
The first half becomes delinquent after April 30th. The second half becomes delinquent after
October 31st.
Tax Account No.: 798380031004
2. Liability for assessment(s) and /or personal property taxes, if any.
3. Judgment.
In Favor of:
Against:
Amount:
Dated:
Midland Credit Management
Valencia Claxton
$8,394.85, together with interest, costs and attorneys' fees, if
any
February 12, 2004
Filed: February 12, 2004
Judgment No. (if applicable) : 04 -9- 06795 -8
Case /Cause No.: 04 -2- 00752 -6
Attorney for Judgment Creditor: Suttell Hammer & White
Said judgment was extended for an additional 10 years by order entered on December 03, 2013.
Said judgment was recorded as recording no. 20040225000518.
4. Mortgage and the terms and conditions thereof.
Mortgagor: Valencia Claxton, an unmarried woman, and Pansy Claxton, an
unmarried woman, as their respective separate estates
Mortgagee: King County
Amount: $20,669.84
Recorded: June 28, 2006
Recording Information: 20060628000160
5. Deed of Trust and the terms and conditions thereof.
Grantor/Trustor:
Grantee /Beneficiary:
Trustee:
Amount:
Recorded:
Recording Information:
Valencia Claxton, an unmarried person and Pansy Claxton an
unmarried person
Bank of America, N.A.
PRLAP, Inc.
$156,226.00
August 04, 2006
20060804000726
6. Deed of Trust and the terms and conditions thereof.
Grantor/Trustor: Valencia Claxton, Pansy Claxton
Grantee /Beneficiary: Bank of America, NA
Trustee: PRLAP, Inc.
Amount: $79,898.00
Recorded: March 20, 2007
Recording Information: 20070320001055
Form 5011353 (7 -1 -14) Page 10 of 12
Policy Number: 2580637
ALTA Loan Policy of Title Insurance (6 -17 -06)1
Washington]
Note: This Deed of Trust contains Line of Credit privileges. If the current balance owing on said
obligation is to be paid in full in the forthcoming transaction, confirmation should be made that
the beneficiary will issue a proper request for full reconveyance.
7. The effect of the matter(s) shown in paragraph(s) 3 herein depends upon the identity of the
debtor /taxpayer with the name(s) of Valencia Claxton. The enclosed identity affidavit should be
completed and returned to this office to help determine the identity of said party(s) prior to
closing.
8. The land described in this commitment appears to be residential in nature and may be subject to
the provisions of R.C.W. 6.13.010, et seq. (Homestead Statute) if the land is occupied as a
primary residence. If the land is occupied as a primary residence, R.C.W. 6.13.060 requires that
all documents conveying or encumbering the land must be executed by each spouse or domestic
partner, individually. Alternatively, the Company will accept a deed identifying the non - vested
spouse occupying the property as the grantor and the vested spouse as the grantee. In the event
that the Company receives documents to insure that are not executed as required, the Company
may be unable to record or to insure the transaction. Please contact your Title Officer if you have
any questions.
9. Agreements, if any, which appear in the public records, related to future assessments obligations
not yet of record.
10. Covenants, conditions, and restrictions affecting title, if any appear in the public records.
11. Easements, if any, which appear in the public records or are shown on any recorded plat.
12. Any reservations of minerals or mineral rights, including leases of said rights appearing in the
public record.
Form 5011353 (7 -1 -14) ;Page 11 of 12 lPolicy Number: 2580637
ALTA Loan Policy of Title Insurance (6- 17 -06)
Washington
First American
Schedule B
Loan Policy of Title Insurance
ISSUED BY
First American Title Insurance Company
POLICY NUMBER
2580637
File No.: 4209 - 2580637
PART II
In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters,
and the Company insures against loss or damage sustained in the event they are not subordinate to the
lien of the Insured Mortgage:
None
Form 5011353 (7 -1 -14) (Page 12 of 12 Policy Number: 2580637
ALTA Loan Policy of Title Insurance (6- 17 -06)
Washington