Deed of Trust and Security Agreement""This document was electronically submitted
to Santa Clara County for recording"
25398522
RECORDING REQUESTED BY: Regina Alcomendras
Chicago Title Company Santa Clara County - Clerk -Recorder
11/09/2022 02:39 PM
i
Escrow Order No.: FWPS-3022220808 Titles: 2 Pages: 12
Fees: $0.00
When Recorded Mail To: Tax: $0.00
Total: $0.00
City of Campbell Community Development
70 No First Street
Campbell, CA 95008-1436.
APN/Parcel ID(s): 279-53 009 SPACE ABOVE THIS LINE FOR RECORDER'S USE
Exempt from fee per GC 27388.1(a)(2); This document is a transfer that is subject to
Documentary Transfer Tax.
Deed of Trust and Security Agreement
i
THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION
(Additional recording fee applies)
Printed: 11.09.22 @ 10:42 AM
Recording Document cover Page Page 1 CA-CT-FWPS-02180.053022-FWPS-3022220808
SCA0000079.doc /Updated: 02.09.22
RECORDING REQUESTED BY:
Chicago Title Company
Escrow Order No.: FWPS-3022220808
When Recorded Mail To:
City of Campbell Community Development
70 No First Street
Campbell, CA 95008-1436
APN/Parcel ID(s): 279-53-009 SPACE ABOVE THIS LINE FOR RECORDER';
Exempt from fee per GC 27388.1(a)(2); This document is a transfer that is subject to
Documentary Transfer Tax.
Deed of Trust and Security Agreement
THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION
(Additional recording fee applies)
Printed: 11.09.22 @ 10:42 AM
Recording Document Cover Page
SCA0000079.doc / Updated: 02.09.22 Page 1 CA-CT-F W PS-02180.053022-FW PS-3022220808
When Recorded Mail To:
City of Campbell Community Development Department
70 No. First Street
Campbell, CA 95008-1436
COMPLIMENTARY RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383
DEED OF TRUST
AND SECURITY AGREEMENT
City of Campbell Inclusionary
Affordable Housing Production Program
THIS DEED OF TRUST AND SECURITY AGREEMENT ("Deed of Trust") made
this 26"t day of November 2022, among the trustors, Daniel Tuven Do and Houda
Fallahi ("Owners") and the City of Campbell, a public body corporate and politic (the
"City") as "Trustee" and "Beneficiary".
The Owner, in consideration of the promises herein recited and the trust herein
created, irrevocably grants, transfers, conveys and assigns to Trustee, in trust, with
power of sale, the property located in Campbell, State of California, described in the
attached Exhibit "A" and more commonly known as: 82 Cannery Circle, California (the
"Property").
TOGETHER with all the improvements now or hereafter erected on the property,
and all easements, rights, appurtenances, and all fixtures now or hereafter attached to
the property, all of which, including replacements and additions thereto, shall be
deemed to be and remain a part of the property covered by this Deed of Trust; and
TOGETHER with all articles of personal property or fixtures now or hereafter
attached to or used in and about the building or buildings now erected or hereafter to be
erected on the Property which are necessary to the complete and comfortable use and
occupancy of such building or buildings for the purposes for which they were or are to
be erected, including all other goods and chattels and personal property as are ever
used or furnished in operating a building, or the activities conducted therein, similar to
the one herein described and referred to, and all renewals or replacements thereof or
articles in substitution therefore, whether or not the same are, or shall be attached to
said building or buildings in any manner; and all of the foregoing, together with the
Property, is herein referred to as the "Security."
To have and to hold the Security together with acquittances to the Trustee, its
successors and assigns forever;
TO SECURE to the City the performance of the covenants and agreements of
Owner contained in that certain Resale Restriction Agreement and Option to Purchase
executed by and between the Owner and the City of even date herewith (the "Resale
Restriction Agreement") and Excess Rents (as defined in the Resale Restriction
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Agreement) and to secure the payment of Excess Sales Proceeds (as defined in the
Resale Restriction Agreement) that may become due by Owner to City.
TO SECURE the payment of all other sums, with interest thereon, advanced in
accordance herewith to protect the security of this Deed of Trust; and the performance
of the covenants and agreements of Owner herein contained.
OWNER AND CITY COVENANT AND AGREE AS FOLLOWS:
1. Owner's Estate. That Owner is lawfully seized of the estate hereby
conveyed and has the right to grant and convey the Security, that other than this Deed
of Trust, the Security is encumbered only by: (a) that deed of trust executed by Owner
in connection with a loan made to Owner by Guild Mortgage Company (the "First
Lender"), securing a promissory note executed by Owner in favor of the First Lender
("First Lender Note"), to assist in the purchase of the Property and (b) the Resale
Restriction Agreement. Owner agrees to warrant and defend generally the title to the
Security against all claims and demands, subject to any declarations, easements or
restrictions listed in a schedule of exceptions to coverage in any title insurance policy
insuring the City's interest in the Security. (As used in this Deed of Trust, the term "First
Lender" shall also include all successors and assigns of the First Lender.)
2. Payment of Excess Sales Proceeds. Owner will promptly pay to the City,
when and if due pursuant to the Resale Restriction Agreement, the Excess Sales
Proceeds and Excess Rents.
3. Resale Restriction Agreement. Owner will observe and perform all of the
covenants and agreements of the Resale Restriction Agreement.
4. Charges; Liens. Owner will pay all taxes, assessments and other
charges, fines and impositions attributable to the Security which may attain a priority
over this Deed of Trust, by Owner making any payment, when due, directly to the payee
thereof. Upon request by the City, Owner will promptly furnish to the City all notices of
amounts due under this paragraph. In the event Owner makes payment directly, Owner
will promptly discharge any lien which has priority over this Deed of Trust; provided, that
Owner will not be required to discharge the lien of the First Lender Deed of Trust or any
other lien described in this paragraph so long as Owner will agree in writing to the
payment of the obligation secured by such lien in a manner acceptable to the City, or
will, in good faith, contest such lien by, or defend enforcement of such lien in, legal
proceedings which operate to prevent the enforcement of the lien or forfeiture of the
Security or any part thereof.
5. Hazard Insurance. Owner will keep the Security insured by a standard all
risk property insurance policy equal to the replacement value of the Security (adjusted
every five (5) years by appraisal, if requested by the City). If the Security is located in a
flood plain, Owner shall also obtain flood insurance.
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The insurance carrier providing this insurance shall be licensed to do business in
the State of California and be chosen by Owner subject to approval by the City.
All insurance policies and renewals thereof will be in a form acceptable to the
City and will include a standard mortgagee clause with standard lender's endorsement
in favor of the holder of the First Lender Note and the City as their interests may appear
and in a form acceptable to the City. The City shall have the right to hold, or cause its
designated agent to hold, the policies and renewals thereof, and Owner shall promptly
furnish to the City, or its designated agent, the original insurance policies or certificates
of insurance, all renewal notices and all receipts of paid premiums. In the event of loss,
Owner will give prompt notice to the insurance carrier and the City or its designated
agent. The City, or its designated agent, may make proof of loss if not made promptly
by Owner. The City shall receive thirty (30) days advance notice of cancellation of any
insurance policies required under this section.
Unless the City and Owner otherwise agree in writing, insurance proceeds,
subject to the rights of the First Lender, will be applied to restoration or repair of the
Security damaged, provided such restoration or repair is economically feasible and the
security of this Deed of Trust is not thereby impaired. If such restoration or repair is not
economically feasible or if the security of this Deed of Trust would be impaired, the
insurance proceeds will be used to repay any amounts due under the Resale Restriction
Agreement, with the excess, if any, paid to Owner. If the Security is abandoned by
Owner, or if Owner fails to respond to the City, or its designated agent, within thirty (30)
days from the date notice is mailed by either of them to Owner that the insurance carrier
offers to settle a claim for insurance benefits, the City, or its designated agent, is
authorized to collect and apply the insurance proceeds at the City's option either to
restoration or repair of the Security or to pay amounts due under the Resale Restriction
Agreement.
If the Security is acquired by the City, all right, title and interest of Owner in and
to any insurance policy and in and to the proceeds thereof resulting from damage to the
Security prior to the sale or acquisition will pass to the City to the extent of the sums
secured by this Deed of Trust immediate prior to such sale or acquisition, subject to the
rights of the First Lender.
6. Preservation and Maintenance of Security. Owner will keep the Security
in good repair and in a neat, clean, and orderly condition and will not commit waste or
permit impairment or deterioration of the Security. If there arises a condition in
contravention of this Section 6, and if the Owner has not cured such condition within
thirty (30) days after receiving a City notice of such a condition, then in addition to any
other rights available to the City, the City shall have the right (but not the obligation) to
perform all acts necessary to cure such condition, and to establish or enforce a lien or
other encumbrance against the Security to recover its cost of curing.
7. Protection of the City's Security. If Owner fails to perform the covenants
and agreements contained in this Deed of Trust or if any action or proceeding is
commenced which materially affects the City's interest in the Security, including, but not
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limited to, default under the First Lender Deed of Trust, eminent domain, insolvency,
code enforcement, or arrangements or proceedings involving a bankrupt or decedent,
then the City, at the City's option, upon notice to Owner, may make such appearances,
disburse such sums and take such action as it determines necessary to protect the
City's interest, including but not limited to, disbursement of reasonable attorney's fees
and entry upon the Security to make repairs.
Any amounts disbursed by the City pursuant to this paragraph, with interest
thereon, will become an indebtedness of Owner secured by this Deed of Trust. Unless
Owner and City agree to other terms of payment, such amount will be payable upon
notice from the City to Owner requesting payment thereof, and will bear interest from
the date of disbursement at the lesser of (i) ten percent (10%); or (ii) the highest rate
permissible under applicable law. Nothing contained in this paragraph will require the
City to incur any expense or take any action hereunder.
8. Inspection. The City may make or cause to be made reasonable entries
upon and inspections of the Security; provided that the City will give Owner reasonable
notice of inspection.
9. Forbearance by the City Not a Waiver. Any forbearance by the City in
exercising any right or remedy will not be a waiver of the exercise of any such right or
remedy. The procurement of insurance or the payment of taxes or other liens or
charges by the City will not be a waiver of the City's right to require payment of any
amounts secured by this Deed of Trust.
10. Remedies Cumulative. All remedies provided in this Deed of Trust are
distinct and cumulative to any other right or remedy under this Deed of Trust or any
other document, or afforded by law or equity, and may be exercised concurrently,
independently or successively.
11. Hazardous Substances. Owner shall not cause or permit the presence,
use, disposal, storage, or release of any Hazardous Substances on or in the Security.
Trustor shall not do, nor allow anyone else to do, anything affecting the Security that is
in violation of any Environmental Law. The preceding two sentences shall not apply to
the presence, use, or storage on the Security of small quantities of Hazardous
Substances that are generally recognized to be appropriate to normal residential uses
and to maintenance of the Security.
"Hazardous Substances" shall mean those substances defined as toxic or
hazardous substances or hazardous waste under any Environmental Law, and the
following substances: gasoline, kerosene, other flammable or toxic petroleum products,
toxic pesticides and herbicides, volatile solvents, materials containing asbestos or
formaldehyde, and radioactive materials.
"Environmental Law" shall mean all federal and state of California laws that relate
to health, safety or environmental protection.
Owner shall promptly give City written notice of any investigation, claim, demand,
lawsuit or other action by any governmental or regulatory City or private party involving
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the Security and any Hazardous Substance or Environmental Law of which Owner has
actual knowledge. If Owner learns, or is notified by any governmental or regulatory
authority, that any removal or other remediation of any Hazardous Substance affecting
the Security is necessary, Owner shall promptly take all necessary remedial actions in
accordance with Environmental Law.
12. Successors and Assigns Bound. The covenants and agreements herein
contained shall bind, and the rights hereunder shall inure to, the respective successors
and assigns of the City and Owner subject to the provisions of this Deed of Trust.
13. Joint and Several Liability. All covenants and agreements of Owner shall
be joint and several.
14. Notice. Except for any notice required under applicable law to be given in
another manner, (a) any notice to Owner provided for in this Deed of Trust will be given
by certified mail, addressed to Owner at the address designated by notice to the City as
provided herein, and (b) any notice to the City will be given by certified mail, return
receipt requested, or express delivery service with a delivery receipt, or personally
delivered with a delivery receipt, to the Campbell Community Development Department
at 70 N. First Street, Campbell, California, 95008, Attention: Housing Department, or to
such other address as the City may designate by notice to Owner as provided above.
Notice shall be effective as of the date received by City as shown on the return receipt.
15. Governing Law. This Deed of Trust shall be governed by the laws of the
State of California.
16. Severability. In the event that any provision or clause of this Deed of Trust
or the Resale Restriction Agreement conflicts with applicable law, such conflict will not
affect other provisions of this Deed of Trust or the Resale Restriction Agreement which
can be given effect without the conflicting provision, and to this end the provisions of the
Deed of Trust and the Resale Restriction Agreement are declared to be severable.
17. Captions. The captions and headings in this Deed of Trust are for
convenience only and are not to be used to interpret or define the provisions hereof.
18. Nondiscrimination. The Owner covenants by and for itself and its
successors and assigns that there shall be no discrimination against or segregation of a
person or of a group of persons on account of race, color, religion, creed, age, disability,
sex, sexual orientation, marital status, ancestry or national origin in the sale, transfer,
use, occupancy, tenure or enjoyment of the Property, nor shall the Owner or any person
claiming under or through the Owner establish or permit any such practice or practices
of discrimination or segregation with reference to the use, occupancy, or transfer of the
Property. The foregoing covenant shall run with the land.
19. Nonliability for Negligence, Loss, or Damage. Owner acknowledges,
understands and agrees that the relationship between Owner and City is solely that of
an owner and an administrator of a City density bonus program, and that City neither
Page 5 of 10
undertakes nor assumes any responsibility for or duty to Owner to select, review,
inspect, supervise, pass judgment on, or inform Owner of the quality, adequacy or
suitability of the Security or any other matter. City owes no duty of care to protect
Owner against negligent, faulty, inadequate or defective building or construction or any
condition of the Security and Owner agrees that neither Owner, or Owner's heirs,
successors or assigns shall ever claim, have or assert any right or action against City
for any loss, damage or other matter arising out of or resulting from any condition of the
Security and will hold City harmless from any liability, loss or damage for these things.
20. Indemnity. Owner agrees to defend, indemnify, and hold City and the City
of Campbell (the "City") and their officers, employees, agents, board members and/or
council members harmless from all losses, damages, liabilities, claims, actions,
judgments, costs, and reasonable attorneys' fees that City may incur as a direct or
indirect consequence of:
(a) Owner's failure to perform any obligations as and when required by
the Resale Restriction Agreement and this Deed of Trust; or
(b) the failure at any time of any of Owner's representations or
warranties to be true and correct.
21. Acceleration; Remedies.
(a) Upon Owner's breach of any covenant or agreement of Owner in
the Resale Restriction Agreement or this Deed of Trust, including, but not
limited to, the covenants to pay, when due, any sums secured by this
Deed of Trust, the City, prior to acceleration, will mail by express delivery,
return receipt requested notice to Owner specifying:
(1) the breach;
(2) the action required to cure such breach;
(3) a date, not less than thirty (30) days from the date the notice is
received by Owner as shown on the return receipt, by which such
breach is to be cured; and
(4) that failure to cure such breach on or before the date specified
in the notice may result in acceleration of the sums secured by this
Deed of Trust and sale of the Security.
(b) The notice will also inform Owner of Owner's right to reinstate after
acceleration and the right to bring a court action to assert the
nonexistence of default or any other defense of Owner to acceleration and
sale. If the breach is not cured on or before the date specified in the
notice, the City, at the City's option, may:
Page 6 of 10
(1) declare all of the sums secured by this Deed of Trust to be
immediately due and payable without further demand and may
invoke the power of sale and any other remedies permitted by
California law;
(2) either in person or by agent, with or without bringing any action
or proceeding, or by a receiver appointed by a court, and without
regard to the adequacy of its security, enter upon the Security and
take possession thereof (or any part thereof) and of any of the
Security, in its own name or in the name of Trustee, and do any acts
which it deems necessary or desirable to preserve the value or
marketability of the Property, or part thereof or interest therein,
increase the income therefrom or protect the security thereof. The
entering upon and taking possession of the Security shall not cure or
waive any breach hereunder or invalidate any act done in response
to such breach and, notwithstanding the continuance in possession
of the Security, the City shall be entitled to exercise every right
provided for in this Deed of Trust, or by law upon occurrence of any
uncured breach, including the right to exercise the power of sale;
(3) commence an action to foreclose this Deed of Trust as a
mortgage, appoint a receiver, or specifically enforce any of the
covenants hereof; (d) deliver to Trustee a written declaration of
default and demand for sale, pursuant to the provisions for notice of
sale found at California Civil Code Sections 2924 et seq., as
amended from time to time; and/or
(4) exercise all other rights and remedies provided herein, in the
instruments by which the Owner acquires title to any Security, or in
any other document or agreement now or hereafter evidencing,
creating or securing all or any portion of the obligations secured
hereby, or provided by law.
The City shall be entitled to collect all reasonable costs and expenses incurred in
pursuing the remedies provided in this paragraph, including, but not limited to,
reasonable attorney's fees.
22. Owner's Right to Reinstate. Notwithstanding the City's acceleration of the
sums secured by this Deed of Trust, Owner will have the right to have any proceedings
begun by the City to enforce this Deed of Trust discontinued at any time prior to five (5)
days before sale of the Security pursuant to the power of sale contained in this Deed of
Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if:
(a) Owner pays City all sums which would be then due under this Deed
of Trust and Owner cures all breaches of any other covenants or
agreements of Owner contained in the Resale Restriction Agreement or
this Deed of Trust;
Page 7 of 10
(b) Owner pays all reasonable expenses incurred by City and Trustee in
enforcing the covenants and agreements of Owner contained in the
Resale Restriction Agreement or this Deed of Trust, and in enforcing the
City's and Trustee's remedies, including, but not limited to, reasonable
attorney's fees; and
(c) Owner takes such action as City may reasonably require to assure that
the lien of this Deed of Trust, City's interest in the Security and Owner's
obligation to perform the obligations and pay the sums secured by this
Deed of Trust shall continue unimpaired.
Upon such payment and cure by Owner, this Deed of Trust and the obligations secured
hereby will remain in full force and effect as if no acceleration had occurred.
23. Due on Transfer of the Property. Upon a Transfer (as defined in the
Resale Restriction Agreement) of the Property or any interest in it, the City shall require
immediate payment in full of all sums secured by this Deed of Trust.
24. Reconveyance. Upon payment of all sums secured by this Deed of Trust,
and following the expiration of the Term of the Resale Restriction Agreement, City will
request Trustee to reconvey the Security and will surrender this Deed of Trust and the
Resale Restriction Agreement to Trustee. Trustee will reconvey the Security without
warranty and without charge to the person or persons legally entitled thereto. Such
person or persons will pay all costs of recordation, if any.
25. Substitute Trustee. The City, at the City's option, may from time to time
remove Trustee and appoint a successor trustee to any Trustee appointed hereunder.
The successor trustee will succeed to all the title, power and duties conferred upon the
Trustee herein and by applicable law.
26. Superiority of First Lender Documents. Notwithstanding any provision
herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under
the First Lender Deed of Trust or any subsequent First Lender deeds of trust hereafter
recorded against the Security in compliance with the requirements of the Resale
Restriction Agreement.
Notwithstanding any other provision hereof, the provisions of this Deed of Trust
shall be subordinate to the lien of the First Lender Deed of Trust and shall not impair the
rights of the First Lender, or such lender's assignee or successor in interest, to exercise
its remedies under the First Lender Deed of Trust in the event of default under the First
Lender Deed of Trust by the Owner. Such remedies under the First Lender Deed of
Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of
foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure, this
Deed of Trust shall be forever terminated and shall have no further effect as to the
Property or any transferee thereafter; provided, however, if the holder of such First
Lender Deed of Trust acquired title to the Property pursuant to a deed or assignment in
lieu of foreclosure and no notice of default was recorded against the Property by such
Page 8 of 10
holder in connection therewith, this Deed of Trust shall automatically terminate upon
such acquisition of title, only if (i) the City has been given written notice of default under
such First Lender Deed of Trust with a sixty (60)-day cure period (which requirement
shall be satisfied by recordation of a notice of default under California Civil Code
Section 2924) and (ii) the City shall not have cured the default within such sixty (60)-day
period.
27. Request for Notice. Owner requests that copies of the notice of default
and notice of sale be sent to Owner at the address set forth in Section 14 above.
I have read and derstand the Buyer's Deed of Trust.
By: Dated: ( D Z ho ZZ
Signatur of Buyer
lD,4N is rr T-uy�►-j Do
Print Name of Buyer
By:
Signature of Buye
.Vo uch Tb tI6L
Print Name of Buyer
Dated: t � 112 11 -?z ZZ
SIGNATURES MUST BE NOTARIZED
IN WITNESS WHEREOF, the parties have executed this Agreement on or as of the date first
written above.
Page 9 of 10
A notary public or other officer completing this certificate
verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
State of 04-- 4 , I,
County of 4-11-11
On before me, ` Notary Public,
(here insert name and titl f the officer)
° �IQ`1l
personally appeared C !? � La l ,
who proved to me on the basis of satisfacto evidence to be the person(s whose name(s) is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the Instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
WITN SS ha/nd and official seal.
V (Seal)
tur Signae
D. DI8ENEDET70
Notary Public - California
Santa Clara County
Commission rr 2350446
lamy Comm. Expires Apr 4, 2025
EXHIBIT A
Property Description
THE LAND REFERRED TO HEREIN BELOW 1S SITUATED IN THE CITY OF
CAMPBELL, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA AND IS
DESCRIBED AS FOLLOWS:
LOT 9, AS SHOWN ON THE MAP ENTITLED "TRACT 8888", FILED FOR
RECORD APRIL 2, 1997 IN BOOK 687 OF MAPS, AT PAGE 28, AND AS
MODIFIED BY A CERTIFICATE OF CORRECTION (IN PART TO CHANGE NAME
OF THE MAP TO "TRACT 8888A"), WHICH RECORDED FEBRUARY 27, 1998,
RECORDER'S SERIES NO. 14074038, BOTH OF THE OFFICIAL RECORDS OF
SANTA CLARA COUNTY RECORDS.
EXCEPTING THEREFROM THE UNDERGROUND WATER AND RIGHTS
THERETO, WITHOUT RIGHTS OF SURFACE ENTRY, AS CONVEYED TO SAN
JOSE WATER COMPANY, A CALIFORNIA CORPORATION BY INSTRUMENT
RECORDED JUNE 16, 1997 AS INSTRUMENT NO. 13741751, OFFICIAL
RECORDS.
82 CANNERY CICRLE, CAMPBELL, CA
APN # 279-53-009
Page 10 of 10