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HomeMy WebLinkAboutRecorded doc 2016-065 2016-065 (see '— s c DO NOT RECORD 1c4. °`"�° REQUEST FOR FULL RECONVEYANCE TO FIRST AMERICAN TITLE INSURANCE COMPANY The undersigned is the legal owner and holder of the note or notes and of all other indebtedness secured by the foregoing Deed of Trust. Said note or notes,together with all other indebtedness secured by said Deed of Trust,have been fully paid and satisfied; and you are hereby requested and directed,on payment to you of any sums owing to you under the terms of said Deed of Trust,to cancel said note or notes above mentioned, and all other evidence of indebtedness secured by said Deed of Trust delivered to you herewith,together with the said Deed of Trust,and to reconvey,without warranty,to the parties designated by the terms of said Deed of Trust, all the estate now held by you under the same. Dated: Please mail Deed of Trust, Note and Reconveyance to Do not lose or destroy this Dead of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. LA#4821-7685-5340 v3 7 NON-RECOURSE PROMISSORY NOTE SECURED BY DEED OF TRUST $179,820.68 Cathedral City, California . isa_v_ a ,2016 For value received, VERANO RECOVERY, LLC., a California limited liability company ("Borrower"), does hereby covenant and promise to pay to the CITY OF CATHEDRAL CITY, a municipal corporation organized and existing under the laws of the State of California ("City"), or order, the principal sum of One Hundred Seventy-Nine Thousand Eight Hundred Twenty and 68/100 Dollars ($179,820.68). Principal is payable in lawful money of the United States of America without setoff, deduction or counterclaim and shall be paid to the City as provided in Section 1 below, at 68700 Avenida Lalo Guerrero, Cathedral City, California 92234, or at such other place as City may from time to time designate by written notice to Borrower, 1. Terms of the Loan. (a) Except as provided in Paragraph 1(c) below, no interest is payable on the outstanding principal. Principal is all due and payable on June 25, 2016 (the "Maturity Date"). (b) To the extent that Borrower makes any payment or City receives any payment or proceeds for Borrower's benefit, which are subsequently invalidated, declared to be fraudulent or preferential, or are required to be set aside or to be repaid to a trustee, debtor in possession, receiver, custodian or any other party under any bankruptcy law, common law or equitable cause, then, to such extent, the obligations of Borrower hereunder intended to be satisfied shall be revived and continue as if such payment or proceeds had not been received by City. (c) From and after the Maturity Date of this Note or such earlier date as all sums owing on this Note become due and payable by acceleration or otherwise, and without waiving any default by Borrower or any right or remedy of City, all sums owing on this Note, at City's option, will bear interest until paid in full at a rate equal to ten percent(10%)per annum. (d) All payments on this Note will be applied first to the payment of any costs, fees, or other charges incurred in connection with the indebtedness evidenced by this Note; then to the reduction of the principal balance. Borrower may prepay this Note, in whole or in part, at any time without any penalty or additional fees. (e) The Deed of Trust and Assignment of Rents ("Deed of Trust") which secures the indebtedness evidence by this Note provides as follows: "In the event of any Transfer (as defined below) of said property, Beneficiary shall have the absolute right at its option, without prior demand or notice, to declare all sums secured hereby immediately due and payable. As used herein, `Transfer' means any sale, conveyance, lease, transfer or disposition of all or any part of said property or any interest of LA#4830-2030-3660 v3 -1- Trustor therein, or the further hypothecation or encumbering of said property or any part thereof, or the entry into any agreement to do any of the foregoing, without the prior written consent of Beneficiary." (f) The parties hereto intend to conform strictly to the applicable usury laws. In no event shall the City be entitled to interest exceeding the maximum rate permitted by law. If fulfillment of any provision of this Note, or of any other document pertaining to the indebtedness evidenced hereby, at the time performance of such provisions shall be due, would involve exceeding the maximum rate of interest prescribed by law, then the obligation to be fulfilled shall be reduced automatically so as to equal such maximum rate. If the City shall ever receive anything of value deemed interest under applicable law which would exceed interest at the highest lawful rate, an amount equal to any amount which would have been excessive interest shall be applied to the reduction of principal payable with respect to this Note and not to the payment of interest, or if such amount which would have been excessive interest exceeds the unpaid balance of principal hereof, such excess shall be refunded to Borrower. 2. Acceleration on Default. If Borrower fails to pay the principal of or any other amount payable by Borrower under this Note, as and when the same is due and payable, or if Borrower fails to pay any amount or perform any obligation to be paid or performed by Borrower under the Deed of Trust, as and when required thereby,then, in addition to all rights and remedies of the City under the Deed of Trust, applicable law or otherwise, all such rights and remedies being cumulative, the City may, at its option, declare all amounts owing under this Note to be due and payable, whereupon the then unpaid principal balance hereof shall forthwith become due and payable. 3. Cost of Collection. Borrower agrees to pay the following costs, expenses and attorneys' fees paid or incurred by City: (i) costs and expenses of collection or enforcement of, and attorneys' fees paid or incurred in connection with the collection or enforcement of, this Note, whether or not suit is filed; and (ii) costs of suit and such sum as the court may adjudge as attorneys' fees in an action to enforce payment of this Note or any part of it. 4. Forbearance Not a Waiver.No delay or omission on the part of City in exercising any rights under this Note or the Deed of Trust on breach or default by Borrower shall operate as a waiver of such right or any other right under this Note or the Deed of Trust for the same breach or default or any other breach or default. 5. Assignment. City shall have the right to sell, assign or otherwise transfer, in whole or in part, this Note, the Deed of Trust, and any other instrument evidencing or securing the indebtedness of this Note without the consent of Borrower. Borrower shall not sell, assign or otherwise transfer this Note, in whole or in part, without the prior written consent of City which consent the City is under no obligation to give. 6. No Oral Modifications. Neither this Note nor any of the terms or provisions hereof can be altered, modified, amended, waived, extended, changed, discharged or terminated orally or by a course of conduct, but only by an agreement in writing signed by the party against whom enforcement of any alteration, modification, amendment, waiver, extension, change, discharge or termination is sought. LA#4830-2030-3660 v3 -2- 7. Time is of the Essence. Time is of the essence for each and every obligation under this Note. 8. Governing Law. This Note is to be governed by and construed in accordance with the internal laws of the State of California, without regard to principles of conflicts of law. 9. Non-Recourse Obligation. Notwithstanding anything to the contrary stated herein, by acceptance of this Note and the Deed of Trust, the City agrees to look solely to the real property specifically described in and subject to the Deed of Trust for the payment of this Note in the event of default by Borrower; no assets of Borrower other than the real property specifically described in and subject to the Deed of Trust shall be subject to levy, execution or other enforcement procedure for any payment required to be made under this Note. VERANO RECOVERY,LLC, a California limited liability company By: INLAND COMMUNITIES CORP., a California corporation its General Manager By: i''"P--••--\./—**•-(2., Jamal A. Ahmad President LA#4830-2030-3660 v3 -3-