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HomeMy WebLinkAboutLUA-06-041_MiscLUA ro~-oL/, ~~~~ ~ Subdivision Guarantee ~ ~ ~ I F. I Guarantee No.: SG-2631-12061 Fee: $300.00 ~ <l Effective Date: November 22, 2006 at 12:00 AM Order Number: 206144881 r. I ij ~ ~ ~ ~ ~ The Co\Ulty ofKING and any City within which said subdivisionis located in a sum not exceeding $1,000.00 fi ~ That, according to those public records which, under lhe recording laws, impart constructive notice of matters affecting the title ~ ~ to the land included within the exterior boundary of said Subdivision Guarantee,the only parties having any record title interest ~ ~ in said land whose signatures are necessary, under the requirements of the Subdivision Map Act, on the certificates consenting ~ ~ to the recordation of said map and offering for dedication any streets, roads, avenues and other easements offered for dedication ~ 11 as shown in Subdivision Guarantee. ~I ~ ~ ~ ~ ~ I Signed under seal for the Company, but this Guarantee is to be valid only when it bears an authorized countersignature. Counte;signed: ~~'t..... t-\.. f\~ Authorized Signatory STEW ART TITLE SEATAC, Washington Guarantee Serial No. SG-2631-12061 ii In writing this company please address it at P.O. Box 2029, Houston, Texas 77252, and refer to the printed Serial Number. --=----V-----=-- SUBDIVISION GUARANTEE Guarantee No.: SG-2631-12061 Order Number: 206144881 Reference Number: DAVIS REAL ESTATE GROUP Effective Date: November 22, 2006 at 8:00 AM Subdivision Guarantee: Sales Tax: Total: $300.00 $26.40 $326.40 OWNERS: COTTAGES AT HONEY CREEK LLC, A WASHINGTON LIMITED LIABILITY COMPANY LEGAL DESCRIPTION: TRACT 6, JOSEPH P. MARSHALL TRACTS, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 38 OF PLATS, PAGE(S) 30, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THE SOUTH 530 FEET THEREOF; AND EXCEPT THAT PORTION OF TRACT 6 OF JOSEPH P. MARSHALL TRACTS, VOLUME 38 OF PLATS, PAGE(S) 30, DESCRIBED AS FOLLOWS: BEGINNING ON THE NORTH LINE OF SAID TRACT 6 AT A POINT 100 FEET WEST, AS MEASURED AT RIGHT ANGLES, OF THE EAST LINE THEREOF; THENCE SOUTH PARALLEL TO SAID EAST LINE A DISTANCE OF 200 FEET; THENCE WEST PARALLEL TO THE SOUTH LINE OF SAID TRACT 6 A DISTANCE OF 140 FEET; THENCE NORTH PARALLEL TO THE EAST LINE OF SAID TRACT TO THE NORTH LINE THEREOF; THENCE NORTHEASTERLY ALONG SAID NORTH LINE TO THE POINT OF BEGINNING; AND EXCEPT THAT PORTION CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NO. 741907, ITEM 6 BY THE STATE OF WASHINGTON FOR HIGHWAY SR900. SUBJECT TO: 1. EASEMENT AND RIGHT OF WAY OVER AND UPON SAID PROPERTY TO CONSTRUCT AND MAINTAIN A CONSTRUCTED DRAINAGE CHANNEL AND/OR OTHER FLOOD CONTROL WORKS, INCLUDING RIGHT OF ACCESS OVER AND ADJOINING THE LANDS: GRANTED TO: RECORDED: RECORDING NO.(S): Guarantee No: SG-2631-12061 MAY CREEK FLOOD CONTROL ZONE DISTRICT, A CREATED MUNICIPAL CORPORATION NOVEMBER 2, 1965 5948483 SUBDIVISION GUARANTEE 2. EASEMENT, INCLUDING TERMS AND PROVISIONS CONTAINED THEREIN: RECORDED: NOVEMBER 12, 1975 RECORDING NO.: 7511120482 IN FAVOR OF: PUGET SOUND POWER AND LIGHT COMPANY, A WASHINGTON CORPORATION FOR: ELECTRIC TRANSMISSION AND/OR DISTRIBUTION SYSTEM AFFECTS: AS NOW STAKED OR CONSTRUCTED WITHIN THE EAST 90 FEET OF THE NORTH 450 FEET 3. GENERAL TAXES. THE FIRST HALF BECOMES DELINQUENT AFTER APRIL 30TH. THE SECOND HALF BECOMES DELINQUENT AFTER OCTOBER 31ST. YEAR: 2006 AMOUNT BILLED: $8,644.57 AMOUNT PAID: $-0- AMOUNT DUE: $8,644.57, PLUS INTEREST AND PENAL TY, LEVY CODE: TAX ACCOUNT NO.: ASSESSED VALUATION: LAND: IMPROVEMENTS: IF DELINQUENT 2100 516970-0070-06 $722,700.00 $-0- NOTE: KING COUNTY TREASURER, 500 4TH AVENUE, 6TH FLOOR ADMIN. BLDG., SEATILE, WA 98104 (206) 296-7300 WEB ADDRESS: http://webapp.metrokc.gov/KCTaxinfo/. 4. DEED OF TRUST AND THE TERMS AND CONDITIONS THEREOF: GRANTOR: COTTAGES AT HONEY CREEK, LLC, A TRUSTEE: BENEFICIARY: AMOUNT: DATED: RECORDED: RECORDING NO.: WASHINGTON LIMITED LIABILITY COMPANY WESTWARD FINANCIAL SERVICES CORPORATION HORIZON BANK $2,870,000.00 MARCH 22, 2005 MARCH 29, 2005 20050329001804 MODIFICATION AND/OR AMENDMENT BY INSTRUMENT: DATED: JULY 25, 2006 RECORDED: AUGUST 2, 2006 RECORDING NO.: 20060802002485 Guarantee No: SG-2631-12061 SUBDIVISION GUARANTEE The Company's liability for this report is limited to the compensation received. This report is based on the Company's property records, and no liability is assumed for items misindexed or not indexed in the public records, or for matters which would be disclosed by an inquiry of parties in possession or by an accurate survey or inspection of the premises. This report and the legal description given herein are based upon information supplied by the applicant as to the location and identification of the premises in question, and no liability is assumed for any discrepancies resulting therefrom. This report does not represent either a commitment to insure title, an examination of or opinion as to the sufficiency or effect of the matters shown, or an opinion as to the marketability of title to the subject premises. I certify this is a true accurate reflection of those documents on file at the King County Court House, Seattle, Washington as of the date and time referenced above. Don Peters :me Guarantee No: SG-2631-12061 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRB 2005032900 I BUS.OU I WHEN RECORDED RETURN TO: Name: COTTAGES AT HONEY CREEK LLC Address: 4S21 SUNSET BOULEVARD NORTHEAST ~--1111111111111r11i11ir~11, 11 ----~E21112_3 ___ 2_ ------------------------- 20050329001803 STEUART ~TLE 11D ze .ea IJ~zaJ'c:39~';~~,w, 9 ii21'a~=tv!f/,io Je. .,u: ... :lo PAGEOOl oP 001 ~ll'ruw Numoer: LVU4ti;:M::SU1N.J -"">- Flied 1or Record at Reqvest of: STEWART nTLE ~ otf 03 8-o 1 STATUTORY WARRANTY ~R"itE The Grantor(s), DONALD M. RICHARDSON, AS A SEPARATE ESTATE for and In consideration of Ten Dollars a·nd other good and valuable consideration In hand paid, conveys, and warrants to COTTAGES AT HONEY CREEK LLC, A WASHINGTON LIMITED LIABILITY GOMPANY the following described real estate, situated in the County of KING, State of Washington: PTN. TR. 6, JOSEPH P. MARSHALL TRACTS, VOL. 38, PG. 30 Legal Descrlptlon: See Exhibit A attached hereto ·and made a part hereof. Assessor's Property Tax ParceVAccount Number: 516970-007[).06 ~~ ON . 0 -----=------ KlNG,WA STATE OF Washington COUNTY OF KING ) ) ss. ) r csrtify that I know or have satisfactory evidence that DONALD M. RICHARDSON Is the person who appeared before me, and said person acknowledged that he signed this Instrument and. acknowledged it to be his free and voluntary a e ses and purposes mentioned in this instrument. Dated: MARCH ~ , 2005 Name: Page I of2 Printed on 11/3012006 7:16:54 AM Document DED WAR 2005.0329001803 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRB 20050329001803;00% ... -i KING,WA j Order Number: 200483801 EXHIBIT "A" TRACT 6, JOSEPH P. MARSHALL TRACTS, ACCORDING TO THE PLAT THEREOF · RECORDED IN VOLUME 38 OF PLATS, PAGE(S) 30, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THE SOUTH 530 FEET THEREOF; AND EXCEPT THAT PORTION OF TRACT 6 OF JOSEPH P. MARSHALL TRACTS, VOLUME 38 OF PLATS, PAGE(S) 30, DESCRJBED AS FOLLOWS: BEGINNING ON THE NORTH LINE OF SAIDTRACT6AT A POINT 100 FEET WEST, AS MEASURED AT RIGHT ANGLES, OF THE EAST LINE THEREOF; THENCE SOUTH PARALLEL TO SAID EAST LINE A DISTANCE OF 200 FEET; . THENCE WEST PARALLEL TO THE SOUTH LINE OF SAID TRACT 6 A DISTANCE OF 140 FEET; THENCE NORTH PARALLEL TO THE EAST LINE OF SAID TRACT TO THE NORTH LINE THEREOF; THENCE NORTHEASTERLY ALONG SAID NORTH LINE TO THE POINT OF BEGINNING; AND EXCEPT THAT PORTION CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NO. 741907, ITEM 6 BY THE STATE OF WASHINGTON FOR HIGHWAYSR900. Page 2 of2 Printed on 11/30/2006 7:16:54 AM Document: DED WAR 2005.0329001803 Branch :STK, User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRB 20050329001604.UO I KING,WA -, RETURN ADDRESS: Horl"11n B•nk Commerclal Banking Cir 2211 Rlmlamf Dr., Ste230 Belllnghmn, WA 98226 ---111111111111111111 200l!\329001804 - s1c;~~RJ iJTr:!a DT 17.ee ii:.r-'1~BMv ~,if' CONSTRUCTION DEED OF TRUST DATE: March 22, 2005 Reference # (If applic:able); ------------- Grantor(s): 1. Cottages at Honey Creek, LLC Grantee{s) 1. Horizon Bank 2. westward Financial Services Corporation, Trustee ,;200<{'6.3801 STEWART TJTLE(§) Additional on page __ Legal Description: PTN. TA. 6, JOSEPH P. MARSHALL TRACTS, VOL 38, P13. 30 AddltlonaJ on page 2 Assessor's Tax Parcet ID#: 5116970·0070-06 .THIS DEED OF TRUST Is dated March 22, 2005,, among Cottages et Honey CR!lek. LLC; A Washington Umlted Llabmty Company (" Grantor"); Horizon Bank, whose mailing address is Ska.git Commercial Center, 2211 Rfmland Drive, Suite 2301 Bemngham, WA 98226 (referred to below ~ometfmes •• NLender"' and sometim .. -"Beneficiary'"); and Westward Financial Sen,Jcea corporation, who" malUng address la 1600 Cornwall Av.nu•, S.lllngham,, WA 98228 (referred to below -•Trustee"). Page 1 of8 Printed on 11/30/2006 7:16:55 AM Document: IDD 2005.0329001804 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRB 20060329001804:002 KING,WA Loan No: 8000001107 DEED OF TRUST (Continued) Page2 CONVEYANCe AND GRANT, For va!~able consideration, Grantor conv.,ya kl TrualN ln tn.lst With po-,, of .. i.. right o1' cnlry and possession and ror the benefit of L¥nder -BBnalloiary, al of G~ rtghl, title, and lnterast In and to the folowlng cklacribed real pn:u»rty, 1Qget11ar with all exis~ng or ,aubsaquenlly etOCl8d or affixed blJlldlnt,a, lqJrovementiS and fbrturee: aD .. Hmenta, rigl'lta ol way, and appurtenances: aU .water. water ~ and dhd1 rlghta (lnolucllng e1cck h utllillaa Wlh ditch or lrrlgatron rlghw); and all ott,er rl~. rayaltfes, arid PIOffl.$ relatng to b Nal Pl'OPeJ'ty, lncl'Udlne:I Wfthour: llmltatroo · •• ~•. ol, ou. geothermal aod alrnllar matter.a, (the "Aital Property"') located 111 King County, State of w .. hlngton: TRACT 8, JOSEPH P. MARSHALL TRACTS~ ACCORDING TO THE . PLAT THEREOF RECORDED IN VOLUME 38 OF PLATS, PAGE(S) 30, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THE SOUTH 530 FEET THEREOF; AND EXCEPT THAT "PORTION OF TRACT 8 OF JOSEPH P, MARSHALL TRACTS, VOLUME 38 OF PLATS, PAGE(S) 30, DESCRIBED AS FOLLOWS: BEGINNilNG ON THE NORTH LINE OF SAID TRACT 6 AT A POINT 100 FEET WEST, AS MEASURED AT RIGHT ANGLES, OF THE! EAST LINE THEREOF; THENCE SOUTH PARAU .. EL TO SAID EAST LINE A DISTANCE OF 200 FEET; THENCE WEST PARALLEL TO THE SOUTH LINE OF SAID TRACT 6 A DISTANCE OF 140 FEET· THENCE NORTH PARALLEL TO THE EAST LINE OF SAID TRACT TO THE NORTH LINE THEREOF; THENCE NORTHEASTERLY ALONG SAID NORTH LINE TO THE POINT OF BEGINNING; AND EXCEPT THAT PORTION CONDEMNED IN KING COUNTY SUPERIOR COURT CAUSE NO. 741907, ITEM 6 BY THE STATE OF WASHINGTON FOR HIGHWAY SR900. SITUATE IN Klr-lG COUNTY, WASHINGTON The Real Property or its address Is commonly known as 4821 NE Sunset Boulevard, Renton, WA 980SS. The R-1 Proparty tax ld'entlflcadon number la 51G870-Q070..06 Grantol" hereby usrgns as &11Curfty to Lender, all of Granlor's dght, title, and lnt&rest in and lo all lea&n, R"'115, arid profits of ht Property. nw asalQrwra,t la recorded in accordance with ACW 85.08..o70; the 6en created by thla asalgnment Is Intended ID btt i.peclflo. p8ffllC'led and choaie upon 1he r-eoordlng of thii. Deed of TNBt. Lender gqmte, to Grantor a llc9118e co colleot Iha Aenuil and proflt8, which license may ba revoked ll.t Lttnder's Qfltlorl and 8h&II be automsflody rwoked upon aooel8"allon ol 811 or part of Iha lnd•bledness. THIS DeEJ OF TRUST, IHCWDINQ THE ASSIGNMENT OF Re:NTS AND THE! SECURITY INTERl!ST IN THE R&NTS AND PERSONAL PJIOPEIITV, JI GIVEN TO SECURE (A} PAYMENT 0~ TH• INDa8T&DNl!98 AND (B) Pl!Rl"ORMANce OF ANY AND ALL OBLIGATIONS UNDER THE N~ TH• Rl!LATI9J DOCUMENTIJ. AND THIS D&0 OI' TRUST, THS8 DEED OP TRUST, INCLUDING THE ASSIOHMl!NT OJI AaNTS ANO THE SECURITY INTERE!ST •N Tlt& RENTS AND PERSONAL PROPERTY, IS ALSO GIV!:N TO SECURE ANY ANO ALL OJI GRANTOR'S OBLIGATIONS UNOER THAT CERTAIN CONSTRUCllON LOAN AGREEMENT BETWEEN GRANTOR AND LENDER OF EVEN DATE Hl!!REWITH. ANY !!VENT OF CIEFAUL T UNDER THE CONSTRUCTION LOAN AGREEIIENT, OR ANY OF THE Rl!!LATED DOCUMENTS REFERRED TO n-tEREIN, SHALL ALSO BE AN EVENT OF DEFAULT UNDER THIS DEED OF TAUST. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: P'AYMENT AND PERFORMANCE. Except as oth,;,rwlse provided In '1h18 Deed of Trus1,. Gianlor .shal pay to Lender al ll.rnounta aacured by this Deed of Truat ea they become dUi:1, and llhaH Plod)' and In a ttmely lt'arv18f' perform al of Granter's obllgatlons under th& Note, lhiil Oeed of Trust. and tt,e Related Docwrienc.. CONSTRUCTION MORTGAO~ 1NI: Olfftd ol Trust " a "conatnJcllan mortgage" for ui. purpo8N of Sectlona 9-334 and 2A-30G Col lhe Unil'onn Oornmen:lfal Cocle, as. thoee sections haw. been ~Ced by the ~ of Wuhlnglon. POSSESSION ANC MAJNTl!NANC~ OF THE PROPERTY. Grancot agreM that Grantor'li ponNalon and UN of 1he Prtiper1y &hall be govorned by the ~lowing proyislolls: P"o.S85Slon and Uae. LJntll th• ooourrenc:e of ru, EV<Y>t ol' o.rault. Granlcl" may {1} remain In ~ an,;t oomrol of the Prop$J1Y; (2) use, operate or mana.ge the Property; and (3} <Xlllect the Renls from lhe Property {to prfvUege is a llcense from Lender ta Gl"illl'l'b;)r autiomatk::alry revoked upon dofault). The kllowing provi$foM relllte le lhe UH of the Property or fo oO'let limltatlcns oo the Property. The Real Property ia not used principally for agrbJtural purposes. Dul)' to Mak'lialn. Gl1llltllr .t.11 mainlal~ the Property Jn tenantable oondltiOn end promptly pertorm aU repairs, replacements, and maintenance necessary to preserve its value. · NulNnce, w .. te. GranlDI •ha.II not cause, ,;;onduc:t or permit any nUls:ance nor IXlrnnlt, ~It, or auffar any •tripping ol or waste on or to the Property or any portion of the Property. Without Hmllrlg' the generality of thli foregoing, GIJW\lor wa not r9tl"IOWo, or grant to .ry other party the right to remove, any timber, mlnal'ala (lnoludlng on and Q&S), ooaJ, clay, acorla. soil, graval or rock l)l'Oducla wlthou1 Lender's prior writtan oon .. nt. Removal of lmproverrmnts.. Granter .etiall not demoF!sh or remove t!Jfff Jmprov.-nent9 f,om the Real Property Wilhoul: Lende(s prior written consent. /lvJ a condition to th& remOVal of i,s,y lmprov&mel'lts, Lender may reqUlre Grantor to make arrangamants satl9fac:tory lo lAonder to replace such Improvements with Improvements ol at IM&t equal value,. a..ncter'• Right to ~tw. Lander and LomdeJ's agents #Id ~prea,antattve., may entw upon lhe Real Plq:Jerty at all reasonable times to attend tD Lender's. inl:$/"eses and to Inspect the RN.I P~ for purposes of GIWICDt'lil compllanc& with 1he terms and conc:lltlonll of thi. oeoo of Trust. COmpllanoe with Govemff».lrtal F1equlremW1ts. Grlilnltll" ahal ~y compfy, and shall J)l'Qmplly oeuae ~lit by all ag«its, tenants or other persorn. or entitiff of every nllNl'e vmataoever who rent. ._.. or otherwlH UH or occupy th• Propt,rty In any nutMW, with 1111 laws, ordnances. and ragufallolw. now or hweafter In llffeot, of aM gQ>.«n11i.ntar authOrftlM iapplloable '° 1tl8 \IH or oe,;;upancy o1 IIW Prope,ly. lncluclng without llmltatlon. the Amer loans With t:llaabllltffl Act. Gramnr may contest In good faith any such I.aw, ordlnanoft, or regulatlon and withhold oompllance durfng any Page2 of8 Printed on 11/30/2006 7:16:56 AM Document: TDD 2005.0329001804 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRE 20050329001804.003 KING,WA Loan No; 60000011 rYT DEED OF TRUST (Continued) Page3 proceeding, Including appropriate appears, so long as Gte.ntor has notified Lender in wrllhg prtor lo doing so and so long as, h Lender's sole opinion, Lendt>r's lnlerests In the Prq)erty ere not Jeopa,dlzed. Lender may reqUirQ Grantor to post a&,qullt& secunly or a surety bond, reasonably s811stactoiy to Lander, to ptoleOt l.enl;ler'B lntflrest Duty t~ Protect. Granter agrees neither to e.bMd'on or leave unatleneled the Ptcpllrty. GrarttoT shall do all othw acts, in addition IQ tho5e acts set tcrth 11bove In this section, whic;:h from the cnaracter and use of U. Property are ~ neceeaary !o PfQ1ttet end pr99e...,. tho:,, Property. Consb"udfon Loan. Ir some or all of the proceeds ol lhe loan or.atfng the lndebtedneu are ro be UNCf to ootl*lruct or oanpl91e> ocn•truotlon or any lmprovement1il on 1he Prcperty, the lmproyemllntll ahall be completed no le.ter than the mak.lrlty date or the Note {or sueh earlier dale u Lender may reaaonably eslabllahl and G1anfQr 8hd pay In full alil coete and ~ In connection with the work, Lender wil dJabwse loan l)f'OOIIIKIII und111r MICl1 terms and oondltkms ai l.and8r may ci-n reasonably necessary to Insure that the I~ created by .. 08'1d of Trust shall have priority owir all posslbl& lkns, Including those of material suppliers and wotkmen. Lands may r9qulre, among other ~gs, lh&t rlebi w,.erit ,equeatec ba supported by receipted bib, expen&e afllda\rtla, walven of r191'1S, oonetructk:ln ~ reports. and 11uch othar documentation as Lander may l'&ll&OnBbl)I" req~ JJUE ON SALE • CONSENT SY LENDER. Lender may, st Lender's option, (A) declare lmm&d1-f"11y due and payable all •urns t1BG1.1f9d b'J 11118 Deed ot Truat or (8) Increase the intenist ride P'QYided fat In lhe Not& or oD'NM' dooument evidencing 'the Ind~ and lmpoae 8UCh CO,er conditions as Lender d_,,. ~. upon the Nie or trar.klr, without Le~• prtorWl1tl#l 40nMnt,. ot all or any part of 1he Real Property, e>rafff lnt..-..tln the Real Praperty. A •NIB ot ~ mNn8 the oonvlil)'VI09 of Real Property or any right, liUe or Interest 1n ttie Real Property: lfflelher legal, beneflolal or ecptable; wh.iher voluntary or Involuntary; Whether by DUtrlr.,ht sate, d"ed, inlttl!llfrnent .... con11ract. land OOl'rtl'Kt, oontnwt for deed,. leaa.hol(I 'Jnterest with a term gratw 1han thrff. (3) yaars, leas&-option co.ntr:act. or by aal•• aaalQl',ment, or ttanafar of 9ny ,.,_,.,lolal' -lnlef"Nt Jn or.to any land truat hoking Utle to the Real Properl)', or by any oltler mathocf ot oonveyanca of an lnterNt in tile . Aellll Property. If any Grantor Is a ~atlon, partnerat,ip or llmited Bablllty compeny, transfer alac;J tnclucfe8 any change in ownership of more than ~ percent (25%) of the votwig stock, partnenlhlp Interests or lbnrwd llabllity oornp,any lr1UIA1818, a tt,., oue may be. of such Granier. Howev&t, U. option st.II no1 bet exarollMKI by Lender lf such exercise la prohlbflecl by f&detal laW or by Washrngton Jaw. TAXES ANO LIENS. Toe followlng prov!oslons l"lllatlng to lhe taxes and ll9rts on the Property are part of1hl!I Off!d' of Trust PaymenL Grantor stiall PIIIY When due (and in a.I! events prior to dellnqumqr) al 1aXe8, epecfal taxes, asaeumenta, ohargN (fnolidng water and s-11r), fines and lr:1po5Hlon11 levJed llglllnat or on account of 'tfut p,operty, and ahall pay when due .. olafmt, for WOlil done on or for iKll'Vk::ltS t'lllnd8rec:I or ma1er1a1 furnl8hed to the Property. Grantor •ha~ mahtllln the P~ frN of al llens havfng priority CN8f er equal to th• lnleraat of Lender und•r thla, DMd ot Trwt, 19XC81)t for lhe lien ol taxn and aasessments not dtce and except as otherwiM pn:>vlded h this Deed ot T,ue,t. · fll:lgtrt to Cont.et. Grantor may withhold payment of any taw, -menl,. « claim in ccn, c11cn WHh a good falCtl d!apute ov.r lt1B ob{lgatlon to pay, ao long 8$ Ler.:ler'8 lnter1111t In the Property la not Jeopal'dized. It a lien arises or la Hied ea a result of nonpa)'mant,. Grantor .shall within lltteen (1'5) ~ after the llen arises or, If a Uan Ill flied, Wlltwl fiftewi (15) days after GRlm:lr m'5 notice of the filing. secure the diaohafge or the Dan, or If requested by Lender, deposit w11tJ Lender cash or a sufficient cotl)Cfflta surety bond or olh« security -'Jatl8tactory to Lender In ai, amoi.nt atMlclent to discharge 'Irle Jlen plia any coete and attorneys• fa0$, or otf..-charglilG that eould accrue aa a result of a toreclosura or Bale under" In& lien. In any conteat, Grantor shall <Ulft.1nd Qaelt and l.snclt11r and 8hal satls1Y any adYer8G jl.ldgrntilnt b$for& e1 ,ro.oe.116111" oganst the Property. Grantor shall name Lender ea an addl!ional oblgee under~ surety bond h.lmiahad In tha oonli!Mit J)fOONdlnga. Evklanoe of Payment. <lrantor atiall upon demBnd tumlsn to Lander aatrafaclo,y evkl.noe of payma"II at uw taxea or aaseearnents al'ld &hall auehoriztl the appropriate go,..emtri«rt:al ofllmal to d$11ver lo Lll~r at any time a wrttten ~ of the laxlil8 and~ against the Property. Nota of Con.tructlon. Oran1ol shall notify Lender at IMSt fifteen (15) ~ya before <l\ny work la oommenoed, eny seMOa,8 are furnished, a, any materials are swppQ9d to !hit Property, ti any mechanb'a lien, materlalmen'$ lien, or o1har Jlen could be a&sef1ed on accou'll of thv won<, 68M~a, or ~ G'81'1tor will ~ requeet of Lendar fumlah 1o Lender advance ai.slJtal'lc.5 Glltlsfaotory to Lender that Grantor can and wll pay the cost of •LICh lmprovi,ments. PROPERTY DAMACll! INSURANCE. ll"l0 fol!owlng pl"Oll!slone ralaUng to lnBuring In* Property are a part ol 111'6 Deed of Truat. Maintenance of ln•uranca. Grantor shall procure Bnd maintain $X,lloles of fire lnaw&riQe wJth standard BXliRldeCI cowi,rage lllld~te en a fair value basis 101 the full lral,ll"8ble value covering an lrl'p'ov.-naf111 on a. Reel Prcperty In an .-nDIM1t aufffcilem to e.vold appllcatJan or any ooln~urance ctausa. and wtth a atandard mortgagff clauae In fa\fOI'" of Lenc:1111'. Grantor shall also pror.ure and maintain oomprellenalve general !lablfty lnal.ll'atlCtl In 111.1Ch ~ amounte • Lender may requeat wlll'i TrunNil •nd 1.gnclililr being named u addRlori&I lnau~ In atJClh Uabllhy rneur-,oe polk:lea. Adclilicmal!y, Grarnor ahllll nwlntaln auch other Insurance, lndudlng but not I~ to huan:I, buPINII Interruption, and boiler nsuranca, u LAndar may rNsonably require. PollcJN :ahall be wrltla1 in form, 11111Di.da, OO'HtSQH and bu.la :::"=:f°~ ~~~ i:u{'!~!r atr:;'r:;:: ~ pol~o~ °'lo~~~~ aa!l5factory to Lendet, lrdl.dng e~Ja.tions that c.:overaaes wll not be cancelled or diminished wlthout .t leaet tan (10.) ~ prior wrlttwl not1oe tD l..snder. Each Jns,;ranca policy afao shall Include an endOf$91TI81'1't PfO\/ldll'lg 1hat coverage In favor of Lencleor WiU not be impafred Jn any way by any act, omissfon or default Qf Gr.miter or any Other peruon. Shculd the Real Prop8rf1¥ be located In an area designated by lhlt D/rect,cr or lhe Fedend Emergency Management Atler"l¢1 as a special flood Mu.rd area, Grantor agrees to obtain and CTalltaln Federal Aood Jnaurance, if --.nabfa, wJlhln 46 days after natloa IIJ given by Lander lhClt lhe Property is loce.tecS In a special ftOOt;I hazarcl al'M, ior the fuU unpaid prinolpal balance of 11'18 loan and any prior liens on the pr<>perty seourtng th,e loan, up tD 1he maXfmum polloy Urntle Mt under u,., Naffcnal Flood lneuranoe Program, or ea oth~rwise niqulred by Lender, and IQ maintain auoh Insurance for the term c,I the loan. Application ot Prooeede. Qranklr ah11II promptly notify a..nder of any Jess or domage to the Property, ~ may make proof of Joss If Grantor t.lls to do so w~hln fifteen (15) da)I& of the casualty. Whaiher « not Lendrer'a aeourfty 18 lmpalrw, Lendet n-llY, e.1 Lsndor'S lillec!ion, rec<BiiVe and retain th& prooaads of any ln&urance Bild" apply th1t ~ to 1he reducllon of the lnclebtedneaa. payment cf sny Jlan affecting 1he Property, or th& re&IIOratlon and repu of lhe Pl'Clperty. L1 Lender elect.e to apply 1he prQQBeds to r8$10r11tlon and repair, Gr&nlor e:hllll repair or RiJ)M.C& thlill d"ame.ged or deab"oyed Jmprcvementa In a rn&rl18r satil:ifactory to Lender. LendBI'" shall, upon sallsfac1ory proof of mKlh expencilw'e,. pay or ronibur.N Gta.nlor fl"Qn'I u,e proceeds lor Iha rsft80nllble ~ of r&pelr or ~ If Grantor Is not In Clefaull under this Deed of l'rust. NtY prooeeds which have riot IMoM dl&bultlild wftNn 180 daya after 1helr r-/pt-,1d Which Lender tie. not committed 10 the f'tlplllr or resto>"allon of the ?roperty a:hllll M Used 111'81: 10 pay any amount Ollirlng to Lender under tN8 Deed of Trust. lh1111 to pay accruW Interest, and the ramlllndor, Jr any, al'lall be applfed to the princlpal balanc;:e of the lndebtednees. If Lendar hck:ls any ~ after paymant In full of the r. I 1 J ,..., 8UClh prooeed• llhal: be paid wllhout 'nlerest to Grantor as Gran!O!"a lntereets rnay appear. Gnntor'e Raport on lns1.1rance, Upon request of t..andeT, toowaver not rn:,re than once a )'Nr, Gramor ahal flA'nllih 10 Page 3 of8 Printed on 11/30/2006 7:16:58 AM Document: 1DD 2005.0329001804 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRB 2005032900 i 804.004 KING,WA Loan No:6000001107 DEED OF TRUST (Continued) Paga4 Lender a report on each mclsting policy ot lnsuranoe showfng: (1) Iha name of the Insurer, (2) the rlsk$ lmued: (3) u. emoont of th6 palicy; (4) the property lnsurod, Ille 1t1en current teJ*l,oement value-of such pwperly, and the manner of delllnnlnflig: thlU value; and (15) tti& expiration dat& of the policy. Gfllr'IIOf" •hall, upen l'8qUG&t of Lender, have en Independent app,alser satisfactory to Lender det8m'ine the cash value replaoem&nt 0081: Of the Property. LliNE>EA'S EXP&NOlTI.IR&S. If any a,:;:tlon or prooe0dlng ia oomMllrl09d thai would ma~ affect Lender'• IITlerNt In the · Property or It Grantoflalla to comply with any provision ol fu OHd of Truet or any Rel.tad Docurnenl8, lnoludlrlg b.rt not lfmlted tCI Gran&or'a 1aflur. to chcf'large or pay whtm due any amounc:. Qran:t:or Ill teqUfred to dlac:hal'g9 or pay Under lhla Oeecl ot Trust or any Relared Documenta,. Lender on Grantor's behalf may (but sl,al, not be obffgawd to) take any action that Lar.- dlNfflll approprlat&, lncludhg but not lmtt.d .fo dlsoMrging or peylng all ~. Hem, MOU~ lntMa*, enc~-and othar Ol•lm9, at any time levied or pl'ac&d on. tha Property and paying all ooeta ror lneurlng. rralntalnlng and S>NHrvlng lhe Pl"ClplNty. All auch e,:ptll'ldllures ll'Q.ffed or paid by Lend• k>f auoh purpoeea Wit then bMr ~ at Iha rate diargec:1 under tfi• Now from the date lrt0ul18d' or paid by Lender to the data ot ~ by Gramor. All auoh expenaes wll beoome a part of tl'l8 Indebtedness aid, at Lender's o;ition, will (A) be payable on demand; (8) be added 1o tt'l9 balance of th& Note and be apportioned among and be payal::fo with any ln8'111r1Mnt payments to becoma due during lillther (1) the term of any eppllcable 1neuranoe polloy; °' C2} the remai'lfng term of the Note; or (C} be traated u a balrDon payment Whloh will t:re due and payabk,, .at lhe Nole'& malurity. The Deed ot Trust alllo wlll NtCUra payment of thaae amounm. Such right~ ba In addition to al othar rfghta wid remedle6 to Wtilc::h Lenliw may be entitled upon c..raull WAARANTY; DEFENSE Off TITLI!. The lolloWing provisions relatrlg le QWl'lem\ip of the Property are a part ot thla DMd of Tn.11Jt: . Tltl._ Grantor warranca that: {a) Granto~ holds good 4U"ldl marketable tl!le of IWCOfd to the Property In 1" ,ilmple, ha anct olftr of all Ilana and tn::tumbntnces other than those Ht lor1h In the RMI Property dNorlptlgn or In any fJtle lnsuranoe policy, title iwp:,rt, or Rnal title opinion Issued In favor Of, and aeceptad by, Lender In oonnectlon With "Ihle Deed" ofTrogt, and {b) GAmlOI" has the fuij right, power, end authorltyflCI execute and dellver lhi11 Deed of Trust k:I Lender. Defense of Tltle. SL.tijslct to the exception In the para{J"QPh aboYe, Gtan1or w.ranta and wlr fONVer dafand -.. Ille to the Plqlerty agal'lst the lawful claims of all persons. In the l!IYent any action or p,ooeedfng Is corrm&nOed that qu•tbns Grantor"s lltlt!i or th& lnmrtllst of Trwti,e or Lender under this Deed or Trust, Granto,' ahG/1 defend 1he action at Grlllntor'9 expenae. Grantor may be the nornlnal party Ill such J)R)C98dhg. but Lander ahall be enllllad lo ~ In tha proceeding and lo be r~ in the pl"OCeedlng bl/ counsel of Lenc:ler"s awn ohofce, and GJ'llJRQf' Wl/ deliver. or cause 1o be deriv..-.d, to lAncSer 8UCh lnstrumenta ae Lender may request fl'OM tim. -&o time to s-m,lt •uoh pal'IG!pe.tlon. CDmplJanee With Lawa. Grantor wan-.-.nt. that the Property and Gran!Qr'9 ue• of the Pn;iperty compllea with al e>:1811ng applicable law$, orclln&nee11, mid 1'8g1,de.Uons of govemm,mtal authorities. · Sla"Vlval of Repr....-.latlon• -,Id W•rr•ntlN. All rvpr ... ntatror, .. warrant! .. , and ~anta made by Orantor In tt1la DMd of Tnat •hall eurvt\le lM uecutlon and deJivl!lly of Na DNd of TrLl9t, ehall be oo~ulng In nature, and aha.I AN"l"IU1 In full force and effect tM'ltr auch time as Granklr's Ind~ llhall be paid In flJ1L COND&MNATION. The following provisions relating 1o condemna!Jon ~area part of thl8 Del!ld ofTrue1: Pl'OCIMKllngs.. If any proceeding In c::or.dl'IMl'latlon Is filed, Gnlnlor shall promptly notify under in writing, and Granier ahal promplly lake ,woh ~ as ma.y be necNisary to defend thlt acdcn ancf obtain tt,a. award. Granlor may be lhlll nominal _party In such proceeding, but Lsnder shall be entltllild to J)6r'llclpata 1n the proceadlng and to b9 ~ in the proceeding by eounael of Ii. ~ chol~ all at Granto,'11 ep,anae, and Granto, Wll dllNver or ceuse to be daltvered to Lender such in~ and documentation AS rnay be reqU8ll1e(I by L8rvJar from tfme to time lo penntt: aueh --AppUoatktn of N9t Proceeda. If all or any part ol the Property I• oondan-,ecl by eminent domain J)l'OONdln~ OT by any PfOOM'Cllng or purtlhaa• In 1Je1,,1 <:A oonliamnalion, Lander m.y at lta election roqulra tl'lat ea or any portlori of 'he nat p,oceeds ot the award be apptfed to th& lndeb1edness or lhli repair or l"N10fdon ol the Property. 1h11 net prooeeds Of 1h11 award !iiheU mean the awaid after payment of an r-eaaonable ooats. ~. and attorneva' feas lnmrred by Truste. or Lender In oonneo'llon With 1he conliemnatlon, IIIP0SrT10N OF TAXES. FEES AND CHARGES BY GOVERNMENTAL AUTKORmes. The following provia:lona relating to gtl"l8l1lffl8r taxes, 1'1$$ and charges ana a part o1 th~ Deed or Trust: CYITINlt ni:-, Fee8 and Chargea. Upon re,quast by l..«lder, Granier shal execute 8Utlh ctooumenta In addition to this Deed of Trust aoo Qlk• Whate.,.. other ac::tion Is requestlild by L8rder" 1D perl9ot and cont.,ua Lender's lien on tha Aeel Prol)erty. Granlet tlhall relmtuae Lander for all t.axes, aa csescrtbed below, IIDgrather with all expenue: incur.reel In recordll'lg. perf9ctlng or contll"kllng th!& Deed of Trust, lncJLJdlnQ without !Imitation al taxes, feea, dooumanlary ...,,,_,., and othw ohal"ga• to, NOOJdlngor ntglslwl"og thfB DDad ofTrue,t, · Tu... Th• following ah911 oonatltura taxes to which !his s9Ction al)Fftes: C1) • 1P9C1fiC1 IIIX upon thle type of DNCI <:A Truat °' Mpon all many pan of 11'1* lnde~ eeeurad by this DNCI otY...i:.: (2) a epeolfla tax on GranlCt which Gf'lmlor la auuiotfzed or .-.quired to deduct rrom PQYment. on the lndlilbtednNa BIICIUred by thla type or DHG of Trust; (3) e. tax on this type of Deed ol' Trust chargeable against the Lander or the hofdgr of th& Nate; anc;I (4) a apeolfJo 1aX on all or an)' portion of the lndabi.diess or on payments of ptlnclpal and inlerast macla by Grantor. · Subsequent Taxes. If any tax to Which this section ap~ll1!16 la. ena(lled subsequent to Uw;a date of thlB DGKMt olTrust, lhill event shall have the same erteot u an EV&rlt of Default, and Ll!lndar may exercfse any or all of Its avalable rem&dlM for an Event o1 Dela.Ult as provided below unless Granter eilhfll" (1) pays th• tax before It bl!loomM d&llnqLlent, or (2) contests the lax as provicSed abovo In 1he Tax= ar'ld Uen8 sGOtian and deposlb with L..,dl!ll" Oll8h OT a 8'.lfficlent corpond9 •urety borld or other secwlty satlstactory to Lender. SECURITY AGREEMENn FINANCINQ STATEMENTS, The tcirlowlng provtslona relating to this Oe9d of TtU8t ... MOurily agreemsnt are a part of this Dead of Truat: security A~L 'Thia in.tnun.nt l!ihaU constitute a Seaurlty AQrMmem 10 the ma.nt *'Yd the Prop•rto/ oonatltua lbcturM, and Lender shall have all of the rights of a &eoured P81"1¥ under the Unifotm Cornrnetelal COde • amendlld lrom time to time. Security Jn~ Upon ~t by Ltinli~, Grantor shall lake whatever action la requested by Lender to J)ltlf8ot anc:I conllnu9 Lend'1r"s avcurlty rnterNt In tne Rents and Personal Property. tn addlUon to r.cordng this Oeed at Trust In lhe raaJ ~rty records, Lender may, at any time and will1oot fUrlh« •uthorlzatkm 1Tom Grantor, me ~ oaunllitfpart8, capiea o,-raprodlJCtione of this Deed ot Trust as a financing slatement, Gn!intDr shalJ retmbura& L.stw:ler fOr al 8Xpllll!lllit8 1neurred In perf9ctlng or COl"'#inl.ling this soc:urlty lnlilrest, Upon default, GtenllDr shall not Nf1"ICIVO, aever or detach the, Personal Property from the Propeny. Upon default, Granklr amtll auembfe any Penlonal Property not afflXed to the Propertof In a ma...-.r ~ at a. p,laoa masonably convenient 1D Granier and L.endar and mal<9o lt-llable 1o L.andiar withh UYe• (3) daYS after rwoalpt of wtltten demand from Lender 11D Iha, "->dent pe,mlned by appllDalJla law. Ad'*-The ffl1111ng &dcll"N8 .. of Grantor (debtor) and" Lend8I' (seou!Vd pal1y) frorn whlDh lnronnatron concerning "!he HCUrtty lnterwst ~ by this Deed of Trust may be abfA.-.cl (each as required by t\e Unlfonn Conwnerolal COdlt) Page 4 of 8 Printed on 11/30/2006 7:16:59 AM Document: 1DD 2005.0329001804 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRB 2005032900 i 604.008 KING,WA Loan Na: 60000011 D7 DEED OF TRUST , (Continued) are as atatad on lhe fnt ~ of this Deed ol Trust. PB985 FURTHER ASSURANCES• ATTORNEY-IN-FACT. The folk:Jwlng provielOn8 relating to furthw u.surancea and attomey-ln-fa.ct an, a part of this OfMd of Trust: FUrttler A*-Uranc.a. At. IU'\Y time. and from time to tin'w, upon request of Lertder, l3rantol' Will make. e>c.o!,fle and dallvvr, or wRI CIIUIIIJ to be m.de, executed or delivered, to Lender or to Lender's deafgnw, and When ~Uated' by Lendw, caUH to be flied, recorded, reflled, or rerecorded, u the cu• nay b., at euch times an:I In aueh offlGQ and pl&ON -LanckN" may deem appropriate, any and all •uoh mortgaga, daeda of trust,, aeourlly dNda, aacurfly agreemeni., flnani»'IQ ~. eontrnuatlon 81at8J'IWllla, lnatrumenta of f~ ........ nee. o.rtlffOll188, and olhel' docun"*"• u May, In fl'I• sole opinion of Lendllilr, be neeeuary or deelrabl• in order to ettecruata, complete, perfect, continue,, or preserve (1) Grantor's obllgafiOnS uncklr the Note, thla DNd' of Trust, and the Related Doctnlent:9, and (2} 1ha Hens ano aeeurfly lntereslS creeted by lllia Oeec:I ot Truei aa finrt and prior Ilene en h Prq,9rty, Whether now owned or he....tter aequlred by Granter. Unllljl$8 prohlbi!9d by law « l.ttndw agten b the contrary In writing, Grantor 81\all relffD.Jrse Lertder fa'aU 0051$ «nd expat1$8S Incurred In connectron Wirh the matlenl referred to In this paragraph. Attorney-In-Fae!. If Granter fafis $0 do any of the things refened kl 1n 11'18 preceding paragraph, Lender may do ao for and tn.th1;1 ,ame of Granior and at Grantor's axp911~e. For such purposes, G,antar haraby lrr9vOcabiy -,,pornta Lendor as G,antor's attornay-ln-fai:rt for 1he purpose of me.khg, executing, deliverlng, fling, rvoordlng, and doing all other things -may b& neoeaaary or desirable, In Lender's sole opinion, 1g IIOCOITlpllel\ Iha m.ner. Nferr«I to In 1he i:i,ecadlng -· . FULL PERFORM4NCE. It Qrantor pay& &II the lndab!edne&s Whan due, and cllerwtea perbma all !he obllgationa knpoaed upon Qrantor LJIKi.t' 1h18 Deed of Trust, Lender .a hall execute arv;S deliver to T~ • NQUUt for fun ~nca aid .aN.U ltXaaui. al'ld dl,llver to Granbr aurtabla etatements or terrnlnallon of any finanoing .ta"ttlmlmt on file av~ 1.end•r'• Hcurir:y Interest in the Rer"da and the Personal Property. Any ~oe f-shal be paid by Gtantor. If pennltted by aPl)ffcable Jaw. Toe grantee In any reconveyar,ce may be des<:ri:>ed as Ula "person or persons lagally entltled tt"lereto*. and tha recital• In the ~ or any mattern or tacts shall be cianclusive proof of tha ln.rthfulr.sc ot -,y such ma1mrs or ,-, EVENTS OP DcFAUL T. liach of 1he tollowing, at Lend"ar's option. shall cooslitUt& an Even1 of O&faua l.lld"er thltr Deed of Trust Paymant Default. GtanCot fals tc mQk1;1 any payment when du• undat-th• lndebtadnoss.. Othar Oetaulta. oramx-fall• to comply with or to per1orm any otMr tierm, cbU~tlon. covenan,: or eoncfllon contained In this Dffd of Trust or h any of Iha Related Documents or to cc,mJ:lly wtth or to P8'fOtm -11y term, obligdon, oovenam: or oondltlon conalnea In any other agr-9emGOt between lender and Qrantcr. Campllance Dllfault. Fauure-tc comply with any othlitl" tenn, obligation, oovenant or oondltlen oonlainecf In this Deed of Trust. lhe Noteor~#IY of1he Reiate-d Dacummits. DefauH on 0th• Payma,ts. Failure of Granter Wfthin u,e time r.qulnKI by lhls Deed of Trust to rnaka any payment for taxes or Insurance, or any olher payment nece.ssary to prevenl 1Dlg of or to effect di8charge Of any lien.. False Statements.. Alff waminty, rapt"esen1a1ion or statement made or turnl3h&d la lender by Gtanb" o, on GtanllOfs behalf~ thls DEted of Trust or the Reta!'3d Documents la false or rnl&IMdl'IO in nny matefial NSpect:;. eltller r"K1W or at lhtl tlma made or furnished or beoomes fQlse or mlsleacllng at any time thete&Jter, · C8'.cttve CoQateralb::aUon. Thia Deed" of Trust or any ot tl'I• Reiata,d Docl..mOl'lta oaeeas lo be In flAl force end d9ot (ll'duclnljjl allure of any oal&t..i docum8f'lt to oreQtfil a V&lld and ~ seicutlty lnratNt Of lien) .i any lfme and far ...,......,, o.ath CH" 1naoiv.ncy. The dillaolution of Grantor's {rega,dl ... of whethW ~ 1P oon1:lnua la rnaci.). any ITl4Nnber wllhdraws from W. II~ llablllty oompany, or any other i.rmlnallon of G~ 9Xlllfm1D• Ma gok,g ~ or tl'le OM;th of any member, the lnsolvenoy o1' 1J.ranto1, the appolntmeiil of a reoalver for any part of Grantor'e property, any assiglment tot the benefit of cl"Wltora, any type of oreditor wor1caut, or the~ of Bl1'J PfW89dlng under any bankrupley or lrlsolv&noy lawlll by or against Grantor. CNdftar or ForfeftuN, ~ngs.. Cornmencilmant of foreolosure a-forfelltwQ p!'OOMldlnQa, whelher by Jurfclal proceedhg, se.W-help, repoasesslon or any o.tl'ler mettiod, by any andtor of G~ or by any govamment:al agenoy a.gahst any property aeowing the lnclebledness. This lncludaa a Qamlshnwnt of •ny cl Granlot'$ IIOOOlmta, ~ng clepoa• IIICCO\rlla, with Lendllr. However, this Event of Default shall not ,apply If thtilr9 Is a good faith dl9pute by Granter u to U-. vallcllty or ,.aaor,lltil.,....a of the claim which ia: tti. bulls of 11W CNdlllor or forfeltute SlfOOINdhg and If Grantc!"" give• t....der wrm.n notice ot Iha of9di1or or forfellura prooNcllng UICI clllpOlllta with Lancl•r monl8a or a aurety bcncl fOr tl"le c'*'ltor or forlelturw pn:iceedlng. In an amount determined by Lender, In 1la sole dl9oreticn. aa balng an adequate re.t•rve or bond ror the ct1apu1e. 9"-0h of cuwr Agreement. Any breach by Orantor und.lr 1hio 1enns of any other aa,fff'fl6ln1: between GtanliCr and Lendr;r tneit i. no1 rvmectf9d wtlhln any graoe period pt(Mdad 1Mrein,. lnclucD,g Without lml1atlon any &greem11nt conco11rnlng any .rldebwdnoees or other cbllgation ot Gtantorto Lmidar. Whether axla:tklg now ot latar. eventa Affeotlng Guanmtor. Any of !he preced!ng evenb occurs wllh respect to any Guarantor of lll1'J" cf lhe lnd9btecln88$ or any Cluaranlor dies or bQoomes incompetant, or revoke.s « disputes lhe valldlfy or, or llablllfy urld«, any Guararity crf tt,e lnc:lebt~. In lt1e event of a death. l.afldEW, at Its option, may, but ahaU not be r.qulred 1o., permit lhe Guaranto,'S estaM IO assume unconditionally th& obligatlorl$ a.rising undw a. guw.nty In a ITlm'IJlllill"" sati&lecto,y to Lander, an;t, In doing so, cure any Event of Cefault. AdYWH Chang.. A material adverae chan!iJ'11 occur6 In OlmlWr's tlnanolal condition, or Lender bdevM ltMo proapeot ot payment or l)llrfonnance ol' the lndebleclnflaa Is impaired. lnaMJUrlty. l.8nci8f In good faith ~!eves itself lnaeeure. Right to Cure. If any defaut, other than a -default in payrtlfflt ia cu~a .-id if Grantor hU not been glvan a notrce of a breach cl Iha .am• provlsloo crf tt1'8 Deed of Trust within the prt1Cedlng tw.iv. (12) R"ICll"Nls, a: may ba cured It' Granter, after rlilOilMng Written ll01lce trom Lend6r demanding cure of suoh default: (1) cure& the dela.ult Within thirty (30} days; or (2) ff the cure require$ mor9 than thirty (30) days, irnmecf~y lnffie.tes steps which Lender dHffl8. In Lender's sole dst:ratlon to be eufflolenr lo cure the dilfault and 1hereaf18r oontlnu.a and complet.8 alt l1NISOnable and necessary swpa sutffcient ID Produc& C<ll'l'lplianoe as tK>On as reasor,abJy pr.!Wtfoa.l. RJGHTS ANO REMEDIES ON DEFAULT. It an Event ot Dofat.ft occuns under thl& OelKf of Truat, at a,y time 1herufler, Trustee Ot" l.aldiH'" rnay 8'X8rellle any cne or-more of tn& foll awing right& ancl tMT1t1CI•: l!.ction of Rcmedlea. Elec!lon by Lan:l&r 10 pursue any remlldy &hall not exelude pu18ult or any other remedy, and an e!ectiotl to make axpencfflur-or to take 4Clion to l'erlorm Jill obllgatlon o1' Grantor i.ridar thh Deed of Trust, ll1tar Gl'al'llcn fallura to petform, aha.I not atract Lander's right 10 clecl"are a dltfaultand exerelaa lbs ramedlu. Page 5 of8 Printed on 11/30/2006 7:16:59 AM Document: TDD 2005.0329001804 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRB 2005032900 t804.U06 KING,WA Loan No: 6000001107 DEED OF TRUST (Continued) Paga 6 Acclll4orat• lndebtadnesa. Lender shall have the right al Jt:s optior, 1o cl9clare OtG entire JndetitednBSS fmmecHat8ly due and paya'ble, Including any prepayment penalty wtileh Grantor would be required 'lo pay. Foreclost.1r& Wah raspect to au or any part or lhe Real Property, 1he Trustee -.hall have-the right to ..:«else Is power cf sale ,and to forwctOlle-by notice and sale, and Lender shall hBYB th& rfght to 1ofaclose by judlclaf forecioaure, In eHher ease-Jn aooofdlll"IOl!I With and 1o lh8 full extent provided by applicable Jaw, UOC FMmlKII-. With ~ to all or any part ¢f the ~ P,op9ny, ler\r;lw anall have al aw l'ighla: and femedl8a of a -cured party under 1118 Unlfcrm CommEH"Olal Code. Col""11: Renta. Lender shall have tl1e right. without notice to Grantor b take poaseeaicn of and Man&Q9' the Properly and colleat the Fl~, Including amounts past due and unpaid, and apply tho net prgceeda, over ema above Landenll costs, agahet the l~s. 1n lurtharanee of thls right. Lend...-may require any tenant er ether uaer of the Praperty b make payrm;irrts of rent or ueie fees directly to Lander. If lhe Rents af9-oollected by Lender, 1hen Orantor fmrvooably da:slgnates t...endar a5 Grantor's attomsy-rn-fact to endonMo lnatl'Um9n!$ receivad In payment 1hereot In th& name of Grantor' and 'ltl iwgollate th& &al'M and collect Iha proceeds, Payments ~ lanants or other users to L.endar in response 1o LBnder's demand ahd satisfy the obfigations for which the paymenls are ~. Whether or no1 any proper grQtJndc; for ti'KI demand existed.. Uill1d9r may exercise its righb undar this aubpaniigraph effl18I' In peraon, by 19.g9nt, or through 11 ,-i..,. Appoint Recetver. Lrtl'ldw shall have 1he right ta nave a ~ appolrted to 1tlke ~ or all or any pvt of lh• PrOperty, with the power to protect and preserve the Ptoperiy, lo operai. 'Iha Prq,erty preceding or pending fol'9Cfosure or Mle, and 1lo colleol lhe Renta from the Property and ,apply the pmoeecf'I;, o,,e, and atiove 1t'le coet or u,. re,gelv«ghlp,. ~~~Wfl!:.r'-:~;~Ya:z!,~1=~~~ ~ rtohl,,:.i;~=:. amount Enl)loyment by Lender shall not dJsquartfy a person from ffl'Vfng aa a reoafYef'. Tenancy at Sufferance. It' Gl'al'ltor remains In possession of 1he Proparty affer the Pro~ 18 .aokf -Pf()Yfcled above 01 Leoder olherwlae b8come8 ent1t1ec1 to possession of lhe Property upon tS8fault ol Granlot', Grama-shall become a taoanl at •uffaranoa of Lender at the purchase, of the Propllilll"ty and &hall, at LM'lder's option, etn-(1J pay 11 reasonable renlal for the use of lhe Property, or (2) vacate the Property lmmedlafBJy upon the demand of Lend'et. Other Rctmed!N. Tfl.J8tee or lAnder shall have any other~ or remecl)' PJOVtflid In ttlle Deed of TN9t ct thD Nole or .,, .... Notte. rd Sale. Lendet shall glv. Grantor r1t11sonatire ne>()oe ol the tJmeo and pl,ao• of any pubUo •• of Uie P-.onal Pl'tlp8fty or of the 11ma ahr which any prlvatQ .oale or other Intended dlepoaitkln of the ~ Property i8 lo be macre. R.-cnabl• novoe •MR mean not!Qe gMm at 1wa,1 ten (10) days b8'ont the lfnM Of 1he sere or dltlpoertlon. Any Nie Of ll'kl ~onal Property may be made In oonju11Clion with any Nie Of 1he Rael Prop«ty. Sale ot th• Property. To the ~t pennittetl by applicable la.w, Grantor "-ally w«lvae .iy and all right9 10 have, the Property ma~halted. In exaN;Jlalng Its r!ghte; and remedlee, thll TIU81ee or lender ahall bit frN to -a alt or any part of the Pl'Cl)errly b::IQether or separately, ln one sale or by separare sales. Lender shall be entitled lo bid at any pubfto Nie on all or e.ny portion of the Property. Attomeys," Feet,; Exp,111'1118&-If Lender inslllutes any 5lMt; or aclion lo enkm;;e any ot the tefmll cf thil Oeed cf Trust, Lendar shaa be entiCiled ID reoover 8LICh sum as th& court may adjUdg& ~ a& atJ.Om6YS" f88$ at tr1al and upon any ~ WheCher or not any court action is Involved, and to the .extent net pn;,hlbftecf by .law. air ntaaClnllble- ~M L9'1dw fnoura that ln Ul'ldlilr':il opinion a~ neoNllatY at any time fot the prcqctlon of 119 inlloreet M lhe enlOrC8mll'lt of Ila r1ghta ahan ti.corM a part of the JndebbldnNS payable on cfMo'6nd encl llhall bear lntere&t at tile Nole rate lrom 11'.18 date of the a,q,endlure until repaid. E>:penaes OOQl'9d by this p,aragrapt, lnciJude, wntlout lnittulon, hoWevar aubj.ot lo any llmlta under appl!cabl9 law, Lender's attorneys' IMa and Lender'$ legal expans-. Whether or not there la: a lawauit. lnoludlng attome)ls' lees ttnd expaoae,s for banlcn,ptoy Pl r isi-(inclwf,ig efforts to mocllfy or vaoate any aulOr'Mllc stay or lnjuno!!on), appeals. and •ny antlotpated post-Jucvnent coRaction •l!N'VfoN, ui. cost al searchbg reoorcb, obtaining 6Ue reports (including forack)aure repor19), ~· reports, and apptlllaal '-a, otle Insurance,, and fees for the Truatee, to the extent patmltled by appllCllble Jaw. Granter alao wlD pe.y any court COS11:8, Jn ai::kfltjc,n to an otmir 8LUrl8 proviclad b)' raw. Rlgh18 of Trustee. Trustee shall have arr of the rights and duties of Lender aa aM for1h In thla eeotiQn POWERS ANO OBLIGATIONS OF TRU$TEI:, The following pn;wBlollll r9lating to 1119 powers and Dbfagalione of Truatee (pul'Sllflnt 1o Lender'& .hstrUcdone} 81'411 part of ihi8 Deed of Trust: Po\¥W8 of TrusbHa. In addition 1o alt powers of Trust~ Qlfslng -a matter of law, Tnl•tN ehall have the power to take the folow[ng ac:;tlone with NIIIPCI to the Property upon uie wrttt.n ~ ot Landar and Granlor: (.-) join In preparing and fllnl:I a nw.p or plat of the Real Property, Including fl& i:kldJeatJorl of nwts ot other rlghta 10 1h11 public; (b) join In granting any MHment or oreatlng &n)' reslrlct!on on tha Fteal Ptoperty: and (C) Jolrl In any eubotdination or clhoer agrewnent alftocting thl$ Deed or Trusl or the lntere&t of Lencflilr under thilil Dead at Ti'u8't. ObllgaUon• to Notify. Trustee lilhall not be obligated 1o nallty any 01hw party or a pending eai. Undlw any other t.rust deec:1-or llen,. or of any action or pn:icaeding in which Granlor, Lecidet', or TrUstaa shall be a party, U'lless required by apfllcabla law, or t.nl8$11 the action or )'.lrocesding is brought by Trua.lH. Trustee. Trustee shaD meet all quatlflcatlons requmed ror Trustee under applloable law. In addllion to the rights and ~mectres svt 1orlh llboVe, Witt, n,apact to all or any part of lhe Propert)', the TN8tee shltU have the ri;ht 10 foteclose by notice and sale, and Lender :shall have t#'le r!ghl to foreclose by Judlclal 1oreclosute. In ~r cue In aQCOl'danQe wflh and to tha full axter,t provldlld by epplloable lsw. Succesaor Tru.obte>. Lend•. al I.ender's option. may rrom tkn9 IO am• appolnl: a 8UCCM&DI' Tru•r.. lo ..ny Truafff appOinted under thla Deed of Tru•t by an inetruman: wcecUled anc1 aciknowledgecl by Lander and recon:t.d In the offloa of tt,a rM:Ortler of King COIJl'lty, State of Washington. Th& indu'nant lilhal oontaln, In addition 10 all other mattara requited by stallt law, the names of the origins.I Lench!lr, Trustee. and Oranaor, U't& bock and page or the Auditot'8 FIie Number ~e this Deed Df Trust Is recorded, mid the name and edd""9 of the auoCU90I' trustee, and the lnatrument &hall be DXeGUlad Md acknowledga;f by Lender or Jts sueceseora In lntarG9t. The SU008118or tr\181ee, without oonv&ylitl'IOIJ ot the Prop«ry, &hall S\Jccaed to all the ttUa, power, and dutlN conferred upon the TrUstae In 1t1l8 Deed DI Trust and by :et~!nl.aw. This pnxiec:1ure tot substitution of Trustea ehaH govern ID the exclusion of au other prcr.,lstons tor .NOTICES.. Subje0t to appffcabla law, and except for oot!c"' required or ClllloWed by lttw to be given In another manner, any nouce required to be given undsr this Deed of Trust, Inell.ding wllhout limn.Jon arry nOUoe or dafauH: and any notice of ealto 8h&II tie given In wrlllng, ancl .shall ba ~tlve when actually deffvered', when actually r9C9Mld by tei.r«caimll• (unleQ otti-i.a rvqulr9d by l&W), Wherl dapoettad with a natlonelly recognized overnight CIO!,lriar, or, If maied. When depoe;ib;id In the Unlled SlatN mal, u first olli!M, oerta!ed or reglster&d maD poetage ps:epeld, dl'*1ted 1o the addrNSff ahoWn ,, .. r the beginning of Ihle CHCI of Trutt. All copies of notices of foreo!o.ure from Uie hok:lar of any Dian whlon hu prtorty ovw this Daed of i-ruet .t,aH be Sllilnt lo Leridel".e address, e.s shown nem the beginning of this Deed or Truet. Any pe,t;y may change lta Page6of8 Printed on 11/30/2006 7:17:01 AM Document: TDD 2005.032900!804 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRB 2006032900 I 604.00T KING,WA Loan No: 6000001107 oeeo OF TRUST (Continued) Page7 address for notlcvu unli&rthle Deed of Trus1 by giving formal written notice 10 the olt'ltllr 1)4r1ies. specifying thlll: 1ba purpose of tha noUce la to change lhe parly"a address. For oorrce plJfPOS819, Grantor agrees 1o kaep Lender lnfonned at all 1im8s of Grantor'a current actiress. Subject to appllcable law, and 1txcept for nollce requlnkl <W -"ow~ by law to bv giv#I rn anotiw manner, If ther9 Is more than one Grantor, 811Y notlce given ti,-l.anclar lo any Grantor la dllemed to b$ notloe given to 1!111 · Gramota. MISCELLANEOUS PROVISIONS. The lollowITTg mlscellaneou• l)rovtslona aNI a put of 1hia Deed c;,f Trult Amendment.. Thia DNd of Trust, togett,81' with MY Rele.tecl Documaq, conetnutea the entire undenrtandlng and &QrNment of the partres u to the matters set forth In 1hi9 Deed of Trust. No atteratkrl'I of or amendment tie this Deed cf Tru.t shall be ett.cclve unlees gfVen In writing and signed ~ ui. party or parUN sought lo b9 charged or bound by th& alteration or amendment. Annual Report.. If lhe P<Openy Is ur;ed tor pul"pQsas othar than Grantor"s ree!denoe, Grantar shall fum1ah to l.eni:fer. upon rwquear, a certlffed statement ot net operating incom11t recelvec:I from Iha Property during Gren1(::ini prw4oua ffsoal year In auch form and detail as Lendo.Ir shall requir<:0. "Nat operating Income" &hall mean all caah. recelpta from the Prop&rty le8$ alf cash axpendftul'e6 made In conneotion with 1h& operallon oA the Pro party. Cilptlon He:adfngs. caption headings In this Oaed of Truat are tor convenience purposes onfy and are not to ba UQGd to lnMl'IX'tlt orde41ne the provlelolw of this 08'Kf of Trusl Marc«. Them ahaU ba no merg11r of tha IAklrHt t;J¥ &slllt* oOreaMICI l:Jy thia Deed of T1U11t will'I any other lnteff;st or esllltlt In 111• Propllrty a'C any timo held oy or tor th& bener1t or Lendel' In any o..paclly, Without the written conaent of Lander. Governing Law. This DNd of Trust wrn be governed by federal Jaw appRcable to Lander end, to th• ua.nt not pemaaptud by t.twal law, tt.• laws o, 1he Slat11 of Wsshlngton wtthout regard to Ila oontilcb of l•w pn,vt9'on .. ThJa Deed of nust h•• ~ aoaeplad l::ay Lender In the Stale of Washlnf1km. Choice af Venue. If u,ere Is a Jaws.ult, Grantor' agrGGs upon Lender's request1o submit to the J..isdlctlon of~ ooutts of Whatoom County, state of Wut,lngk)n. No Walvef' by Lends. Lender shal not ba deemed IO have waived any rights undw this Deed al T~ tmlesa such walvltT lo given in wrllinv and algled by Lendar. No delay or ombalon on U. part of L$1d'" In exen:falng any r1ght shall q:,erate ,as a walVet of such right or any other right A waiver by Leni;fer of a provision ot Chis Dead of Trust ellan not prujudlce or oon&tltute-a waiv.. of L.Elnder'.s riglt otherwise to demand atrlot compilanc• with ltlat provlll}on or any olher provJalcn of thl8 DNd of Ttual. NO prior waiver by Lendar, nor any courae of dealing between Lllnd• ..-,d Granb", shalt conat!Me a wafv« of ar,y of -Lander's rights o,-of any of Gl1unor'a obll;adona as b any fUturw tranaaouon.i. wt.nevw lhe ccneent of Lander Iii rec:ruTNcf under this Oe9d of Trust, ._ gr111"1tlng of 8UCh oone9"1: by Lenc:lw Jn .-,y lnstanc. shall not oonatltute oontlnulng ~ 10 aubsequiant Instances Wl'aent auoh oonaent II required and In all Cll899 .9uoh consent may be grant.a or wlthfiald In the .aol& dlacretlon of Lender. S.ven.blltty. If a oourt of competent jur-isd"rctlon finds any ~ of 01'a Oaed cl Truet to b9 illegal, lnValld, cr unerdoroeabla as to any cltcurnstanca, that finding shall not make th• OW.ndlng pn::,vf:sloll lllegl!,1, ll1valkl, or uoenforoeable 118 to .any othar cfn:umstanoe. If feasible, th& offending prevision !Shall be coneidbred modified ao that It ~Orne5 legal. valid" ancl enlorceable. II the offending provision cannot be eo modlllecf. It shall be 00t18ideNd dalatad trom this 088d or Trust. Unli!tSS othmwisa re(luired by law. the Dlegalty, lnvaUdlly, or unenfomeablllty ot any provlskio al 1tis Deed of Trust s11a11 nol arfec:t the rega11ty, validity or ~lty of any othBr proYJsion of this Oeed ot Trust. succaa&0r-. and Anlgna. SubJlilQI to any Umilatkms stated" In 'l'tJ8 DNCI of Tru81: on tranefer ,of GranlOl"s ~ U,la Deed of Tni91 ishall be bfndlng upon and" rnure to the tenellt of U'le pal'IIN, hlr aucoeNiora lll'ld-tg,,;a.. If Cl'WnelWllp ot ~ Pl'Of)el1y beoorr'IM Veated 1n • plll"$0n o!her than Grantor, Lender. WllhOUt notloe to Grantor. may deaf With Grantcir'8 SUOOHaoto with reteranoe to thlll Deed or Trust and tha lndetndneu by way ol bbMranoe ot a:xtanslon Without reteaalng Grantor from tnll obligations of this Deed of Trust: or llabllfty under"the Jnde~. "T1m11 la otthao &saence. nme III of the assenea In the P4"'fOm,anoa of th(I; DNd"ofTrUllt. waive Jury. All parties to Ulla Deed of Trust hereby walva th.a .rJtlht to u.y Jury b'llil ln any action,. prooe,edlng, o.r oountwdalm brou·ght by any party against any other party. Walvw of Homestead Exemption. Grantor haNby ,.._ and wai"vel all rJd)ls anc1 benefits of the home81aad axerr:ptJon law.a of the Slate of Washlngt<>n as 1o all lndab~ secured by ltlJe Deed of Trust. DEFINITIONS. The loUowlng capitalized wordia and terms stiell haw, the *illowwig ~ wt'*1 used h 1h18 Deed of Truat. Uflle9s epeolflcatly amhlcf to tt-. o:ontrary, all re1erll!llcev to dol/a, amounta al'lall mMr, amounts in lawfUI money ot 1tts, United Stal88 ot AmeriQa. Words end terma wed In the alngular aha~ Include Ille Plural, and "Iha plural shall Jndude the alngular, - ll'le context may reqllfre. Words and terms not cthiarwf51g daflned In thla ONCI cf Tnlat shd haw. th• rr.eank,ge attrlbUtecr to .uch l9rme In tt\Q IJnlforrn Commltroial Coda: Benetlalary. The wold "Banaffolary" means Horlzon Bank, and It$ SUC08890lS and anlgns. Borrower. The won:t ·eo~ means Cott&g91la at Honey C.reek, LLC and hlludee au co-algners and co-tTllikeJs 5lgnlng the Note. Deed of Tr1.1$t. The words "DNd of Trusr mean this Deed of Trust .-nong Gramer, Lender, and Trustalt, an;f lnclucfea wilholJt limllalion aU assignment and sacurily intaroot pwvlslona rala"tlng to thl!II Personal Properly and Ranls.. Default. The word "Oafs.ult'" maans 1tle Detault set forth In thl!I Deed of TRIit In th& SflClt!on tltl8d "Default". !Event or DetaUlt. The WOfds '"EVent of Default" mean any of tha events or default set 1orth In 1h18 Dead of Trust rn the .,.ents. of d8'a.ult .. adon or tl'lia Deed of Truat Grantor. The word ·Granter" means. Cottages at Honey Cr..k. LL0. Qu..-.ntor. The wotd "Guarantor"' means any gvarantc,, :sun,ty, °"" accommodatfOn party ot any OI" all of 9'e lndabl9c1neM. Guarattty. The word "Gua,enty" means ttia guaranty from Guaranliol' to Lender, lnc!udlng Without Hmltalion a. guaranty of all or part of the Note. IMPl'O\iemenb. The word ~lml)l"OYelTlents" l"TlEIQns all axfstlng andl futum lmpn:niam,gnt9, building&, atruotures, mobile hol"n9$. affixvd on Iha Real Property, facMilles, ndd~lons, rsplti08r71erlts and otnar co~ on tha Real Property. lndebtednees. lbe word "lndebtednetis" means all pr!neipar, ntef8st, and olhar arJIOI.Jffl8. costs and expena-payabla under 1118 Note or Relatad Oocl.lffl8'nts, together w11h all 1'91'18Walli of, exteneloM of, modif-=-t(ons of, ooraollcfatlona of and. •ubstnutlona for lhe Noi. or Rllfated Documents and any amount. expanctlod or aclw;noec:I' by Lend« 11:i dlacharra• Gtantor'• obllgatlona or exp•ns .. lncurrecl by Truste& er LMlder lo enfwoe <irantonl obUgatlona 1..n:h11 11118 Dffd of Truet, loQllther with tntereat on auch amounts as provid&cf in thla [)Nd ot Trult. Leflder. The-word "Lander" means Horl2:011 Benk, Its succeasons ,and aaalgna. Page 7 of8 Printed on 11/30/2006 7:17:01 AM Document: IDD 2005:0329001804 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: Station Id :BXRE 2005032.900 I 604.008 KING,WA Loan No: 6000001107 DEED OF TRUST (Continued) Page$ Note. Tha word "Note" mlNltls the promissory note dated March 22, 2005, In the orfginal principal amount of $2,870,000.00 from Grantorto Lef"ldEl1", togelhar with all~ of. mc1ens1ons or, modlfloatlone of, ...tfnanolnga or, con&olldatlona or, and l!IUbatitullorls for the promissory note or agreement NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIASLE INTE!REST RATE. Personal Property. The won:rs "P&l'$0!l8I Pn:,perty~ mNn all equipment, ffxturu. and olher artlol.H ol personal property now or h._l'ter owned by Grarrtor, and now or harqfter attachl!ld or affllced lo 1ha Real Property; tcgell'Mlr with 41111 accenlcna, parlll, and ao:fitlons lo, all replacem&nts ol, and all subStllullonf for, an.y of auch J)A)l)elly; .-xt together with all' 1-•u. and proflta 11'1erecn llfld proceeds (lnc:ludlng wlthoul !Imitation d tn.urane>a ptOCIMd'e an:t refunda. of Pf'!lmluma) from any Sale or other clispoaitlctn of the ProPttrfy. prop«ey. n.. won;1 "Property" me=s couectrvely the Fl"lll Prcpany and tne PBISOnal Property. R-' Property. The won;,s "Real Property'' mean the real property, ll"derElatli 111nd' l'fghta, as further dNoribecr In 1h18 DBBCI ofTru&t Fteia1ed Qocumenta. The wol"ds "Rslated Doc:uments" mean all p~ notes. Cl1idt aorean-ilS, 1oan a~, gt.l4l'Bl'llfes. seourlly agreemanb, mortgagi;,s. deecrs of 1nll!;t, aecurtty daeds, oollateral mo,tgagae, and el other inirtnm-its, agreemema and docUmenlS, whether now « hereafter exllltlng, 4'X80uted In cronnectftln with the J.,d r I -: provJded, that the enWOnme/llal Indemnity agraemena. are rlCt "ACllated Dooimenta" •nd &re not INQUfed by thla. DHd of Trust. ,._.la. Th9J word "Renla" 11'18Ul11 all present arid fuluN rants. ~. lnaorne. iaiuu. l'ClyalU#. f)rollts, and Olher ~ ~ed' from lhe Prop.rty, nu.i-. TM wold "Tnatae" means Westward Financial SIIIVfaea Colporallan. WhOMe fflllllrng addrNa la 1i!500 COITIW4II Avenue. Ba~, WA 98225 and ariy substitute or SUCC188IIOI' tn.Ja ..... GRANTOPI ACKNOWLEDGl!S HAVING READ ALL THE PROVJSKJNS OF THIS DEED OP TRUST, AND GRANTOR AGREES TO rrs TERMS. GRANTORt REQUEST FOR FULL RECONVEYANCE T°'------------------·· Trustee The underelgned la the legal owner and holder of all indebtecln89S ~ by this Deed of Tl'UIIL YOl,I-. "*r'.t,y raq..-tec:11 UpOn payment of all sums owing lo you, to reconvey without wammty, to ln9 peraana entftted thenlto, U. right, tlDa and lnt&raat now lleld tiy you und11r lh1t O.ed of Trust. Cate:-------------------Beneficiary:----------By: ________ _ .. , ww......:..::i...__ ....... _ .............. , .... -. .. .;;.........;;: .w.. Page 8 of8 Printed on 11/30/2006 7:17:02 AM Document: TDD 2005.0329001804 Branch :STK,User :8777 RETUFIN ADDRESS: HorlZ.on san11: % CML c.nt.w • Jean, 2211 fUmhlnd Dr, St9 230 a.lllngham. WA 9822115 Title Officer: 41 Order: 206144881 Comment: Electronically Recorded 20060802002485 LANDATA TECt-tNOLOOIES INC Pa.ge 001 of 003 08/02/2008 03: 1 B King County, WA MOT 34.00 MODIFICA. TION OF DEED OF TRUST f3,'Jr:,t}·1il'3'8D) '-='sTEWART TITLE Reference # (if applicable): 20Q5Q329001 804 Grantor(a): 1. Cottages at Honey Creek, LLC Grantee(a) 1. Horizon Bank Legal Description: PTN. TR. 6, Joseph P. Marshall Tracts~ Vol. 39, Pg. 30 Assessor's Tax Parcel ID#: 518970·0070·06 Additional on page __ Additional on page 2 THIS MODIFICATION OF DEED OF TRUST dated July 2S. 2008, la macla and uecuted between between Cottages at Honey Cl"QQ:k, LLC;: A Waehlngton Limited Lfablllty Company (uGrantorn) and Horizon Bank, who6e addren la Skagit Commercial Center, 2211 Rlmland Drive, Suite 230, Belllngham, WA 98226 (~ Lend•.-"). Station Id :BXRB KING,WA Page 1 of3 Printed on 11/30/2006 7: 17:02 AM Document: TDD MOD 2006.0802002485 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: ' Lo•n No: 60000011 07 MODIFICATION OF DEED OF TRUST (Continued) Page2 DEED OF TRUST. Lender and Grantor have entered Into a Deed r:,f Trust da19d Maid, 22, 200t5 (the •0eect al Trur.t") which tla5 been recorded In King COUnly. Stale or Washln~. as follows: DMC1 of Trust NCOf'd..:t March ff. 2006 In King County, WnhJnvton. Audltar'• ~lng -#2D a 5i D 1804. REAl,. PROPEFITV DESCRIPTION. The Deed of Trust covers tt.. folk;,wtng dNorfbed re&I property k1catec1 In King County, siate ot Waal'1inli1t0rr. Tract e. JoMph P. MarahaU Tracts, acoordin.;i lo the plat th&n!IOl l'IICOA:ia:I In VolUl'l'IIIII 3'I of plats, page{s) 30, Reool'G8 ot King eounty, WNhlngton ~ the South 530 reet: threrot, and axcapt that portion of Ttaet 8 of Joseph P. Martihall tracts, volume 38 of plals. par.19(•) 30, dwaibed u Follows: Beglnnlr,g on 1tlA north Hne, of -id tract 6 01111. point 100 f88I west, u n.uul'IK:l llt right angles, of the east line theJeof; lhertse south parallel to said eaat line II dis1Bne& ol 200 f-t thanoe weBt paralel to 'the sova, lir'le of said tract 6 a distance ot 140 JN1;: lhence noJ'l1 parallel lo tlw eut lln• of said lract to the nortn llna ih91"eof; lhenoe l'1Qf'l,eas'9rly along said north line lo the point ol beghnlng; IIJ'1d a,ccept that portion oond8"Yled In King County supedof Court Cauae No. 741907, Item 8 by the State of Washhglon kit Highway SR900. Sltulrbt In King CotWlly, Stata, of WQhlngtOn Tha Real Pl'apllrly DI' ls.address l!;i oonvnonly known as 4821 NE Sun&at BoUlell'al'd, RMton, WA 980!5!!i. The Real Properly lax identflicatbn IIU'TDDr Is 516970-0070-06. MODIACATION. Lender lll'1d Granier ht1reby modify thEl 099d of T,uat as lollowtl: Proma.aory Note a.cured by thla deed of trust Is lncroaNld 1o $3,120,000.00 • CONTINUING VAUDrTY. EXC8pl -expressly modilled ~. 1he tams of 11w odglnal D.ed of Tnm tlhall Ntmaln ...nchan'1ed and In fUQ lorce w.d effect, Consent by Lander to this ModlllGatlon dDe9 not~ L.ender"a right to ~ strict pertom'IMc• cl the DNd of Tl'IMt ati Ghllnged abov. nor obllglwl Lander IO ~ any tutur. modlflc:atloM. NCld'lk'ICI In 1'111 Mocllflcalion ahal conl1itu1e a aatJalllCUon of the promissory nata or otl'M!W credh ~ aecUIWd by .,,. Deed ct Truat (tti. ·NOW'). It 11, h intention ol Lender to retain aa lleble all Ptlrti• 10 11"19 ONd of Trwl and all par11-. male.,. and endoraera IO Iha Nole, lndudil'IQ IICIOClffllTIOdtion partlaa, unle&s a party is ex~I)' r--.d by Lender In writing. My rM!cer ~ erd:x'Mr, ~ucang acconw,IOdl.tion rnakllf'a, •hall not be relaasi!ld by virtl.Je of lhls Modl8cation. If any persa, who •lgned l'9 original Deed of Trust doN. not sign lhls Modification, then all persona signing below' ~ge lhat this ModifJCallon Is glvefl condltionally, baud on 1he repre&entation to Lender that the n0f14ignlnq penion oonaa,w to Iha C""'1QN and ~ovlslons of lhie Modification CM" otherwise wll! not b& released by iL Thi& warv« applies not cnl)' lo any initial extane)On o, mod'rfica1ioti, but aCso IO all suet, 3lJbBequent actions. GRANTOR ACKNOWLEDGES HAVING READ ALL THE P.ROY1SIONS OF THIS MODIACATlON OF DEED OF TRUST ANO GAANTOR AGREES TO ITS TEAMS. TffiS MOD.IF1CAT10N OF DEED OF TRUST 18 OATED JULY :25, 2000. GFIANTOR; LENDER; HOAIZONBANK k ~l Station Id :BXRB KING,WA Page 2 of3 Printed on 11/30/2006 7:17:03 AM Document: TDD MOD 2006.0802002485 Branch :STK,User :8777 Title Officer: 41 Order: 206144881 Comment: MODIFICATION OF DEED OF TRUST Loan No: 6000001107 (Continued) KING,WA Document: TDD MOD 2006.0802002485 ..,._....,.._-,~--.,_-~---·-·-• ..;..m ·-.. z Page 3 of3 Station Id :BXRE 20060802002486.003 Page 3 Printed on 11/30/2006 7:17:03 AM r'· ..... . . i j '! l1 I I ii I ... ,.;-.... , ::·;."!. .l':'""'. 7t<r-t~ ~;;i:n1 ~ .. ·'"!''-';. 1,... -.. ~ (> ~ TnIS I)lDEh'!'UP.E~ :t11111de tbt~ ---'''"-C-'·t~t~---~ .. ~ <:>.!' _ :-~.tc~,,:-. ____ ._·;-?i: ~~etwee~ A1bcrt Rarr and C2~ol:r.'l Hnr~ OOG!L\IITOR-aJ-;-iiia'°Mlf emm: PfJ?.ili Cdif!'P.'b'!.'~z"1 .. at,,-,D~I"'!lt""'H"'t"'CT,. * e~ciet.e-d J\,.ml~!'l9.aT ~Cm:"pOratioo ol t'na Stat• ar ll.aeh1.cgton,. L:U1dti'r 4;ha authority ,.,r Ch11p?:,1r 1.~_t. i..-,Sesaioa I.3111, or 1961,, of the Stat.o or Washington. w:rtllESSBfl[, tbeit f"irll't pertJ, in consitieret.1~ ot $ 1.00 x-eol'1pt o~ which la aok:notlledged, and tbll! bene.t1 ts WfcF wtJ..L accrue Eo~e laud or Graator by ~he ~i•o o.t the right• ha1"91D granted. do h&reby NIU .. ,, releaae acd .torsYv grant w:r.-c,,, the GrentN,. lb ducce1aors and aasign.a .. aa e:a...at and rl.gb't .. ot-way ror the purpa:.aea Ml"e1naftar s.t.ata,4 io inelude n area vJ.th1n tlie banlta ot the conatrue:ted chennol and • atrir, o-r lad JO :tt. 1n Vi.4th tba-t 1• 15 rt. ou either aide ct c•nte?" line o.t ~OM-T Creek~ on tbe :toll.Ol'tllg doseribed p~rt:;r: .... ---:-: · · ~~, .. a.a! 11 • .... _ .. "·~in= ........ !a T,sl.., 381,_ "JO ~.:,.. ... ~ 11111 o...,. ~ ·--._. ''° "· · .l . . J!ll9-~ l 11N .o4 D1111!C tm Stt U.t d fte_ . !Jen 11iO n. -.. J!lln . . ( ::, ..... ~ -~-·~l "' -.... 1111,t • .. S.. ). 13 •,a. L1r.ll. , · ; ~- 1 I .II i i 1 I I ; l i : '. · '"old · .. nwat oll4 ~;,.; .,..,;tl, -t~ _o .. o, 'rbe d&l,1:. to --tlle ol><m!t deserl""'1 land to eao-t, ·r,,ean•traot, lllllalafn O!ld Npdr ft dn!mp altaml..t. tipQo-,,-.,. fieod eoa'1-o1 "°"""' ~llllllag ell ~parteuanceo thoNto, ,toptll!,"' 14th l'lgbt to t1'1m, oat, tell ad Y'9IIDYe all aach trees •. brosh and ctbff Jlatlu'al.· povtb end ttbllh'lliilllltdcD• •• -•-IIOJ7 to· pl'OY1<11, od,iq.,.te ole'fl""l" md to el.tmnow intertei- ~ Iii*°• ar bezr.'48 ~o th• •trnet11rea. : ·, · ;·: ; "Ibo conatd.rt:UD!I. eboft moi;.t:imied., 1~ ac~ept«us" •• .tall coapeaaaUoi:a to ·.· tfte u:....,i .. ot the l'igbb ebowe gront~d. ; ', . h bne mt! to bold, 1U ond aiAg1>laJ, the \.au eea-11t md right-ot- !"'7• t.agotber V1th .Jlppc&Pt.,anc••• unto Gr-tnltee. t::t• accceaam-s and ••~tgna •. · · ~ :m llIDISll'..:.+ a&r.: tbe Gr.11ntore-=. ber~~to ao' tbe1r band> the day ~d -ro~_wrUtoa": . ~ ft4d ~- ft.1'11101'.VASmfG'l'cilrlH CO!Jlft'r W ltIIIG , 0n tbis 5':J ·~•Nd ~~;!'!~ 1.r .... JJ~..r ~~, 7:/,14,! ,. I I I I l i )1:1{,)t}/Jfj ·;-:,)t:\i:;: .,:':?':/?~-:~ ~, ~ :: . I . f111)1t .. EA.~EM.":NT FOP ;:i-.nfRGROUND ELECTRIC SYSTEM PAUL F. Nli{(ILA!SEN and SALLY NlKOLA.ISffi 1 his wife 1 .. c;nin1or· hrt'lno. ,:rvm, ,i:r,\·,·~·~ and 11.·arranu; tn f'L'C,ET 50LI.S:D J>ct~'t::ll &.· !.1rnrr to:\fPA..'i'I'. 11. W•o;bl~t r:c,rpQl'IUhlll , ··Gran"'°·· htn-ln,. fur lht'p,i rr,ui,1>,.lwn-1n11!11,•~set forth a JJ••l"p,':'tual L'lht'lllent ~ndt'r aero"" and ,•nor cn11 ll.lllov,·1118 dti;(.'Tltk'd r.aJ prq:,erl}· ttht' ··l'~n) · h•1'11tn, _ Kiilg ----Coon1r. \l,'1shl~11uon Tract 6 of Jos~pl P. Marshall Tracts, as per plat recorded in Volll!E' ~8 of Plats, on page 30, records of King County; EXCEPT the south S30 feet thereof; A.'\D ~ that port~on of TYac:t 6 of Josept P. Marshall Tracts, Volune 38, page 30, descnbed as follows: !'..:ginning on the north line o[ said Tract 6 at a J,v.>int 100 fee't west, as m:asured at right angle!, of ~e east line thereof; thence south para~lel to s~d east line a distanee of ZOO feet; thence west parallel to the .south h.ne of said tract 6 a distance of 140 feet; dumc.e north pal'llllel to the east line of said Tract to the north line thereof; thence nQrtlu:asterly along said north limi to the point of beginning. AND EXCEPT that portion condenneJ in King Col.11.ty Superior Court cause :W. ?41907 ~ Its 6 by the State of Washington for Hihgway SR 900. Except as may be othentise set forth herein Grantee's rif)lts shdl be exercised upon that portion of the Property (the 11 i<ight-of-Way'1 herein) described a:; folltMs: A Right·of-Wa:y 10 feet X ,so feet described as foll.cMs: j,_7 now staked or ccnstructed within the east 90 feet of the north 450 fl!flt of the above ~cribed Property togethe1 with the right to extend to serve adjacent pJOP8rty. I, Par,Nf. C.tantff 5hall lla\·e !he riaJlt w constN¢L Of,iente. maintain. ttpair. nplace and ealuae an ~aund electric traiam!S5ion antVor d'lslribullon ,iysu,m upon and 11rider thi, Rl&hl-tl•Wa)' IGSethl!I' •Ub all ntcnsary or c:onuniem. wurt1111ACtS lberefor. Which ml)' Include rut ue not limltOO to the !ollo111l11,1: uMersr,:iund eonduilll. c&bles. amununicUioa Lines: ~llllts. manholes. S'Aitdies. Md tl"ansforn:r.ers: and seini-bi,,ri«I or &mund mounted facililles J."0Uo11dng the llli.tial con- ltnle!lon GI Its racu111es. Cirlntee may rrom tim110 timr eonsl!"t.lct 5llch a.::ldltlOMI r~illtlts u ii m&r r,e,qulrt. :Z. Acctu. Ciraru• .sh&ll M\~ th, right or.access to t:1e Riih1-or•Wll)' over ll'ld across lhe P'1lperl)' to 1:111bl1 Grantee to aerdse It,;: rlgll1s hlrt11Mtt. Pl'O''ldild. !llai(;ranceestall ~mpensate-(;rantor lor any dama,t-~ U-,1 Proc;ien) tau std b)· 1M ntrelle or •~ rlpt oI acceu. 3. Okln.ttiNII.; 1.Mikeaplq,. Cir-.. all} lrow time to time ~\"t' trtc'S. b11$h~. or other obstni"iions v.llhln Ule RW,t·of-W1y a.Del fflllY level Ind u.:le the Rl&hi·al'·Wa.}· to lhe exten1 TI!aSOMb!y ntee$&U)' IO carry w1 lhe pul]K'llft M foril io pan,it1ipl J laereof. 11nwJded, thM fo\lowllll! 21lY s,,icti "'·orll, Gnntw sh.U. IO lhe eirtmt reasonahly praedaible. l'ftlDn 1be lribl:'of·Way i.o ihe condi.tion ii w•s imm"lliately prior 1G such won.. FoUowlns die k!Stal1111ci11 or Granre«e's Wldet1ro,u1d Cacilitiu. Granior mar undert• ar.~ ordinary lmpf"Q'.cmtnts lG die lllldsca.pin,: or lbt Rir;hl-of·Way. prm-idtd Iha! no tr~ or olher pltnls sllall be-placid thero10n which would he ur.reeso111bb" exi:ttn~il'l' or impraeliNI fur c;ranltt IO rento\'e" Ind rlSIOtl, .i. ~lor's Use of Rl,Pt-..l•Wa)·. r.r11111(1r reser,·cs Lhtc rllJ,ll! 10 ,.,,,~ the Ri(lhl-ol·'.I"~) tar an;-purpuh . .c:1 i~<t!:~t!lih:r.r with ~ rlgtus hitrel111ruu:d. providtd: thll.t Grantor >hall noL t:00strne1 or m1.111r.a111 atiy huildill!l ur olht-r :s1ruc:1urt-on lh1: Ri,tlt·at'-Way wblch would loterlr·--e wilh tbe uereise of !ht: rights lu:rr-i:'I trtlllW: ihal nr, digging. w•n1:IIJIJI nr ol.bcr form or C011$U'IICliOP. ,clll'I~· Nleil ~ dmc: on lhe l>tq:,erl~ .. ·hic:h "'o~h.l <ll~1urb U1C c:ompilel\on or unearth Crarll,i: ~ fatl:l!hrs on the Ri&ht-0M\'1y, or l'nch111aer th lateral support 10 said hcillli!:s_ and !hit~., blntinjl shall IN rloni, ,.1111111 I!> fr-<·: <>I the Rijl\t-or-War. 5. lnd11!11111l11. B~ ilCC'IJtlng and recon1if1!! !hi,; ,,ao;-.,,ni,nt. Cran1N· ~,.r~"' JM':'!T?n!!·. anrl ht.Ii: llllrmlt·,,,; r;ran1£tr fmn. an)' and all claims fw ,:l;,m~!> s.uU1rred llJ, ~n:. pN·s,;n which m~r ',i, ca;isl:d ;.y C ir.v1i1,·.s (ll(HCI~ flf UI'• ri~u. horErill 11111uJ; providt.sd. lhPl (i:ant1;-1, !hall DOI 111, n,5p0n,;ii,l1: 10 Ciramr,r fi,r llfl}' ¢1111ii,ii:i. tl'llll,II~ frmn 1njtiriH, :,, an)" pt-r!,l)n c:ai.·'-.-: b)· acts ,,r 11n11ii,s-1,..n\ r,f (irantor 6. J.balllon111e11I. T:,., riJdlts ht:r.-1111,~u.ltd ~hall ti,r.1111':1· 11n,1I wd1 lime H r:ranh·•· r,,11,.,..,, w ~M, lh1· k111t11·111'·\lla) tor a period or fn1· ,;, si:4,--.,i,,,11•,, }•.-tr" In whlr+r t"l('r\: ,,.,;,. •·;a~•·m(~ll ~';hli -~rrr .. -~:. ~!,II II.II r1W,11. 11.,,r,wulr·t N111l N.'\'t•rl lb Gnmcrr. i:ro~·ldl:d 11-... 1 no ilohMtlonffl..,,I .shall !11111.-,·m••l 11, t.D·.r· ,,,.,._rr,.! l>), r,,11.,nr, ur t,ran111··~ fau .. r .. "' 1nl•1Nllt iri~a.11 ill faciJ:11e1 m! tht· k1(thH:t·Wl.)" ll"lthi111.11)· prrio.J or 11r111· Irr,~ ti!•· •!-1:1, t.,,r,~f ;, lilK'c,w,1G1"1. .ad Asl,,I~~-T'nr ri11lll~ _:,,1 ,,t,.':~''""''" ,,' 1r,1· 1-•r11 .... >Jiah 1r.,1r1• 10 Ult· 1,,,,..,111 r,f 1nd ,.,. ·,mlln\1,1 uJmn l;1tc .. • 1~,,p..c;:1~·~ .. ,cc·,"'"'" ri ~:,.·.:,;.u.· LIATED thi!> /'lti. day 01 . , . .:f.'~ ,ir .. ;.?2;~~~-. -· ... Pa~J F. ~ikolaiscp., · . • , -/ I ,r . _:;.,~-~~:t,.7.! . .'. . ~'==-~~-=~~- Sall;.-~ikolai~cn ii :=---1_ ----------Description: King,.WA Document-Year . .Mon~.Day.DocID 1975.1112 .. 482 Page: 1 of Order: 881 Comment:. ' • • ·-= C N "' t; ,~ .... ..... ..... :. -, r- ·O " .. 0 0 ::::~l~TON } ss. 0a ... _N>' cl , 19 w-' before me, die lffl:l..-.Jpa:I, ~, ~ ------- ------n . UJ n:iebPrn 1o be Iha 1111 ------ ~~. of , die COrplr&l.iDD dilt -tad .. fOC'eaolnl iDau'l&imm., ._j eeia-i• al,pd 1M' Mjd inm'luDml to IM-the tree 111d volunt..ry .ct ..t de«! d 1811k1 ctr,oncioft, for ma--111d pu~ 1D1n1n !DllltloDm. IDd an aadl Ii.Eal 0111 aathorlzed lo aecuce 1M Wd ~t 11111 1h11. Ille let.I ID'ix.d l• .. corporai. ffl1 tif Mid corportd1111. 1915 ;,.;, C,ht ~L.~c, NOT AR\" PUBIJC la .md lot die Sate 0: WU1111:iijU1a. ""'"·"·------------ k '· ;.., --- ; ' 1 • t DeScriptiM;'K;i~grli'A; Doctiment-Yea.r.Month.Day.DocID 1975.1112. 482 Page: 2 of 2" iitf P~!'. Order: 881 Comment: -- ' ,stewart: <·f:: L....::title -builder/developer division' · · • 18000 International Blvd. South, Suite 510 SeaTac, WA 98188 206-770-8700 • 888-896-1443 E-Fax Number: 206-770-6579 Title Officer: Don Peters Phone: (206) 770-8858 Fax: (206) 770-8801 E-mail: dpeters@stewart.com Title Officer: Robert B. Jackson Phone: (206) 770-8860 Fax: (206) 770-8801 E-mail: rjackson@stewart.com Your Stewart Closer will be: Nicole Johnson -Phone (206) 770-8729, Fax (206) 299-9139 Reference: COTTAGES AT HONEY CREEK, LLC/DAVIS Order Number: 206130219 CONSULTING Escrow Number: 206130219 SECOND REPORT SCHEDULE A 1. Effective Date: November 22, 2006 at 8:00 a.m. 2. Policy Or Policies To Be Issued: ( X) AL TA OWNER'S POLICY, (10/17/92) Amount: TO BE DETERMINED ( X) STANDARD ( ) EXTENDED Premium: Tax: Total: Proposed Insured: DAVIS CONSUL TING INC., A WASHINGTON CORPORATION ( ) ALTA LOAN POLICY Amount: Premium: Tax: Total: TO BE DETERMINED 3. The estate or interest in the land described or referred to in this Commitment and covered herein is: FEE SIMPLE ESTATE 4. Title to said estate or interest in said land is at the effective date hereof vested in: COTIAGES AT HONEY CREEK, LLC, A WASHINGTON LIMITED LIABILITY COMPANY 5. The land referred to in this commitment is described in Exhibit "A". $ 0.00 $ 0.00 Page 1 Order Number: 206130219 SCHEDULE B · SECTION 1 THE FOLLOWING ARE THE REQUIREMENTS TO BE COMPLIED WITH: ITEM (A) PAYMENT TO OR FOR THE ACCOUNT OF THE GRANTORS OR MORTGAGORS OF THE FULL CONSIDERATION FOR THE ESTATE OR INTEREST TO BE INSURED. ITEM (B) PROPER INSTRUMENT(S) CREATING THE ESTATE OR INTEREST TO BE INSURED MUST BE EXECUTED AND DULY FILED FOR RECORD NOTE: EFFECTIVE JANUARY 1, 1997, AND PURSUANT TO AMENDMENT OF WASHINGTON STATE STATUTES RELATING TO STANDARDIZATION OF RECORDED DOCUMENTS, THE FOLLOWING FORMAT AND CONTENT REQUIREMENTS MUST BE MET. FAILURE TO COMPLY MAY RESULT IN REJECTION OF THE DOCUMENT BY THE RECORDER. FORMAT: MARGINS TO BE 3" ON TOP OF FIRST PAGE, 1" ON SIDES AND BOTTOM, 1" ON TOP, SIDES AND BOTTOM OF EACH SUCCEEDING PAGE. FONT SIZE OF 8 POINTS OR LARGER AND PAPER SIZE OF NO MORE THAN 8 W' BY 14". NO ATIACHMENTS ON PAGES SUCH AS STAPLED OR TAPED NOTARY SEALS, PRESSURE SEALS MUST BE SMUDGED. INFORMATION WHICH MUST APPEAR ON THE FIRST PAGE: Page 2 TITLE OR TITLES OF DOCUMENT. IF ASSIGNMENT OR RECONVEYANCE REFERENCE TO AUDITOR'S FILE NUMBER OR SUBJECT DEED OF TRUST. NAMES OF GRANTOR(S) AND GRANTEE(S) WITH REFERENCE TO ADDITIONAL NAMES ON FOLLOWING PAGE(S), IF ANY. ABBREVIATED LEGAL DESCRIPTION (LOT, BLOCK, PLAT NAME OR SECTION, TOWNSHIP, RANGE AND QUARTER QUARTER SECTION FOR UNPLATTED). ASSESSOR'S TAX PARCEL NUMBER(S) RETURN ADDRESS WHICH MAY APPEAR IN THE UPPER LEFT HAND 3" TOP MARGIN Order Number: 206130219 SCHEDULE B -SECTION 2 GENERAL EXCEPTIONS THE POLICY OR POLICIES TO BE ISSUED WILL CONTAIN EXCEPTIONS TO THE FOLLOWING UNLESS THE SAME ARE DISPOSED OF TO THE SATISFACTION OF THE COMPANY. A. 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. B. ANY FACTS, RIGHTS, INTEREST, 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. C. EASEMENTS, CLAIMS OF EASEMENT OR ENCUMBRANCES WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. D. 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 PUBLIC RECORDS. E. (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 MATIERS 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. F. ANY LIEN, OR RIGHT TO A LIEN, FOR SERVICES, LABOR OR MATERIAL THERETOFORE OR HEREAFTER FURNISHED, IMPOSED BY LAW AND NOT SHOWN BY THE PUBLIC RECORDS. G. ANY SERVICE, INSTALLATION, CONNECTION, MAINTENANCE, CONSTRUCTION, TAP OR REIMBURSEMENT CHARGES/COSTS FOR SEWER, WATER, GARBAGE OR ELECTRICITY. H. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATIERS, IF ANY, CREATED, FIRST APPEARING IN THE PUBLIC RECORDS OR ATIACHING SUBSEQUENT TO THE EFFECTIVE DATE HEREOF BUT PRIOR TO THE DATE THE PROPOSED INSURED ACQUIRES OF RECORD FOR VALUE THE ESTATE OR INTEREST OR MORTGAGES THEREON COVERED BY THIS COMMITMENT. END OF GENERAL EXCEPTIONS Page 3 Order Number: 206130219 SCHEDULE B -SECTION 2 CONTINUED SPECIAL EXCEPTIONS 1. RESERVATIONS AND EXCEPTIONS, INCLUDING THE TERMS AND CONDITIONS THEREOF: RESERVING: RESERVED BY: RECORDED: RECORDING NO.: MINERALS NORTHERN PACIFIC RAILROAD COMPANY, A WISCONSIN CORPORATION SEPTEMBER 15, 1942 3264672 2. EASEMENT, INCLUDING TERMS AND PROVISIONS CONTAINED THEREIN: RECORDED: OCTOBER 28, 1965 RECORDING NO.: 5946475 IN FAVOR OF: MAY CREEK FLOOD CONTROL ZONE DISTRICT, A MUNICIPAL CORPORATION FOR: TO CONSTRUCT, RECONSTRUCT, MAINTAIN AND REPAIR A DRAINAGE CHANNEL AND/OR OTHER FLOOD CONTROLS WORKS, INCLUDING ALL APPURTENANCES THERETO, TOGETHER WITH THE RIGHT TO TRIM, CUT, FELL AND REMOVE ALL SUCH TREES, BRUSH AND OTHER NATURAL GROWTH AND OBSTRUCTIONS AS ARE NECESSARY TO PROVIDE ADEQUATE CLEARANCE AFFECTS: AND TO ELIMINATE INTERFERENCE WITH, OR HAZARDS TO THE STRUCTURE AS CONSTRUCTED 3. EASEMENT, INCLUDING TERMS AND PROVISIONS CONTAINED THEREIN: Page 4 RECORDED: NOVEMBER 2, 1965 RECORDING NO.: 5948483 IN FAVOR OF: MAY CREEK FLOOD CONTROL ZONE DISTRICT, A MUNICIPAL CORPORATION FOR: TO CONSTRUCT, RECONSTRUCT, MAINTAIN AND REPAIR A DRAINAGE CHANNEL AND/OR OTHER FLOOD CONTROLS WORKS, INCLUDING ALL APPURTENANCES THERETO, TOGETHER WITH THE RIGHT TO TRIM, CUT, FELL AND REMOVE ALL SUCH TREES, BRUSH AND OTHER NATURAL GROWTH AND OBSTRUCTIONS AS ARE NECESSARY TO PROVIDE ADEQUATE CLEARANCE AFFECTS: AND TO ELIMINATE INTERFERENCE WITH, OR HAZARDS TO THE STRUCTURE AS CONSTRUCTED Order Number: 206130219 4. LIEN OF THE REAL ESTATE EXCISE SALES TAX AND SURCHARGE UPON ANY SALE OF SAID PREMISES, IF UNPAID. AS OF THE DATE HEREIN, THE EXCISE TAX RATE FOR CITY OF RENTON IS 1.78%. 5. OWNERS POLICY COVERAGE TO BE VERIFIED THROUGH WRITTEN INSTRUCTION OR A COMPLETE COPY OF THE PURCHASE AND SALE AGREEMENT SHOULD BE SUBMITTED. 6. GENERAL TAXES. THE FIRST HALF BECOMES DELINQUENT AFTER APRIL 30T". THE SECOND HALF BECOMES DELINQUENT AFTER OCTOBER 31 5T. YEAR: 2006 AMOUNT BILLED: $2,622.70 AMOUNT PAID: $-0- AMOUNT DUE: $2,622.70, PLUS INTEREST AND PENALTY, IF DELINQUENT LEVY CODE: TAX ACCOUNT NO.: ASSESSED VALUATION: LAND: IMPROVEMENTS: 2100 516970-0071-05 $218,600.00 $-0- NOTE: KING COUNTY TREASURER, 500 4TH AVENUE, 6TH FLOOR ADMIN. BLDG., SEATTLE, WA 98104 (206) 296-7300 WEB ADDRESS: http://webapp.metrokc.gov/KCTaxinfo/. 7. EVIDENCE OF THE AUTHORITY OF THE INDIVIDUAL(S) TO EXECUTE THE FORTHCOMING DOCUMENT FOR COTIAGES AT HONEY CREEK, LLC, A WASHINGTON LIMITED LIABILITY COMPANY, COPIES OF THE CURRENT OPERATING AGREEMENT SHOULD BE SUBMITIED PRIOR TO CLOSING. NOTES: NOTE A: IN ORDER TO ASSURE TIMELY RECORDING ALL RECORDING PACKAGES SHOULD BE SENT TO: STEWART TITLE 18000 INTERNATIONAL BLVD., SUITE 510 SEATAC, WASHINGTON 98188 ATIN: RECORDER NOTE B: THE DESCRIPTION CAN BE ABBREVIATED AS SUGGESTED BELOW IF NECESSARY TO MEET STANDARDIZATION REQUIREMENTS. THE FULL TEXT OF THE DESCRIPTION MUST APPEAR IN THE DOCUMENT(S) TO BE INSURED. PTN. TR. 6, JOSEPH P. MARSHALL TRACTS, VOL. 38, PG. 30 Page 5 Order Number: 206130219 NOTE C: ACCORDING TO THE APPLICATION FOR TITLE INSURANCE, TITLE IS TO VEST IN DAVIS CONSUL TING, INC .. EXAMINATION OF THE RECORDS DISCLOSES NO MATIERS PENDING AGAINST SAID PARTY(IES). CHAIN OF TITLE NOTE: THE FOLLOWING DEED(S) AFFECTING SAID LAND WAS (WERE) RECORDED WITHIN 24 MONTHS OF THE DATE OF THIS COMMITMENT: GRANTOR: GRANTEE: RECORDING NUMBER: STATE OF WASHINGTON COTIAGES AT HONEY CREEK, LLC 20051109000357 THE ABOVE INFORMATION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND NO LIABILITY SHALL ARISE THEREFROM. MCE END OF SCHEDULE B Page 6 Order Number: 206130219 Copies to: DAVIS REAL ESTATE GROUP/RENTON 1201 MONSTER ROAD SOUTHWEST, SUITE 320 RENTON, WA 98055 ATTENTION: KALEN PETERS STEWART TITLE/RENTON 19400 108TH AVE SE RENTON, WA 98055 ATTENTION: NICOLE JOHNSON Page 7 Order Number: 206130219 Order Number: 206130219 EXHIBIT "A" THE NORTH 200 FEET (MEASURED ALONG THE EAST LINE) OF THE WEST 140 FEET OF THE EAST 240 FEET MEASURED AT RIGHT ANGLES TO THE EAST LINE OF TRACT 6 OF JOSEPH P. MARSHALL TRACTS, AS PER PLAT RECORDED IN VOLUME 38 OF PLATS, PAGE 30, RECORDS OF KING COUNTY, WASHINGTON; EXCEPT THAT PORTION DEEDED TO THE STATE OF WASHINGTON IN KING COUNTY SUPERIOR COURT CAUSE NO 741907, LYING NORTHERLY OF A LINE DESCRIBED AS FOLLOWS: BEGIN AT A POINT 70 FEET DISTANT SOUTHERLY, WHEN MEASURED AT RIGHT ANGLES FROM THE CENTER LINE SURVEY OF SR 900, 116TH AVE. S.E., TO 138TH AVE. S.E. AT HIGHWAY ENGINEER'S STATION 180+00; THENCE EASTERLY 250 FEET, MORE OR LESS, TO A POINT 65 FEET DISTANT SOUTHERLY, WHEN MEASURED AT RIGHT ANGLES FROM SAID CENTER LINE AT HIGHWAY ENGINEER'S STATION 182-50, AND THE END OF THIS LINE DESCRIPTION. Stewart Title Guaranty Company, Stewart Title Insurance Company, Stewart Title Insurance Company of Oregon, National Land Title Insurance Company, Arkansas Title Insurance Company, Charter Land Title Insurance Company. Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm-Leach-Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution provides you with a notice of tts privacy policies and practices. such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Stewart Title Guaranty Company, Stewart Title Insurance Company, Stewart Title Insurance Company of Oregon, National Land Title Insurance Company, Arkansas Title Insurance Company, Charter Land Title Insurance Company. We may collect nonpublic personal information about you from the following sources: • Information we receive from you, such as on applications or other forms. • Information about your transactions we secure from our files, or from our affiliates or others. • Information we receive from a consumer reporting agency. • Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliated third parties as permitted by law. We also may disclose this information about our customers or former customers to the following types of nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: • Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. • Non-financial companies such as envelope stutters and other fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITIED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. T,,\ " .. • . , ,,.,c '',. 0 L . " • ,.-. 0 M "{ '<~ _,, - ., • I ~ " I a I, :1 ~ ~j I ....,., - 7 ORDER NO:. 206130219 ,.,r.•~ 8 l'iill!l~D e= .... '"' ilOIU Ill ...... , - N This sketch is provided without charge for information. It is not intended to show all matters related to the property including, but not limited to area, dimensions, encroachments or locations of boundaries. It's not a part of, nor does it modify, the commitment or policy to which it is attached. The company assumes NO LIABILITY for any matter related to this sketch. Reference should be made to an accurate survey for further information. COMMITMENT FOR TITLE INSURANCE ISSUED BY STEWART TITLE GUARANTY COMPANY, A Texas Corporation, herein called the Company, for a valuable consideration, hereby commits to issue ~s policy or policies of title insurance, as identified in Schedule A, in favor of the proposed Insured named in Schedule A, as owner or mortgagee of the estate or interest covered hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefore; all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof. This Commitment shall be effective only when the identity of the proposed Insured and the amount of the policy or policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the issuance of this Commitment or by subsequent endorsement. This Commitment is preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder shall cease and terminate six months after the effective date hereof or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue such policy or policies is not the fault of the Company. IN WITNESS WHEREOF, Stewart Title Guaranty Company has caused its corporate name and seal to be hereunto affixed by its duly authorized officers on the date shown on Schedule A. Authorized Signatory STEWART TITLE Company SEATAC, WASHINGTON City, State ' . CONDITIONS AND STIPULATIONS 1. The term mortgage, when used herein, shall include deed of trust, trust deed, or other security instrument. 2. If the proposed Insured has or acquires actual knowledge of any defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commitment other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such knowledge to the Company, or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to paragraph 3 of these Conditions and Stipulations. 3. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies committed for any only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or create the estate or interest or mortgage thereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions, the Conditions and Stipulations, and the Exclusions from Coverage of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this Commitment except as expressly modified herein. 4. Any action or actions or rights of action that the proposed Insured may have or may bring against the Company arising out of the status of the title to the estate or interest or the status of the mortgage thereon covered by this Commitment must be based on and are subject to the provisions of this Commitment. All notices required to be given the Company and any statement in writing required to be furnished the Company shall be addressed to it at P.O. Box 2029, Houston, Texas 77252. Cottages at Honey Creek Final Plat LUA-06-041 I. As-builts approved 2. Street Lighting approved 3. Monument Card letter for installation with final lift of asphalt approved 4. Inspector signed off on pem1it. 5. Final Cost Data and Bill of Sale approved. 6. Traffic, Parks, and Fire Mitigation fees paid. 7. Planner approved final plat. 8. Technical Services recommends approval 9. Check to courier 10. Original CC&R's submitted. 11. Fire Department approval.