HomeMy WebLinkAboutL_SP_Exceptions_03_030521_American_Title_v1.pdfAfter recording return to.
Bendich, Stobaugh & Strong, P.0
900 Fourth Avenue, Suite 3800
Seattle, WA 98164
DEED OF TRUST & ASSIGNMENT OF RENTS
Grantor Flashers LLC IST
Grantee Evergreen Community Development Association, Beneficiary
Bendich, Stobaugh & Strong, P C, Trustee
Legal description LOT B OF ICING COUNTY SHORT PLAT NO. 094-85, ACCORDING TO
SHORT PLAT RECORDED FEBRUARY 26, 1986 UNDER RECORDING NO
8602269002, IN KING COUNTY, WASHINGTON
Tax Parcel ID #. 125380-0015 08
This DEED OF TRUST, made this 21st day of May , 2003, by and
between Flashers LLC, a Washington limited liability company, hereinafter referred to as "Grantor," whose
address is P O. Box 329, Renton, WA 98057-0329, Bendich, Stobaugh and Strong, P C, hereinafter referred
to as "Trustee," whose address is 900 Fourth Avenue, Suite 3800, Seattle, WA 98164, Evergreen Community
Development Association hereinafter referred to as 'Beneficiary," who maintains an office and place of
business at 900 Fourth Avenue, Suite 2900, Seattle, Washington 98164, in participation with the Small
Business Administration, an agency of the United States
WITNESSETH, that for and in consideration of $1.00 and other good and valuable consideration,
receipt of which is hereby acknowledged, the Grantor does hereby bargain, sell, grant, assign, and convey
unto the Trustee, his successors and assigns, all of the property ("Property") described above, including water
rights, which Property is not used principally for agricultural purposes
Together with and including all buildings, all fixtures, including but not limited to all plumbing,
heating, lighting, ventilating, refrigerating, incinerating, air conditioning apparatus, and elevators (the
Grantor hereby declaring that it is intended that the items herein enumerated shall be deemed to have been
permanently installed as part of the realty), and all improvements now or hereafter existing thereon, the
hereditaments and appurtenances and all other rights thereunto belonging, or in anywise appertaining, and
the reversion and reversions, remainder and remainders of the Property
To have and to hold the same unto the Trustee, and the successors in interest of the Trustee, forever,
in fee simple or such other estate, it any, as is stated herein trust, to secure the payment of a promissory note
of this date, in the principal sum of $1,180,000, payable to Beneficiary and signed by Grantor ("the Note")
(1)
Grantor also assigns to Beneficiary as security for the Note, Grantor's interest in the rents, revenues,
issues, profits and income of the Property and Grantor's interest in all present and future leases, licenses and
other agreements for the occupancy or use of the Property, including all cash or security of the Property
deposits, advance rentals, or payments of similar nature Beneficiary grants to Grantor a license to collect
the rents from the Property The license, however, may be revoked at any time by Beneficiary and will be
automatically revoked if the promissory note is in default and the unpaid balance is accelerated
1 This conveyance is made upon and subject to the further trust that the said Grantor shall remain
in quiet and peaceable possession of the above granted and described premises and take the profits thereof
to his own use until default be made many payment of an installment due on said note or in the performance
of any of the covenants or conditions contained therein or in this Deed of Trust, and, also to secure the
reimbursement of the Beneficiary or any other holder of said note, the Trustee or any substitute trustee of any
and all costs and expenses incurred, including reasonable attorney's fees, on account of any litigation which
may anse with respect to this Trust or with respect to the indebtedness evidenced by said note, the protection
and maintenance of the Property hereinabove described or in obtaining possession of the Property after any
sale which may be made as heremaftei provided
2 Upon the full payment of the indebtedness evidenced by said note and the interest thereon, the
payment of all other sums here in provided for, the repayment of all monies advanced or expended pursuant
to said note or this instrument, and upon the payment of all other proper costs, charges, commissions, and
expenses, the Property shall be released and reconveyed to and at the cost of the Grantor
3 Upon default in any of the covenants or conditions of this instrument or of the note or loan
agreement secured hereby, the Beneficiary or his assigns may without notice and without regard to the
adequacy of security for the indebtedness secured, either personally or by attorney or agent without bringing
any action or proceeding, or by a receiver to be appointed by the court, enter upon and take possession of the
Property or any part thereof, and do any acts which Beneficiary deems proper to protect the security hereof,
and either with or without taking possession of the Property, collect and receive the rents, royalties, issues,
and profits thereof, including rents accrued and unpaid, and apply the same, less costs of operation and
collection, upon the indebtedness secured by this Deed of Trust, said rents, royalties, issues, and profits, being
hereby assigned to the Beneficiary as further security for the payment of such indebtedness Exercise of
rights under this paragraph shall not cure or waive any default or notice of default hereunder or invalidate
any act done pursuant to such notice but shall be cumulative to any right and remedy to declare a default and
to cause notice of default to be recorded as hereinafter provided, and cumulative to any other right and/or
remedy hereunder, or provided by law, and may be exercised concurrently or independently Expenses
incurred by Beneficiary hereunder including reasonable attorney's fees shall be secured hereby
4 If the Property or any part thereof is sold, conveyed, transferred, encumbered, or full possessory
rights therein transferred, or if a general partnership interest in Grantor (if a partnership) or an interest in
Grantor in excess of that provided for in the loan authorization (if a corporation) is sold, conveyed,
transferred or encumbered, without the prior written consent of Beneficiary, then Beneficiary may declare
all sums secured by the Deed of Trust immediately due and payable This provision shall apply to each and
every sale, transfer, conveyance or encumbrance regardless of whether or not Beneficiary has consented or
waived its rights, whether by action or nonaction, in connection with any previous sale, transfer, conveyance
or encumbrance
5 The Grantor covenants and agrees that if he shall fall to pay said indebtedness, or any part
thereof, when due, or shall fall to perform any covenant or agreement of this instrument or of the promissory
note secured hereby, the entu a indebtedness hereby secured shall immediately become due, payable, and
collectible without notice, al the option of the Beneficiary or assigns, regardless of maturity, and the
(2)
Beneficiary or assigns may enter upon the Property and collect the rents and profits thereof Upon such
default in payment or performance, and before or after such entry, the Trustee, acting in the execution of this
Trust, shall have the power to sell the Property, and it shall be the Trustee's duty to sell the Property (and in
case of any default of any purchaser, to resell) at public auction, to the highest bidder, in accordance with the
law of this state The Trustee is hereby authorized to execute and deliver to the purchaser at such sale a
sufficient conveyance of the Pi operty, which conveyance shall contain recitals as to the happening of default
upon which the execution of the power of sale herein granted depends, and the said Grantor hereby
constitutes and appoints the Trustee as his agent and attorney in fact to make such recitals and to execute said
conveyance and hereby covenants and agrees that the recitals so made shall be binding and conclusive upon
the Grantor In the event of a :ale as hereinabove provided, the Grantor, or any person in possession under
the Grantor, shall then become and be; tenants holding over and shall forthwith deliver possession to the
purchaser at such sale or be summarily dispossessed, in accordance with the provisions of law applicable to
tenants holding over The power and agency hereby granted are coupled with an interest and are irrevocable
by death or otherwise, and are granted as cumulative to all other remedies for the collection of said
indebtedness The Beneficiary or Assigns may take any other appropriate action pursuant to state or Federal
statute either in state or Federal court or otherwise for the disposition of the Property
6 In the event of a sale as provided in paragraph 5, the Trustee shall be paid a fee by the
Beneficiary The amount of such fee shall be approved by the Beneficiary as to reasonableness Said fee shall
be in addition to the costs and expenses incurred by the Trustee in conducting such sale The amount of
Trustee's fee, costs and expenses shall be deducted and paid from the sale's proceeds It is further agreed that
of the Property shall be advertised for sale as herein provided and not sold, the Trustee shall be entitled to a
reasonable fee, in an amount acceptable to the Beneficiary for the services rendered The Trustee shall also
be reimbursed by the Beneficiary for all costs and expenses incurred in connection with the advertising of
the Property for sale if the sal; is not consummated
7 The proceeds of any sale of the Property in accordance with paragraph 5 shall be applied first
to payments of fees, costs, and expenses of said sale, the expenses incurred by the Beneficiary for the purpose
of protecting or maintaining the Property and reasonable attorneys' fees, secondly, to payment of the
indebtedness secured hereby, and thirdly, to pay any surplus or excess to the person or persons legally
entitled thereto
8 To the extent allowed by law, in the event the Property is sold pursuant to the authorization
contained in this instrument or at ajudicial foreclosure sale and the proceeds are not sufficient to pay the total
indebtedness secured by this instrument, the Beneficiary will be entitled to a deficiency judgment for the
amount of the deficiency
9 The Grantor covenants and agrees as follows
a He will promptly pay the indebtedness evidenced by said promissory note at the
times and in the manner therein provided
b He will pay all taxes, assessments, water rates, and other governmental or municipal
charges, fines or impositions, for which provision has not been made hereinbefore, and will
promptly deliver the official receipts therefor to the Beneficiary
c He will pay such expenses and fees as may be incurred in the protection and
maintenance of the Property, including the fees of any attorney employed by the Beneficiary for
the collection of any or all of the indebtedness hereby secured, of such expenses and fees as may
be incurred in any foreclosure sale by the Trustee, or court proceedings or in any other litigation
or proceeding affecting the Property, and attorney's fees reasonably incurred in any other way
d The rights created by this conveyance shall remain in full force and effect during
(3)
any postponement or extension of the time of the payment of the indebtedness evidenced by said
note or any part thereof secured hereby
e He will continuously maintain hazard insurance of such type or types and in such
amounts as the Beneficiary may from time to time require, on the improvements now or
hereafter on the Property, and will pay promptly when due any premiums therefor Allinsurance
shall be carried in companies acceptable to Beneficiary and the policies and renewals thereof
shall be held by Beneficiary and have attached thereto loss payable clauses in favor of and in
form acceptable to the Beneficiary In the event of loss, Grantor will give immediate notice in
writing to Beneficiary and Beneficiary may make proof of loss if not made promptly by Grantor,
and each insurance company concerned is hereby authorized and directed to make payment for
such loss directly to Beneficiary instead of to Grantor and Beneficiary jointly, and the insurance
proceeds, or any part thereof, may be applied by Beneficiary at its option either to the reduction
of the indebtedness hereby secured or to the restoration or repair of the Property damaged In
the event of a Trustee's sale; or other transfer of title to the Property in extinguishment of the in-
debtedness secured hereby, all right, title, and interest of the Grantor in and to any insurance
policies then in force shall pass at the option of the Beneficiary to the purchaser or Beneficiary
f He will keep the said premises in as good order and condition as they are now and
will not commit or permit any waste thereof, reasonable wear and tear excepted, and in the event
of the failure of the Grantor to keep the buildings on said premises and those to be erected on
said premises, or improvements thereon, in good repair, the Beneficiary may make such repairs
as in the Beneficiary's discretion it may deem necessary for the proper preservation thereof, and
any sums paid for such repairs shall bear interest from the date of payment at the rate specified
in the note, shall be due and payable on demand and shall be fully secured by this Deed of Trust
g He will not without the prior written consent of the Beneficiary voluntarily create
or permit to be created against the Property subject to this Deed of Trust any liens inferior or
superior to the lien of this Deed of Trust and further that he will keep and maintain the same free
from the claim of all persons supplying labor or materials which will enter into the construction
of any and all buildings now being erected or to be erected on said premises
h He will not rent or assign any part of the rent of the Property or demolish, remove,
or substantially alter any building without the written consent of the Beneficiary
10 In the event the Grantor fails to pay any Federal, state, or local tax assessment, income tax or
other tax lien, charge, fee, or other expense charged to the Property heremabove described, the Beneficiary
is hereby authorized to pay the same and any sum so paid by the Beneficiary shall be added to and become
a part of the principal amount of the indebtedness evidenced by said promissory note If the Grantor shall
pay and discharge the indebtedness evidenced by said promissory note, and shall pay such sums and shall
discharge all taxes and liens and the costs, fees, and expenses of making, enforcing and executing this Deed
of Trust, then this Deed of Trust shall be canceled and surrendered
11 The Grantor covenants that he is lawfully seized and possessed of and has the right to sell and
convey the Property, that the same is free from all encumbrances except as hereinabove recited, and that he
hereby binds himself and his successors in interest to warrant and defend the title aforesaid thereto and every
part thereof against the lawful claims of all persons whomsoever
12 For better security of the indebtedness hereby secured the Grantor, upon the request of the
Beneficiary, its successors or assigns, shall execute and deliver a supplemental mortgage or mortgages
covering any additions, improvements, or betterments made to the Property hereinabove described and
acquired after the date hereof (all in form satisfactory to Grantee) Furthermore, should Grantor fail to cure
any default in the payment of a prior or inferior encumbrance on the Property described by this instrument,
Grantor hereby agrees to permit Beneficiary to cure such default, but Beneficiary is not obligated to do so,
(4)
and such advances shall become part of the indebtedness secured by this instrument, subject to the same
terms and conditions
13 That all awards of damages in connection with any condemnation for public use of or injury to
any of the Property are hereby assigned and shall be paid to Beneficiary, who may apply the same to payment
of the installments last due under said note, and the Beneficiary is hereby authorized, in the name of the
Grantor, to execute and deliver valid acquittances thereof and to appeal from any such award
14 The irrevocable right to appoint a substitute trustee or trustees is hereby expressly granted to the
Beneficiary, his successors or assigns, to be exercised at any time hereafter without notice and without
specifying any reason therefor, by filing for record in the office where this instrument is recorded an
instrument of appointment The Grantor and the Trustee herein named or that may hereinafter be substituted
hereunder expressly waive notice of the exercise of this right as well as any requirement or application to any
court for the removal, appointment or substitution of any trustee hereunder
15 Notice of the exercise of any option granted herein to the Beneficiary or to the holder of the note
secured hereby is not required to be given the Grantor, the Grantor having hereby waived such notice
16 If more than one personjoins in the execution of this instrument as Grantor or if anyone solomed
be of the feminine sex, the pronouns and relative words used herein shall be read as if written in the plural
or feminine, respectively, and the term 'Beneficiary" shall include any payee of the indebtedness hereby
secured or any assignee or transferee thereof whether by operation of law or otherwise The covenants herein
contained shall bind and the rights herein granted or conveyed shall inure to the respective heirs, executors,
administrators, successors, and assigns of the parties hereto
17 The Loan secured by this lien was made under a United States Small Business Administration
(SBA) nationwide program which uses tax dollars to assist small business owners If the United States is
seeking to enforce this document, then under SBA regulations
a) When SBA is the holder of the Note, this document and all documents evidencing or securing this
Loan will be construed in accordance with federal law
b) CDC or SBA may use local or state procedures for purposes such as filing papers, recording
documents, giving notice, foreclosing liens, and other purposes By using these procedures, SBA does
not waive any federal immunity from local or state control, penalty, tax or liability No Borrower or
Guarantor may claim or assert against SBA any local or state law to deny any obligation of Borrower,
or defeat any claim of S BA with respect to this Loan
Any clause in this document requiring arbitration is not enforceable when SBA is the holder of the Note
secured by this instrument
18 A judicial decree, order, or judgment holding any provision or portion of this instrument invalid
or unenforceable shall not in any way impair or preclude the enforcement of the remaining provisions or
portions of this instrument
IN WITNESS WHEREOF, the Grantor has executed this instrument and the Trustee and
Beneficiary have accepted the delivery of this instrument as of the day and year aforesaid
(5)
Flashers LLC
By � ' - C"Z"
Diane E Wilkins, Manager
By s� ) - &��-
Steven B Wisner, Manger
State of Washivon )
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County of V
I certify that I know or have satisfactory evidence that Diane E. Wilkins is the person who appeared
before me, and said person acknowledged that she signed this instrument, on oath stated that she was
authorized to execute the instrument and acknowledged it as the Manager of Flashers LLC, to be the free
and voluntary act of such party for the uses and purposes mentioned in the instrument
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NOTARY PUBLIC in and for the State of
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My commission expires U-41-0 -T—
I certify that I know or have satisfactory evidence that Steven B Wisner is the person who
appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he
was authorized to execute the instrument and acknowledged it as the Manager of Flashers LLC, to be the
free and voluntary act of such party for the uses and purposes mentioned in the instrument
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(6)