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HomeMy WebLinkAbout2001 - Deed of Trust - Mastro Michael - 2001061100174020010611001740 RETURN ADDRESS: THE COMMERCE BANK OF WASHINGTON, N.A. 601 UNION STREET, SUfTE 3600 SEATTLE, WA 98101 • • 1 1 I I I I I I III' 1 11 1 / 1 1 1 I II II I II il Aft 106 TIT c oLvdry ? 1. DEED OF TRUST Reference # (d applicable): Additional on page Grantor(s) (,�,-- �.c .f. 1. MASTRO, MICHAEL R �W \ T Grantee(s)/AssigneeBenef i ciary THE COMMERCE BANK OF WASHINGTON, N.A , Beneficiary PACIFIC NORTHWEST TITLE COMPANY OF WASHINGTON, INC., Trustee Legal Description PTN GL10, 04 -23-04 Assessor's Tax Parcel ID# 042304- 9114 -09 & 042304 - 9148 -09 gti', - 05 1 1 1,1, I l 1 1 111 11 III 7 It I II 1 � I I 1 111 I I, 1 1;; II 1111 ll 1 L1 I II I il 111I l it Ilj IP1 ;1 1 11 1 1 1 1 1 1 1 1 11 1 1 1 11 1 i 'I I 11 111 I li l ' I!il 111 1 I! 1 I IIII 1 1 11 111 II .1 1 I II 1,1 Ili' I' � 11 ;$ I I! 1 1111 l 11! I III I ' 111 1 1 11 I! 11 II ! l 11 1 11 1 + I i l l 111 I I II(I I 107;4 " Additional on page 2 THIS DEED OF TRUST IS DATED JUNE 8, 2001, among MICHAEL R. MASTRO, A MARRIED MAN, AS HIS SEPARATE ESTATE, whose mailing address is 610 RAINIER AVENUE SOUTH, SEATTLE, WA 98144 (referred to below as "Grantor "); THE COMMERCE BANK OF WASHINGTON, N.A., whose mailing address Is 601 UNION STREET, SUITE 3600, SEATTLE, WA 98101 (referred to below sometimes as "Lender" and sometimes as "Beneficiary"); and PACIFIC NORTHWEST TITLE COMPANY OF WASHINGTON, INC., whose mailing address is 215 COLUMBIA STREET, SEATTLE, WA 98104 (referred to below as "Trustee "). SEE EXHIBIT A • • 06-08 -2001 DEED OF TRUST Page 2 Loan No (Continued) CONVEYANCE AND GRANT. For valuable consideration, Grantor conveys to Trustee In (rust with power of sale, right of entry and possession and for the benefit of Lender as Beneficiary, all of Grantor's right, title, and interest nn and to the following descnbed real property, together wdh all existing or subsequently erected or affixed buildings, improvements and fixtures, all easements, rights of way, and appurtenances, all water, water rights and ddch nghts (including stock in utilities with ddch or imgabon nghts), and all other nghts, royalties, and profits relating to the real property, including without limitation all minerals, od, gas, geothermal and similar matters, located in KING County, State of Washington (the "Real Property"): The Real Property or its address is commonly known as 2922 SOUTH 112TH STREET, TUKWILA, WA 9816B, The Real Property tax identification number is 042304 - 9 1 1 4-09 & 042304- 914809 Grantor hereby assigns as secunty to Lender, all of Grantors right, title, and interest in and to all leases, Rents, and profits of the Property This assignment is recorded in accordance with RCW 6.5 08 070, the hen created by this assignment is intended to be specific, perfected and choate upon the recording of this Deed of Trust Lender grants to Grantor a license to collect the Rents and profits, which license may be revoked at Lender's option and shall be automabcafy revoked upon acceleration of all or part of the Indebtedness DEFINITIONS, The following words shall have the following meanings when used in this Deed of Trust Terms not otherwise defined in this Deed of Trust shall have the meanings attnbuted to such terms in the Uniform Commercial Code Alt references to dollar amounts shall mean amounts in lawful money of the United States of Amenca Beneficlary The word "Beneficiary' means THE COMMERCE BANK OF WASHINGTON, N A , its successors and assigns THE COMMERCE BANK OF WASHINGTON, N A also is referred to as "Lender" in this Deed of Trust Deed of Trust The words "Deed of Trust' mean this Deed of Trust among Grantor, Lender, and Trustee, and includes without limitation all assignment and secunty interest provisions relating to the Personal Property and Rents Grantor The word *Grantor" means any and all persons and entities executing this Deed of Trust, including without limitation MICHAEL R MASTRO Guarantor The word "Guarantor" means and includes without limitation any and all guarantors, sureties, and accommodation parhes in connection with the Indebtedness Improvements The word "Improvements" means and includes without limitation alt exishng and luture improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property Indebtedness. The word Indebtedness" means all principal and interest payable under the Note and any amounts expended or advanced by Lender to discharge obligations of Grantor or expenses Incurred by Trustee or Lender to enforce obligations of Grantor under this Deed of Trust, together with interest on such amounts as provided in this Deed of Trust Lender, The word 'Lender" means THE COMMERCE BANK OF WASHINGTON, N A , its successors and assigns Note, The Word 'Note" means the Note dated dune a, 2001, In the original principal amount of $2,000,000,00 from Grantor to Lender, together with all renewals, extensions, modifications, refinancings, and substitutions for the Note NOTICE TO GRANTOR; THE NOTE CONTAINS A VARIABLE INTEREST RATE Personal Properly, The words "Personal Property' mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Properly, together with all accessions, parts, and additions to, all replacements of, and all substitutions lor, any of such property, and together with all issues and profits thereon and proceeds (including walhout bmitabon all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property Property, The word "Properly' means collectively the Real Property and the Personal Property Real Property, The words "Real Property' mean the property, interests and nghts descnbed above in the "Conveyance and Grant" section Related Documents The words 'Rebated Documents" mean and include without hmdation all promissory notes, credit agreements, loan agreements, guaranties, security agreements, mortgages, deeds of trust, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness, provided, that the environrnental indemnity agreements are not 'Related Documents" and are not secured by this Deed of Trust Rents, The word "Rents" means ail present and future rents, revenues, income, issues, royalties, profits, and other benefits denved from the Property Trustee, The word 'Trustee" means PACIFIC NORTHWEST TITLE COMPANY OF WASHINGTON, INC and any 06-08 -2001 Loan No DEED OF TRUST Page 3 (Continued) substitute or successor trustees THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ANY AND ALL OBUGATIONS OF GRANTOR UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Grantor shall pay to lender ell amounts secured by this Deed of Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's obligations under the Note, this Deed of Trust, and the Related Documents POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions Possession and Use. Until the occurrence of an Event of Default, Grantor may (a) remain in possession and control of the Property, (b) use, operate or manage the Property, and (c) collect any Rents from the Property (this pnvdege is a license from Lender to Grantor automabcally revoked upon default) The following provisions relate to the use of the Property or to other limitations on the Property The Real Property is not used principally for agncuttural purposes Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value Nutsance, Waste Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stepping of or waste on or to the Property or any portion of the Property Without limiting the generality of the foregoing, Grantor wdl not remove, or grant to any other party the nght to remove, any timber, minerals (including oil and gas), soil, gravel or rock products without the prior wntten consent of Lender Removal of Improvements Grantor shad not demolish or remove any Improvements from the Real Property without the pnor wntten consent of Lender As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value Lender's Rtght to Enter Lender and its agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Property for purposes of Grantor's compliance with the terms and conditions of this Deed of Trust o Compliance with Governmental Requirements Grantor shall promptly comply, and shall promptly cause compliance by all agents, tenants or other persons or entitras of every nature whatsoever who rent, lease or otherwise .-- use or occupy the Property in any manner, writ all laws, ordinances, and regulations, now or hereafter in effect, of all co governmental authonties applicable to the use or occupancy of the Property, including without limitation, the Cn Amencans With Disabrdtws Act Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in •- writing prior to doing so and so tong as, in Lenders sole opinion, Lenders interests in the Property are not jeopardized Lender may reciter(' Grantor to post adequate security or a surety bond, reasonably satisfactory to N Lender, to protect Lender's interest Duty 10 Protect. Grantor agrees neither to abandon nor leave unattended the Property Grantor shall do all other acts, in addibon to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property DUE ON SALE - CONSENT BY LENDER Lender may, at ds option, (a) declare immediately due and payable all sums secured by this Deed of Trust or (b) increase the interest rate provided for in the Note or other document evidencing the Indebtedness and impose such other conddions as Lender deems appropnate, upon the sale or transfer, without the Lender's prior wntten consent, of all or any part of the Real Property, or any interest in the Real Property A "sale or transfer" means the conveyance of Real Property or any nght, title or interest therein, whether legal, beneficial or equitable, whether voluntary or involuntary; whether by outright sale, deed, installment sate contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease -option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding bile to the Real Property, or by any other method of conveyance of Real Property interest If any Grantor is a corporation, partnership or limited kabdity company, transfer also includes any change in ownership of more than twenty -five percent (25 %) of the voting stock, partnership interests or limited liability company interests, as the case may be, of Grantor However, this option shall not ba exercised by Lender d such exercise is prohibited by federal law or by Washington law TAXES AND LIENS The following provisions relating to the taxes and bens on the Property are a part of this Deed of Trust Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property Grantor shall maintain the Property free of al (lens having pnonly over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of Trust • • 06 -08 -2001 DEED OF TRUST Page 4 Loan No (Continued) Right To Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligabon to pay, so long as Lender's interest in the Properly is not jeopardized If a lien anses or is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the hen arises or, if a ben is bled, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees or other charges that could accrue as a result of a foreclosure or sale under the hen In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse Judgment before enforcement against the Property Grantor shall name Lender as an additronat obligee under any surety bond furnished in the contest proceedings Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authonze the appropnate governmental official to deliver to Lender at any time a wntten statement of the taxes and assessments against the Property Notice of Construction. Grantor shall notify Lender at least fifteen (16) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, matenalmen's ken, or other ben could be asserted on account of the work, services, or materials Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements PROPERTY DAMAGE INSURANCE, The following provisions relating to msunng the Property are a part of this Deed of Trust Maintenance 01 insurance Grantor shall procure and mantain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covenng all Improvements on the Real Property in an amount suftraent to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with trustee and Lender being named as additional insureds in such liability insurance policies Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption, and baler insurance, as Lender may reasonably require Policies shall be wntten on form, amounts, coverages and basis reasonably acceptable 10 Lender and issued by a company or companies reasonably acceptable to Lender Grantor, upon request of Lender, WI deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, Including stipulations that coverages will not be cancelled or diminished without al least ten (10) days' pnor written notice to Lender Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person Should the Real Property at any time become located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area. Grantor agrees to obtain and maintain Federal Flood Insurance tor the full unpaid principal balance of the loan and any pnor kens on the property secunng the loan, up to the maximum policy limits set under the Nabonal Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan Application of Proceeds Grantor shall promptly notify Lender of any Toss or damage to the Property Lender may make proof of toss rf Grantor falls to do so wlthnn fifteen (16) days of the casualty Whether or not Lender's secuny Is impaired, Lender may, at its etecbon, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any ben affecting the Property, or the restoration and repair of the Properly If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not an default under this Deed of Trust Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not commuted to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness If Lender holds any proceeds after payment In full of the Indebtedness, such proceeds stall be paid without interest to Grantor as Grantor's Interests may appear Unexpired tnsurance at Sale. Any unexpired insurance shalt inure to the benefit of, and pass 1o, the purchaser of the Property covered by this Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust, or at any foreclosure sale of such Property Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing (a) the name of the Insurer, (b) the nsks insured, (c) the amount of the poky, (d) the property insured, the then current replacement value of such property, and the manner of determining that value, and (0) the expiration date of the policy Grantor shall, upon request of Lender, have an independent appraiser sabsfactory to Lender determine the cash value replacement cost of the Property EXPENDITURES BY LENDER It Grantor fails to comply with any provision of this Deed of Trust, or d any action or proceeding is commenced that would materially affect Lender's interests in the Property, Lender on Grantor's behalf may, but shag not be required to, take any action that Lender deems appropnate Any amount that Lender expends In so doing MI bear interest at the rate provided for in the Note kom the date incurred or paid by Lender to the date of repayment by Grantor Ail such expenses, at Lender's option, will (a) be payable on demand, (b) be added to the balance of the Note 06-08-2001 Loan No DEED OF TRUST (Continued) Page 5 and be apportioned among and be payabte with any installment payments to become due during either (r) the term of any applicable insurance policy or (u) the remaining term of the Note, or (o) be treated as a balloon payment which will be due and payabte at the Note's maturity This Deed of Trust also win secure payment of these amounts The rights provided for in this paragraph shall be in addition to any other nghts or any remedies 10 which Lender may be entitled on account of the default Any such action by Lender shall not be construed as miring the default so as to bar Lender from any remedy that dl otherwise would have had WARRANTY, DEFENSE OF TITLE, The following provisions retahng to ownership of the Property are a pars of this Deed of Trust Title Grantor warrants that (a) Grantor hotds good and marketable title of record to the Property m fee single, free and clear of all hens and encumbrances other than those set forth in the Real Property descnpbon or in any bile insurance pocky, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Grantor has the fult nght, power, and authonty to execute and deliver this Deed of Trust to Lender Defense of Tide Subject to the exception in the paragraph above, Grantor warrants and wit forever defend the tide lo the Property against the lawful claims of all persons In the event any action or proceeding is commenced that questions Grantor's little or the interest of Trustee or Lender under this Deed of Trust, Grantor shall defend the acbon at Grantor's expense Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counset of Lender's own choice, and Grantor will deliver. or cause to be delivered, to Lender such instruments as Lender may request from lime to time to permit such parbapabon Compliance With Laws. Grantor warrants that the Properly and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authonhes CONDEMNATION The following provisions relating to condemnation proceedings are a part of this Deed of Trust Application of Nei Proceeds. Hatt or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in heu of condemnabon, Lender may al its election require That all or any portion of the net proceeds of the award be appbed to the Indebtedness or the repair or restorabon of the Properly The net proceeds of the award shall mean the award alter payment of all reasonable costs, expenses, and attorneys' fees c• incurred by Trustee or Lender in connection with the condemnabon co Proceedings. If any proceeding in condemnation is fded, Grantor shall promptly nobly Lender in wnling, and Grantor shalt promptly lake such steps as may be necessary to defend the action and obtain the award Grantor may be the normal party m such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice all at Grantor's expense, and Grantor well deliver or cause to be e , delivered to Lender such instruments as may be requested by it from time to bme lo permit such parbapation IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES The following provisions retabng to governmental taxes, fees and charges are a part of this Deed of Trust co r_ Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents m addition to this Deed of Trust and lake whatever other acbon is requested by Lender to perfect and continue Lender's ben on the Real Property Grantor shalt reimburse Lender for all taxes, as descnbed below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust. including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Deed of Trust Taxes The following shall constitute taxes to which this sechon applies (a) a specific tax upon this type of Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust, (b) a specific tax on Grantor which Grantor is authonzed or required to deduct from payments on the Indebtedness secured by this type of Deed of Trust, (c) a tax on this type of Deed of Trust chargeable against the Lender or the holder of the Note, and (d) a specific tax on all or any portion of the Indebtedness or on payments of pnnoipal and interest made by Grantor Subsequent Taxes If any tax to which this secbon applies is enacted subsequent to the date of this Deed of Trust, taus event shall have the same effect as an Event of Default (as defined below), and Lender may exercise any or all of its evadable remedies for an Event of Default as provided below unless Grantor either (a) pays the tax before it becomes delinquent, or (b) contests the tax as provided above in the Taxes and Liens secbon and deposits with Lender cash or a sufficient corporate surely bond or other secunty satisfactory to Lender SECURITY AGREEMENT, FINANCING STATEMENTS. The foltowrng provisions relating to this Deed of Trust as a secunty agreement are a part of this Deed of Trust Security Agreement This instrument shall constitute a secunty agreement to the extent any of the Property consblutes tortures or other personal property, and Lender shalt have all of the rights of a secured party under the Uniform Commercial Code as amended from bme 10 lime Security Interest. Upon request by Lender, Grantor shalt execute financing statements and lake whatever other action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property to addition to recording this Deed of Trust in the real property records, Lender may, at any time and without further 06-08 -2001 Loan No DEED OF TRUST (Continued) Page 6 authonzation from Grantor, file executed counterparts, copies or reproductions of this Deed of Trust as a financing statement Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing This secunty interest Upon default, Grantor shall assemble the Personal Properly in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of wntten demand from Lender Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party). from which information concerning the security interest granted by this Deed of Trust may be obtained (each as required by the Undorm Commercial Code), are as stated on the first page of this Deed of Trust FURTHER ASSURANCES; ATTORNEY - IN - FACT The following provisions relating to further assurances and attorney- in-fact are a part of this Deed of Trust Further Assurances At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refded, or rerecorded, as the case may be, at such bmes and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, secunty deeds, secunty agreements, financing statements, continuation statements, instruments of further assurance. certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (a) the obligations of Grantor under the Note, this Deed of Trust, and the Related Documents, and (b) the liens and secunty mterests created by this Deed of Trust as first and pnor bens on the Property, whether now owned or hereafter acquired by Grantor Unless prohibited by law or agreed to the contrary by Lender in writing, Grantor shall reimburse Lender for all costs and expenses incurred in oonneotion with the matters referred to In this paragraph Attorney -In -Fact. It Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense For suoh purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney -in -fact for the purpose of making, executing, delrven ig, filing, recording, and doing all other things as may be necessary or desirable, In Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Deed of Trust, Lender shalt execute and deliver to Trustee a request for fun reconveyance and shall execute and deliver to Grantor suitable statements of termination of any financing statement on Ide evidencing Lender's security interest in the Rents and the Personal Property Any reconveyance fee shall be paid by Grantor, d permitted by applicable law The grantee in any reconveyance may be descnbed as the 'person or persons legally entitled Thereto ", and the recitals in the reconveyance of any matters or facts shall be conclusive proof of the truthfulness of any such matters or facts DEFAULT. Eaoh of the following, at the option of Lender. shall constitute an event of default ("Event of Default") under this Deed of Trust Default on Indebtedness Failure of Grantor to make any payment when due on the Indebtedness Defautt on Other Payments, Failure of Grantor within the bme required by this Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any hen Compliance Default Failure of Grantor to comply with any other term, obligation, covenant or condition contained in this Deed of Trust, the Note or in any of the Related Documents False Statements, Any warranty, representation or statement made or furnished to Lender by or on behalf of Grantor under this Deed of Trust, the Note or the Related Documents is false or misleading in any matenal respect, either now or at the lime made or furnished Defective Coltateralizatlon, This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any collateral documents to create a valid and perfected secunty interest or lien) at any time and for any reason Death or Insolvency, The death of any Grantor or the dissolution or termination of Grantor's existence as a going business, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor Foreclosure, Forfeiture, etc Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self -help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any of the Property However, this subsection shall not apply in the event of a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the foreclosure or forefeiture proceeding, provided that Grantor gives Lender wntten notoe of such claim and furnishes reserves or a surety bond for the claim satisfactory to Lender Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace penod provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or tater 06-08 -2001 Loan No DEED OF TRUST Page 7 (Continued) Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness Lender, al its opbon, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obhgahons ansing under the guaranty in a manner sahsfactory to Lender, and, in doing so, cure the Event of Default Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes Uie prospect of payment or performance of the Indebtedness is impaired Right to Cure If such a failure is curable and if Grantor has not been given a notice of a breach of the same provision of this Deed of Trust within the preceding twelve (12) months, It may be cured (and no Event of Default will have occurred) if Grantor, after Lender sends wntten notice demanding cure of such failure (a) cures the failure within fifteen (15) days, or (b) if the cure requires more than fifteen (15) days, immediately initiates steps sufficient to cure the failure and thereafter continues and completes all reasonable and necessary steps sufficient to produce compbance as soon as reasonably practical RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any hme thereafter, Trustee or Lender, at its option, may exercise any one or more of the following nghts and remedies, in addition to any other nghts or remedies provided by law Accelerate Indebtedness Lender shall have the nght at its option to deoare the entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to pay Foreclosure With respect to all or any part of the Real Properly, the Trustee shall have the right to exercise its power of sale and to foreclose by notice and sale, and Lender shall have the nght to loreciose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law UCC Remedies With respect to at or any part of the Personal Property, Lender shall have all the nghts and remedies of a secured party under the Uniform Commercial Code Collect Rents Lender shall have the nghl, without notice to Grantor, to lake possesson of and manage the Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, againsl the Indebtedness In furtherance of this nght, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender If the Rents are collected by Lender. then Grantor irrevocably designates Lender as Grantor's attorney -In -fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver Appoint Racetver Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding or pending loreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness The receiver may serve without bond if permitted by law Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substanbai amount Employment by Lender shall not disqualify a person from serving as a recever Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes emitted to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (a) pay a reasonable rental for the use of the Property, or (b) vacate the Property Immediately upon the demand of Lender Other Remedies. Trustee or Lender shall have any other nght or remedy provided in this Deed of Trust or the Note or by law Notice of Sale Lender shag give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made Reasonable nobce shall mean notice given at least ten (10) days before the lime of the sale or dispositon Any sale of Personal Property may be made In conjunction wdh any sale of the Real Property Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all nghts to have the Properly marshalled In exercising its nghts and remedies, the Trustee or Lender shall be free to sell ail or any part of the Property together or separately, in one sale or by separate sales Lender shall be entitled to bid at any public sale on all or any portion of the Property Waiver, Election of Remedies. A waiver by any parry of a breach of a provision of this Deed of Trust shad nol constitute a waiver of or prejudice the party's nghts otherwise to demand stnct compbance with That provision or any other provision Election by Lender to pursue any remedy provided in this Deed of Trust, the Note, in any Related Document, or provided by law shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Deed of Trust after failure of Grantor to perform shall not affect Lender's nghl to declare a default and to exercise any of its remedies • • 06-08-2001 DEED OF TRUST Page 8 Loan No (Continued) Attorneys' Fees, Expenses. If Lender institutes any suit or achon 10 enforce any of the terms of this Deed of Trust, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at tnal and on any appeal Whether or not any court action is involved, all reasonable expenses incurred by Lender which in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its nghts shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of expenditure until repaid Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees whether or not there is a lawsuit, including attorneys' fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction). appeals and any anticipated post — judgment edtecbon services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, appraisal fees, title insurance, and fees for the Trustee, to the extent permitted by applicable law Grantor also will pay any court costs, in addition to all other sums provided by law Rights of Trustee Trustee shall have all of the nghts and duties of Lender as set forth in this section POWERS AND O1.IGATIONS OF TRUSTEE The following provisions relating to the powers and obligations of Trustee (pursuant to Lender's instructions) are part of this Deed of Trust Powers of Trustee In addihon to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following actions with respect to the Properly upon the wntten request of Lender and Grantor (a) four in prepanng and filing a map or plat of the Real Property, including the dedication of streets or other rights to the public, (b) loin in granting any easement or creating any restnctan on the Real Property, and (c) join in any subordination or other agreement affeobng this Deed of Trust or the interest of Lender under this Deed of Trust Obtigations to Notify. Trustee shall not be obligated to notify any other party of a pending sale under any other trust deed or ben, or of any achon or proceeding in winch Grantor, Lender, or Trustee shall be a party, unless required by applicable law, or unless the achon or proceeding is brought by Trustee Trustee. Trustee shall meet all qualifcabonts required for Trustee under applicable law In addition to the rights and remedies set forth above, with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the nght to foredose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law Suocessor Trustee lender, at Lenders option, may from time to time appoint a successor Trustee to any Trustee ca appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the —s recorder of KING County, Washington The instrument shall contain, in addition to all other matters required by state law, the names of the engine! Lender, Trustee, and Grantor, the book and page or the Auditor's File Number where this Deed of Trust is recorded, and the name and address of the suocessor trustee, and the instrument shall be c.: executed and acknowledged by Lender or its successors in interest The successor trustee, without conveyance of C' the Property, shall succeed to all the title, power, and duties conferred upon the Trustee in this Deed of Trust and by r" applicable law Ths procedure for substitution of trustee shall govern to the exclusion of all other provisions for subsbtubon cc> NOTICES TO GRANTOR AND OTHER PARTIES, Subject to applicable law, and except for notice required or allowed by G' law to be given in another manner, any notice under this Deed of Trust shall be in wnting, may be sent by telefacsimde (unless otherwise required by law), and shall be etfec when actually delivered, or when deposited with a nationally "" recognized overnight couner, or, if mailed, shall be deemed effective when deposited in the United States mad first class, = certified or registered mad, postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust C• Any party may change its address for notices under this Deed of Trust by giving formal wntten notice to the other parties, specifying that the purpose of the notice Is to change the party's address All copies of notices of foreclosure from the holder of any ben which has pnonty over this Deed of Trust shall be sent to Lender's address, as shown near the beginning of this Deed of Trust For notice purposes, Grantor agrees to keep Lender and Trustee informed at all times of Grantor% current address MISCELLANEOUS PROVISIONS The following miscellaneous provisions are a part of this Deed otTrust Amendments. This Deed of Trust, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Deed of Trust No alterabon of or amendment to this Deed of Trust shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment Annual Reports If the Property is used for purposes other than Grantors residence, Grantor shall furnish to Lender, upon request, a certified statement of net operabng income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require "Net operating income' shall mean all cash receipts from the Property less aU cash expenditures made in connection with the operation of the Property Applicable Law, This Deed of Trust has been delivered lo Lender and accepted by Lender In the State of Washington. Subject to the provisions on arbitration, this Deed of Trust shall be governed by and construed in accordance with the laws of the State of Washington. Captton Headings Caption headings in this Deed of Trust are for convenience purposes only and are not to be to X 06-08 -2001 DEED OF TRUST Page 9 Loan No (Continued) used to interpret or define the provisions of this Deed of Trust Merger There shall be no merger of the interest or estate created by this Deed of Trust with any other interest or estate in the Property at any time held by or for the beneM of Lender in any capacity, without the wntten consent of Lender Severablhty. If a court of competent lurisdicbon finds any provision of this Deed of Trust to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforoeabibty or validity, however, d the offending provision cannot be so modified, it shall be stricken and all other provisions of this Deed of Trust in all other respects shall remain valid and enforceable Successors and Assigns Subject to the limitabons stated in this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be binding upon and inure to the benefit of the parties, their successors and assigns If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obbgabons of this Deed of Trust or liability under the Indebtedness Time la of the Essence Time is of the essence in the performance of this Deed of Trust Waivers and Consents. Lender shall not be deemed to have waived any rights under this Deed of Trusl (or under the Related Documents) unless such waiver is in wnting and signed by Lender No delay or omission on the part of Lender in exercising any nghl shall operate as a waiver of such right or any other nght A waiver by any party of a provision of this Deed of Trust shall not constitute a waiver of or prejudice the party's nght otherwise to demand strict compbance with that provsion or any other provision No pnor waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or any of Grantor's obligations as to any future transactions Whenever consent by Lender is required in this Deed of Trust, the grantmg of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required Waiver of Homestead Exemption Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State of Washington as to all Indebtedness secured by this Deed of Trust EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND EACH GRANTOR AGREES TO ITS TERMS GRANTOR STATE OF COUNTY OF By • • Notary Public In and for the State of 0/4" W) N%% / ".0 •' niON''• , ti INDIVIDUAL ACKNOWLEDGMEI � '• ti rr • ►88 ) Residing at My commission expires On the day before me, the undersigned Notary Pubko, personally appeared MICHAEL R. MASTRO, personalty known to me or proved to me on the basis of sabsfactory evidence to be the individual descnbed in and who executed the Deed of Trust, and acknowledged that he or she signed the Deed of Trust as his or her free and voluntary act and deed, for the uses and purposes therein mentioned p Glvejt,u rig hand and official seal this Q day of 20 06-08 -2001 Loan No DEED OF TRUST (Continued) REQUEST FOR FULL RECONVEYANCE To , Trustee The undersigned is the legal owner and holder of all indebtedness secured by this Deed of Trust You are hereby requested, upon payment of all sums owing to you, to reconvey without warranty, to the persons entitled thereto, the nghl, title and interest now held by you under the Deed of Trust Date: Page 10 Benehclary By. Its: LASER PRO. Reg U S Pat & T M Off . Yew 3 29a (C) ConcentraX 200 1 All rights reserved IWA -G01 N3 29 MSTROTUK LN) PARCEL A. PARCEL B; • • EXHIBIT A PAGE 11 That portion of Government Lot 10, Section 4, Township 23 North, Range 4 Bast, W.N., in King County, Washington, described as follows: Beginning at tho intersection of the west margin of State Highway No. 1 and the north margin of the City of Seattle pipeline right - of -way as condemned by King County Superior Court Cause No. 121648; thence along the north margin of the City of Seattle pipeline right of way south 89 °30'59' west 414.14 feet to the TRUE POINT OF BHGIUNING; thence north 58 0 42'14' west 80.75 feet; thence north 33 °16'12' east 137.00 feet, thence north 0 °23'17• west 30.00 feet; thence north 46 °08'49• east 74.59 feet, thence north 33 °16'12" east 77.00 feet to the south margin of the City of Seattle transmission line right of way as condemned by King County superior Court Cause No. 469557; thence north 57 west along said margin to the easterly bank of the Duwamish River; thence southwesterly along said river to the north margin of the City of Seattle pipeline right of way; thence along said north margin north 89 °30'S9" east 344.27 feet, more or less, to the TRUE POINT OF BEGINNING; TOOHTEER WITH an easement for road right of way, 15 feet wide as described in deed recorded under Recording Number 7212290704. That portion of Government Lot 10, in Section 4, Township 23 North, Range 4 Bast, W.M., in King County, Washington, described as follows: Beginning at the intersection of the west margin of State Highway No. 1 and the north margin of the City of Seattle pipeline right - of -way as condemned by King County Superior Court Cause Number 121648, being the TRUE POINT OF BEGINNING; thence along the north margin of the City of Seattle Pipeline Right -of -Way south 89 °30'59" west 414.14 feet; thence north 58 °42'14° west 80 75 feet, • • LEGAL DESCRIPTION, continued_ PAGE 12 thence north 33°16'12" east 137 00 feet, thence north 0 °23'17" went 30.00 feet, thence north 46 °08'49" east 74.59 feet; thence north 33 °16'12" east 77.00 feet to the south margin of the City of Seattle transmission line right -of -way, thence south 57 °20'50° east to the west margin of State Highway No. 1, thence southwesterly along the westerly margin of said Highway to the TRUE POINT OF BEGINNING, TOGETHER WITH an easement for roadway purposes over a tract of and 20 feet in width, the northerly margin of which ie described as follows. Beginning at a point on the west margin of State Highway No. 1 that is north 18 °57'20" east 156 feet from the intersection of said west margin with the north margin of said pipeline right -of -way; thence north 78°00'00" west 196.53 feet to a point of intersection with the southerly margin of the said transmission line right -of- way.