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HomeMy WebLinkAbout2002 - Deed of Trust - Chin Wally / Frontier Bank / Stewart Title - 20021031003180 RETURN ADDRESS: Frontier Bank Totem Lake 12507 116th Ave NE Kirkland WA 90034 Grantee(s) 1 Frontier Bank 2 Stewart Title, Trustee Iii; ;�� I �:i �� II,•I !Ili 20021031003180 STEUART TITLE DT 27 09 PAGE 001 OF 009 KINGICOUNTY, 15 ii' DEED OF TRUST DATE. October 30, 2002 , .' )04, V Reference # (if applicable) 209239Z115 Additional on page _ Grantor(s) 1 CHIN, WALLY L Legal Descnption LTS 3 -4, BLK 2, VALLEY VIEW HOMES, VOL 56, PG 81 Additional on page 2 Assessor's Tax Parcel ID# 885880- 0050 -08 & 885880-0055-03 MAXIMUM LIEN The lien of this Deed of Trust shall not exceed at any one time $120,000 00 THIS DEED OF TRUST is dated October 30, 2002, among WALLY L CHIN, as a separate CD estate, whose address is 15310 MACADAMS ROAD A -303, TUKWILA, WA 98188 ( "Grantor "), r Frontier Bank, whose mailing address is Totem Lake, 12507 116th Ave NE, Kirkland, WA 98034 (referred to below sometimes as "Lender" and sometimes as "Beneficiary"), and Stewart Title, whose mailing address is 18000 International Boulevard S Suite 510, SeaTac, WA 98188 (referred to below as "Trustee "). '.ari:l>rrr•,< �:cr to . ..;- ui:.S�.__ii t , l ..• zai L,,.. a. ii: ak:.. n. ��+i =ti••`�'sw�..`,L,a i:itid�sc:u,:.;:�L:Gteal il,§;,` 5afativwuaw: c:.= a. e.:. y ,'M.uss4,= :;�"dargoL'.::.w+i tcu:cuF ».r:se:,: r,,,:W . wt.•...:.:.:: n•.: r: �K: :trc,:u(:uurti::,.�':,�i�ia:r�ci ,zU;w DEED OF TRUST (Continued) Page 2 CONVEYANCE AND GRANT For valuable consideration, Grantor conveys to Trustee In trust with power of sale, nght of entry and possession and for the benefit of Lender as Beneficiary, all of Grantor's right, title, and interest in and to the following described real property, together with al existing or subsequently erected or affixed buildings, improvements and fixtures, all easements, rights of way, and appurtenances, all water, water rights and ditch rights (including stock in utilities with ditch or imgalion nghts), and all other nghts, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and smiler matters, (the "Real Property ") located in KING County, State of Washington: See EXHIBIT A, which Is attached to this Deed of Trust and made a part of this Deed of Trust as if fully set forth herein The Real Property or its address is commonly known as 16628 53rd AVENUE S, TUKWILA, WA 98188 The Real Property tax identification number is 885880- 0050 -08 & 885880-0055 -03 • Grantor hereby assigns as security to Lender, all of Grantor's right, title, and interest in and to all leases, Rents, and profits of the Property This assignment is recorded in accordance with RCW 65 08 070, the lien 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 shaN be automatically revoked upon acceleration of all or part of the Indebtedness THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS 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 all 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 c Possession and Use Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of • the Property, (2) use, operate or manage the Property. and (3) collect the Rents from the Property (this pnvilege is a e license from Lender to Grantor automatically revoked upon default) The following provisions relate to the use of the Property or to other Imitations on the Property The Real Property is not used principally for agricultural purposes ▪ Duty to Maintain Grantor shaA maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value m Nuisance, Waste Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of 0 or waste on or to the Property or any porton of the Property Without lending the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, day, scoria, sod, gravel or rock products without Lender's prior written consent o Removal of Improvements Grantor shall not demolish or remove any Improvements from the Real Property without o Lender's prior written consent As a condition to the removal of any Improvements, Lender may require Grantor to make N arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Deed of Trust Compliance with Governmental Requirements Grantor shall promptly comply, and shall promptly cause compliance by all agents, tenants or other persons or entities of every nature whatsoever who rent, lease or otherwise use or occupy the Property in any manner, with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance dunng any proceeding, including appropriate appeals, so tong as Grantor has notified Lender in writing prior to doing so and so long as, in Lenders sole opinion, Lender's interests in the Property are not jeopardized Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest Duty to Protect Grantor agrees neither to abandon or leave unattended the Property Grantor shall do all other acts, in addition 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 Lenders option, (A) declare immediately duo 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 conditions as Lender deems appropriate, upon the sale or transfer, without Lender's prior written 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 right, title or interest in the Real Property, whether legal, beneficial or equitable, whether voluntary or involuntary, whether by outright sale, deed, installment sale 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 title to the Real Property, or by any other method of conveyance of an interest in the Real Property However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Washington law TAXES AND LIENS The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust Payment Grantor shah pay when due (and in all events pnor 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 tree of all lens having pnority over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments riot due, except for the Existing Indebtedness referred to below, and except as otherwise provided in this Deed of Trust Right to Contest Grantor may withhold payment of any tax, assessment, or clam in connection with a good faith dispute over the obligation n to pay, so long as Lenders interest in the Property is not jeopardized If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the hen arises or, it a lien is tiled, 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 hen plus any costs and attorneys' tees, or other charges that could accrue as a osuit of a foreclosure or sale under the hen In any curtest, Grantor shall defend itself and Lender and shall sabsfy any adverse judgment before enforcement against the Property Grantor shall name Lender as an addrbonai obligee under any surety bond furnished m the contest proceedings Evidence of Payment Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropnate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property Notice of Construction Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any matenals are supplied to the Property, d any mechanic's hen, matenatmen's hen, or other lien 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 insunng the Property are a part of this Deed of Trust Maintenance of Insurance Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covenng al Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lander 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 shat) maintain such other insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require Policies shall be wntton n form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender Grantor, upon request of Lender, will delrver 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 at least thirty (30) days prior 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 be 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, d available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpad principal balance of the loan and any prior liens on the property secunng the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the tern of the ban Application of Proceeds Grantor shall promptly notify Lender of any joss or damage to the Property Lender may make proof of loss d Grantor fails to do so wrthin fifteen (15) days of the casualty Whether or not Lender's security is • unpaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to ch the reduction of the Indebtedness, payment of any lien affecting the Property, or the restorabon and repair of the ▪ Property If Lender elects to apply the proceeds to restorabon and repave, Grantor shall repair or replace the damaged or destroyed Improvements in o manner satisfactory to Lender Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonaby cost of repair or restoration d Grantor is not n default under this Deed of Trust Any proceeds which have not been disbursed within 180 days atter their receipt and which c•) Lender has not committed to the replan 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 pnncipal balance of the Indebtedness If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid without interest to Grantor as Grantor's interests may appear c Compliance with Edsting Indebtedness Dunng the period n which any Exisbng Indebtedness described below is in effect, compliance with the insurance provisions contained in the instrument evidencing such Exisbng Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust to the extent compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness 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 exrsbng policy of insurance showing (1) the name of the insurer, (2) the nsks nsured, (3) the amount of the policy, (4) the property insured, the then current replacement value of such property, and the manner of determining that value. and (5) the expirabon date of the policy Grantor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property LENDER'S EXPENDITURES If any action or proceeding is commenced that would matenafy affect Lender's interest in the Property or d Grantor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not Invited to Grantor's failure to comply with any obigabon to maintain Existing Indebtedness in good standing as required below, or to discharge or pay when due any amounts Grantor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, bens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, mantaining and preserving the Property All such expenditures incurred or pad by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand, (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy, or (2) the remaining term of the Note, or (C) be treated as a balloon payment which wit be due and payable at the Note's maturity The Deed of Trust also will secure payment of these amounts Such nght shall bo in addition to all other nghts and remedies to which Lander may be entitled upon Default WARRANTY, DEFENSE OF TITLE The following provisions relating to ownership of the Properly are a part of this Deed of Trust DEED OF TRUST (Continued) Page 3 Vie Grantor warrants that (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all hens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in any Me insurance policy, title report, or final aloe opnan issued in favor of, and accepted by, Lender in connection with This Deed of Trust, and (b) Grantor has the lull nght, power, and authority to execute and deliver this Deed of Trust to Lender Defense of Title Subject to the exception n the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful clans of all persons In the event any action or proceeding is commenced that questions Grantor's title or the interest of Trustee or Lender under this Deed of Trust, Grantor shall defend the action al Grantor's expense Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceedng and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or DEED OF TRUST (Continued) Page 4 cause to be delrverod, to Lender such mstnxnents as Lender may request from tune to time to permit such participation Compliance With laws Grantor warrants that the Property and Grantor's use of the Property complies with all oxistng applicable laws, ordinances, and regulations of governmental authorities Survival of Rppresentatlons and Warranties All representations, warranties, and agreements made by Grantor in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall be paid in full EXISTING INDEBTEDNESS The following provisions concerning Existing Indebtedness are a part of this Deed of Trust Existing Lien The ken of this Deed of Trust secunng the Indebtedness may be secondary and 'Manor to an existing lien Grantor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any default under the instruments evidencing such indebtedness, or any default under any security documents for such indebtedness No Modification Grantor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security agreement which has pnony over this Deed of Trust by which that agreement is modified, amended, extended, or renewed without the pray written consent of Lender Grantor shall norther request nor accept any future advances under any such security agreement without the pnor written consent of Lender CONDEMNATION The following provisions relating to condemnation proceedings are a part of this Deed of Trust Proceedings If any proceeding in condemnation its Ned, Grantor shall promptly notify Lender in wntng, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award 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 counsel of its own choice all at Grantor's expense, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such parbcrpation Application of Net Proceeds If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORRIES The following provisions relating to governmental taxes, lees and charges are a part of this Deed of Trust Current Taxes, Fees and Charges Upon request by Lender, Grantor shall execute such documents in addition to this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including without Mutation 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 section applies (1) 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, (2) a specific lax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Deed of Trust, (3) a tax on this type of Deed of Trust chargeable against the Lender or the holder of the Note, and (4) a specific tax on all or any portion of the Indebtedness or on payments of pnncipai and Interest made by Grantor Subsequent Taxes If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor. either (1) pays the tax before rt becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender SECURITY AGREEMENT, RNANCING STATEMENTS The following provisions relating to this Deed of Trust as a security agreement are a part of this Deed of Trust Security Agreement This instrument shall constitute a Security Agreement to the extent any of the Property constitutes lectures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time Security Interest Upon request by Lender, Grantor shah execute financing statements and take whatever other action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property In addition to recording this Deed of Trust in the real property records. Lender may, at any time and without further authorization 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 secuny interest Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days atter receipt of written demand from Lender to the extent permitted by applicable law 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 Uniform 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 attomeyin•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 wit cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be Ned, recorded, retied, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security 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 (1) Grantor's obligations under the Note, this Deed of Trust, and the Related Documents, and (2) the liens and security interests created by this Deed of Trust on the Property, whether now owned or hereafter acquired by Grantor Unless prohhbded by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph Attorney-In-Fact If 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 such purposes. Grantor hereby irrevocably appoints Lender as Grantor's attomeyin -fact for the purpose of making, executing, detrvenng, 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 DEED OF TRUST (Continued) Page 5 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 shal execute and deliver to Trustee a request for full reconveyance and shall execute and deliver to Grantor suitable statements of termination of any financing statement on No evidencing Lender's secunty interest in the Rents and the Personal Property Any reconveyance fee shall be pad by Grantor, if permitted by applicable law The grantee in any reconveyance may be described 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 EVENTS OF DEFAULT Each of the following, at Lender's option, shalt constitute an Event of Default under this Deed of Trust Payment Default Grantor fails to make any payment when due under the Indebtedness Other Defaults Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Deed of Trust or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor Compliance Default Failure 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 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 Delattt will have occurred) if Grantor, after Lender sends written notice demanding cure of such failure (a) cures the failure within ten (10) days, or (b) if the cure requires more than ten (10) days, immediately initiates steps sufficient to cure the failure and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical Default on Other Payments Failure of Grantor within the time 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 lien False Statements Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Deed of Trust or the Related Documents rs false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter Defective Collaterelizatlon This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a vain and perfected secunty interest or lien) at any time and for any reason Death or Insolvency The death of any Grantor, 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 nsolvency laws by or against Grantor r" Creditor or Forfeiture Proceedings Commencement of foreclosure or forfeiture proceedings, whether by judicial c+� proceeding, seltdnelp, repossession or any other method, by any creditor of Grantor or by any governmental agency _• against any property securing the Indebtedness This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender However, this Event of Default shall not apply if there is a good faith depute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies ore surety bond for ccy the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole dscretion, as being an adequate reserve or bond for the dispute Breach of Other Agreement Any breach by Grantor under the terms of any other agreement between Grantor and .v Lender that is not remedied within any grace period provided therein, including without limitation any agreement r� concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later N Events Affecting Guarantor Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness In the event of a death, Lender, at its option, may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default Adverse Change A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired Existing Indebtedness The payment of any installment of principal or any interest on the Existing Indebtedness is not made within the time required by the promissory note evidencing such ndebtedness, or a default occurs under tho instrument securing such indebtedness and is not cured during any applicable grace period in such instrument, or any suit or other action is commenced to foreclose any existing lien on the Property 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 ten (10) days, or (b) d the cure requires more than ten (10) days, immediately initiates steps sufficient to cure the failure and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical RIGHTS AND REMEDIES ON DEFAULT II an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender may exercise any one or more of the following nghts and remedies ElectIon of Remedies Section by Lender to pursue any remedy 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 Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies Accelerate Indebtedness Lender shall have the right at its option to declare 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 Reel Property, the Trustee shall have the right to exercise its power of sato and to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law UCC Remedies With respect to all or any part of the Personal Property, Lender shall have at the rights and remedies of a secured party under the Uniform Commercial Code Collect Rents Lender shall have the right, without notice to Grantor to take possession 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, against the Indebtedness In furtherance of this right, Lender may require any tenant or other user of the Property DEED OF TRUST (Continued) Page 6 to make payments of rent or use fees directly to Lender U the Rents are collected by Lander, then Grantor irrevocably designates Lender as Grantor's attomeytn•fact to endorse instruments received n 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 nghts under this subparagraph either in person, by agent, or through a receiver Appoint Receiver Lender shall have the right to have a receiver appointed to take possession of at or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding or pending foreclosure 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 it 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 substantial amount Employment by Lender shall not disqualify a person from serving as a receiver Tenancy at Sufferance If Grantor romans in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled 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 (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender Other Remedies Trustee or Lender stall have any other right or remedy provided in this Deed of Trust or the Note or by law Notice of Sale Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time alter which any private sale or other intended disposition of the Personal Property is to be made Reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition Any sale of the Personal Property may be made in conjunction with any sale of the Real Property Sale of the Property To the extent permitted by applicable law, Grantor hereby waives any and all rights to have the Property marshalled In exercising its nghts and remedies, the Trustee or Lender shall be free to sell all 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 Attorneys' Fees, Expenses If Lender institutes any suit or action to 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 trial and upon any appeal Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of Its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' lees and expenses for bankruptcy proceedings (including efforts to modify or rw , vacate any automatic stay cc injunction), appeals, and any anticipated post - judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal lees, title r• 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 at of the rights end duties of Lender as set forth in this section POWERS AND OBLIGATIONS OF TRUSTEE The following provisions relating to the powers and obligations of Trustee r''o (pursuant to Lender's Instructions) are part of this Deed of Trust Powers of Trustee In addition 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 Property upon the written request of Lender and Grantor (a) join in preparing and fdhg a map or plat of the Real Property, including the dedication of streets or other rights to the public, (b) join in granting any easement or creating any restriction on the Real Property, and (c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust N ObligatIons to Notify Trustee shall not be obligated to nobly any other party of a pending sale under any other trust deed or hen, or of any action or proceeding in which Grantor, Lender, or Trustee shall be a party, unless required by applicable law, or unless the action or proceeding is brought by Trustee Trustee Trustee shall meet all qualifications required tor 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 right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law Successor Trustee Lender, at Lender's option, may from lime to time appoint a successor Trustee to any Trustee appointed tinder this Dood of Trust by an instrument executed and acknowledged by Lender and recorded in the office of the recorder of KING County, State of Washington The instrument shall contain, in addition to all other matters required by state law, the names of the original Lender, Trustee, and Grantor, the book and page or the Auditor's Fife Number where this Deed of Trust is recorded, and the name and address of the successor trustee, and the instrument shall be executed and acknowledged by Lender or its successors in interest The successor trustee, without conveyance of the Property, shall succeed to all the title, power, and duties conferred upon the Trustee in this Deed of Trust and by applicable law This procedure for substitution of Trustee shall govern to the exclusion of all other provisions for substitution NOTICES Subject to applicable law, and except for notice required or allowed by law to be given in another manner, any notice required to be given under this Deed of Trust, including without limitation any notice of default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimde (unless otherwise required by law), when deposited with a nationally recognized overnight couner, or, if mailed, when deposited in the United States mai, as first class, certified or registered mad postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust All copies of notices of foreclosure from the holder of any lien 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 Any party may change its address for notices under this Deed of Trust by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address Subject to applicable law, and except for notice required or allowed by law to be given in another manner, it there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors MISCELLANEOUS PROVISIONS The following miscellaneous provisions are a part of this Deed of Trust 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 alteration of or amendment to this Deed of Trust shall be effective unless given in writing and signed by the party or parties sought to bo charged or bound by the alteration or amendment m CT! M 0 N DEED OF TRUST (Continued) Page 7 Annual Reports II the Property is used for purposes other than Granters residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantors previous fiscal year in such form and detail as Lender shall require 'Net operating income' shall moan all cash receipts from the Property less al cash expenditures made in connection with the operation of the Property Caption Headings Caption headings n this Deed of Trust are for convenience purposes only and are not to be 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 benefit of Lender in any capacity, without the wntten consent of Lander Governing Law Th ls Deed of Trust will be governed by, construed and enforced In accordance with federal law and the laws of the State of Washington Thls Deed of Trust has been accepted by Lender In the State of Washington Choice of Venue If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of King County, State of Washington No Waiver by Lender Lender shall not be deemed to have waived any rights under this Deed of Trust unless such waiver is given in writing and signed by Lender No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such nght or any other right A waiver by Lender of a provision of this Deed of Trust shall not prejudice or constitute a waiver of Lenders nght otherwise to demand stnct compliance with that provision or any other provision of this Deed of Trust No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's nghts or of any of Grantor's oblgabons as to any future transactions Whenever the consent of Lender is required under this Deed of Trust, the granting of such consent by Lender in any nstance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withhold in the sole discretion of Lender Severabillty If a court of competent jursdiotion finds any provision of this Deed of Trust to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable If the offending provision cannot be so modified, n shall be considered deleted from this Deed of Trust Unless otherwise required by law, the illegality, invalidity, or unenforceatxlity of any provision of this Deed of Trust shall not affect the legality, validly or enforceability of any other provision of this Deed of Trust Successors and Assigns Subject to any limitations stated in this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be boding 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 Grantors successors with reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness Time Is of the Essence Time a of the essence in the performance of this Deed of Trust Waiver of Homestead Exemption Grantor hereby releases and waives all nghts and benefits of the homestead exemption laws of the State of Washington as to all Indebtedness secured by this Deed of Trust DEFIN1flONS The following capitalized words and terms shall have the following meanings when used n this Deed of Trust Unless specthcally stated to the contrary, all references to dollar amounts shall mean amounts n lawful money of the United States of America Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require Words and terms not otherwise defined in this Deed of Trust shall have the meanings attributed to such terms in the Uniform Commercial Code Beneficiary The word 'Beneficiary' means Frontier Bank, and its successors and assigns Borrower The word 'Borrower means WALLY L CHIN, and all other persons and entities signing the Note in whatever capacity Deed of Trust The words "Deed of Trust' mean Qus 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 Default The word 'Delautl' means the Default set forth in this Deed of Trust in the section titled 'Default' Event of Default The words 'Event of Default' mean any of the events of default set forth in this Deed of Trust in the events of default section of this Deed of Trust Existing Indebtedness The words 'Existing Indebtedness" mean the indebtedness described in the Existing Liens provision of the Deed of Trust Grantor The word 'Grantor means WALLY L CHIN Guaranty The word 'Guaranty' means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all or part of the Note Improvements The word Improvements' means all existing and future 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, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Trustee or Lender to enforce Grantor's obligations under this Deed of Trust, together with interest on such amounts as provided in this Deed of Trust Lender The word 'Lender means Frontier Bank, its successors and assigns Note The word 'Note' means the promissory note dated October 30, 2002, In the original principal amount of $297,920.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement Personal Property The words 'Personal Property' mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property, together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property, and together with all issues and profits thereon and proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property Property The word 'Property' means collectively the Real Property and the Personal Property Real Property The words 'Real Property' mean the real property, interests and rights, as further described in this Deed of Trust Related Documents The words 'Related Documents' mean all promissory notes. credit agreements, loan agreements, guaranties, secunly agreements, mortgages, deeds of trust, secuny deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter exrstng, executed in connection with the Indebtedness, provided, that the enwonmental indemnity agreements are not'Relatod Documents' and are not secured by this Deed of Trust Rents The word 'Rents' means all present and future rents, revenues, ncome, issues, royalties, profits, and other benefits denved from the Property Trustee The word Trustee' means Stewart Tittle, whose maring address is 18000 International Boulevard S Suite 510, SeaTac, WA 98188 and any substitute or successor trustees GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND GRANTOR AGREES TO ITS TERMS WALLY L CHIN, Indhildualy y ta ' • 4. 1O- 6 \ 011 0 118 r) d : 3 r _ a • )S$ ° f� a :L ►. b •� Pff t} Ry r On this day before me, the undersigned Notary Public, personally appeared WALLY L CHIN, personally k proved to me on the basis of satisfactory evidence o be the individual described 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 Given under my hand and official seal this 30th day o} Octobe 20 02 on By Va sa D. Morgan c • a Notary Public In and for the State of L lt} Q REQUEST FOR FULL RECONVEYANCE STATE OF Washington COUNTY OF King Date DEED OF TRUST (Continued) Page 8 INDIVIDUAL ACKNOWLEDGMENT Residing at Lynnwood My comnussron expires 7-29 -03 c To , Trustee ° The undersigned Is the legal owner and holder of al indebtedness secured by this Deed of Trust You are hereby requested, N upon payment of all sums owing to you, to recomey without warranty, to the persons entitled thereto, the right, title and interest now held by you under the Deed of Trust Viol R° WA. VS "BOWS on sb •4N..* *A C It T• I nlCaRlaoc Beneficiary By Its : YiCie #i "r.`.,?35. iii;.::; des .: ;:i.:;itidL% ?'; " sa: d:.': il,. t;..•` L �W` S' ifx�i+ i. iLb: r.': t;' W;.{ 6 .4+G>ti:Cls:a:;a1a�+:.rwanw.:., ,a, -.: 1:ke :.ttt+' px;SMs;ria`:ti..byU`= a"..t>i: x 1a•: xt!£: frv+. iiLti:, oJ.' w: rLs': n`, wt':": ui` tZ�; lis:'tt_`usk5`a'°i3y.:ti:.�ui":e r. -� Order Number 200239706 EXHIBIT "A" LOTS 3 AND 4, BLOCK 2,VALLEY VIEW HOMES, ACCORDING TO PLAT RECORDED IN VOLUME 56 OF PLATS AT PAGE(S) 81, RECORDS OF KING COUNTY, WASHINGTON TOGETHER WITH THAT PORTION OF THE RIGHT -OF -WAY OF 54 AVENUE SOUTH VACATED ACCORDING TO ORDINANCE NO 1236 DATED NOVEMBER 3, 1981, CITY OF TUKWILA, WHICH ABUTS LOTS 3 AND 4 IN BLOCK 2 OF VALLEY VIEW HOMES, ACCORDING TO PLAT RECORDED IN VOLUME 56 OF PLATS AT PAGE(S) 81, RECORDS OF KING COUNTY, WASHINGTON .ism.:wL:'i �',::r'F::.:S•:a'Li'2�..1 :' , .