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HomeMy WebLinkAbout2002 - Assignment of Rents - Chin Wally / Frontier Bank - 2002103100318120021031003181 RETURN ADDRESS. Frontier Bank Totem Lake 12507 116th Ave NE Kirkland, WA 96034 Grantee(s) 1 Frontier Bank 2002 03 003181 g TITLE` 19/a1/2 112 ,.4M ...MINI, wn ASSIGNMENT OF RENTS Reference # (if applicable) Q09239706 -2(..x0.2 /03 / 3,4 Grantor(s) 1 CHIN, WALLY L Additional on page -2 , 3cy1 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 THIS ASSIGNMENT OF RENTS dated October 30, 2002, Is made and executed between WALLY L CHIN, as a separate estate, whose address is 15310 MACADAMS ROAD A -303, TUKWILA, WA 98188 (referred to below as "Grantor ") and Frontier Bank, whose mailing address Is 12507 116th Ave NE, Kirkland, WA 98034 (referred to below as "Lender ") ASSIGNMENT. For valuable consideration, Grantor hereby assigns, grants a continuing security Interest in, and conveys to Lender all of Grantor's right, title, and interest In and to the Rents from the following described Property located in KING County, State of Washington. See EXHIBIT A, which is attached to this Assignment and made a part of this Assignment as If fully set forth herein The Property or its address is commonly known as 16628 53rd AVENUE S, TUKWILA, WA 98188 The Property tax Identification number is 885880-0050 -08 & 885880-0055-03 THIS ASSIGNMENT IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ANY AND ALL OBLIGATIONS OF GRANTOR UNDER THE NOTE, THIS ASSIGNMENT, AND THE RELATED DOCUMENTS THIS ASSIGNMENT IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS PAYMENT AND PERFORMANCE Except as otherwise provided in this Assignment or any Related Documents, Grantor shall pay to Lender a amounts secured by this Assignment as they become due, and shall stnctly perform all of Grantor's obligatxns under this Assignment Unless and until Lender exercises its nght to collect the Rents as provided below and so long as there is no default under this Assignment, Grantor may remain in possession and control of and operate and manage the Property and collect the Rents, provided that the granting of the nght to collect the Rents shall not constitute Lender's consent to the use of cash collateral in a bankruptcy proceeding GRANTOR'S REPRESENTATIONS AND WARRANTIES Grantor wanants that Ownership Grantor ms entitled to receive the Rents free and dear of a nghts, loans, liens, encumbrances, and claims except as disclosed to and accepted by Lender in writing Right to Assign Grantor has the lull right, power and authony to enter into this Assignment and to assign and convey the Rents to Lender No Prior Assignment Grantor has not previously assigned or conveyed the Rents to any other person by any instrument now in force No Further Transfer Grantor will not sell, assign, encumber, or otherwise dispose of any of Grantor's nghts in the Rants except as provided in this Assignment ▪ LENDER'S RIGHT TO RECEIVE AND COLLECT RENTS Lender shalt have the nght at any line, and even though no • default shall have occurred under this Assignment, to collect and receive the Rents For this purpose, Lender is hereby given and granted the following nghts, powers and authority Cri Notice to Tenants Lender may send notices to any and all tenants of the Property advising them of this Assignment and directing all Rents to be paid directly to Lender or Lender's agent Enter the Property Lender may enter upon and take possession of the Property, demand, collect and receive from the N tenants or from any other persons liable therefor, all of the Rents, nsmute and carry on all legal proceedings necessary for the protection of the Property, including such proceedings as may be necessary to recover possession of the N Property, collect the Rents and remove any tenant or tenants or other persons from the Property Maintain the Property Lender may enter upon the Property to maintain the Property and keep the same in repair, to pay the costs thereof and of all services of all employees, including the equipment, and of all continuing costs and expenses of maintaining the Property in proper repair and condition, and also to pay all taxes, assessments and water ublites, and the premiums on fire and other insurance effected by Lender on the Property Compliance with Laws Lender may do any and all things to execute and comply with the laws of the State of Washington and also all other laws, rules, orders, ordinances and requirements of all other governmental agencies affecting the Property Lease the Property Lender may rent or lease the whale or any part of the Property for such torn or terms and on such conditions as Lender may deem appropriate Employ Agents Lender may engage such agent or agents as Lender may deem appropnate, enter in Lenders name or in Grantor's name, to rent and manage the Property, including the collection and application of Rents Other Acts Lender may do all such other thugs and acts with respect to the Property as Lender may deem appopnato and may act exclusively and solely in the place and stead of Grantor and to have all of the powers of Grantor for the purposes stated above No Requirement to Act Lender shalt not be required to do any of the foregoing acts or things, and the fact that Lender shall have performed one or more of the foregoing acts or things shall not require Lender to do any other specific act or thing APPLICATION OF RENTS Al costs and expenses incurred by Lender in connection with the Property shall be for Grantor's account and Lender may pay such costs and expenses from the Rents Lender, in Is sole discretion, shall determine the application of any and all Rents received by rt, however, any such Rents meowed by Lender which are not applied to such costs and expenses shall be applied to the Indebtedness All expenditures made by Lender under this Assignment and not reimbursed from the Rents shall become a part of the Indebtedness secured by this Assignment. and shall be payable on demand, with interest al the Note rate from date of expenditure until paid FULL PERFORMANCE If Grantor pays all of the Indebtedness when due and otherwise performs all the obligations imposed upon Grantor under this Assignment, the Note, and the Related Documents, Lender shall execute and deliver to Grantor a suitable sabefaction of this Assignment and suitable statements of temunabon of any finning statement on No evidencing Lender's security interest in the Rents and the Property My termination fee required by law shall be paid by Grantor, it permitted by applicable law LENDER'S EXPENDITURES If any action or proceeding is commenced that would matenally affect Lender's interest n the Property or if Grantor fails to comply with any provision of this Assignment or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Assignment or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated 1o) take any action that Lender deems appropnate, including but not tinted to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Rents or the Property and paying all costs for insunng, maantarnng and preserving the Property All such expenditures incurred or paid 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 ASSIGNMENT OF RENTS (Continued) Page 2 • rrl M cti 0 ASSIGNMENT OF RENTS (Continued) Page 3 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 will be due and payable at the Note's maturity The Assignment also will secure payment of these amounts Such right shall be n addition to all other nghts and remedies to which Lender may be entitled upon Default DEFAULT Each of the following, at Lender's option, shall constitute an Event of Default under this Assignment Payment Default Grantor Pais to make any payment when due under the Indebtedness Other Defaults Grantor fads to comply with or to perform any other term, obligation, covenant or condition contained in this Assignment 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 Default on Other Payments. Failure of Grantor within the tame required by this Assignment to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien Environmental Default Failure of any party to comply with or perform when due any term, obligation, conversant or condition contained in any environmental agreement executed in connection with the Property False Statements My warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Assignment or the Rotated Documents is 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 Collaterallzatton This Assignment or any of the Related Documents ceases to be in full force and effect (metering failure of any collateral document 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, 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 Creditor or Forfeiture Proceedings Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, set -help, repossession or any other method, by any creditor of Grantor or by any governmental agency against the Rents or any property secunng 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 dispute by Grantor as to the validity or reasonableness of the clam which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender wnten notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute Property Damage or Lou The Property is lost, stolen, substantially damaged, sold, or borrowed against Events Affecting Guarantor My 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 ros C.3 payment or performance of the Indebtedness is impaired p of Cure Provisions If any default, other than a default in payment is curable and if Grantor has not been given a notice of a breach of the same provision of this Assignment within the preceding twelve (12) months, it may be cured (and no event of default will have occurred) if Grantor, after receiving wnten notice from Lender demanding cure of such default (1) cures the default within ten (10) days, or (2) it the cure requires more than ten (10) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical RIGHTS AND REMEDIES ON DEFAULT Upon the occurrence of any Event of Default and at any time thereafter. Lender may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law Accelerate Indebtedness Lender shag have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to pay Collect Rents Lender shall have the right, without notice to Grantor, to take possession of 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 shall have all the nghts provided for in tho Lender's Right to Receive and Collect Rents Section, above If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attomeym•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 n person, by agent, or through a receiver Appoint Receiver 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 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 if permitted by law Lender's nght 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 Other Remedies Lender shall have all other nghts and remedies provided in this Assignment or the Note or by law Election of Remedies Election 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 Assignment, alter Grantor's failure to perform, shall not affect tender's right to declare a default and exercise its remedies Attorneys' Fees, Expenses. If Lender institutes any suit or action to enforce any of the terms of this Assignment, 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 became 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 lends under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' tees and expenses for bankruptcy proceedings (including efforts to modify or ASSIGNMENT OF RENTS (Continued) Page 4 vacate any automatic stay or mjuncton), appeals, and any anbcipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal lees, bile insurance, and lees 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 MISCELLANEOUS PROVISIONS The following miscellaneous provisions are a part of this Assignment Amendments This Assignment, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Assignment No alterabon of or amendment to this Assignment shall be effective unless given in writing and signed by the party a parties sought to be charged or bound by the aherabon or amendment Caption Headings Caption headings in this Assignment are for convenience purposes only and are not to be used to interpret or define the provisions of this Assignment Governing Law This Assignment will be governed by, construed and enforced In accordance with federal law and the laws of the State of Washington Thls Assignment has been accepted by Lender in the State of Washington Choke of Venue II there is a lawsuit, Grantor agrees upon Lender's request to submit to the junsdmction of the courts of King County, State of Washington Merger There shall be no merger of the interest or estate created by this assignment 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 written consent of Lender Interpretation (1) In all cases where thorn is more than one Borrower or Grantor, then all words used in this Assignment in the singular shall be deemed to have been used in the plural where the context and construction so require (2) If more than one person signs this Assignment as 'Grantor, the obbgabons of each Grantor are joint and several This means that if Lender brings a lawsuit. Lender may sue any one or more of the Grantors If Borrower and Grantor are not the same person, Lender need not sue Borrower first, and that Borrower need not be joined in any lawsuit (3) The names given to paragraphs or sections in this Assignment are for convenience purposes only They are not to be used to interpret or define the provisions of this Assignment No Waiver by Lender Lender shall not be deemed to have waived any rights under this Assignment unless such waiver is given n 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 right or any other nght A waiver by Lender of a provision of this Assignment shall not prejudice or consbtute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Assignment No pnor waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's nghts a of any of Grantor's obligations as to any future transactions Whenever the consent of Lender is required under this Assignment, the granting of such consent by Lender in any instance shall r+� not constitute continuing consent to subsequent instances where such consent is required and in at cases such consent may be granted or withheld in the sole discretion of Lender Notices Subject to applicable law, and except fix notice required a allowed by law to be given in another manner, any nobce required to be given under this Assignment shall be given in writing, and shal be effective when actually m delivered, when actually received by telefacsmde (unless otherwise required by law), when deposited with a nabonally recognized overnight courier, or, if mailed, when deposited in the United States mad, as first class, certified or registered 'mail postage prepaid, directed to the addresses shown near the beginning of this Assignment Any party may change its address for notices under this Assignment by giving formal written notice to the other parties, specifying that the purpose N of the notice is to change the party's address For notice purposes, Grantor agrees to keep Lender informed at all tines of Grantor's current address Subject to applicable law, and except for nobce required or allowed by law to be given in N another manner, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors Powers of Attorney The venous agencies and powers of attorney conveyed on Lender under this Assignment are granted for purposes of secunty and may not be revoked by Grantor until such lime as the same ore renounced by Lender SeverabUlty If a court of competent jursdiction finds any provision of this Assignment 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 muddied, it shall be considered deleted from this Assignment Unless otherwise required by law, the illegality, invalidity, or unonforceabdiy of any provision of this Assignment shall not affect the legality, validity or enforceability of any other provision of this Assignment Successors and Assigns Subject to any limitations stated in this Assignment on transfer of Grantor's interest, this Assignment shall be binding upon and inure to the benefit of the parties, thew successors and assigns If ownership of the Properly becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Assignment and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Assignment or liability under the Indebtedness Time Is of the Essence Time is of the essence in the performance of this Assignment 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 Assignment WAIVER OF RIGHT OF REDEMPTION NOTWITHSTANDING ANY OF THE PROVISIONS TO THE CONTRARY CONTAINED IN THIS ASSIGNMENT, GRANTOR HEREBY WAIVES ANY AND ALL RIGHTS OF REDEMPTION FROM SALE UNDER ANY ORDER OR JUDGMENT OF FORECLOSURE ON GRANTOR'S BEHALF AND ON BEHALF OF EACH AND EVERY PERSON, EXCEPT JUDGMENT CREDITORS OF GRANTOR, ACQUIRING ANY INTEREST IN OR TITLE TO THE PROPERTY SUBSEQUENT TO THE DATE OF THIS ASSIGNMENT DEFINITIONS The following capitalized words and terms shall have the following meanings when used in this Assignment Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in 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 Assignment shalt have the meanings attributed to such terns in the Uniform Commercial Code Assignment The word 'Assignment' means this Assignment of Rents, as this Assignment of Rents may be amended or modified from time to time, together with all exhibits and schedules attached to this Assignment of Rents from tine to time Borrower The word 'Borrower means WALLY L CHIN Default The word 'Default means the Default set forth in this Assignment in the section titled 'Default' Event of Default The words 'Event of Default' mean any of the events of default sel forth in this Assignment in the rr . va GRANTOR 7 ey van ss �ll. Morgan Notary Public In and for the State of WA ASSIGNMENT OF RENTS (Continued) Page 5 default section of this Assignment 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 IirMatxxn a guaranty of at or part of the Note Indebtedness The word 'Indebtedness' means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with at renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Rotated Documents and any amounts expended or advanced by Lender to discharge Grantors obligations or expenses incurred by Lender to enforce Grantees obligations under this Assignment, together with mterest on such amounts as provided in this Assignment Lender The word tender' 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 at renewals of, extensions of, modifications of, refnancngs of, consolidations of, and substitutions for the promissory note or agreement Property The word 'Property' moans all of Grantor's rght, tree and interest in and to all the Property as descnbed in the 'Assignment' section eels Assignment Related Documents The words 'Related Documents" mean at promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness Rents The word 'Rents' means at of Grantor's present and future rights, title and interest in, to and under any and all present and future leases, including, without limitation, all rents, revenue, income, issues, royalties, bonuses, accounts recervabfe, cash or security deposits, advance rentals, profits and proceeds from the Property, and other payments and benefits derived or to be derived from such leases of every kind and nature, whether due now or later, including without limitation Grantor's right to enforce such leases and to receive and collect payment and proceeds thereunder THE UNDERSIGNED ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS ASSIGNMENT THIS DOCUMENT IS EXECUTED ON OCTOBER 30, 2002 INDIVIDUAL ACKNOWLEDGMENT yr STATE OF Washington )SS .1 :- r.,.._a Y♦ On this day before me, the undersigned Notary Public, personaly appeared WALLY L CHIN, personal'. proved to me on the basis of satisfactory evidence to be the individual described in and who executed the • of Rents, and acknowledged that he or she signed the Assignment as his or her free and voluntary act and deed, for the uses and purposes therein mentioned Given under my hand and official seal thls 30th day of October 20 02 Residing at Lynnwood My commission expires 7 -29 -03 via n. ,.r,, V..aa.,. 4 w....,..r.wr. . 111,1 s. II P., r.,. .. c tna., .nca.n= a»: uAtb.44..:.f 11 , ek ., 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 ;F.uk �cv �S v," �-' �:'.?".:. 4?. �:: ic" tr" L: T. cxS atvaa�tdnrt�e' Sm ef.'Y <ta¢ixliTt.�L �tn -" •.,,