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HomeMy WebLinkAbout1999 - Deed of Trust - Foster C Thomas / Holliday Thomas - 1999121600156419991216001564 RETURN ADDRESS: Washington First International Bank 9709 Third Avenue Northeast Grantor(s): 1. Foster, C. Thomas 2. Foster, Maryl C. 3. Holliday, Thomas W. 4. Holliday, Kathleen M. F. 11111111111111 FIRST AMERICAN DT 16.00 19991216001654 PAGE 001 OF 011 12/16/1999 14:60 KING COUNTY, NA Suite 110 Seattle, WA 98115 F- W 6 � 0 0 CO W . W =. J i- ;�-� WO . DEED OF TRUST ���� g Reference # (if applicable): Additional on page u- - d I _ Z � I— 0 Z I- LLI Grantee(s) /Assignee/Beneficiary: o 0. Washington First International Bank, Beneficiary o 1- , First American Title Insurance Company, Trustee W v . . � Legal Description: PTN. OF TRACTS 10 AND 11 AND ALL OF _ u O TRACTS 12 AND 13, MERRICK'S ACRE TRACTS DIV. NO. 2, ADD., VOL. 12, P. 47 Additional on page 2 U Assessor's Tax Parcel 10#: 547680-0080-00.0090-08.0100-06,0110-04 P THIS DEED OF TRUST IS DATED DECEMBER 13, 1999, among C. Thomas Foster, Maryl C. Foster, husband and wife, Thomas W. Holliday and Kathleen M. F. Holliday, husband and wife, whose mailing address is 20840 SE 118th Ave, Issaquah, WA 98027 (referred to below as "Grantor "); Washington First International Bank, whose mailing address is 9709 Third Avenue Northeast, Suite 110, Seattle, WA 98115 (referred to below sometimes as "Lender" and sometimes as "Beneficiary"); and First American Title Insurance Company, whose mailing address is 2101 4th Ave, Suite 800, Seattle, WA 98121 -9977 (referred to below as "Trustee "). Z 12 -13 -1999 CONVEYANCE AND GRANT. For valuable consideration, Grantor conveys to Trustee In trust with power of sale, right of entry and posseselon and for the benefit of Lender as Beneficiary, all of Grantor's right, title, and interest in and to the following described reel property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, nghts of way, and appurtenances; all water, water rights and ditch rights (including stock in utilities with ditch or imgabon rights); and all other rights, royalties, and profits relating to the real property, including without limrtabon WI numerals, oil, gas, geothermal and similar matters, located in King County, State of Washington (the "Real Property "): See full legal description attached. The Real Property or its address is commonly known as 4737 S 107th Street, Tukwila, WA 98178. The Real Properly tax Identification number is 547680- 0080 -00, 0090 -06, 0100-06, 0110 -04. Grantor hereby assigns as security to Lender, all of Grantor's nght, title, and interest in and to all leases, Rents, and profits of the Property. This assignments recorded In accordance with RCW 65.06.070; the hen created by this assignment is intended to be specific, perfected and choale 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 automatically revoked upon accelerahon of al or part of the Indebtedness. DEFINITIONS. The following words shall have the following mearungs when used in this Deed of Trust. Terms not otherwise defined in this Deed of Trust shef have the meanings attributed to such farms in the Uniform Commercial Code. Al references to dollar amounts shall mean amounts in lawful money of the United Stales of America. Beneficiary. The word "Beneficiary means Washington First International Bank, its successors and assigns. Washington n Frst International Bank also es referred to as 'Lender' in tics Deed of Trust. Deed of Trust. The words "Deed of Trust" mean this Deed of Trust among Grantor, Lender, and Trustee, and Includes without kmrtabon all assignment and security interest provisions relating to the Personal Property and Rents. Grantor. The word 'Grantor" means any and all persons and entitles executing this Deed of Trust, including without limitation C Thomas Foster, Maryi C. Foster, Thomas W. Hotbday and Kathleen M. F. Holliday. Guarantor. The word "Guarantor' means and includes without hrixtabon any and all guarantors, sureties, and accommodation parties in connection with the Indebtedness. Improvements. The word improvements" means and includes wit out !mutation all existing and future improvements, buildings, structures, mobile homes attired on the Real Property, faahbes, additions, replacements and other construction on the Real Property. Indebtedness. The word indebtedness' means all pnnapal 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. The lien of this Deed of Trust shall not exceed at any one time $360,000.00. Lender. The word 'Lender means Washington First International Bank. its successors and assigns. Note. The word "Note" means the Note dated December 13, 1999, In the original principal amount of $360,000.00 from Grantor to Lender, together with al renewals, extensions, modifications, refinancings, and substitutions for the Note. The maturity date of this Deed of Trust Is September 1, 2000. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words "Personal Property' mean all equipment, tortures, 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, end 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 cdlechvely the Real Property and the Personal Property. Real Property. The words 'Heal Property' mean the property, interests and rights described above in the "Conveyance and Grant' section. Related Documents. The words 'Related Documents' mean and include without limitation all promissory notes, credit agreements, loan agreements, environmental 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 Rents. The word 'Rents means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. Trustee. The word "Trustee' means First American Title insurance Company and any substitute or successor DEED OF TRUST Page 2 (Continued) 12 -13 -1999 DEED OF TRUST Page 3 (Continued) 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 OBLIGATIONS OF GRANTOR UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS ALSO GIVEN TO SECURE ANY AND ALL OBLIGATIONS OF GRANTOR UNDER THAT CERTAIN CONSTRUCTION LOAN AGREEMENT BETWEEN GRANTOR AND LENDER OF EVEN DATE HEREWITH. ANY EVENT OF DEFAULT UNDER THE CONSTRUCTION LOAN AGREEMENT, OR ANY OF THE RELATED DOCUMENTS REFERRED TO THEREIN, SHALL ALSO BE AN EVENT OF DEFAULT UNDER THiS DEED OF TRUST. THE NOTE AND THIS DEED OF TRUST ARE GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided In this Deed of Trust, Grantor shall pay to Lender aA amounts secured by this Deed of Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's oblgabons under the Nola, 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 shat be governed by the following provrsann: Possession and Use. Unti the occurrence of an Event of Default, or unbi Lender exercises its right to colect Rents as provided for in the Assignment of Rents form executed by Grantor in connection with the Property, 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 pnv:iege is a license from Lander to Grantor automabcatly revoked upon default). The following provisions relate to the use of the Property or to other kmrtatans on the Property. The Real Property is not used pnnapaily 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. Hazardous Substances. The terms "hazardous waste. "hazardous substance," "disposal; 'release," and "threatened release; as used in this Deed of Trust, shall have the same meanings as set forth in the Comprehensive Envronmental Response. Compensation. and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. rCERCLA"), the Superfund Amendments and Reauthonzation Act of 1986, Pub. L. No. 99-499 ("SARA "), the Hazardous Materials Transportation Ad, 49 U.S C Section 1801, at seq., the Resource Conservation and Recovery Act, 42 U.S.0 Section 6901, at seq., a other applicable state or Federal laws, rules, or regulations adopted pursuant to any of the foregoing. The terms "hazardous waste and "hazardous substance" shall also include, without timrtahon, petroleum and petroleum by—products or any fraction thereof and asbestos. Grantor represents and warrants to Lender that: (a) During the period of Grantor's ownership of the Property, the has been no use, generation. manufacture. storage, treatment, disposal, release a threatened release of any hazardous waste or substance by any person on, under, about or from the Property; (b) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in wnting, (i) any use, generation, manufacture, storage, treatment, disposal, release, or threatened release of any hazardous waste or substance on, under, about or horn the Property by any pnor owners or occupants of tho Property or (a) any actual or threatened tbgabon or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed to and acknowledged by Lander in wnhng, (i) neither Grantor nor any tenant, contractor, agent or other authonzed user of the Properly shall use, generate, manufacture, store, treat, dispose of, or release any hazardous waste or substance on under, about or from the Property and (i0 any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without bmitabon those laws, regutahons, and ordinances described above. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Deed of Trust Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or lability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for hazardous waste and hazardous substances. Grantor hereby (a) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws, and (b) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal. release or threatened release of a hazardous waste or substance on the properties. The provisions of this section of the Deed of Trust, including the obhgabon to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Deed of Trust and shall not be affected by Lender's acquisition of any interest in the Properly, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shat not cause, conduct or permit any nuisance nor commit, permit, Of suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the Icregoing, Grantor will riot remove, or grant to any other party the right to remove, any bmber, minerals (including oil and gas), sal, gravel or rock products without the prior written consent of Lender. 'War 'i` tt:ckt: ` 1 : 12 -13 -1999 DEED OF TRUST Page 4 (Continued) Removal of Improvements. Grantor shall not demoish or remove any Improvements from the Real Property without the pnor written consent of Lender. As a condrhon to the removal of any Improvements, Lender may requre Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at leest equal value. Lender's Right to Enter. Lender and its agents and representatives may enter upon the Real Property at all reasonable times to attend to Lenders interests and to inspect the 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 enbbes of every nature whatsoever who rent, lease or otherwise use or occupy the Property in any manner, with all taws, ordinaries, and regulations, now or hereafter in effect, of all governmental authenbes applicable to the use or occupancy of the Property. Grantor may contest in good faith any such law, adrnance, or regutabon and wkhhdd complance dunng any proceeding, Including appropriate appeals, so long as Grantor has notated Lender in writing pnor to doing so and so long as, in Lender's sole opinion, Lender's interests in the Properly are not Jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lander, to protect Lender's interest. Duty to Protect. Grantor agrees norther to abandon no leave unattended the Property. Grantor shall do all other acts, in addition to those ads 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 its 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 evidenang the Indebtedness and impose such other conditions as Lender deems appropriate, upon the sale or ranter, without the 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, the or interest therein; whether legal, beneficial or equrtable; whether voluntary or involuntary; whether by outnght sale, deed, installment sale contract, lend contract, contract for deed, leasehold interest with a term greater than three (3) years, lease- option contract, or by sale, assgnmenl, 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 Real Property interest. If any Grantor is a corporaton, partnership or limited liability company, ranter also includes any change rn ownership of more then twenty -five percent (25%) of the voting stock, partnership interests or limited liability company interests, as the case may be, of Grantor. However, this opbon shell not be exercised by Lender rf such exercise is prohibited by federal law or by Washington law. TAXES AND Lt ENS. 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 pnor to delinquency) all taxes, special taxes, assessments, charges (including water and sewer), fines and impositions levied against or on account of the Properly, and shall pay when due all claims for work done on or for services rendered or matenal furnished to the Property. Grantor shall maintain the Property free of all bens having poorly ow or equal to the interest of Lender under this Deed of Trust, except for the hen of taxes and assessments not due and except as otherwise provided in this Deed of Trust. 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 Property is not jeopardized. If a Tien arises or is heed as a result of nonpayment, Grantor shall within fdteen (16) days after the ben arises or, if a hen is filed, within fifteen (15) days after Grantor has notice of the fling, secure the discharge of the ken, or rf requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other secunty satisfactory to Lender in an amount sufficient to discharge the hen plus any costs and attorneys' fees or other charges that could accrue as a result of a foreclosure or sale under the Yen. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Properly. Grantor shall name Lender as an additional 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 authorize the appropriate 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 (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's hen, rnatenalmen's ben, or other lien could be asserted on account of the were, 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 insuring the Property are a part of this Deed of Trust. Maintenance of Insurance. Grantor shag procure and maintain 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 sufficient to avoid application of any consurance clause, and with a standard mortgagee clause in favor of Lender, together with such other hazard and liability insurance as Lender may reasonably require. Z ~ W _r0 00 j O W • I F- WO 2 � • e5 = W H- Z e- l— O W U O 22 O H- W W I H �' O Z W U= O ~ Z 12 -13 -1999 DEED OF TRUST Page 5 (Continued) Policies shall be wntten in form, amounts, coverages and basis reasonaby acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will delver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, inctuding stipulations that coverages will not be cancelled or diminished without at least tin (10) days' pnor written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage h 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 for the fttl unpaid pnncipal balance of the loan and any prior hens 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 few the term of the loan Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of lass if Grantor fads to do so within fifteen (15) days of the casualty. Whether or not Lender's secunty is impaired, Lender may, at ifs election, receive and retain the proceeds d any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any ken aflecbng the Property, or the restoration and repak of the Property. If Lender elects to apply the proceeds to restorabon and rapak, Grantor shall repave or replace the damaged or destroyed Improvements in s manner satsfactory to Lander. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restorabon if Grantor n not in default under this Deed of Trust. Any proceeds whch have not been disbursed within 180 days after thew' receipt and which Lender has not committed to the repair or restoration of the Property shall be used frst to pay any amount owing to Lender under this Deed of Trust, then to pay accrued Inierast, 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 shall be paid without interest to Grantor as Grantors Interests may appear. Unexpired Insurance at Sate. Any unexpired Insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered by the Deed of Trust at any trustee's sale or other saki held under the provisions of this Deed of Trust, or at any foreclosure sale of such Property. D(PENDITURES BY LENDER. If Grantor fads to comply with any provision of this Deed of Trust, or it any action or proceeding is commenced that would matenaly affect Lender's interests in the Property, Lender on Grantor's behalf may, but shat) not be required to, take any action that Lender deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the data incurred or paid by Lender to the date of repayment by r' Grantor. All such expenses, 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 instalment payments to become due during either (i) the term of any applicable insurance policy or (w) the remaining term of the Note, or (c) be treated as a balloon payment which wit be o due and payable at the Note's maturity. This Deed of Trust also will secure payment of these amounts. The rights Lcp provided for in this paragraph shat be in addition to any other nghts or any remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from .-- any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of the Deed of Trust. CT) Title. Grantor warrants that: (a) Grantor holds good and marketable tate of record to the Property in fee simple, free C and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title Q' insurance policy, the report, or final title opinion Rssued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Grantor has the full night, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims 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 tins Deed of Trust, Grantor shall defend the action 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 counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lander may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities, including without limitation all applicable environmental laws, ordinances, and regulations, unless otherwise specrficaUy excepted In the environmental agreement executed by Grantor and Lender relating to the Property. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of tries Deed of Trust. Application of Net Proceeds. If all a 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. 12 -13 -1999 DEED OF TRUST Page 6 (Continued) Proceedings. If any proceeding In condemnation is Pied, 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 shah be entitled to parbcipate in the proceeding and to be represented in the proceeding by counsel cf its own choice alt at Grantors expense, and Grantor will deliver or cause to be delivered to Lender such instruments as may be requested by it tom time to time to permit such participation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees 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 cd Trust and take whatever other action es requested by Lender to perfect and continue Lender's ken on the Real Property. Grantor shall reimburse Lender for all taxes, as descnbed below. together with all expenses incurred in recording. perfecting or conbnuing this Deed of Trust, including without limitation all taxes, fees, documentary stamps. and other charges for recording or registenng this Deed of Trust. Taxes. The following shall constitute taxes to which this section 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 authorized 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 principal and interest made by Grantor. Subsequent Taxes. If any tax to which t section applies es enacted subsequent to the date of this Deed of Trust, this event shah have the same effect as an Event of Detaull (as defined below), and Lender may exercise any or all of its available 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 section and deposits with Lander cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions retabng to this Deed of Trust as a security agreement are a part of this Deed of Trust. Securtty Agreement. This instrument shah constitute a secunty agreement to the extent any of the Property constitutes fodures or other personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Securtty Interest. Upon request by Lender, Grantor shall 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, fie 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 security interest. Upon default, Grantor shell assemble the Personal Property 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 written 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 Uniform Commercial Code), are as stated on the first page of this Deed of Trust. FURTHER ASSURANCES; ATTORNEY -IN -FACT. The loliowing provisions relating to further assurances and attorney-in-fact are a pert of this Deed of Trust. Further Assurances. At any time, and from limo 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, refiled, or rarecorded, as the case may be, at such times and in such offices and places as Lander may deem appropnate, 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 (a) the obligations of Grantor under the Note, this Deed of Trust, and the Related Documents, and (b) the liens and secunty interests created by this Deed of Trust as first and pnor liens on the Property, whether now owned or hereafter acqured 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 connection with the matters referred to in this paragraph. Attorney -In -Fact. If Grantor fats 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 attorney -in -fact for the purpose of making, executing, delivering, filing, recording, and doing al 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, terminates the line of credit, and otherwise performs all the obligations imposed upon Grantor under this Deed of Trust, Lender shall execute and deliver to Trustee a request for fut reconveyance and shall execute and deliver to Grantor suitable statements of termination of any financing statement on file evidencing Lender's securrfy interest in the Rents and the Personal Property. Any reconveyance fee shall C�,n!tsYA , f r. , kta� •?tvx"1'it,�tv,•Yt".'.'i.'� Z I W 6 JU 0 !n O J = H W . W O 2 LL cn � 2 W Z = I- O Z I- W U • O O N O I- W W I I- u. 0 Z W U= 0 Z 12 -13 -1999 DEED OF TRUST Page 7 (Continued) be paid by Grantor, ii 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 corldusrve proof of the truthfulness of any such matters or facts. • DEFAULT, Each of the folowing, at the ophon of Lender, shat constitute an event of default ('Even) 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 time requred by the Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to prevent hung of or to effect discharge of any hen. Environment Defsuft. Faiure of any party to empty with or perform when due any term, obligation, covenant or condition contained In any environmental agreement executed in connection with the Property. Default In Favor of Third Parties. Should Borrower or any Grantor default under any ban, extension of credit, secunty agreement. purchase or sales agreement, or any other agreement, In tau d any other creditor or person that may matenalty affect any of Borrower's property a Borrower's or any Grantors ability to repay the Loans or perform their respective obligations under this Deed of Trust or any of the Retitled Documents. 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 material respect, either now or at the time made or fixnahed. Detective Catlateralltation. 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 security interest or ten) 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 ass.gnmenf for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency taws by or against Grantor. Foreclosure, Forfeiture, etc. Commencement of foreclosure or foriertue 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 bass Cl the foredosue or forefertue proceeding, provided that Grantor gives Lender written notice 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 period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether exfsbng now or later. 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 d the Indebtedness. Lender, at its option, may, but shall not be requred to, permit the Guarantors estate to assume unconditionally the obligations arising under the guaranty in a manner sabsfactory to Lender, and, in doing so, cure the Event of Default. Adverse Change. A material adverse change occurs in Grantor's inanciel condition, or Lender beieves the 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 written 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 compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time 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 right at its option to declare the entre Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to pay. Foreclosure. With respect to at or any part of the Real Property, the Trustee stall have the right to exercise its power of sale and to foreclose by notice and sale, and Lender shat 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 12 -13 -1999 DEED OF TRUST Page 8 (Continued) remedies of a secured party under the Unrform Commercial Code. Collect Rents. Lender shall have the nghl, 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 nght. Lender may require any tenant Of 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 Granter'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 obbgaions 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 Receiver. Lender shall have the right to have a receiver appanted to take possession of all or any part of the Property, with the power to protect and preserve the Property, lo operate the Property preceding or pending foreclosure cr 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 ff permitted by law. Lenders nghl to the appointment of a receiver shall mast whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shag not disqualify a person from serving as a receiver. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entit ed 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 shal, at Lender's option, other (e) pay a reasonable rental for the use of the Property, or (b) vacate the Property Immediately upon the demand of Lender. Other Reined es. Trustee or Lender shall have any other nght or remedy provided In less Deed of Trust a the Note cr by law. Notice of Sala. Lender shall give Grantor reasonable notice of the Erne and place of any pubbc sale of the Personal Property or of the bme after whch any pnvate sale or other Intended disposition of the Personal Property a to be made. Reasonable notice shat mean notice Gruen at least tan (10) days before the bme of the sale or disposition. Any sale of Personal Property may be made in conjunction with any sale of the Real Property Sale of the Property. To the extent permitted by applcable law, Grantor hereby waives any and all nghts to have the Property marshalled. In exercising its nghts and remedies, the Trustee or Lander shal be free to sell all or any part of the Property together a separately, in one sale or by separate sales. Lander 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 party of a breach of a provision of the Deed of Trust shall not consbtute a waiver of or prejudice the party's nghts otherwise to demand strict compliance with that provision a 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 taw shall not exclude pursuit of any other remedy, and an election to make expendihxes or to take action to perform an obhgabon of Grantor under this Deed of Test after fa4ure of Grantor to perform shall not affect Lender's nght to declare a default and to exercise any of its remedies. Attorneys' Fees; Expenses. If Lender institutes any sue or action to enforce any of the terms d this Deed of Trust, Lender shaft be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at teal 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 enloroement of its nghts shalt become a part of the Indebtedness payable on demand and shalt bear interest at the Note rate from the date of expenditure until repaid. Expenses covered by this paragraph include, without fimitahon, however subject to any limits under applicable taw, Lenders attorneys' fees whether or not there is a lawsuit, including attorneys' fees for bankruptcy proceedings (indudrng efforts to modify or vacate any automabc stay or injunction), appeals and any anticipated post - judgment collection services, the cost of searching records, obtaining trite reports (including foreclosure reports), surveyors' reports, appraisal fees, Irtte insurance, and fees la 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 OBLIGATIONS OF TRUSTEE. The following provisions relating to the powers and obligations of Trustee (pursuant to Lender's instruchons) are part of this Deed of Trust Powers of Trustee. In addbon to all powers of Trustee arming as a matter of law, Trustee shat have the power to take the following actions with respect to the Property upon the written request of Lender and Grantor: (a) pin in preparing and tiling a map or plat of the Real Property, including the dedication of streets or other nghts to the pubbc; (b) join in granhng any easement or creating any restriction on the Real Property; and (c) loin in any subordination or other agreement affecting Ihs Deed of Trust or the interest of Lender under tt*s Deed of Trust. OblIgatIons to Notify. Trustee shall not be obligated to nobly any other party of a pending sale under any other trust decd or hen, or of any action or proceeding in which Grantor, Lender, or Trustee shall be a party, unless requred by applicable law, or unless the action or proceeding is brought by Trustee. r 12 -13 -1999 DEED OF TRUST Page 9 (Continued) Trustee. Trustee shall meet all quaMcahons required fa Trustee under applicable law. In addition to the nghts 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 eifber case in accordance with and to the full extent provided by applicable taw. Successor Trustee. Lender, at Lender's opbon, may from hme to time appoint a successor Trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the recorder of King County, Washington. The instrument shall contain, in addition to all other matters required by state law, the names of the onginai Lender, Trustee, and Grantor, the book and page or the Auditor's File Number where lhis 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, wrthout conveyance of the Property, shal succeed to all the trite, power, and dupes conferred upon the Trustee in th s Deed of Trust and by applicable law. Tits procedure for substitution of trustee shall govern to the exclusion of all other provisions for strbshtubou. NOTICES TO GRANTOR AND OTHER PARTIES. Subject to applicable Iaw, and except for notice require or aitowed by law to be given in another manner, any notice under this Deed of Trust shall be In writing, may be sent by telefacsunile (unless otherwise regtared by law), and shall be effective when actually delivered, or when deposited with a nationally recognized overnight couner, or, rf mailed, shall be deemed effective when deposited in the United States mail first class, certified or reentered mail, postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust. Any party may change its address for nobces 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. All copies of notices of foreclosure from the holder of any lien which has pnonty over tins 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 bmes of Grantor's current address. MISCELLANEOUS PROVISIONS. The following miscellaneous provsions are a part of this Deed of Trust: Amendments. Ths Deed of Trust, together with any Related Documents, constitutes the entire understanding and agreement of the parties as 10 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 be charged or bound by the alteration or amendment. Applicable Law. This Deed of Trust has been delivered to Lender and accepted by Lender ki the State of L in Washington. This Deed of Trust shall be governed by and construed In accordance with the laws of the State o of Washington. ° Caption Headings. Caption headings in this Deed of Trust are for convenience purposes only and are not to be CD used to interpret or define the provisions of this Deed of Trust. Merger. There shell be no merger of the interest or estate created by this Deed of Trust with any other interest or cv estate in the Property al any lime held by or for the benefit of Lender in any capacity, without the wntlen consent of Lender. Q , Multiple Parties. All obligahons of Grantor under this Deed of Trust shall be joint and several, and all references to cr+ Grantor shall mean each and every Grantor This means that each of the persons signing below is responsible for all o obligations in this Deed of Trust. Severablltty. If a court of competent jurisdiction finds any provision of this Deed of Trust to be invalid or unenforceable as to any person or crcumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shal be deemed to be modified to be within the limits of enforceebiirty or validity; however, rf the offending provision cannot be so modified, it shall be stncken and all other provisions of this Deed of Trust in all other respects shall remain valid and enforceable. Successors and Assigns. Subject to the limitations 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. II 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 Ihrs Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of Mrs Deed of Trust or liability under the Indebtedness. Time Is 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 nghts under this Deed of Trust (or under the Related Documents) unless such waiver n in wnbng and signed by Lender. No delay or omission on the part of Lender in exercising any nght shall operate as a waiver of such nght 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 compliance with that provision or any other provision. No pnor waiver by Lender, nor arty course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's nghts or any of Grantor's obligations as to any future transactions. Whenever consent by Lender is required in this Deed of Trust, the granting of such consent by Lender in any instance shall not conshtute continuing consent to subsequent instances where such consent is required. 12 -13 -1999 DEED OF TRUST (Continued) Waiver of Homestead Exemption. Grantor hereby releases and waives as rights and benefits of the homestead exemption laws of the State of Washington as to alt 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: X R ho`mas Foster Thomas W. Hotllday INDIVIDUAL ACKNOWLEDGMENT Page 10 STATE OF s` 'I) ,, «.+ „ Y On 'day j C ned Notary Public. personally appeared C. Thomas Foster, Maryl C. Foster, Thomas W. Ry am I, M. F. Iliday, personally known to me or proved to me on the basis of satisfactory evidence to be the.l uals desCrtt?eii In I rid who executed the Deed of Trust, and acknowledged that they signed the Deed of Trust �' as their (r and vipIGrllaNs6t and deed, for the uses and • u therein mentioned. .f Gtv ' rid and oMclai! this i day of , 19 c r �/j �� ° BY Residing at J �-+� -f- ` �- �7 co Notary Public I f for the State of / / • My commission expires / 0 & CV REQUEST FOR FULL RECONVEYANCE rn 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 al suns owing to you, to reconvey without warranty, to the persons enbtled thereto, the right, title and interest now held by you under the Deed of Trust. Date: Beneficiary: BY: Its: LASER PRO, Rag US Pal 8TM OII,Ver 927a(c)1999 CFI ProSertiksI,Inc All rights reserved IWA- 001E027F727P327 FOSTER 19LNI 41 -..'''AA'A 4 THE LAND REFERRED TO HEREIN IS DESCRIBED AS FOLLOWS TRACTS 10 THROUGH 13, MERRICK'S ACRE TRACTS DIVISION NO 7. ADDITION TO THE CITY OF SEATTLE, ACCORDING TO PLAT RECORDED IN VOLUME 12 OF PLATS AT PAGE(S) 47, IN KINIG COUNTY, WASHINGTON, EXCEPT THE NORTH 10 FEET THEREOF CONVEYED TO KING COUNTY COI: ROAD BY DEED RECORDED UNDER AUDITOR'S FILE NO 2940531, AND EXCEPT THE WEST 10 FEET OF SAID TRACT 10 CONVEYED 1C) KING COUNTY FOR 47TH AVENUE SOUTH BY DEED RECORDED UNDER AUDITOR'S FILE NO 3012504, AND EXCEPT THAT PORTION OF TRACTS 10 AND 11 AS CONDEMNED IN KIt1G COUNTY SUPERIOR COURT CAUSE NUMBER 713089, FOR STREET THE DESCRIPTION CAN DE ABBREVIATED AS SUGGESTED BELOW 1F NECESSARY TO MEET STANDARDIZATION REQUIREMENTS THE FUI.1. TEXT OF THE DESCRIPTION MUST APPEAR It: THE DOCUMENT(S) TO BE INSURED PTN OF TRACTS 10 AND 11 AND ALL OF TRACTS 12 AND 13, IIERRICr:'S ACRE TRACTS DIV NO 2, ADD , VOL 12, P. 47 Z W` c4 2 JU 00 N0. W = W; W O g J LL Q = F- Z � I- Z H; W Q 0 — 0 1— ` W. O: Z'. W = 0 1-. Z