HomeMy WebLinkAbout1999 - Assignment of Rents - Foster C Thomas / Holliday Thomas - 1999121600156519991216001565
RETURN ADDRESS:
Washington First International
Bank
9709 Third Avenue Northeast
Sulte 110
Seattle, WA 98115
IhhIIIIIIIllihI
FIRST AMERICAN A 14.06
19991216001565
PAGE 061 OF 067
12/16/1999 14:60
KING COUNTY, WA
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ASSIGNMENT OF RENTS 2
Reference # (if applicable): Additional on page U
Grantor(s) \� :c (�(1 = � C�
1. Foster, C. Thomas ` t- _
2. Foster, Meryl C Z I-
3. Holliday, Thomas W. Z O
4. Holliday. Kathleen M. F.
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Grantee(s) /Assignee /Beneficiary: 0
Washington First International Bank, Beneficiary p H
First American Title Insurance Company, Trustee w W
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Legal Description: PTN. OF TRACTS 10 AND 11 AND ALL OF t
TRACTS 12 AND 13, MERRICK'S ACRE TRACTS DIV. NO 2, ADD , Z 0
VOL. 12, P. 47 Additional on page 2 t ..
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Assessor's Tax Parcel ID#: 547680- 0080-00, 0090-08, 0100 -06, 0110 -04 pp H .
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THIS ASSIGNMENT OF RENTS IS DATED DECEMBER 13, 1999, between 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 "); and Washington First International Bank, whose
address is 9709 Third Avenue Northeast, Suite 110, Seattle, WA 98115 (referred to below
as "Lender ").
12 -13 -1999
ASSIGNMENT OF RENTS Page 2
(Continued)
ASSIGNMENT. For valuable consideration, Grantor 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 full legal description attached.
The Real Property or its address Is commonly known as 4737 S 107th Street, Tukwila, WA
98178. The Real Property tax identification number is 547680- 0080 -00, 0090 -08, 0100-06, 0110 -04.
DEFINITIONS. The following words shall have the following meanings when used in this Assignment. Terms not
otherwise defined in th s Assignment shag have the meanings attributed to such terms in the Uniform Commercial Code.
All references to dollar amounts shall rnean amounts in lawful money of the United States of Arienca.
Assignment. The word "Ass+gnmenr means this Assignment of Rents between Grantor and Lender, and includes
without hmtahan all assignments and security interest provisions retahng to the Rents
Event of Default. The words 'Event of Default" mean and include without limitation any of the Events of Default set
forth below in the section titled 'Events of Default."
Grantor. The word "Grantor" means C. Thomas Foster, Meryl C. Foster, Thomas W. Holliday and Kathleen M. F.
Holliday.
Indebtedness. The word "Indebtedness" means all pnncipal and interest payable under the Note and any amounts
expended or advanced by Lender to discharge obligations of Grantor or expenses incurred by Lender to enforce
obligations of Grantor under this Assignment, togethier with interest on such amounts as provided in this Assignment.
Lender. The word 'Lender" means Washington First International Bank, rts successors and assigns.
Note. The word 'Note" means the promissory note or credit agreement dated December 13, 1999, In the
original principal amount of 5360,000.00 from Grantor to Lander, together with all renewals ot,
extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or
agreement.
Property. The word 'Property' means the real property, and all improvements thereon, descnbed above in the
"Assignmenr section.
Real Property. The words 'Real Property' mean the property, interests and nghts descnbed above in the "Property
Definition" section.
Related Documents. The words 'Related Documents" mean and include without limitation all promissory notes,
credit agreements, loan agreements, environmental agreements, guaranties, secunty agreements, mortgages, deeds
of trust, and all other instruments, agreements and documents, whether now Of hereafter existing, executed in
connection with the Indebtedness.
Rents. The word "Rents" means all rents, revenues, income, issues, profits and proceeds from the Property, whether
duo now or later, including without timrtahon al Rents from all leases descnbed on any exhibit attached to this
Assignment.
THiS ASSIGNMENT 15 GiVEN TO SECURE (1) PAYMENT OF TI' INOIETEDI SS ANO (2? PERFORMANCE OF
ANY AND ALL OBLIGATIONS OF GRANTOR UNDER THE NOTE, Tests 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 Document, Grantor
shall pay to Lender all amounts secured by this Assignment as they become due, and shall strictly perform all of Grantor's
obligations under this Assignment. Unless and until Lender exercises its nght to collect the Rents as provided below and
so Tong 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 right to collect the Rents shall not constitute
Lender's consent to the usa of cash collateral in a bankruptcy proceeding.
GRANTOR'S REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE RENTS. With respect to the Rents,
Grantor represents and warrants to Lender that:
Ownership. Grantor is entitled to receive the Rents free and clear of al nghts, loans, hens, encumbrances, and
claims except as disclosed to and accepted by Lender in writing.
Rlght to Assign. Grantor has the full nght, power, and airlhonty 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.
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12 -13 -1999
ASSIGNMENT OF RENTS Page 3
(Continued)
No Further Transfer. Grantor will not sett, assign, encumber, or otherwise dispose of any of Grantor's rights in the
Rents except as provided in this Agreement.
LENDER'S RIGHT TO COLLECT RENTS. Lender shat have the right at any time, and even though no default shall have
occurred under this Assignment, to collect and receive the Rents For this purpose, Lender rs hereby given and granted
the following nghts, powers and authonty:
Notice to Tenants. Lender may send nobces 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 tenants or from any other persons kable therefor, at of the Rents; institute and carry on at legal proceedings
necessary for the protection of the Property, including such proceedings as may be necessary to recover possession
of the 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 marntain the Property and keep the seine in repair;
to pay the costs thereof and of al services of al employees, including ther equipment, and of all continuing costs and
expenses of maintaining the Property hi proper wax and condition, and also to pay all taxes, assessments and
water utilrbes, 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 whsle or any part of the Property for such term or terms and on
such conditions as Lender may deem appropriate.
Employ Agents. Lender may engage such agent or agents as Lender may deem appropriate, either in Lender's
name or in Grantor's name, to rant and manage the Property, including the croection and application of Rents.
Other Acts. Lender may do all such other things and acts with respect to the Property as Lender may deem
appropriate and may act exclusively and solely in the place and stead of Grantor and to have all ol the powers of
Grantor for the purposes stated above.
No Requirement to Act. Lender shall not be requred to do any of the foregoing acts or Rungs, and the fact that
Lender shall have performed one or more of the foregoing acts or things shalt not require Lender to do any other
specific act or thing.
tr APPLICATION OF RENTS. All costs and expenses incurred by Lender in connection with the Properly shall be for
c.o
U Grantor's account and Lender may pay such costs and expenses from the Rents. Lender, in its sole discretion, shall
determine the application of any and all Rents received by rt; however, any such Rents received by Lender which are not
applied to such costs and expenses snail be applied to the Indebtedness. Al 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
co shall be payable on demand, with interest at the Note rate from date of expenditure until paid.
FULL PERFORMANCE. H Grantor pays all of the Indebtedness when due and otherwise performs all the obligations
c� imposed upon Grantor under this Assignment, the Note, and the Related Documents, Lender shall execute and deliver to
Grantor a suitable satisfaction of this Assignment and suitable statements of termination of any financing statement on fife
evidencing Lender's security interest in the Rents and the Property. Any termination fee required by law shall be paid by
o-r Grantor, if permitted by applicable law.
c7n ▪ EXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Assignment, or if any action or
- proceeding is commenced that would maternally affect Lender's interests in the Property, Lender on Grantor's behalf may,
but shall 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 tom the date incurred or paid by Lender to the data of repayment by
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 installment payments to become due during either (i) the term of any
applicable insurance policy or (ii) 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. This Assignment also will secure payment of these amounts. The rights provided
for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of
the default. Any such action by Lender shaft not be construed as curing the default so as to bar Lender from any remedy
that it otherwise would have had.
DEFAULT. Each of the following, at the option of Lender, shall constitute an event of default ("Event of Default") under this
Assignment:
Default on Indebtedness. Failure of Grantor to make any payment when due on the Indebtedness.
Compliance Default. Failure of Grantor to comply with any other term, obligation, covenant or condition contained in
this Assignment, the Note or in any of the Related Documents.
Default In Favor of Third Parties. Should Borrower or any Grantor default under any loan, extension of credit,
security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person
•
12 -13 -1999
ASSIGNMENT OF RENTS Page 4
(Continued)
that may materially affect any of Borrower's property or Borrower's or any Grantor's ability to repay the Loans or
perform their respective obligations under this Assignment or 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 Assignment, the Note or the Related Documents is false or misleading in any materal respect,
either now or at the time made or furnished.
Defective Collateralizetion. This Assignment 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 ben) at any time and
for any reason.
Other Defaults. Failure of Grantor to comply wth any term, obligation, covenant, or condition contained in any other
agreement between Grantor and Lender.
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.
Forecioeurs, Forfeiture, etc. Commencement of foreclosure or forfeiture proceedings, whether by policed
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 of the foreclosure or forefedure proceeding,
provided that Grantor gives Lender written notice of such darn and furnishes reserves or a surety bond for the claim
satisfactory to Lender.
Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the
Indebtedness or any Guarantor dies or becomes Incompetent, or revokes or disputes the validity of, or liability under,
any Guaranty of the Indebtedness. Lender, at its option, may, but shad not be requred to, permit the Guarantor's
estate to assume uncondtfonally the obbgabons arising under the guaranty in a manner satisfactory to Lender, and, in
doing so, cure the Event of Default.
Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes 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 Assignment within the preceding twelve (12) months, it may be cured (and no Event of Default will
have occurred) if Grantor, atter 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 abates 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, Lender
may exercise any one or more cf the following rights and remedies, in addition to any other rights or remedies provided by
law:
Accelerate lndebtednesa. Lender shall 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 shad have the right, without notice to Grantor, to lake possession Cl 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 at the rights provided for in the Lender's
Right to Collect Section, above. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as
Grantor's attorney-in-fact to endorse instruments received In payment thereof in the name of Grantor and to
negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's
demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the
demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a
receiver.
Appoint 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 foreclosure or
sale, and to collect the Rents tom the Property and apply the proceeds, over and above the cost of the receivership,
against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the
appointment of a receiver shat 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 horn serving as a receiver.
Other Remedies. Lender shad have all other rights and remedies provided in this Assignment or the Note or by law.
Welver; Election of Remedies. A waiver by any party of a breach of a provision of this Assignment that not
conshlute a waiver of or prejudice the party's rights otherwise to demand strict compliance with that provision or any
other provision. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an
election to make expenditures or take action to perform an obligation of Grantor under this Assignment atter tenure of
12 - 13 - 1999
Grantor to perform shall not affect Lender's right to declare a default and exercise its remedies under ttrs Assignment.
Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any ol the teams of this assignment,
Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at tnal and on
any appeal. Whether or not any court action is involved, all reasonable expenses incurred by Lender that in Lender's
opinion are necessary at any bme fa the protection of its Interest or the enforcement of its nights shah become a part
of the Indebtedness payable on demand and shall bear Interest from the data of expenditure unlit repaid at the rate
provided for in the Note. Expenses covered by thrs paragraph include, without hmrtabon, 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' tees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or
injunction), appeals and any anticipated post—judgment collection services, the cost of searching records, obtaining
title reports (including foreclosure reports). surveyors' repots, and appraisal fees, and brie insurance, to the extent
permitted by applicable law. Grantor also win pay any court costs, in addbon to all other sums provided by law.
MISCELLANEOUS PROVISIONS. The foltowtng miscellaneous provisions are a part of this Assignment:
Amendments. This Assignment, together with any Related Documents, constitutes the entire understanding and
agreement of the parbas as to the matters set forth in this Assignment. No alteration of or amendment to this
Assignment shall be effechve unless given in wnting and signed by the party or parties sought to be charged or
bound by the alteration or amendment.
Applicable Law. This Assignment has been delivered to Lender and accepted by Lender in the State of
Washington. This Assignment shall be governed by and construed In accordance wtth the taws of the State of
Multiple Parties. All obbgalwns of Grantor under this Assignment shalt be joint and several, and all references to
Grantor shall mean each and every Grantor. This means that each of the persons signing below Is responsible for all
obrgabons in this Assignment.
No Modification. Grantor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other
security agreement which has pnonty over this Assignment by which that agreement is modified, amended, extended,
or renewed without the pnor written consent of Lender. Grantor shall neither request nor accept any future advances
under any such security agreement without the pnor written consent of Lender.
Severablitty. if a court of competent junsdicbon finds any provision of this Assignment to be invalid or unenforceable
as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other
persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the
limits of enforceability or vandity; however, rf the offending provision cannot be so modified, it shall be stricken and all
other provisions of this Assignment in an other respects shall remain valid and enforceable.
Successors and Assigns. Subject to the bmitabons stated in this Assignment on transfer of Grantor's interest, this
Assignment shall be lending upon and inure to the benefit of the parses. their successors and assigns. If ownership
of the Property becomes vested in a person other than Grantor, Under, 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 rs 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 Slate of Washington as to all Indebtedness secured by this Assignment.
Waivers and Consents. Lender shall not be deemed to have waived any rights under this Assignment (or under the
Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on the part of
Lender in exercising any right shall operate as a warver of such nghl or any other right. A waiver by any party of a
provision of this Assignment shall not constitute a waiver of or prejudice the party's right otherwise to demand strict
compliance with that provision or any other provision. No prior waiver by Lender, nor any course of dealing between
Lender and Grantor, shall constitute a waiver of any of Lender's rights or any of Grantor's obligations as to any future
transactions Whenever consent by Lender is requred in Ctrs Assignment, the granhng of such consent by Lender in
any instance shaft not constitute continuing consent to subsequent instances where such consent is required.
EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS ASSIGNMENT OF RENTS, AND
EACH GRANTOR AGREES TO ITS TERMS.
GRANTOR:
ASSIGNMENT OF RENTS Page 5
(Contlr ued)
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12 -13 -1999
Thomas W. Holliday
STATE OS. '( / / /V,
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ASSIGNMENT OF RENTS Page 6
(Continued)
Kathleen Ill. F. Holliday
INDIVIDUAL ACKNOWLEDGMENT
• : ` K� Undersigned Notary Public, personalty appeared C. Thomas Foster, Mary! C. Foster, Thomas
W. U. F. Holliday, personally known to me or proved to me on the basis of satisfactory evidence to
• f 'Is described In and who executed the Assignment of Rents, and acknowledged that they signed the
trot free prfd voluntary act and deed, for the nd purposes therein men d.
Give . ,,'.. rtd and ofnclat se s _ — day of il3 26
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BY Residing at
Notary Public In ; the State of 6P /7, My commission expires
LASER PRO. Rog at &TM Ott Ver .327a(4)1999 CFI ProSarvcas,Inc All rights retorted IWA- G14 ES27F377PS27FOSTER191.NI
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THE LAND REFERRED TO HEREIN IS DESCRIBED AS FOLLOWS •
TRACTS 10 THROUGH l3, MERRICK'S ACRE TRACTS DIVISION NO 2
ADDITION TO THE CITY OF SEATTLE, ACCORDING TO PLAT RECORDED
IN VOLUME 12 OF PLATS AT PAGE (S) 47, IN KING COUNTY,
WASHINGTON,
EXCEPT THE NORTH 10 FCUT THEREOF CONVEYED TO KING CODUI'Y FOR
ROAD BY DEED RECORDED UNDER AUDITOR'S FILE 110 2948531,
AND EXCEPT THE WEST 10 FEET OF SAID TRACT 10 CONVEYED TO
KI::3 COUNTY FOR 47TH AVENO :: SOUTH U1' DEED RECORDED UNDER
AUDITOR'S FILE NO 3012584, AND EXCEPT THAT PORTION OF
TRACTS 10 AND 11 AS CONDEMNED IN KING COUNTY SUPERIOR COURT
CAUS1: NUMBER 713089, FOR STREET.
THE DESCRIPTION CAN DE ABBREVIATED AS SUGGESTED UELO1: IF
NECESSARY TO MEET STANDARDI7.ATION REQUIREMENTS THE FULL
TEXT OF THE DESCRIPTION MUST APPEAR IN THE DOCUMENT(S) TO BE
INSURED
PTN OF TRACTS 10 AND 11 AND ALL OF TRACTS 12 AND 13,
MEPRICK'S ACRE TRACTS DIV NO 2, ADD , VOL 12, P 47
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