Loading...
HomeMy WebLinkAboutOrder 019 - Sale of Real PropertyDeschutes County Board of Commissioner; 1300 NW Wall St., Suite 200, Bend, OR 97701-19611 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.or AGENDA REQUEST & STAFF REPORT For Board Business Meeting of March 3, 2010 Please see directions for completing this document an the next page. DATE: February 23, 2010 FROM: Teresa Rozic Property & Facilities 385-1414 TITLE OF AGENDA ITEM: Consideration of Board Signature of Order 2010-019, an Order for the Sale of Certain Real Property Acquired by Deschutes County. PUBLIC HEARING ON THIS DATE? No BACKGROUND AND POLICY IMPLICATIONS: At their work session February 8, 2010, the Board of County Commissioners (the "Board") directec staff to proceed with a public auction of county -owned land. ORS 275.110 provides that the Board will fix the minimum price for each parcel and the conditions and terms of sale. The Board decided to offer financing for properties valued at $25,000 or more, and set the terms as described in the attached Order. Property Management staff has worked with Legal Counsel, Community Development, Finance Department and the Sheriffs Office to prepare documents associated with the sale. Community Development, Road Department, and the County Forester hat e reviewed the list of properties to be offered and find there is no reason to retain the land in county ownership. The auction will begin at 10:00 a.m. Thursday, May 13, 2010, in the Barnes Hearing Room. FISCAL IMPLICATIONS: If all the parcels sell at minimum bid, proceeds would be $871,920. RECOMMENDATION & ACTION REQUESTED: Staff recommends approval of Order 2010-019. ATTENDANCE: Teresa Rozic DISTRIBUTION OF DOCUMENTS: Copy to Teresa Rozic REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order for the Sale of Certain Real Property Acquired by Deschutes County ORDER NO. 2010-019 WHEREAS, Deschutes County has acquired title to certain real property, described in Exhioit "A," attached and incorporated by this reference, pursuant to real property tax foreclosure proceedings on file in the Circuit Court of the State of Oregon for Deschutes County and by other means, and WHEREAS, foreclosure proceedings are completed, and tax deeds in the regular form hare been executed by the Deschutes County Tax Collector and recorded in the Deed Records of Deschutes County pursuant to ORS 312.200 with respect to real properties acquired by tax foreclosure, and WHEREAS. ORS 271.310 and 275.110 authorize the sale by the Board of County Commissioners of the real property acquired through real property tax foreclosure and other mear s, and WHEREAS, the real property described in Exhibit "A," attached is not needed for County purposes and, thus, surplus, and WHEREAS, the sale of certain real property described in Exhibit "A" will aid with t- e development of the Newberry Neighborhood by allowing the County to sell those properties and place restrictive covenants/conservation easements on certain properties in furtherance of the Trans`er Development Program in Deschutes County Code ("DCC') Chapter 11.12, and WHEREAS, the sale of the real property will aid in the reduction of fire fuel in that certain purchasers will be required to sign an agreement to eliminate wildfire fuels, and WHEREAS, it appears that it is in the best interests of the County to sell the real property described in Exhibit "A", and that the minimum price set forth after the description of each parcel, be the minimum price for said sale; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY ORDERS as follows: Section 1. That the Deschutes County Sheriff hereby is authorized and directed, pursuant to ORS 275.120, to offer for sale the property described in Exhibit "A", attached hereto and by his reference incorporated herein, to the highest and best bidders, for cash, cashier's check or terms, or combination thereof, as determined by the Board of County Commissioners pursuant to OHS 275.190, but not less than the minimum bid hereby fixed, plus recording fees. PAGE 1 of 2- ORDER No. 2010-019 (03/03/2010) Section 2. That said sale is to be made at the Barnes Hearing Room, 1300 NW Wall Street, Bend, Oregon, beginning at 10:00 a.m. on Thursday, May 13, 2010, and remaining open until 4:00 p.m. to allow for bidders to submit the appropriate purchase payment. Section 3. That on the sale date, Bidders with the provisionally accepted high bid may Iea'.'e the premises to obtain cash or cashier's checks but must return to the Barnes Hearing Room prior to 2:00 p.m., with no Bidder admittance after 2:00 p.m. allowed. Section 4. That all sales shall be deemed conditional until such time as the Board of Courty Commissioners formally accepts or rejects said sale. Section 5. That, if the Sheriff is unsuccessful in selling any real property listed in Exhibit "A" at said sale, said real property may be sold at private sale pursuant to ORS 275.200. Section 6. That the Deschutes County Property Specialist is authorized to take those actions reasonably calculated to efficiently and successfully conduct the aforementioned land sale, including deviation from or modification of sale procedures, when, in the opinion of the Property Specialist, said deviations or modifications are justified and in accordance with all laws. Section 7. The Deschutes County Property and Facilities Director or the County Administrator is authorized and ordered to sign the Seller's Disclosure Statements and Sales Agreements for tie County owned property to be sold at the May 13, 2010, public auction. Section 8. That the promissory note and trust deed attached as Exhibit "B", attached and incorporated by this reference, shall be the documents authorized for sale of the properties eligible for County financing, as identified in Exhibit "A". Dated this ATTEST: of March, 2010 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON DENNIS R. LUKE, Chair ALAN UNGER, Vice Chair Recording Secretary TAMMY BANEY, Commissioner PAGE 2 OF 2- ORDER No. 2010-019 (03/03/2010) EXHIBIT A NOTICE OF SALE By virtue of Order No. 2010-019 adopted by the Board of County Commissioners of Deschutes County, Oregon, on March 3, 2010, authorizing the sale of real property under OR`S 271.310 and 275.110, notice is hereby given that, on May 13, 2010, at 10:00 a.m. in the Barnes Hearing Room, 1300 NW Wall Street, Bend, Oregon, the Sheriff or his designee shall proceed to sell, at public auction to the highest and best bidder, for cash, cashier's check or terms, or combination thereof, the right and title to and interest in of Deschutes County in the real property listed below: Auction Assessor Assessor Map Property Address Assessor MINIMUM Parcel ID Account & Taxlot Market Value BID 2010-01 179322 1413210001604 6445 N. Hwy 97 $76,660 $15,000 Terrebonne County financing is NOT available. Older manufactured home on the property. No well; outside city water district; failed site evaluation. 2010-02 165497 151204D002300 2170 NW 105th Ct $198,500* $158,800 Redmond County financing is available. Partial improvement SOLD AS IS. Buyer must treat wildfire fuels. 2010-03 129073 1512130000900 Unassigned address $38,500 $5,000 55th Place, Redmond County financing is NOT available. Remainder parcel; may not have legal access. 2010-04 130632 161215D002000 21125 Arid Ave $99,000* $79,200 Bend 97701 County financing is available. Vacant lot. Buyer must treat wildfire fuels. 2010-05 196844 171232AD05601 Unassigned address off $25,000 $5,000 Greenwood Av Bend 97701 County financing is NOT available. Remainder parcel. 2010-06 103416 171232AD03800 67 NW Greenwood Ave $300,000* $450,000 Bend 97701 County financing is available. Improved parcel SOLD AS IS. 2010-07 107511 181125A011800 60276 Arapaho Lane $79,900* $63,920 Bend 97702 County financing is available. Vacant lot. Buyer must treat wildfire fuels. 2010-08 116540 201013C002000 56140 Stellar Dr $158,000 $10,000 Bend 97707 County financing is NOT available. Vacant lot. Restrictive Covenant applies. On-site system NOT allowed. Buyer must treat wildfire fuels. 2010-09 152110 221009C002000 15632 Rim Dr $34,230 $5,000 La Pine County financing is NOT available. Vacant lot. Restrictive Covenant applies. On-site system NOT allowed. Buyer may be required to treat wildfire fuels. Page 1 of 3 EXHIBIT A *Broker's Price Opinion. All prospective bidders shall register with Teresa Rozic the Deschutes County Propert Specialist any business day between May 3, 2010 and May 12, 2010. Registration may be in person at 1300 NW Wall Street, Suite 200, Bend Oregon, between the hours of 8:00 a.m. and 4:30 p.m.; bi fax at (541) 385-3202; or by E-mail to teresarondeschutes.orq, by providing bidder's legal name, physical address, mailing address and telephone number. Bidders must provide an acceptable picture I.D. prior to bidding. Prior to 4:00 p.m. May 13, 2010, the highest bidder will pay the full balance of bidder's provisionally accepted high bid, plus recording and certificate of sale fees, in cash or cashier's checK or, for properties on which financing is available per the above list, the following terms: a nonrefundable cash down payment of not Tess than 20% of the purchase price, recording fees, and the balance paid in equal monthly installments over a period of ten (10) years, with a fixed loan rate set at the current bank prime loan interest rate as of May 13, 2010 plus 1%, secured by a promissory note and trust deed. Copies of the complete contract terms may be found at www.deschutes.orq or a copy will be provided at $.25 per page upon request to the County Property Specialist listed above. On the sale date, Bidders with the provisionally accepted high bid may leave the premises to obtain cash or cashier's checks but must return to the Barnes Hearing Room prior to 2:00 p.m. No admittance after 2:00 p.m. will be allowed. Cash is defined as all legal U.S. currency. Cashier's checks must be payable to Deschute; County. Cashier's checks must be drawn on a financial institution that is authorized to do business under the laws of Oregon or the United States. If any part of the purchase price is paid with cashier's check the purchaser will be given a receipt in lieu of a certificate of sale until verification from the financial institution that final settlement has been made on the cashier's check. Upor receiving such verification, the purchaser will receive a certificate of sale. If any part of the purchas( price is paid through the contract for terms, the purchaser will be given a certificate of sale tha : Page 2 of 3 2010-10 141311 2111066002100 54735 Huntington Rd $34,850 $5,000 Bend 97707 County financing is NOT available. Vacant lot. Restrictive Covenant applies. On-site system NOT allowed. Buyer may be required to treat wildfire fuels. 2010-11 115918 2010120011100 Unassigned address, $63,000 $5,000 corner Celestial & Hermosa Bend 97707 County financing is NOT available. Vacant lot. Restrictive Covenant applies. On-site system NOT allowed. Buyer may be required to treat wildfire fuels. 2010-12 115890 2010120008000 16936 Glendale Rd $63,000 $5,000 Bend 97707 County financing is NOT available. Vacant lot. Restrictive Covenant applies. On-site system NOT allowed. Buyer may be required to treat wildfire fuels. 2010-13 125971 2011196016000 17270 Brant Dr $72,000 $65,000 Bend 97707 County financing is available. Vacant lot. Buyer will be required to treat wildfire fuels. *Broker's Price Opinion. All prospective bidders shall register with Teresa Rozic the Deschutes County Propert Specialist any business day between May 3, 2010 and May 12, 2010. Registration may be in person at 1300 NW Wall Street, Suite 200, Bend Oregon, between the hours of 8:00 a.m. and 4:30 p.m.; bi fax at (541) 385-3202; or by E-mail to teresarondeschutes.orq, by providing bidder's legal name, physical address, mailing address and telephone number. Bidders must provide an acceptable picture I.D. prior to bidding. Prior to 4:00 p.m. May 13, 2010, the highest bidder will pay the full balance of bidder's provisionally accepted high bid, plus recording and certificate of sale fees, in cash or cashier's checK or, for properties on which financing is available per the above list, the following terms: a nonrefundable cash down payment of not Tess than 20% of the purchase price, recording fees, and the balance paid in equal monthly installments over a period of ten (10) years, with a fixed loan rate set at the current bank prime loan interest rate as of May 13, 2010 plus 1%, secured by a promissory note and trust deed. Copies of the complete contract terms may be found at www.deschutes.orq or a copy will be provided at $.25 per page upon request to the County Property Specialist listed above. On the sale date, Bidders with the provisionally accepted high bid may leave the premises to obtain cash or cashier's checks but must return to the Barnes Hearing Room prior to 2:00 p.m. No admittance after 2:00 p.m. will be allowed. Cash is defined as all legal U.S. currency. Cashier's checks must be payable to Deschute; County. Cashier's checks must be drawn on a financial institution that is authorized to do business under the laws of Oregon or the United States. If any part of the purchase price is paid with cashier's check the purchaser will be given a receipt in lieu of a certificate of sale until verification from the financial institution that final settlement has been made on the cashier's check. Upor receiving such verification, the purchaser will receive a certificate of sale. If any part of the purchas( price is paid through the contract for terms, the purchaser will be given a certificate of sale tha : Page 2 of 3 EXHIBIT A includes the terms and will be required to sign a promissory note for which a trust deed will be recorded. The highest offer for any parcel that is equal to or exceeds the minimum bid price shall be conditionally accepted as of the close of bidding for that parcel. Upon conditional acceptance of a offer at the time of the sale, the sale as to that parcel shall be deemed closed. The Board of County Commissioners may authorize the sale of any real property not sold at this auction to be sold by private sale pursuant to ORS 275.200. Additionally, Deschutes County reserves the right to remove any property from the auction list at or before the auction. ALL PARCELS ARE SOLD AS IS. Potential bidders should thoroughly investigate all aspects of a property prior to bidding. Deschutes County has not surveyed the aforementioned real properties and makes no representation as to boundaries, encroachments or encumbrances,. Deschutes County does not guarantee or warrant that any parcel is buildable, suitable for septic system, has legal access, is vacant or is usable for any particular purpose. The County shall not warrant or defend the fee simple title of real property offered for sale to be free of defects c r encumbrances, but will only sell and convey such interest as the County acquired by foreclosure cr other means and holds at the time of sale. Furthermore, conveyance is subject to all valid, recorde easements, road right of way dedications and the right of any municipal corporation to purchase suci property pursuant to State law and subject to the right of the Board of County Commissioners to reject any and all bids. SOME PROPERTY WILL BE SOLD SUBJECT TO THE BUYER ACCEPTING TITLE ENCUMBERED WITH A COVENANT THAT RESTRICTS DEVELOPMENT PURSUANT TO THE DESCHUTES COUNTY TRANSFERABLE DEVELOPMENT CREDIT PROGRAM, DESCHUTER3 COUNTY CODE CHAPTER 11.12. ADDITIONALLY, SOME PROPERTY WILL BE SOLD SUBJECT TO BUYER AGREEING TO ELIMINATE THE WILDFIRE FUELS. Example copies of the Fuels Management Agreement and the Transferable Developmert Credit Program restrictive covenant document are available for review on the Deschutes County website (www.deschutes.org) and at the office of Deschutes County Property Management, 1300 NW Wall Street, Suite 200, Bend, Oregon. Packets of tax lot maps may be viewed through the website address above or purchased from the Deschutes County Property Management Department at the above address. For information on the land sale auction, contact Deschutes County Property Management at (541) 330-4656. The sale location is wheelchair accessible. Materials are available in alternative formats. For the deaf or hard of hearing, an interpreter or assistive listening system will also be provided with 43 hours notice. To arrange for these services, please contact Risk Management at (541) 330-4631. LARRY BLANTON Deschutes County Sheriff By Rebecca Brown, Civil Technician Published in Bend Bulletin Date of First and Successive Publications: April 7, 14, and 21, 2010 Date of Last Publication: April 28, 2010 Page 3 of 3 NOTE PARTIES: Promisor Promisee: DESCHUTES COUNTY, a political subdivision of the State of Oregon Finance Department 1300 NW WaII Street Bend, Oregon 97701 FOR VALUE RECEIVED, Promisor promises to pay Promisee, at Promisee's order, the purchase price, which consists of the principal sum of this note plus the twenty percent (20%) previously paid to Promisee as a down payment, for the real property commonly known as («SitusAddress») and legally described as: «LegalDescription» in the principal sum of and No/100 DOLLARS with interest on the unpaid principal balance from , until paid, at the rate of per cent ( %) per annum. Principal and interest shall be payable to Deschutes County Treasurer, Finance Department, 1300 NW Wall Street, Suite 200, Bend, Oregon 97701, or such other place as Promisee may designate, in consecutive monthly installments of /100 DOLLARS ($ ), on the 1st day of each month beginning . Such monthly installments shall continue until the entire indebtedness evidenced by this Note is fully paid, except that any remaining indebtedness, if not sooner paid, shall be due and payable on . Promisee acknowledges receipt of a down payment in the amount of /100 DOLLARS. If any monthly installment under this Note is not paid when due and remains unpaid after a date specified by a notice to Promisor, the entire principal amount outstanding and accrued interest thereon shall at once become due and payable at the option of Promisee. The date specified shall not be less than thirty days from the date such notice is mailed. Promisee may exercise this option to accelerate during any default by Promisor regardless of any prior forbearance. Promisor shall pay to Promisee a late charge of five per cent (5%) of any monthly installment not received by Promisee within ten (10) days after the installment is due. Such late charge shall be paid on demand and Promisee may add such late charge to the principal balance of the Note. Promisor may prepay the principal amount outstanding in whole or in part. Promisee may require that any partial prepayments (i) be made on the date monthly installments are due and (11) be in the amount of that part of one or more monthly installments which would be applicable to principal. Any partial prepayment shall be applied against the principal amount outstanding and shall not postpone the due date of any subsequent monthly installments or change the amount of such installments, unless Promisee shall otherwise agree in writing. All persons liable either now or hereafter for payment of this Note severally waive presentment, demand for payment and notice of nonpayment. This Note shall be the joint and several obligation of all persons liable for payment of this Note, and shall be binding upon them and their successors and assigns. NOTE — Parcel«AuctionPropertiesAuctionParcellD» Any notice to Promisor provided for in this Note shall be given by mailing such notice by certified mail addressed to Promisor at the address set forth under Promisor's name, or to such other address as Promisor may designate by notice to Promisee. Any notice to Promisee shall be given by mailing such notice by certified mail, return receipt requested, to Promisee at the address set forth under Promisee's name, or at such other address as may have been designated by notice to Promisor. This obligation is secured by a real estate Trust Deed, Deschutes County Document «DocumentlD», with power of sale, of even date herewith, and is subject to all of the terms and conditions of such Trust Deed. If this Note is placed in the hands of an attorney, Promisor agrees to pay the reasonable fee and expenses of such attorney even though no suit or action is instituted or no sale of the property has been directed under the terms of the real estate Trust Deed securing this obligation. Such fees, expenses and costs may, at Promisee's option, be added to the principal balance of this Note. Failure to exercise any option to declare default or accelerate the balance due hereon shall not constitute a waiver of the right to exercise the same in the event of any subsequent default. Modification of the terms of payment of this Note made at the request of any person liable thereof shall not impair such person's liability or the liability of any other person now or hereafter liable for the payment hereof. In the event that a building permit or a manufactured home placement permit is issued on the premises identified in the Trust Deed, this Note immediately becomes due and payable. Promisor acknowledges that based upon Promisor's own inspection and investigation, Promisor is satisfied that the premises identified in the Trust Deed do not now contain any amounts of hazardous, toxic, radioactive or other substances for which a property owner or operator may be liable under state or federal environmental pollution or health and safety laws. Accordingly, Promisor agrees that, as between Promisee and Promisor, Promisor will assume responsibility and liability and shall indemnify Promisee for any release or discharge of hazardous, toxic, radioactive or other dangerous substances regulated under state or federal pollution control laws found hereafter on, in or about the premises identified in the Trust Deed. NOTICE TO THE PROMISOR DO NOT SIGN THIS NOTE BEFORE YOU READ IT. THIS NOTE AUTHORIZES THE PROMISEE TO REFUSE TO ACCEPT PARTIAL PREPAYMENTS WHICH ARE NOT TENDERED ON THE DATE MONTHLY INSTALLMENTS ARE DUE AND WHICH ARE NOT IN THE AMOUNT OF THAT PART OF ONE OR MORE INSTALLMENTS WHICH WOULD BE APPLICABLE TO PRINCIPAL. CAUTION: READ BEFORE SIGNING. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON'S RIGHTS, IF ANY, UNDER ORS 197.352. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENTTO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A NOTE — Parcel«AuctionPropertiesAuctionParcellD» 11 B � a F. I; LAWFULLY ESTABLISHED LOT OR PARCEL AS DEFINED IN ORS 92.010 OR 215.010, TO VERITY THE APPROVED USES, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930 AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 197.352. PROMISOR: Date: NOTE — Parcel«AuctionPropertiesAuctionParcellD» lit a 3ai'S FORM Na, 001 - TRUST DEED (ASYgnme I naarrlrx.d) • EA a19B*-2f10a 5TEVEJG-NESs,Aw PUBLI.SFWGCD poi' fume OR .w.ne.raie.s.con N6 PART OF ANY STEVENS-NESS FORM MAY BE REPRODUCED iN ANY FORM OR 9Y ANY ELECTRONIC OR MECW LAICAL MEANS TRUST DEED Gr*rtcr'. torr .1d Aden.. Berra lorry$ Morro rind Address new wooers return to [Nand. Add... 2Ip1,. THIS TRUST DEED, made on SPACE RESERVED FOR RECORDE1'S USE STATE OF OREGON, County of - SS- I certify that the within instrument was received for recording on at - o'clock M., and recorded in book/reel/volume No. on page and/or as fee/file/instrument/microfilm/reception No. , Records of this County. Witness my hand and seal of County affixed. NAMETITLE By , Deputy. , between , as Grantor, 44110— , as Trustee, and , as Beneficiary, WITNESSETH: Grantor irrevocably grants, bargains, sells and conveys to trustee, in trust, with power of sale, the property in County, Oregon, described as: together with all and singular the tenements, hereditaments and appurtenances and all other rights thereunto belonging or in any way i now or hereafter appertaining, and the rents. issues and profits thereof, and all fixtures now or hereafter attached to or used in con- ! with the property. FOR THE P1J tPOSE OF SECURING PERFORMANCE. of each agreement of grantor herein contained and payment of the sum of Dollars. with interest thereon according w the terms of a prormssory note of even date herewith, payable to beneficiary or order and made by grantor, the final payment of principal and interest. if not sooner paid, to be due and payable on The date of maturity of the debt secured by this instrument is the daze, staled above, on which the inial installment of the note becomes due and payable. Shouldthe grantor either agree to, attempt to, or actually sell, convey. or assign ail tor any pact) of the property, or all (or any part) of grantor's interest in it without first obtaining the wriuen consent or approval of the beneficiary, then, at the beneficiary's option'. all obligations secured by this instrument, irrespective of the matu- rity dares expressed therein. or herein. shall become immediately due and payable- The execution by grantor of an earnest money agreement'• does not cxnsulete a sale. conveyance or assignment. To protect the security of this trust deed. grantor agrees: ro protect. preserve and maintain the property in good condition and repair, not to remove or demolish any building or improvement thereon, and not t0 commit or permit any waste of the property. 2 To complete or restore promptly and in good and habitable condition any building or improvelnent which may be constructed damaged or destroyed there- on. and pay when due all costs int.uned therefor 3 To comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the properly: if the beneficiary so requests. to join in exc• outing such financing statements pursuant to the Uniform Commercial Code as the beneficiary may require, and to pay for filing the same in the proper public office or offices. as well as the cosy of all lien searches made by filing officers or searching agencies as may be deemed desirable by the beneficiary. 4 To provide and continuously maintain insurance on the buildings now or hereafter erected on die property against loss or damage by Fire and other haz- ards. as the beneficiary may from time to time require, in an amount not less than $ , wnttcn by one or more companies acceptable to the beneficiary, with loss payable to the laver- All policies of insurance shall be delivered to the beneficiary as soon as issued. If the grantor shall fail for any reason to procure any such insurance and to deliver the policies to the beneficiary at least fifteen days prior to the expiration of any policy of insur- ance now or hereafter placed on the buildings, the beneficiary may procure the same at grantor's expense- The amount collected under any tire or other insurance pol- icy may be applied by beneficiary upon any indebtedness secured hereby and in such order as beneficiary may dacrrmn*, or at option of beneficiary the enure amount so collected, or any pan thereof, may be released to grantor- Such application or release shall not cure or waive any default or notice of default hereunder or Invali- date any act done pursuant to such notice 5. To keep the property free from construction hens and to pay all taxes, assessments and other chargees that nay be levied or assessed upon or against the property before arty pan of such taxes, asscsaments and other charges becomes past due or delinquent and promptly deliver receipts therefor to beneficiary. Should the grantor fail to make payment of any taxes, assessments, insurance premiums. liens or other charges payable by grantor, either by direct payment or by providing beneficiary with funds with which to make such payment, beneficiary may, at its option. make payment thereof, and the amount so paid, with interest at the rate set forth m the note secured hereby, together with the obligations described in paragraphs 6 and 7 of this Trust deed, shall be added to and become a part of the debt secured by this trust deed, without waiver of any rights arising from breach of any of the covenants hereof- For such payments, with 'interest as aforesaid, the proper- ty hereinbefore described. as well as the grantor. shall be bound to the same extent that they are bound for the payment of thc obligation herein described- All such payments shall be immediately due and payable without notice, and the nonpayment thereof shall, at the option of the beneficiary, render all slues secured by this trust deed immediately due and payable and shall constitute a breach of this trust deed. 6. To pay all casts, fees and expenses of this trust, including the cost of tide search, a5 well as the other costs and expenses of the trustee incurred in 111111100 with or in enforcing this obligation. and Trustee and attorney fees actually incurred. 7. To appear in and defend any action or proceeding purporting to affect the security rights or powers of beneficiary or trustee: and in any suit, action or pro- ceeding in which the beneficiary or trustee may appear, including any suit for the foreclosure of this deed or any suit or action related to this instrument, including but not limited to its validity and/or enforceability. to pay all costs and expenses, including evidence of Ole and the beneficiary's or trustee's attorney fees. The amount of attorney fees mentioned in this paragraph In all cases shall be fixed by the trial court, and in the event of an appeal from any judgment or decree of the trial court, grantor further agrees to pay such somas thc appellate court shall adjudge reasonable as the beneficiary's or trustee's attorney fees on such appeal. ftis mutually agreed that: S. In the event that any portion or all of the property shall be taken under the nght of eminent domain or condemnation, beneficiary shall have the right If 11 so elects, to tequrre that all or any portion of the monies payable as compensation for such taking which are in excess of the amount required to pay all reasonable :esu, expenses and attorney fees necessarily paid or incurred by grantor in such proceedings, shall be paid to beneficiary and applied by it first upon any reasonable costs and expenses and attorney fees, both in the trial and appellate courts, necessarily paid or incurred by beneficiary in such proceedings, and the balance applied upon the indebtedness soured hereby. Grantor agrees, at its own expense, to take such actions and execute such instruments as shall be necessary in obtaining such Lompensazion promptly upon beneficiary's request - NOTE Tlr Trust Nod Act provides dr1 11r tnntw 1rranldar mud bo !'ilha on •NGrtry who re an anti.* mann, r11h. C.*gon Sta/a 6a, • trot, trod comp.), a s0Ylrgo end loan essneiion authorised to de nustn..s under 11. Int. et Oregon or 111. Wind moss, a Gd. 1n.rrrwa oornpugry ..the.,28d Oa lnwro at. to res/ prop.rty al Ibio slats, iia.9baidianul. MaiiM*a, agar. or traMr.,1100 Wind Rifts 01 a nr Mees 1, or en escrow *pet lice.. under ORS 696.505 to 69k565- •wARNIriC1. 12 USC 1700-3 mules* and Ivy prohibit xarclM of 1his ipUon of 0.n.11011 's can _ t m ., . • afoot 9. At any time, and from time to time upon written request of beneficiary, payment of its fees and presentation of this deed and the nok for e:.dorsement (in case of full reconveyances, for cancellation!, without affecting the liability of any person for the payment of the indebtedness. truster may (al consent to the making of any map or plat of the property; (b) join in granting any easement or creating any restriction thereon, (c) join in any subordination or other agreemert affecting Ibis deed or the lien or charge thereof; or (d) reconvey, without warranty, all or any pan of the property. The grantee in any reconveyance may be descnbid as the "per- son cx persons legally entitled thereto:" and the recitals therein of any ratters or facts shall be conclusive pmol of the truthfulness thereof Trustee fee for any of the services mentioned in this paragraph shall be not less than $5. 10. Upon any default by grantor hereunder, beneficiary may, at any time without nonce, either in person, by agent, or by a receiver to he appoir•ed by a coup, and without regard to the adequacy of any security for the indebtedness hereby, secured, enter upon and take possession of the property or any part the oaf, rn its own name sue or otherwise collect the rents. issues and profits, including those past due and unpaid. and apply the same, less costs and expenses of opera' .in and collec- tion, including reasonable attorney fees. upon any indebtedness secured hereby, and in such order as beneficiary may determine. 11. The entering upon and taking possession of the property" the collection of such rents, issues and profits. or the proceeds of ft re and other nsurance poli- cies or compensation or awards for any taking en damage of the property, and the application or reease thereof as aforesaid. shall not cure or warr,e any default or notice of default herenrrder, or invalidate any act done pursuant to such notice - 12 Upon default by grantor in payment of any indebtedness secured hereby or m grantor's performance of any agreement hereunder, time hero; of the essence with respect to such payment and/or performance, the beneficiary may declare all suers secured hereby immediately due and payable. In such event, he beneficiary may elect to proceed to foreclose this trust deed in equity as a mortgage or direct the trustee to foreclose this must deed by advertisement and salt, or may direct the lrtsten to pursue any other right or remedy, either at law or in equity, which the beneficiary may have. In the event the beneficiary elects to foreclos.: by advertise- ment and sale, the beneficiary or the trustee shall execute and rause to be recorded a written notice of default and election to sell the property to sat :fy thc obliga- tion secured hereby whereupon the Trustee shall fix the time and place of sale, give notice thereof as then required by law and proceed to foreclose th s trust decd in the manna provided in ORS 86735 co 86.795 13. After the trustee has commenced foreclosure by advertisemrnl and sale, and at any time prior to 5 days before the date the trustee condo, is the salt, the grantor or any other person so privileged by ORS 86.753 may cure the default or defaults. If the default consists of a failure to pay, when due. suras secured by the trust deed, the default may be cured by paying the cntue amount due at the time of the cure other than such portion as would not then be due had no dt fault occurred Any other default that is capable of being cured may be cured by tendering the performance required under the obligation or trust deed- In any cast in addition to curing the default or defaults, the person effecting the curt shall pay to the beneficiary all costs and expenses actually incurred in enforcing the ohhge ton of the trust deed, together with trustee and attorney feu riot exceeding the amounts provided by law. 14. Otherwise, the sale shall he held on the date and at the time and place designated in the notice of sale or the time to which the sale may b-_ postponed as provided by law. The trustee may sell the property either in one parcel or in separate parcels and shall sell the parcel or parcels at auction to the ht{ hest bidder for cash. payable al the time of sale- Trustee shall deliver to the purchaser its deed in form as required by law conveying the property so sold but withoi.1 any covenant or warranty" express or implied- The recitals in the deed of any matters of fact shall be oonclustv'e proof of the truthfulness thereof. Any person, exclu. ing the trustee, but including thc grantor and beneficiary, may purchase at the sale 15 When trustee sells pursuant to the powers provided herein, trustee shall apply the proceeds of sale to payment of- III the expenses of sal . including the compensation of the trustee and a reasonable charge by trustee's attorney; (2) to the obligation secured by the test deed; (31,0 alt persons having ria rded liens sub serpent to the interest of the trustee in the trust deed as their interests may appear in the order of their pnsnty; and (41 the surplus, if any, to the gr tutor, or to any successor in interest entitled to such surplus 16 Beneficiary may, from time to time, appoint a successor or successors to any trustee named herein or to any successor truster appointed h !minder. Upon such appointment, and without conveyance to the successor trustee, the latter shall be vested with ail lite, powers and duties conferred upon any trust,herein named or appointed hereunder Each such appointment and suhstitu ion shall be inade by written instrument executed by beneficiary. which, when recorded n the mortgage records of the county or counties in which the property is situated, shall be conclusive proof of proper appointment of the successor trustee 17 Trustee accepts this trust when this deed, duly executed and acknowledged, is made a public record as provided by law Trustee is riot oh gated to notify any party hereto of pending sale under any other decd of trust or of any action or prooeedmg in which grantor, beneficiary• or trustee shalt It a party un ess such action 01 proceeding is brought by trustee. Thegrantor covenants to and agrees with the beneficiary and the beneficiary's successors in interest that the grantor is lawfully seized in ice si nple of the real property and has a valid, unencumbered title thereto. except as may beset forth in any addendum or exhibit attached hereto, and that the grantor will -arrant and for- ever defend the same against all persons whorruoever WARNING: Unless grantor provides beneficiary with evidence of insurance coverage as required by the contract cr loan agree- ment between them, beneficiary may purchase insurance at grantor's expense to prosect beneficiary's interest. This insurance may. but nccd not, also protect grantor's interest. If the collateral becomes damaged, the coverage purchased by beneficiary may not pay any claim made by or against grantor Grantor may Tater cancel the coverage by providing evidence that grantor has obtained prop- erty coverage elsewhere. Grantor is responsible for the cost of any insurance coverage purchased by beneficiary, which cost may be added to grantor's contract or loan balance. If it is so added, the interest rate an the underlying contract or loan will apply to it. The effective date of coverage may be the date grantor's prior coverage lapsed or the date grantor failed to pros ide proof of coverage The coverage beneficiary purchases may be considerably more expensive than insurance grantor might otherwise ohtt in alone and may not satisfy any need for property damage coverage or any mandatory liability insurance requirements imposed 1 y applicable law. Time grantor warrants that the proceeds of the loan represented by the above described note and this trust deed are (choose one! (a) primarily for grantor's personal, family or household purposes {see Important Notice helow) tbi For an organization, or (even if grantor is a natural person) are for business or commercial purposes This deed applies to. inures to the benefit of, and binds all parties hereto. their heirs, legatees, devisees. admmtstrators. executors, persona. represe:ntatir es, successors and assigns- The term beneficiary shall mean the holder and owner. including pledgee, of the contract secured hereby. whether or not na iced as a benefi- ciary. herein In crmstniing this trust deed. it is understood that the grantor, trustee and/or beneficiary may each be more than one person, that if the conies so requires, the singular shall be taken to mean and include the plural, and that generally all grammatical changes shall be made- assumed and implied to nuke the provisions here- of apply equally to corporations and to individuals. INWITNESS WHEREOF, the grantor ha -s executed this instrument the day and year first written above. *RA PORTANT NOTICE: Delete, by lining out, whichever warranty (a) or (b) is Inapplicable. If warranty (a) is applicable and the beneficiary is a creditor as such word le defined in the Truth -in -Lending Act and Regulation 2, the beneficiary MUST comply with the Act and Regulation by making required disclosures. H compliance with the Act is not required, disregard this notice. STATE OF OREGON, County of -44 This instrument was acknowledged before me an ____ by This instrument was acknowledged before by -� as of Notary Public for Oregon My commission expires REQUEST FOR FULL RECONVEYANCE (To be used only when obligations have been paid.) TO; , Trustee The undersigned is the legal owner and holder of all indebtedness secured by the foregoing trust deed All sums secured by the (rust deed hs a been fully pard and satisfied You hereby are directed, on payment to you of any sums owing to you under the temu of the trust deed or pursuant to statute, to ci reel all evidences o[ indebtedness secured by the trust deed (which are delivered to you herewith together with the trust deed, and FO reconvey", without warranty, rc the perms desig- nated by the tents of the trust deed, the estate now held by you under the same. Mall the reconveyance and documents to DATED Do not lose or destroy this Trust Deed DR THE NOTE which It secures. Both should be delivered to The trustee for cancellation before Beneficiary tllbtt ry Grp 5