HomeMy WebLinkAboutOrder 032 - Cancel Land Sale ContractDeschutes County Board of Commissioner
1300 NW Wall St., Suite 200, Bend, OR 97701 -1961)
(541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.or:;
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of May 13, 2009
Please see directions for completing this document on the next page.
DATE: May 5, 2009
FROM: Teresa Rozic Property & Facilities 385 -1414
TITLE OF AGENDA ITEM:
Consideration of Board Signature of Order 2009 -032, An Order Declaring Default and Cancellation of
a Land Sale Contract.
PUBLIC HEARING ON THIS DATE? NO
BACKGROUND AND POLICY IMPLICATIONS:
The Deschutes County Sheriff conducted an auction, authorized by Order 2007 -001, on March 15,
2007. One of the parcels offered for sale was Lot 34, Block 27, Oregon Water Wonderland, Unit 2
(identified at the sale as Parcel 2007 -21). Deschutes County acquired the property by foreclosure frr
non - payment of property taxes. The successful high bidder of Parcel 2007 -21, Morgan Reed, and
Deschutes County entered into a land sale contract for $73,600.00 for the purchase of the property.
Mr. Reed is six months in arrears on the land sale contract. When contacted about this delinquency. he
stated that he could no longer make payments on the contract and acknowledged the next step would be
foreclosure.
ORS 275.220 provides a procedure to cancel a land sale contract upon default. Legal Counsel advises
that following this procedure is more expedient than a judicial foreclosure. The procedure requires the
Board to declare the default and cancel the contract by entering an order in its records. The order
directs the Sheriff to provide a certified copy of the order to the borrower. The borrower may appeal
the cancellation. If there is no appeal and there is no further legal action, the forfeited property may be
resold by the County without further notice.
This borrower expressed no interest in continuing the contract under any terms. It is in the best inte •est
of the public for the County to take back this property and resell it.
FISCAL IMPLICATIONS:
The purchase price of the property was $92,000.00. The borrower has paid $35,362.00 on the contr, ict
and one year of property taxes. Buyer is $6,918.54 in arrears as of May 1, 2009..
RECOMMENDATION & ACTION REQUESTED:
Staff recommends approval of Order 2009 -032.
ATTENDANCE: Teresa Rozic
DISTRIBUTION OF DOCUMENTS:
Certified copy to Teresa Rozic.
REVIEWED
LEGAL COUNSEL
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Declaring Default and Cancellation of a
Land Sale Contract * ORDER NO. 2009 -032
*
WHEREAS, by Order 2007 -001, the Board of County Commissioners (the "Board ") authorized the
Deschutes County Sheriff, pursuant to ORS 275.120, to offer for sale on March 15, 2007, the property describ,A
in Exhibit A ( "the Property "), attached hereto and by this reference incorporated herein, to the highest and bcst
bidder, for cash, cashier's check or terms, or combination thereof, pursuant to ORS 275.190, and
WHEREAS, Morgan Reed ( "Reed "), an individual, was the successful high bidder for the Property at
said sale; and
WHEREAS, Reed and Deschutes County entered into a land sale contract for Seventy-Three Thousa:i id
Six Hundred Dollars ($73,600.00), attached as Contract No. 2007 -154 and incorporated by reference herein, 1)r
the purchase of the Property; and
WHEREAS, Reed is in arrears on the land sale contract six (6) months for a total of Four Thousar id
Nine Hundred. Twenty Dollars and 65/100 ($4,920.65); and
WHEREAS, the delinquency constitutes a default in the performance of the contract; and
WHEREAS, pursuant to ORS 275.220, the Board finds that it is in the best interest of the public to
declare the contract in default and, therefore, cancelled; now, therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY
ORDERS as follows:
Section 1. That Reed has defaulted on Contract 2007 -154.
Section 2. That the land sale contract is cancelled.
Section 3. That a certified copy of this order be served by the Sheriff or his designee upon Reed at
55821 Lost Rider Loop, Sunriver, Oregon 97707, or such other location where Reed may be located.
Section 4. That return of the service shall be made upon a copy of this order.
Section 5. That, pursuant to ORS 275.220(2), within twenty (20) days after the service of the order If
cancellation upon Reed, Reed may appeal this order to the Circuit Court in Deschutes County.
PAGE 1 of 2- ORDER No. 2009 -032 (05/13/2009)
Section 6. That, pursuant to ORS 275.220(2), if appeal is not taken or if it results, upon trial, in an
affirmance of the order of cancellation, the order becomes absolute and the real property forfeited may be sold
without notice.
Dated this of , 2009 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ATTEST:
Recording Secretary
STATE OF OREGON )
) ss.
County of Deschutes )
TAMMY BANEY, Chair
DENNIS R. LUKE, Vice Chair
ALAN UNGER, Commissioner
Before me, a Notary Public, personally appeared TAMMY BANEY, DENNIS R. LUKE, and ALAN UNGER and
the above -named Board of County Commissioners of Deschutes County, Oregon and acknowledged the foregoing
instrument on behalf of Deschutes County, Oregon.
DATED this day of , 2009.
Notary Public for Oregon
My Commission Expires:
PAGE 2 OF 2- ORDER No. 2009 -032 (05/13/2009)
EXHIBIT A
Block #27, Lot #34, of OREGON WATER WONDERLAND, Unit 2, as shown by map
on file in the office of the County Clerk, subject to building and use restrictions recorded
in Book 166, Page 723, Deed Records, Deschutes County, Oregon, subject to covenants,
conditions, reservations, easements, and rights -of -way of record, together with a 1 /1045th
undivided interest as tenants in common in the following described parcels: Parcels E, F,
G, H, and I.
Order No. 2009 -032
NOTE
PARTIES:
Promisor: Morgan Reed, an Individual
PO Box 4304
Sunriver, OR 97707
Promisee: Deschutes County, a political subdivision of the State of Oregon
Property Management Department
1300 NW Wall Street, Suite 200
Bend, Oregon 97701
FOR VALUE RECEIVED, Promisor promises to pay Promisee, at Promisee's order, the
principal sum of Seventy -Three Thousand Six Hundred and No /100 Dollars ($73,600.00) with
interest on the unpaid principal balance from the date of this agreement, until paid, at the rate o
Nine and One- Quarter per cent (9.25 %) per annum. Principal and interest shall be payable to
Deschutes County Treasurer, Finance Department, 1300 NW Wall Street, Suite 200, Bend, Oregoi L
97701, or such other place as Promisee may designate, in consecutive monthly installments of Nine
Hundred Forty -Two and 32/100 Dollars ($942.32), on the 1st day of each month beginning May
1, 2007. Such monthly installments shall continue until the entire indebtedness evidenced by thi
Note is fully paid, except that any remaining indebtedness, if not sooner paid, shall be due and
payable on May 1, 2017. Promisee acknowledges receipt of a down payment in the amount of
Eighteen Thousand Four Hundred and No /100 Dollars ($18,400.00).
If any monthly installment under this Note is not paid when due and remains unpaid after 1
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 nct
be less than thirty days from the date such notice is mailed. Promisee may exercise this option t
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 installmei t
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 (ii) 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 wail e
presentment, demand for payment and notice of nonpayment. This Note shall be the joint an 1
several obligation of all persons liable for payment of this Note, and shall be binding upon t
NOTE — Parcel 2007 -21 Document No. 2007 -154
their successors and assigns.
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 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 amount
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 ARI
NOT IN THE AMOUNT OF THAT PART OF ONE OR MORE INSTALLMENTS WHICF
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, I}'
NOTE — Parcel 2007 -21 Document No. 2007 -154
eor1 -t54
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 DEPARTMENT TO
VERIFY 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.
PROMISO / J
G Date: ( — ?CY- o/
Morgan ' eed
NOTE - Parcel 2007 -21 Document No. 2007 -154
;-(701— 164
0.3oF�
FORM No sat - TRUST DEED (Assignment Restricted'
EA
NO PAR",
TRUST DEED
0 1988 -2003 STEVEN '5 LAW PUBLISHING CO. , PORTLAND. OR www.elevamneee.cnm
NY STEVENS -NESS FORM MAY BE REPRODUCED IN ANY FORM UM BY ANY ELECTRONIC OR MECHANICAL MEANS. ,46 II
Morgan Reed
PO Box 4304
Sunriver, OR 97707
Grantor's Name and Address
Deschutes County
1300 NW Wall Street, Suite 200
Bend, OR 97701
Beneficiary's Name and Address
Atter recording, return to (Name, Address, Zip):
Deschutes County Property Managemen
1300 NW Wall Street, Suite 200
Bend, OR 97701
NNRNCYUBLPNKENSHIP OFFICIAL
COUNTY CLERKS 2007'22945
0054335 700229430010024
$36.00
04/23/2007 10:40:46 AM
M —DT Cn1.si Stns4 TM
$10.00 $11.00 $10.00 $.00
SPACE RESERVED and /or as fee /file /instrument /microfilm /reception
No. , Records of this County.
Witness my hand and seal of County affixed.
FOR
RECORDER'S USE
NAME TITLE
By , Deputy.
THIS TRUST DEED, made on
, between
** *Morgan Reed, an Individual * **
** *Mark Piliiod, Deschutes County Legal Counsel * **
, as Grantor,
, as Trustee, and
** *Deschutes County, a 2olitical subdivision of the State of Oregon * **
WITNESSETH:
Grantor irrevocably grants, bargains, sells and conveys to trustee, in trust, with power of sale, the property in
County, Oregon, described as:
, as Beneficiary,
Block #27, Lot #34, of OREGON WATER WONDERLAND, Unit 2, as shown by map on file in the office of the
County Clerk, subject to building and use restrictions recorded in Book 166, Page 723, Deed Records, Deschutes
County, Oregon, subject to covenants, conditions, reservations, easements, and rights -of -way of record, together
with a 1 /1045th undivided interest as tenants in common in the following described parcels: Parcels E, F, G, H,
and I.
together with all and singular the tenements, hereditaments and appurtenances and all other rights thereunto belonging or in any way
now or hereafter appertaining, and the rents, issues and profits thereof, and all fixtures now or hereafter attached to or used in con-
nection with the property.
FOR THE PURPOSE OF SECURING PERFORMANCE of each agreement of grantor herein contained and payment of the sum of
** *Seventy —Three Thousand Six Hundred and No(100 Dollars (733600.00) * **
Dollars, with interest thereon according to the terms of a promissory 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 May 1 , 2017
The date of maturity of the debt secured by this instrument is the date, stated above, on which the final installment of the note becomes due and payable.
Should the grantor either agree to, attempt to, or actually sell, convey, or assign all (or any part) of the property, or all (or any part) of grantor's interest in it without
first obtaining the written consent or approval of the beneficiary, then, at the beneficiary's option`, all obligations secured by this instrument, irrespective of the matu-
rity dates expressed therein, or herein, shall become immediately due and payable. The execution by grantor of an earnest money agreement" does not constitute a
sale, conveyance or assignment.
To protect the security of this trust deed, grantor agrees:
1. To protect, preserve and maintain the property in good condition and repair; not to remove or demolish any building or improvement thereon; and not to
commit or permit any waste of the property.
2. To complete or restore promptly and in good and habitable condition any building or improvement which may be constructed, damaged or destroyed there-
on, and pay when due all costs incurred therefor.
3. To comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the property; if the beneficiary so requests, to join in exe-
cuting 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 cost 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 buildin s now or hereafter erected on the property against loss or damage by fire and other haz-
ards, as the beneficiary may from titifr?�o [Rii�YC2jui�eei a ttTO n��e flat'IYal balance of the Note Doc. 200�ntt�tt�b�' one or more
companies acceptable to the beneficiary, with loss payable to the latter. 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 fire or other insurance pol-
icy may be applied by beneficiary upon any indebtedness secured hereby and in such order as beneficiary may determine, or at option of beneficiary the entire 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 liens and to pay all taxes, assessments and other charges that may be levied or assessed upon or against the
property before any part of such taxes, assessments and other charges becomes past due or delinquent and promptly deliver receipts therefor to beneficiary. Should
the grantor fail to make paymcnt 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 in 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 the 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 sums secured by this
trust deed immediately due and payable and shall constitute a breach of this trust deed.
6. To pay all costs, fees and expenses of this trust, including the cost of title search, as well as the other costs and expenses of the trustee incurred in con-
nection 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 title and the beneficiary's or trustee's attomey fees. The amount
of attorney fees mentioned in this paragraph in all cases shall be fixed by the trial coup, and in the event of an appeal from any judgment or decree of the trial court,
grantor further agrees to pay such sum as the appellate court shall adjudge reasonable as the beneficiary's or trustee's attomey fees on such appeal.
1t is mutually agreed that:
8. In the event that any portion or all of the property shall be taken under the right of eminent domain or condemnation, beneficiary shall have the right, if it
so elects, to require 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
costs, expenses and attomey 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 secured hereby. Grantor agrees, at its own expense, to take such actions and execute such instruments as shall be necessary in obtaining such
compensation promptly upon beneficiary's request.
NOTE: The Truett Deed Act provides that the trustee hereunder must be either an attorney who le en active member of the Oregon State Bar, a benk, trust compeny or savings and loan
association authorized to do business under the laws of Oregon or the United States, a title insurance compeny authorized to insure title to real property of this state, its subsidiaries,
affiliates, agents or branches, the United States or any agency thereof, or an escrow agent licensed under ORS 696.505 to 696.505.
• WARNING: 12 USC 1701j -3 regulates and may prohibit exercise of this option.
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 note for endorsement (in
case of full reconveyances, for cancellation), without affecting the liability of any person for the payment of the indebtedness, trustee may (a) 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 agreement affecting this
deed or the lien or charge thereof; or (d) reconvey, without warranty, all or any part of the property. The grantee in any reconveyance may be described as the "per-
son or persons legally entitled thereto," and the recitals therein of any matters or facts shall be conclusive proof of the truthfulness thereof. Trustee fees 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 notice, either in person, by agent, or by a receiver to be appointed by a court,
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 thereof, in 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 operation 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 fire and other insurance poli-
cies or compensation or awards for any taking or damage of the property, and the application or release thereof as aforesaid, shall not cure or waive any default or
notice of default hereunder, or invalidate any act done pursuant to such notice.
12. Upon default by grantor in payment of any indebtedness secured hereby or in grantor's performance of any agreement hereunder, time being of the essence
with respect to such payment and/or performance, the beneficiary may declare all sums secured hereby immediately due and payable. In such event, the beneficiary
may elect to proceed to foreclose this trust deed in equity as a mortgage or direct the trustee to foreclose this trust deed by advertisement and sale, or may direct the
trustee 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 foreclose by advertise-
ment and sale, the beneficiary or the trustee shall execute and cause to be recorded a written notice of default and election to sell the property to satisfy the 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 this trust deed in
the manner provided in ORS 86.735 to 86.795.
13. After the trustee has commenced foreclosure by advertisement and sale, and at any time prior to 5 days before the date the trustee conducts the sale, 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, sums secured by the
trust deed, the default may be cured by paying the entire amount due at the time of the cure other than such portion as would not then be due had no default 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 case, in addition to
curing the default or defaults, the person effecting the cure shall pay to the beneficiary all costs and expenses actually incurred in enforcing the obligation of the trust
deed, together with trustee and attorney fees not exceeding the amounts provided by law.
14. Otherwise, the sale shall be held on the date and at the time and place designated in the notice of sale or the time to which the sale may be 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 highest bidder for
cash, payable at the time of sale. Trustee shall deliver to the purchaser its deed in form as required by law conveying the property so sold, but without any covenant
or warranty, express or implied. The recitals in the deed of any matters of fact shall be conclusive proof of the truthfulness thereof. Any person, excluding the trustee,
but including the 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 (1) the expenses of sale, including the
compensation of the trustee and a reasonable charge by trustee's attorney; (2) to the obligation secured by the trust deed; (3) to all persons having recorded liens sub-
sequent to the interest of the trustee in the trust deed as their interests may appear in the order of their priority; and (4) the surplus, if any, to the grantor, 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 trustee appointed hereunder. Upon
such appointment, and without conveyance to the successor trustee, the latter shall be vested with all title, powers and duties conferred upon any trustee herein named
or appointed hereunder. Each such appointment and substitution shall be made by written instrument executed by beneficiary, which, when recorded in 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 not obligated to notify
any party hereto of pending sale under any other deed of trust or of any action or proceeding in which grantor, beneficiary or trustee shall be a party unless such action
or proceeding is brought by trustee.
The grantor covenants to and agrees with the beneficiary and the beneficiary's successors in interest that the grantor is lawfully seized in fee simple of the real
property and has a valid, unencumbered title thereto, except as may be set forth in any addendum or exhibit attached hereto, and that the grantor will warrant and for-
ever defend the same against all persons whomsoever.
WARNING: Unless grantor provides beneficiary with evidence of insurance coverage as required by the contract or loan agree-
ment between them, beneficiary may purchase insurance at grantor's expense to protect beneficiary's interest. This insurance may,
but need 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 later 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 on 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 provide proof of coverage.
The coverage beneficiary purchases may be considerably more expensive than insurance grantor might otherwise obtain alone and
may not satisfy any need for property damage coverage or any mandatory liability insurance requirements imposed by applicable
law.
The grantor warrants that the proceeds of the loan represented by the above described note and this trust deed are (choose one):*
printstil,4etteente.. :.; --• - - .. - ., . ).
or an organization, or (even if grantor is a natural person) are for business or commercial purposes.,j-W"---
5 deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, personal representatives,
successors and assigns. The term beneficiary shall mean the holder and owner, including pledgee, of the contract secured hereby, whether or not named as a benefi-
ciary herein.
In construing this trust deed, it is understood that the grantor, trustee and/or beneficiary may each be more than one person; that if the context 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 make the provisions here-
of apply equally to corporations and to individuals.
IN WITNESS WHEREOF, the grantor has executed this instrumen),th� day and year4lrst written above.
IMPORTANT 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 Is defined in the Truth -in- Lending Act and
Regulation Z, the beneficiary MUST comply with the Act and
Regulation by making required disclosures. If compliance with the
Act is not required, disregard this notice.
Mdrgan R
STATE OF OREGON, County of 12.5CeJtUT 5 ) ss.
This instrument was..acknowledged before me. on .A P 2L L- a,Qb_49QO 7
by 11/10 2(-Al∎ -)
by
as
This instrument was acknowledged before me on
r
f:!r� OFFICIIAL SEAL 1)
JERYL A WHIPPLE
+r` NOTARY PUBLIC- OREGON )
COMMISSION NO, 369874 1)
22 2007 y
%"t't1 111- •�ISSIO • -•�-•\ EXPIRES JUN•-\��?-
NotatJy Publi&'for Oregon
My commission expires
vNt a�, a,00
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 trust deed have been fully paid
and satisfied. You hereby are directed, on payment to you of any sums owing to you under the tern's of the trust deed or pursuant to statute, to cancel all evidences
of indebtedness secured by the trust deed (which are delivered to you herewith together with the trust deed) and to reconvey, without warranty, to the parties desig-
nated by the terms of the trust deed, the estate now held by you under the same. Mail the reconveyance and documents to
DATED
Do not lose or destroy this Trust Deed OR THE NOTE which it
secures.
Both should be delivered to the trustee for cancellation before
reconveyance is made.
Beneficiary