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Loan Number: NOR40310
1-4
FAMILY RIDER
(Assignment of Rents)
THIS 1-4 FAMILY
RIDER is made this 4th
day of
APRIL, 2010
, and is
incorporated into and shall be deemed to amend and supplement the Mortgage,
Deed of Trust, or Security Deed (the "Security Instrument") of the same date
given by the undersigned (the "Borrower") to secure Borrower's Note to
PRIVATE HARD MONEY LENDER, INC., A
CALIFORNIA CORPORATION
(the "Lender") of
the same date and covering the Property described in the Security Instrument
and located at:
HARD MONEY STREET, GLENDALE, CALIFORNIA
91730
[Property Address]
1-4 FAMILY
COVENANTS.
In addition to the
covenants and agreements made in the Security Instrument, Borrower and
Lender further covenant and agree as follows:
A.
ADDITIONAL PROPERTY SUBJECT TO THE SECURITY INSTRUMENT.
In addition to the
Property described in Security Instrument, the following items now or
hereafter attached to the Property to the extent they are fixtures are added
to the Property description, and shall also constitute the Property covered
by the Security Instrument: building materials, appliances and goods of
every nature whatsoever now or hereafter located in, on, or used, or
intended to be used in connection with the Property, including, but not
limited to, those for the purposes of supplying or distributing heating,
cooling, electricity, gas, water, air and light, fire prevention and
extinguishing apparatus, security and access control apparatus, plumbing,
bath tubs, water heaters, water closets, sinks, ranges, stoves,
refrigerators, dishwashers, disposals, washers, dryers, awnings, storm
windows, storm doors, screens, blinds, shades, curtains and curtain rods,
attached mirrors, cabinets, paneling and attached floor coverings, all of
which, including replacements and additions thereto, shall be deemed to be
and remain a part of the Property covered by the Security Instrument. All of
the foregoing together with the Property described in the Security
Instrument (or the leasehold estate if the Security Instrument is on a
leasehold) are referred to in this 1-4 Family Rider and the Security
Instrument as the "Property."
B. USE
OF PROPERTY; COMPLIANCE WITH LAW.
Borrower shall not
seek, agree to or make a change in the use of the Property or its zoning
classification, unless Lender has agreed in writing to the change. Borrower
shall comply with all laws, ordinances, regulations and requirements of any
governmental body applicable to the Property.
C.
SUBORDINATE LIENS.
Except as
permitted by federal law, Borrower shall not allow any lien inferior to the
Security Instrument to be perfected against the Property without Lender's
prior written permission.
D.
RENT LOSS INSURANCE.
Borrower shall
maintain insurance against rent loss in addition to the other hazards for
which insurance is required by Section 5.
E.
"BORROWER'S RIGHT TO REINSTATE" DELETED.
Section 19 is
deleted.
F.
BORROWER'S OCCUPANCY.
Unless Lender and
Borrower otherwise agree in writing, Section 6 concerning Borrower's
occupancy of the Property is deleted.
G.
ASSIGNMENT OF LEASES.
Upon Lender's
request after default, Borrower shall assign to Lender all leases of the
Property and all security deposits made in connection with leases of the
Property. Upon the assignment, Lender shall have the right to modify, extend
or terminate the existing leases and to execute new leases, in Lender's sole
discretion. As used in this paragraph G, the word "lease" shall mean
"sublease" if the Security Instrument is on a leasehold.
H.
ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION.
Borrower
absolutely and unconditionally assigns and transfers to Lender all the rents
and revenues ("Rents") of the Property, regardless of to whom the Rents of
the Property are payable. Borrower authorizes Lender or Lender's agents to
collect the Rents, and agrees that each tenant of the Property shall pay the
Rents to Lender or Lender's agents. However, Borrower shall receive the
Rents until (i) Lender has given Borrower notice of default pursuant to
Section 22 of the Security Instrument and (ii) Lender has given notice to
the tenant(s) that the Rents are to be paid to Lender or Lender's agent.
This assignment of Rents constitutes an absolute assignment and not an
assignment for additional security only.
If Lender gives
notice of default to Borrower: (i) all Rents received by Borrower shall be
held by Borrower as trustee for the benefit of Lender only, to be applied to
the sums secured by the Security Instrument; (ii) Lender shall be entitled
to collect and receive all of the Rents of the Property; (iii) Borrower
agrees that each tenant of the Property shall pay all Rents due and unpaid
to Lender or Lender's agents upon Lender's written demand to the tenant;
(iv) unless applicable law provides otherwise, all Rents collected by Lender
or Lender's agents shall be applied first to the costs of taking control of
and managing the Property and collecting the Rents, including, but not
limited to, attorney's fees, receiver's fees, premiums on receiver's bonds,
repair and maintenance costs, insurance premiums, taxes, assessmentsand
other charges on the Property, and then to the sums secured by the Security
Instrument; (v) Lender, Lender's agents or any judicially appointed receiver
shall be liable to account for only those Rents actually received; and (vi)
Lender shall be entitled to have a receiver appointed to take possession of
and manage the Property and collect the Rents and profits derived from the
Property without any showing as to the inadequacy of the Property as
security.
If the Rents of
the Property are not sufficient to cover the costs of taking control of and
managing the Property and of collecting the Rents any funds expended by
Lender for such purposes shall become indebtedness of Borrower to Lender
secured by the Security Instrument pursuant to Section 9.
Borrower
represents and warrants that Borrower has not executed any prior assignment
of the Rents and has not performed, and will not perform, any act that would
prevent Lender from exercising its rights under this paragraph.
Lender, or
Lender's agents or a judicially appointed receiver, shall not be required to
enter upon, take control of or maintain the Property before or after giving
notice of default to Borrower. However, Lender, or Lender's agents or a
judicially appointed receiver, may do so at any time when a default occurs.
Any application of Rents shall not cure or waive any default
or invalidate any
other right or remedy of Lender. This assignment of Rents of the Property
shall terminate
when all the sums secured by the Security Instrument are paid in full.
I.
CROSS-DEFAULT PROVISION.
Borrower's default
or breach under any note or agreement in which Lender has an interest shall
be a breach under the Security Instrument and Lender may invoke any of the
remedies permitted by the Security Instrument.
BY SIGNING BELOW,
Borrower accepts and agrees to the terms and covenants contained in this 1-4
Family Rider.
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