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2010 05 05 Triance State Farm Lee Response to Discovery_Page_001Form No. 1068 -2 ALTA Plain Language Commitment . ....... ....... a Commitment No.: 4291 - 1212588 Page 1 of 9 FirstAmerican rt/e Insurance Company 3905 Martin Way, Ste A 4200 6th Avenue SE, Suite 201 Olympia, WA 98506 Phn - (360) 491 -2441 Fax - (866) 343 -5409 ESCROW COMPANY INFORMATION: Escrow Officer /Closer: MARI BECKLEY mcbeckley @firstam.com First American Title Insurance Company Bell Towne Centre, 4200 6th Avenue SE, Suite 201, Olympia, WA 98506 Phone: (360) 491 -2441 - Fax: (866) 341 -0145 Title Team (Thurston) Phone No. (360) 491 -2441 Fax No. (866) 343 -5409 Mitch Miller William Tiglao msmiller @firstam.com To: Van Dorm Realty, Inc. 1530 Black Lake Blvd SW, Suite F Olympia, WA 98502 -5613 Attn: Maureen Nieland btiglao @firstam.com File No.: 4291 - 1212588 Re: Property Address: 10756 Palisades Street SE, Yelm, WA 98597 COMMITMENT FOR TITLE INSURANCE Issued by FIRST AMERICAN TITLE INSURANCE COMPANY Agreement to Issue Policy We agree to issue a policy to you according to the terms of this Commitment. When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A. If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy. Our obligation under this Commitment is limited by the following: The Provisions in Schedule A. The Requirements in Schedule B -I. The General Exceptions and Exceptions in Schedule B -II. The Conditions. This Commitment is not valid without Schedule A and Section I and II of Schedule B. FirstAmencan Ttle Form No. 1068 -2 ALTA Plain Language Commitment SCHEDULE A Commitment No.: 4291 - 1212588 Page 2 of 9 1. Commitment Date: April 15, 2008 at 7:30 A.M. 2. Policy or Policies to be issued: AMOUNT PREMIUM TAX Builder's Rate Owner's Standard Coverage To Follow 0.00 Proposed Insured: Andrew J. Smith and Cynthia M. Smith, husband and wife ALTA Simultaneous Issue Extended Mortgagee's Coverage To Follow 0.00 Proposed Insured: To Follow 3. (A) The estate or interest in the land described in this Commitment is: A fee simple. (B) Title to said estate or interest at the date hereof is vested in: FH1, LLC, a Washington Limited Liability Company 4. The land referred to in this Commitment is described as follows: Real property in the City of Yelm, County of Thurston, State of Washington, described as follows: LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. APN: 21725130300 (Underlying Tax Account) FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment SCHEDULE B SECTION I REQUIREMENTS Commitment No.: 4291 - 1212588 Page 3 of 9 The following requirements must be met: (A) Pay the agreed amounts for the interest in the land and /or the mortgage to be insured. (B) Pay us the premiums, fees and charges for the policy. (C) Documents satisfactory to us creating the interest in the land and /or the mortgage to be insured must be signed, delivered and recorded: (D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions. (E) Releases(s) or Reconveyance(s) of Item(s): (F) Other: (G) You must give us the following information: 1. Any off record leases, surveys, etc. 2. Statement(s) of Identity, all parties. 3. Other: SCHEDULE B SECTION II GENERAL EXCEPTIONS PART ONE: A. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. B. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. E. (A) Unpatented mining claims; (B) Reservations or exceptions in patents or in Acts authorizing the issuance thereof; (C) Water rights, claims or title to water; whether or not the matters excepted under (A), (B) or (C) are shown by the public records; (D) Indian Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes. F. Any lien, or right to a lien, for services, labor or materials or medical assistance heretofore or hereafter furnished, imposed by law and not shown by the public records. G. Any service, installation, connection, maintenance, construction, tap or reimbursement charges /costs for sewer, water, garbage or electricity. H. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof, but prior to the date the proposed insured acquires of record for value the escrow or interest or mortgage(s) thereon covered by this Commitment. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment SCHEDULE B SECTION II EXCEPTIONS PART TWO: Commitment No.: 4291 - 1212588 Page 4 of 9 Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. The printed exceptions and exclusions from the coverage of the policy or policies are available from the office which issued this Commitment. Copies of the policy forms should be read. Lien of the Real Estate Excise Sales Tax and Surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate for the City of Yelm is at 1.53 %. Levy /Area Code: 170 For all transactions recorded on or after July 1, 2005: • A fee of $10.00 will be charged on all exempt transactions; • A fee of $5.00 will be charged on all taxable transactions in addition to the excise tax due. 2. Taxes which may be assessed and extended on any subsequent roll for the tax year 2008, with respect to new improvements and the first occupancy which may be included on the regular assessment roll and which are an accruing lien not yet due or payable. 3. Deed of Trust and the terms and conditions thereof. Grantor: FH1, LLC, a Washington limited liability company Beneficiary: WF Capital, Inc., a Washington corporation Trustee: Titan Trustee Services, Inc., a Washington corporation Amount: $7,775,000.00 Recorded: October 19, 2006 Recording No(s).: 3874132, 3874133, 3874134, 3874135 (includes other property) 4. Financing Statement Recorded: October 19, 2006 Recording No.: 3874137 Debtor: FH1 Secured Party: WF Capital, Inc., a Washington corporation (includes other property) 5. Terms, conditions, provisions and stipulations of the Operating Agreement of FH1, LLC, a Washington Limited Lability Company. According to said agreement, Steven L. Chamberlain, its managing member thereof. Any amendments to said agreement must be submitted. Any conveyance or encumbrance of the property must be executed by said managing member(s) as provided for therein, subject to said amendments, if any. 6. According to the application for title insurance the proposed seller is to be Triance Group, Inc., a Washington Corporation; however, said entity has no interest of record in the subject premises at this time. Examination of the records discloses no matters pending against said party(ies). FirstAmerican Ttle Form No. 1068 -2 Commitment No.: 4291 - 1212588 ALTA Plain Language Commitment Page 5 of 9 7. Evidence should be submitted prior to closing of the authority of the officers, if other than John L. Johnson, as president of Triance Group, Inc., a Washington Corporation, to execute the forthcoming instrument. 8. Potential lien rights as a result of labor and /or materials used, or to be used, for improvements to the premises. An indemnity agreement to be completed by John L. Johnson, as president of Triance Group, Inc., a Washington Corporation, is being sent to First American Title Insurance Company & Escrow — Lacey and must be submitted to us prior to closing for our review and approval. All other matters regarding extended coverage have been cleared for mortgagee's policy. Items A through E and G and H on Exhibit B herein will be omitted in said extended coverage mortgagee's policy. The coverage contemplated by this paragraph will not be afforded in any forthcoming owner's standard coverage policy to be issued. 9. Easement, including terms and provisions contained therein: Recorded: May 26, 1926 Recording No.: 167013 In Favor of: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and /or distribution system 10. Easement, including terms and provisions contained therein: Recorded: June 18, 1926 Recording No.: 167933 In Favor of: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and /or distribution system 11. Easement, including terms and provisions contained therein: Recorded: November 16, 1988 Recording No.: 8811160071 In Favor of: Puget Sound Power & Light Company, a Washington corporation For: underground electric transmission and /or distribution system 12. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: January 12, 1994 Recording No.: 9401120141 13. Terms, covenants, conditions and restrictions as contained in recorded Lot Line Adjustment (Boundary Line Revisions): No.: BLA -8144 Recorded: May 22, 1995 Recording No.: 9505220008 14. Conditions, notes, easements, provisions and encroachments contained and /or delineated on the face of the survey recorded under Thurston County Recording No. 9505220009. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment Commitment No.: 4291 - 1212588 Page 6 of 9 15. Mitigation Agreement and the terms and conditions thereof: Between: Yelm Community Schools District No. 2 And: FH1, LLC Recorded: October 25, 2006 Recording No.: 3875687 16. Warranty Agreement and the terms and conditions thereof: Between: FH1, LLC And: City of Yelm Recorded: February 12, 2008 Recording No.: 3988602 17. The terms and provisions contained in the document entitled "Residential Agreement to maintain Stormwater Facilities and to implement a Pollution Source Control Plan" Recorded: February 12, 2008 Recording No.: 3988604 18. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: February 12, 2008 Recording No.: 3988605 19. Provisions of the articles of incorporation and by -laws of the Palisades West Homeowners' Association, and any tax, fee, assessments or charges as may be levied by said association. 20. Restrictions, conditions, dedications, notes, easements and provisions, if any, contained and /or delineated on the face of the plat recorded under Thurston County Recording No. 3988607. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment INFORMATIONAL NOTES A. According to the application for title insurance, title is to vest in Andrew J. Smith and Cynthia M. Smith, husband and wife. Commitment No.: 4291 - 1212588 Page 7 of 9 Examination of the records discloses no matters pending against said party(ies). B. General taxes for the year 2008, which have been paid. Tax Account No.: 67110001500 Code Area: 170 Amount: $ 2,042.21 Assessed Land Value: $ 217,200.00 Assessed Improvement Value: $ 0.00 Said amount was for the entire plat of Palisades West consisting of 24 Lots and Tract(s) A through F, inclusive. (Tax Account No(s). for Lot(s) 15 is(are) not yet available) C. The description can be abbreviated as suggested below if necessary to meet standardization requirements. The full text of the description must appear in the document(s) to be insured. LOT 15 PALISADES WEST, REC. NO. 3988607 APN: 21725130300 (Underlying Tax Account) D. Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating to standardization of recorded documents, the following format and content requirements must be met. Failure to comply may result in rejection of the document by the recorder. E. Any sketch attached hereto is done so as a courtesy only and is not part of any title commitment or policy. It is furnished solely for the purpose of assisting in locating the premises and First American expressly disclaims any liability which may result from reliance made upon it. NOTE: A FEE WILL BE CHARGED UPON THE CANCELLATION OF THIS COMMITMENT PURSUANT TO WASHINGTON STATE INSURANCE CODE AND THE FILED RATE SCHEDULE OF THIS COMPANY. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment CONDITIONS Commitment No.: 4291 - 1212588 Page 8 of 9 1. DEFINITIONS (a) "Mortgage" means mortgage, deed of trust or other security instrument. (b) "Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located. 2. LATER DEFECTS The Exceptions in Schedule B - Section II may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section I are met. We shall have no liability to you because of this amendment. 3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing. 4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to: comply with the Requirements shown in Schedule B - Section I or eliminate with our written consent any Exceptions shown in Schedule B - Section II. We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you. 5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment PRIVACY POLICY We Are Committed to Safeguarding Customer Information Commitment No.: 4291 - 1212588 Page 9 of 9 FirstAmerican rt/e Insurance Company 3905 Martin Way, Ste A 4200 6th Avenue SE, Suite 201 Olympia, WA 98506 Phn - (360) 491 -2441 Fax - (866) 343 -5409 In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information — particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fairinformation Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fairinformation Values We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. © 2001 The First American Corporation • All Rights Reserved FirstAmencan Ttle 3 O all �f s t3S �tY t t•- Oi. ib0"I N � co ul Z W =; W MM CO (w I 1 C� •' iI .el,cklo a � 1[' R ku X61 ttR-• Fi 11e1 ii5+5d � �liGi � cc, b * s. 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I wT93951-3 aft 6i1tr8�!{bttssts+st 5i Ali --- - - - - -- 6 - -- - --- tip_ l['tb - - — - - 4 a - -- r�r�t+n�gr�e� AFTER RECORDING MAIL TO: FH1, LLC 4200 6th Avenue *301 LAY, Wit 98503 First American Title Insurance Company 16 SEP'03 342811 Tiqurston County Trewurw Reu1 Estate tae Taxpold Is, By �. ( -` STATUTORY WAIRRANTY DEED? File No: 4291 - 674684 (R)) Grantor(s): 3ames Forrester and Patricia Forrester Grantees): FH1, LLC Abbreviated legal: Parcel A of BLA 8144 Addftbnal Legal on page: Assessor's Tax Parcel No(s): 21725180300 IWOAMAMM nM Zdawwom Cesar Date: September 13, 2005 THE GRANTOR(S) San es M. Forrester and Patricia Forrester, husband and wife for and In consideration of Ten Dollars and other Good and Valuable Consideration, In hmW paid, conveys, and warrants to FH1, LLC, a Washington Limited Liability C.ornpany, the fblbwing described real estate, situated in the County of Thurston, State of Washington. PARCEL A OF BOUNDARY LINE AWUSTMENT NO. BLA -8144, RECORDED UNDER FI UNG NUMBER 9505220008, IN THURSTON COUNTY, WASHINGTON. Subject To: This conveyance Is subject to covenants, conditions, restrictions and easements, if any, affecting tide, whkh may appear in the public record, Inducting those shown on any recorded plat or survey. Page 10f 2 L Dsscription: Thurstan,WA D0cuzz0nt -DooZD 3766018 Figo: 1 of 2 Order: FXRST ADQERICAN TIT1Z 1,VSURANCE Conzvnt: UV-10 7197 ME 3788018 III mill Page: I of 89/16/5 83115P TITLE 0 1. Thurston Co, lilt APN: 2172SI3030EJ StaWbxy Wwanty Deed Fk 1to.: 42ft- 674664 (IRS) . Continued Date: 091131 t Pape 2 Ct 2 LPB-10 7167 3768018 Page! / TL F TI $ � hw , UR Description: Thurston,Wk Document -DocM 9768028 Fags: 2 ce 2 Order: FIRST AbZRICAW TSTbF IN$URAN= Comeeentr N V " tNnS;!' `% � z Robin W�ng� Notary Public in and the Staft ot 1 Z : � 4I L Residing at: Lacey My aMointment expires: 12 -19-05 *4f", 11400#111 go Pape 2 Ct 2 LPB-10 7167 3768018 Page! / TL F TI $ � hw , UR Description: Thurston,Wk Document -DocM 9768028 Fags: 2 ce 2 Order: FIRST AbZRICAW TSTbF IN$URAN= Comeeentr eturin Address ity of Yelm isha % Bag D Sox 479 elm, WA 98597 Document title(s) (or transactions contained therein): 1. Declaration of Protective Covenants for Palisades Nest_ Reference Number(s) of Documents assigned or Mena: (on page of documents(s)) Grantor(s) (Last name, first name, middle initial) 1. FHI, LLC 2. Palisades West Subdivision Grantee(s) (Last name, first name, middle initial) 1. City of Yelm 2, Legal Description ( abbreviated: i.e. lot, block, plat or section, township, range) SWI/4 NE114 of S 25, T 17N, R 1E, Vd.M. Assessors Property Tax Parcel/Account Number: 21725130300 6211 00M 46:44 AN Covenant Pa" I Of It ;r j; acES r az tY Washinsten r�ar.i� INNIMNN UMMINNME1■11 Description: Thurston, WA tiOCmmmnt -DacID 3988605 Pegs. 1 of 11 Order: FIRST A1dERZCAN TITLE INSLWJURM Comment: AFTER RECORDING RETURN TO: FH1, LLC 4200 6th Avenue SE, Suite 301, Lacey, WA 98803 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS The land Referred To Herein Is Situated In The Stale Of Washington, City Of Yelm, County of Thurston and Is Described As Fellows: Lots 1 to 24 and Open Space Tracts A and F and Park Tract 8 of Palisades West Plat, as recorded in the office of the Thurston County Auditor on day of fl08, under Thurston County Auditor`s File No. THIS DECLARATION IS MADE THI%2 DAY OF 2008 by FH1, LLC, A Washington limited liability company HEREINAFTER REFERRED TO AS "D LARANT". I NESETH Whereas, Declarants are the owners of certain real properly in The City of Yeim, Lots 1 to 24 and Open Space Tracts A and F ancdPPark Tract B o co Palisades West Plat as recorded in the Office of the Thu rs n County Auditor on 1 day of � 2008 under Thurston County Auditor's Fite No. (hereafter referred to as "the pmpertf or "properties'); and WHEREAS, Declarant will convey oertain of the said properties, suW to certain protective covenants, conditions and ins, reservations, liens and charges as hereafter set forth. NOW, THEREFORE, Declarant hereby declares that the properties described in ARTICLE 11 hereof shall be held, sold, conveyed, subject to the following easerrients, restrictions, reservations, charges, liens, oovenents, and conditions, all of which are for the purpose of enhancing and protecting the value, desirability and attractiveness of the property. These easements, restrictions, reservations, charges, liens, DECLARATION OF COVENANTS, CONDITIONS 3 REURICTIONS Pegs 1 of 10 398889+5 Page 2 of 12 GV12 12ees 88:44 AR COVONkOt Thurston County Wsshirwton PALISADES WEST Description: Thurston,VA DoCimaent -DoclD 39$8505 Pago. 2 of 11 Qrder: FIRST AidNraRZCAN TITLE ZNISN7RANCL Comsat: covenants, and conditions shall run with the real property and shall be binding on all parties having or acquiring any right, title or inlemi herein andifor on all parties having or acquiring any part thereof, and shall inure to the benefit of each owner thereof, ARTICLE I JIB aimm " a . , : I I AMMI TI gI Na DECLAMTM OF COVEXAXM CONWONS& REKRCnM P8020(io 92/421 90:44 AM CavW-Ant ft" 3 of 11 PAi Thur WS%T tV Washiftstan IMINIM310811IMMINNI Description: 22mrston,la Document-DoclD 3988605 Page: 3 of 11 Order: FIRST AbMICAN TITLE INSURANCE Ccummnt:.- R ILE Ili GENERAL PROTECTIVE COVENANTS Section 1, Residential_ Character of Proggft. No structure or buildings of any kind shall be erected, altered, placed or permitted to amain on any residential tot other than a residential dwelling, not to exceed two stories in height, with a private garage or carport for not less than one (1) or more than three (3) standard size passenger automobiles and one recreational vehicle, each lot shall provide at least two (2) off street parking spaces including the garage, carport or driveway. [wring construction of a residential structure, construction materials may be maintained, by the builder, on a residential lot. Also, fences in compliance with Section 7 and Section 8 herein, and outbuildings that service a residential structure that are in compliance with Section 4 herein are allowed. Section 2. Business and Commercial Use of Property Prohlbilo . No trade, waft, business, profession, commercial or manufacturing enterprise of business or commercial activity of any kind shall be conducted or carried on upon any residential lot, or within any building located on a residential Lott, unless said activity be in compliance with City of Yelm's Ordinances or Conditional Use Permit, nor shall any goods, equipment, trailers . of any description, or materials or supplies used in connection with any trade, service, or business, wherever the same may be conducted, be kept, parked, stored, dismantled or repaired upon any residential lot unless said goods, equipment, trailers, materials or supplies be enclosed or screened in such a manner (and In accordance with Section_ 8 herein bektwl that the same are not easily visible from any street or any other lot in the plat, except for construction materials and a construction office for residential coast action as described in Section 1, nor shall anything be done on any residential lot which may be or may become an annoyance or nuisance to the neighborhood. Mane of the activities described in Section 2 herein shall be permitted on any street, sidewalk or other public area. Section 3. Automobiles. i Boats Trucks Trailers V . The streets within the plat shall not be used for overnight parking of any vehicles utter than private automobiles. This covenant specifically prohibits the street storage of automobiles, boats, bucks, trailers or recreational vehicles. The City of Yelm parking ordinances shall supersede this section where discrepancies appear. No owner of any residential lot shall permit any vehicle owned by such lot owner, any member of the lot owner's family or any guest or acquaintance or invitee to be parked upon any street or upon any lot within the property for a period in excess of forty -eight (48) hours where such vehicle is non - operational, in repair or abandoned unless such vehicle Is on a lot and enclosed in a garage or outbuikding, or screened by a fence (in accordance with Section 8) in such a mariner that It Is not easily visible from any street or any other lot in the plat. Section: 4. Residen§al uses of Temggr`ary Structures Prohlbited. No trailer, tent, shack, garage, barn or other outbuildings or any structure of any temporary character erected or placed on the property shall at any time be used as a residence either temporarily or permanently. DECCARATON OF COVENANTS, CONDMONS S RESTRICTMUS rage 4 of it 39196625 a cove"0,, pt aT sh t ten ;ZFjj 9 VGT Description: Thurston,WA Doe mont°-DocID 3988505 Pago: 4 of TZ Order: FXRST Aid RXCAN R'ITXZ INSrJP"CZ Ccument: a2 &n 5. Animal& No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any lot. Cats, dogs, birds or other household pets may be kept N they are not kept, bred or maintained for any commercial purpose: provided however, that they shall not be kept in numbers or under conditions so as to become a hazard to health, safety andfor the quiet enjoyment of any lot subject to this declaration. Any kennel or dog run must be screened from view of the street. Any dogs must be kept so as to minimize excessive noise from barking or they shall be considered a nuisance accords to the terms of the covenants. Section 6. Mortraaae Protected. Nothing herein contained shall impair or defeat the lien of any mortgage or deed of mast now or hereafter recorded covering any lot or lots. Title to any property obtained as a result of any foreclosure proceeding shall specifically be held subject to all of the provisions herein. Section 7. Building Setback. No building or detached structure (with the exception of fences as described in Section 8 of this document) shall be located on any residential lot nearer to the front line than the mid paint of the house, nor nearer than five (5) feet to the rear lot line. Sects 8, Fence Reguirenrents. Fences shag not exceed six (6) feet in height. Fences shall be well constructed of suitable wood or vinyl fencing materials and shall be artistic in design and shall be in architectural harmony with the buildings and fences of adjacent lots. A chain link fence shall be allowed around the drainage pond if necessary. No fence, wad or hedge overthree (3) feet in height shall be erected, placed or altered on any lot nearer to any street than the building setback line, except that nothing shall prevent the erection of a necessary retaining wag, the top of which dues not extend more than two feet above the finished grade at the back of said wall. AN fences shall also meet the requirements of Section 13-where necessary. Section 9. Easements. Easements for utilities, drainage, and access are reserved as delineated on the recorded plat map. Within these easements, no structure, planting or other material shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of utilities, or which may change the direction of flow of drainage channels, in the easements, or which may obstruct or retard the flow of water through drainage channels in the easements. The easement area of each lot and all Improvements in it shall be maintained continuously by the owner of the lot, except for those improvements for which a public authority or utility company is responsible. Section 10. Signs. No sign of any kind shall be displayed to the public view on any lot except professionally produced signs that total not more than 3 feet square, advertising the property for sale or rent, signs used by a builder to advertise the property during the construction and sales period are permitted. Signs of a political nature may be displayed from 30 days prior to any election or primary election day and 30 days following election or primary election day. oricuMM OF COVEM s„ CGNDffK= & REsnacnm raP44rto 3988rt8'S Page 5 of 11 0211212MM :44 AM Covenant grim mWally ws,ingten Description: 27iurston,WA Document -DocID 3988605 Page: 5 of IZ Order: F-rRSr AMMUCAN 717LE INSURANCE Coumwnt: Wo U60 Itil wtat-j!j FT111M, �:[P 1;� film I W1111rarr-71F M- =7 t ro M #701 Frt 773 � 71 i Section 21. Open Space Tract A and F and Park Trad B shall be dedicated to the Homeowners association, and the Homeowners Associabon shall be responsible for maintaining the Stormwater Drainage as required by The City of Yelm and reasonable environmental practices as outlined In the Maintenance Plan. W-1; toll $1 1#7F. rluf 1:. :a.; ff7 -V i (A) When the total votes outstanding In the Class A membership equals the total votes outstanding in the Class 8 membership; or A on December 31, 2W& FILY11flivill 9 firs- I 'T 1 6 7 [V MAW -W Covenmb, Conditions and Restridlons. DECLAMATION OF COVEMMM CCMDff*W & RESTRErMS ftwoofio Pa" 7 of It 02$12128 4444 AW Thurlten County WashirkStun pAQ AoEFS MST Description: Thurston,WA Doc=&nt-DoCXD 3988605 Pago: 7 of 11 ox-dox; FIRST ANZRICAN TXTZX INGURANCZ Commont: ARTICLE V COVENANT FOR MAINTENANCE ASSESSMENTS Section 1. Creation of the lion ang Far r nal Obligation for Assessr n . The declarant, for each lot owned within the Properties, hereby covenants, and each Owner of any lot by acceptance of deed thereof, whether or not it shall be so expressed In such deed, is deemed to covenant and agree to pay to the Z;oeiation annual assessments to be established and oolldcled as hereinafter provided. The annual and special assessments, together with interest, Costs, and reasonable attorney fees, shall be charged on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with interest, costs, and reasonable attorney fees, shall also be the personal obligation of the person who was the owner of such property at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in We unless expressly assumed by them. Section 2. Puroose of Asstsments. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents in the Properties and for the improvement and maintenance of the Common Areas, including the Maintenance of Stormwater Facilities. Section 3. Maxirnum Annual Assessment Until December 31, 2008, the maximum annual assessment shall be one hundred dollars ($100.00) per lot. (A) From and after December 31, 2008 the maximum annual assessment may be increased above 5% by a vote of fifty percent (50%) of each class of members who are voting in person or by proxy, at a meeting duly called for this purpose. (B) The Board of Directors may fit the annual assessment at an amount not in excess of the maximum_ Won 4. Soeciat Assessments for Capital Improvernents. In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable th that year only for the purpose of deferring, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Areas, including fixtures and personal property related thereto, provided that any such assessment shall have the consent of fifty percent (50%) of the votes of each class of members who are voting in person or by proxy at a meeting duly called for this purpose. Section 5. Notice and Qugrum for any uthorized Under Section 3 aridA Written notice of any meeting called for the purpose of taking any action under Section 3 and 4 shall be sent to all members no legs than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of members or proxies entitled to cast sixty percent (60%) of all votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the DECUM'nOa OF COVERAH S, COtDMONS& OWNCTM rwrorio GV i aM M;44 an crr r nano Pam 8 of 11 ;I'SA E5TY r+..rt�t«, Description: Thnrston,XA Dactnwnt -DoclD 3908605 Page. 8 of IZ Ordar: FIRST AbOMICAN TITZE INSURANCE Count: ACKNOWLEDGMENT ATTACHED TO and made a part of DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS STATE OF WASHINGTON ) ) ss COUNTY OF THURSTON ) On the day of , before me, a Notary Public in and for the State of Washington, duly Comm` nod �FaHl, , perswatly appeared STEVEN L. CHAMBERLAIN to me known to be the Managing Me ber of LLC of and acknowledged the said instrument to be the free and voluntary act and deed of said Limited Liability Company, for the uses and purposes therein mentioned, and on Math stated that he is authorized to execute the said instrument. WITNESS my hand and official seal the day and year first -above written. N "1 AY PUBLIC State of Washington NANCY A. TRAIL N Pu ICc in r the " l" " 3f ale t �Ington, residirtg in My MLNA7W tF couM C0111W a 8& RMW =s page 11 of 11 ;rJ2 as. s+ c°w'r'a�'t S� ��Y shlnptWw Description: Thurston,WA Doc=ent-DocID 3988605 Page: 11 of 11 Order: FIRST ]► WPLICAN TITLE INSURANCE Count: P, ;o i :strud 1099860 axVoa- �uuc=oa yq'uo4wznw :uoF ;drsoasa nn � uNrr""• �S � a � � � xp o fan* i ii b ° +ranr � � � NIA la r-i fill Ml is _ V, �a A ^ {[ L CL All 1g. Its 1E w b '111 p1b a _ a 3 AI's a 11411,1 1 1941 !1 il h 2 iF 3 b a' Iry I all it ;I; &. I i 11 R lk gill, 9 All V lie rN 9 1 R I I I P. p i. • ��3 l a all i�N!lI�11�l�fif�t�ill�I � r s wr '�" •• � eries:i i- Ly� F# . M # r�w�a �er�rr �sr�r were, bI 4 I \tom � � a # till vai x L{19886r ax--,ca-4ua aq vA'tro:;s=uru :UOT4drzuss[t 1 � NLu 4 2 f -i ii a s C-i = CHI cc Oo 1 ``� p � � �� #� - � � � �� Icy � �tr+��''t � �. � € .�'�•,. l♦ RON j f b f `'-- , , � � C �, ■ .CgiRq � ..,tai 4 �Nr LLI x LLI CO W U) � t l `� `�\ WIMWW� IWwwW � 1X O1111111144i0 820188 t. Mg W z 1 \ le yy y5 yya ■Ran Maya � y i 1 \ y KbP♦fl ].tGOGiQX "�- -- - – – w – – — – – – — 1 Y C �✓f ii9�f14G _ - F M v� 4 r� x a aaawmsxx 27zxz Rvnzmwr zsKzff : spa I PT t O tow .suer ri • Acaut s ssa Arm b/ * .cuku s S 5 lt 14 �" "a "� • lit �f IT Iti I I W M rsw �Clqlj JCV i rr ar f 7�' 1 3vui a tui .xt�xu s �i ~ i Lu 1 N W + =:�i $ . - X14- �LU Mx 4 flaw l .. — — i — — — — — — — _ ._ Form No. 1068 -2 ALTA Plain Language Commitment 1 " Commitment No.: 4291 - 1212588 Page 1 of 9 RrstAmerican rt/e Insurance Company Bell Towne Centre 4200 6th Avenue SE, Suite 201 Lacey, WA 98503 Phn - (360) 491 -2441 Fax - (866) 343 -5409 ESCROW COMPANY INFORMATION: Escrow Officer /Closer: ROBIN JONES robinjones @firstam.com First American Title Insurance Company Bell Towne Centre, 4200 6th Avenue SE, Suite 201, Lacey, WA 98503 Phone: (360) 491 -2441 - Fax: (866) 341 -0145 Title Team (Thurston) Phone No. (360) 491 -2441 Fax No. (866) 343 -5409 Mitch Miller William Tiglao msmiller @firstam.com To: Van Dorm Realty, Inc. 1530 Black Lake Blvd SW, Suite F Olympia, WA 98502 -5613 Attn: Maureen Nieland btiglao @firstam.com File No.: 4291 - 1212588 Re: Property Address: 10756 Palisades Street SE, Yelm, WA 98597 COMMITMENT FOR TITLE INSURANCE Issued by FIRST AMERICAN TITLE INSURANCE COMPANY Agreement to Issue Policy We agree to issue a policy to you according to the terms of this Commitment. When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A. If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy. Our obligation under this Commitment is limited by the following: The Provisions in Schedule A. The Requirements in Schedule B -I. The General Exceptions and Exceptions in Schedule B -II. The Conditions. This Commitment is not valid without Schedule A and Section I and II of Schedule B. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment SCHEDULE A Commitment No.: 4291 - 1212588 Page 2 of 9 1. Commitment Date: April 15, 2008 at 7:30 A.M. 2. Policy or Policies to be issued: AMOUNT PREMIUM TAX Builder's Rate Owner's Standard Coverage To Follow Proposed Insured: Andrew J. Smith and Cynthia M. Smith, husband and wife ALTA Simultaneous Issue Extended Mortgagee's Coverage To Follow Proposed Insured: To Follow 3. (A) The estate or interest in the land described in this Commitment is: A fee simple. (B) Title to said estate or interest at the date hereof is vested in: FH1, LLC, a Washington Limited Liability Company 4. The land referred to in this Commitment is described as follows: Real property in the City of Yelm, County of Thurston, State of Washington, described as follows: LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. APN: 21725130300 (Underlying Tax Account) FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment SCHEDULE B SECTION I REQUIREMENTS Commitment No.: 4291 - 1212588 Page 3 of 9 The following requirements must be met: (A) Pay the agreed amounts for the interest in the land and /or the mortgage to be insured. (B) Pay us the premiums, fees and charges for the policy. (C) Documents satisfactory to us creating the interest in the land and /or the mortgage to be insured must be signed, delivered and recorded: (D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions. (E) Releases(s) or Reconveyance(s) of Item(s): (F) Other: (G) You must give us the following information: 1. Any off record leases, surveys, etc. 2. Statement(s) of Identity, all parties. 3. Other: SCHEDULE B SECTION II GENERAL EXCEPTIONS PART ONE: A. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. B. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. E. (A) Unpatented mining claims; (B) Reservations or exceptions in patents or in Acts authorizing the issuance thereof; (C) Water rights, claims or title to water; whether or not the matters excepted under (A), (B) or (C) are shown by the public records; (D) Indian Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes. F. Any lien, or right to a lien, for services, labor or materials or medical assistance heretofore or hereafter furnished, imposed by law and not shown by the public records. G. Any service, installation, connection, maintenance, construction, tap or reimbursement charges /costs for sewer, water, garbage or electricity. H. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof, but prior to the date the proposed insured acquires of record for value the escrow or interest or mortgage(s) thereon covered by this Commitment. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment SCHEDULE B SECTION II EXCEPTIONS PART TWO: Commitment No.: 4291 - 1212588 Page 4 of 9 Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. The printed exceptions and exclusions from the coverage of the policy or policies are available from the office which issued this Commitment. Copies of the policy forms should be read. Lien of the Real Estate Excise Sales Tax and Surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate for the City of Yelm is at 1.53 %. Levy /Area Code: 170 For all transactions recorded on or after July 1, 2005: • A fee of $10.00 will be charged on all exempt transactions; • A fee of $5.00 will be charged on all taxable transactions in addition to the excise tax due. 2. Taxes which may be assessed and extended on any subsequent roll for the tax year 2008, with respect to new improvements and the first occupancy which may be included on the regular assessment roll and which are an accruing lien not yet due or payable. 3. Deed of Trust and the terms and conditions thereof. Grantor: FH1, LLC, a Washington limited liability company Beneficiary: WF Capital, Inc., a Washington corporation Trustee: Titan Trustee Services, Inc., a Washington corporation Amount: $7,775,000.00 Recorded: October 19, 2006 Recording No(s).: 3874132, 3874133, 3874134, 3874135 (includes other property) 4. Financing Statement Recorded: October 19, 2006 Recording No.: 3874137 Debtor: FH1 Secured Party: WF Capital, Inc., a Washington corporation (includes other property) 5. Terms, conditions, provisions and stipulations of the Operating Agreement of FH1, LLC, a Washington Limited Lability Company. According to said agreement, Steven L. Chamberlain, its managing member thereof. Any amendments to said agreement must be submitted. Any conveyance or encumbrance of the property must be executed by said managing member(s) as provided for therein, subject to said amendments, if any. 6. According to the application for title insurance the proposed seller is to be Triance Group, Inc., a Washington Corporation; however, said entity has no interest of record in the subject premises at this time. Examination of the records discloses no matters pending against said party(ies). FirstAmerican Ttle Form No. 1068 -2 Commitment No.: 4291 - 1212588 ALTA Plain Language Commitment Page 5 of 9 7. Evidence should be submitted prior to closing of the authority of the officers, if other than John L. Johnson, as president of Triance Group, Inc., a Washington Corporation, to execute the forthcoming instrument. 8. Potential lien rights as a result of labor and /or materials used, or to be used, for improvements to the premises. An indemnity agreement to be completed by John L. Johnson, as president of Triance Group, Inc., a Washington Corporation, is being sent to First American Title Insurance Company & Escrow — Lacey and must be submitted to us prior to closing for our review and approval. All other matters regarding extended coverage have been cleared for mortgagee's policy. Items A through E and G and H on Exhibit B herein will be omitted in said extended coverage mortgagee's policy. The coverage contemplated by this paragraph will not be afforded in any forthcoming owner's standard coverage policy to be issued. 9. Easement, including terms and provisions contained therein: Recorded: May 26, 1926 Recording No.: 167013 In Favor of: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and /or distribution system 10. Easement, including terms and provisions contained therein: Recorded: June 18, 1926 Recording No.: 167933 In Favor of: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and /or distribution system 11. Easement, including terms and provisions contained therein: Recorded: November 16, 1988 Recording No.: 8811160071 In Favor of: Puget Sound Power & Light Company, a Washington corporation For: underground electric transmission and /or distribution system 12. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: January 12, 1994 Recording No.: 9401120141 13. Terms, covenants, conditions and restrictions as contained in recorded Lot Line Adjustment (Boundary Line Revisions): No.: BLA -8144 Recorded: May 22, 1995 Recording No.: 9505220008 14. Conditions, notes, easements, provisions and encroachments contained and /or delineated on the face of the survey recorded under Thurston County Recording No. 9505220009. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment Commitment No.: 4291 - 1212588 Page 6 of 9 15. Mitigation Agreement and the terms and conditions thereof: Between: Yelm Community Schools District No. 2 And: FH1, LLC Recorded: October 25, 2006 Recording No.: 3875687 16. Warranty Agreement and the terms and conditions thereof: Between: FH1, LLC And: City of Yelm Recorded: February 12, 2008 Recording No.: 3988602 17. The terms and provisions contained in the document entitled "Residential Agreement to maintain Stormwater Facilities and to implement a Pollution Source Control Plan" Recorded: February 12, 2008 Recording No.: 3988604 18. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: February 12, 2008 Recording No.: 3988605 19. Provisions of the articles of incorporation and by -laws of the Palisades West Homeowners' Association, and any tax, fee, assessments or charges as may be levied by said association. 20. Restrictions, conditions, dedications, notes, easements and provisions, if any, contained and /or delineated on the face of the plat recorded under Thurston County Recording No. 3988607. FirstAmerican Ttle Form No. 1068 -2 Commitment No.: 4291 - 1212588 ALTA Plain Language Commitment Page 7 of 9 INFORMATIONAL NOTES A. According to the application for title insurance, title is to vest in Andrew J. Smith and Cynthia M. Smith, husband and wife. Examination of the records discloses no matters pending against said party(ies). B. General taxes for the year 2008, which have been paid. Tax Account No.: 21725130300 Code Area: 170 Amount: $ 2,042.21 Assessed Land Value: $ 217,200.00 Assessed Improvement Value: $ 0.00 Said amount was for the entire plat of Palisades West consisting of 24 Lots and Tract(s) A through F, inclusive. (Tax Account No(s). for Lot(s) 15 is(are) not yet available) C. The description can be abbreviated as suggested below if necessary to meet standardization requirements. The full text of the description must appear in the document(s) to be insured. LOT 15 PALISADES WEST, REC. NO. 3988607 APN: 21725130300 (Underlying Tax Account) D. Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating to standardization of recorded documents, the following format and content requirements must be met. Failure to comply may result in rejection of the document by the recorder. E. Any sketch attached hereto is done so as a courtesy only and is not part of any title commitment or policy. It is furnished solely for the purpose of assisting in locating the premises and First American expressly disclaims any liability which may result from reliance made upon it. NOTE: A FEE WILL BE CHARGED UPON THE CANCELLATION OF THIS COMMITMENT PURSUANT TO WASHINGTON STATE INSURANCE CODE AND THE FILED RATE SCHEDULE OF THIS COMPANY. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment CONDITIONS Commitment No.: 4291 - 1212588 Page 8 of 9 1. DEFINITIONS (a) "Mortgage" means mortgage, deed of trust or other security instrument. (b) "Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located. 2. LATER DEFECTS The Exceptions in Schedule B - Section II may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section I are met. We shall have no liability to you because of this amendment. 3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing. 4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to: comply with the Requirements shown in Schedule B - Section I or eliminate with our written consent any Exceptions shown in Schedule B - Section II. We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you. 5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms. FirstAmerican Ttle Form No. 1068 -2 ALTA Plain Language Commitment .n PRIVACY POLICY We Are Committed to Safeguarding Customer Information Commitment No.: 4291 - 1212588 Page 9 of 9 FirstAmerican rt/e Insurance Company Bell Towne Centre 4200 6th Avenue SE, Suite 201 Lacey, WA 98503 Phn - (360) 491 -2441 Fax - (866) 343 -5409 In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information — particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fairinformation Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fairinformation Values We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. © 2001 The First American Corporation • All Rights Reserved FirstAmencan Ttle First American Title Company FASTSearch FAST Order: 1212588 FS Order Number: 129485D Product: Basic Search (No Plant) Title Officer: WT County: THURSTON Requesting Site: Tacoma Destination Site: InterTitle_PI3-- FGU /CGT APN: 21725130300 Address: 10756 PALISADES SE City: Yelm State: WA Start Date /Time: September 5, 2008 01:49 PM Finish Date /Time: September 5, 2008 01:50 PM Starters Acquired: Run Status: Run 0: 785129.FS74513267 NONE OF THE FOLLOWING NAME(S) APPEAR ON THE U.S. DEPT. OF THE TREASURY LIST OF SPECIALLY DESIGNATED NATIONALS AND BLOCKED PERSONS. For reference, please consult: https:Hfirstam.net/facentral /reference /underwritin - display.cfm ?casefD=51 Or, visit the US Dept of Treasury webpage: httDS://www.treas.uov/offices/enforcement/ofac/sdn/index.html * * AVAILABLE NO MATCH * * TRIANCE GROUP, INC. NO MATCH * * CYNTHIA M SMITH NO MATCH * * ANDREW J SMITH NO MATCH * * * END COVERPAGE * * * FS Order: 129485D - 1 - FASTSearch FAST Order # 1212588 FirstAmetican TiMeinsurance Cairrpany Defl To%vne Centre 4200 M Avenue SE, Ste 201 La e, WA SB50 First American y Phn - (360)491-23 441 Pax (360)352-7417 ESCROW COMPANY INFORMATION: Escrow Officer/Closer. ROSIN 30NES robinjones0firstarn,corn First American Title Insurance Company Bet] Towne Centre, 4200 6th Avenue SE, Ste 201, Lacey, WA 98503 Phone-. (360)491-2441 - Fax: (360)491-2431 Title Team (Thurston) Phone No. (360) 491-2441 Fax No. (360) 455-5183 Mitch Miller William Tiglao msmiller0firstam.com w9lao0firstam,com To. SLC Development LLC File No.: 4291-785129 4200 6th Avenue #301 Your Ref No.: Lacey, WA 98503 Attn: Re. Property Address, 15026 State Highway 507, Yelm, WA 98597 X01 z [all-ULIVIN �W *A *UIRM � Issued by FIRS T A NER. MA N T1 TL E INSUR 4 NCE COMPA N Y Agreement to Issue Policy We agree to issue a policy to you according to the terms of this Commitment. When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A. If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then out obligation to you will be under the Policy. Our obligation under this Commitment is limited by the following: The Provisions in Schedule A. The Requirements in Schedule B-1. The General Exceptions and Exceptions in Schedule B-11. The Conditions. This Commitment is not valid without Schedule A and Section I and 11 of Schedule B. FS Order: 129485D - I - FASTSearch Doc: 785129.FS74513267.TIF FAST Order# 1212588 SCHEDULEA 1. Commitment Date. March 20, 2006 at 7;30 A.M. 2. Policy or Policies to be issued: AMOUNT PREMIUM TAX Short Term Rate Eagle Protection Owner's Coverage $ To Follow $ 0,00 0,00 Proposed insured-, To Follow 3, (A) The estate or interest in the land described in this Commitment is: A fee simple. (6) Title to said estate or interest at the date hereof is vested in: FH1, LLC, a Washington Limited Liability Company 4. The land referred to in this Commitment is described as follows: Real property in the County of Thurston, State of Washington, described as follows: PARCEL A OF BOUNDARY LINE ADJUSTMENT NO. BLA-8144, AS RECORDED UNDER AUDITOR'S FILE NUMBER 9505220008, IN THURSTON COUNTY, WASHINGTON. APN: 21725130300 FS Order: 129485D - 2 - FASTSearch Doc: 785129.FS74513267.TIF FAST Order# 1212588 SCHEDULE 8 SECTION I REQUIREMENTS The following requirements must be met: (A) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured. (B) Pay us the premiums, fees and charges for the policy. (C) Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered and recorded: (D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions, (E) Releases(s) or Reconveyance(s) of Item(s): ( F) Other: (G) You must give us the following information-. 1, Any off record leases, surveys, etc, 2. Statement(s) of Identity, all parties. 3. Other: SCHEDULE 8 SECTION 11 MA Z I 4'A-11 to *X014'at i[OZ PART ONE: A. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 13- Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. E. (A) Unpatented mining claims; (B) Reservations or exceptions in patents or in Acts authorizing the issuance thereof; (C) Water rights, claims or title to water; whether or not the matters excepted under (A), (B) or (C) are shown by the public records; (D) Indian Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes. F. Any lien, or right to a lien, for services, labor or materials or medical assistance heretofore or hereafter furnished, imposed by law and not shown by the public records. G. Any service, installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity. H. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof, but prior to the date the proposed insured acquires of record for value the escrow or interest or mortgage(s) thereon covered by this Commitment. FS Order: 129485D -3 - FASTSearch Doc: 785129.FS74513267.TIF FAST Order# 1212588 SCHEDULE 8 SECTION 11 WK0445*537T.9 Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. The printed exceptions and exclusions from the coverage of the policy or policies are available from the office which issued this Commitment. Copies of the policy forms should be read. 1. Lien of the Real Estate Excise Sales Tax and Surcharge upon any sate of said premises, if unpaid. As of the date herein, the excise tax rate for the City of Yelm is at 1.53 0/b. Levy/Area Code, 170 For all transactions recorded an or after 3uly 1, 2005: • A fee of $10.00 will be charged on all exempt transactions; • A fee of $5.00 will be charged on all taxable transactions in addition to the excise tax due. General Taxes for the year 2006. The first half becomes delinquent after April 30th. The second half becomes delinquent after October 31st. Tax Account No.: 21725130300 1st Half Amount Billed: 1,180.93 Amount Paid: 0.00 Amount Due'. $ 1,180.93 Assessed Land Value, $ 117,650,00 Assessed Improvement Value. $ 75,400.00 2nd Half Amount Billed: $ 1,180.94 Arnount Paid: 0.00 Amount Due: 1, IM94 Assessed Land Value: $ 117,650.00 Assessed Improvement Value: $ 75,400.00 FS Order: 129485D - 4 - FASTSearch Doc: 785129.FS74513267.TIF FAST Order# 1212588 3. General Taxes on the Mobile Home for the year 2006. The first half becomes delinquent after April 30th. The second half becomes delinquent after October 31st. Mobile Home Tax Account No.: 99900798100 1st Half Amount Billed. 49435 Amount Paid: $ 0.00 Amount Due, $ 494.35, plus interest and penalty, if delinquent 2nd Haff Amount Billed: $ 494.35 Amount Paid: $ 0.00 Amount Due: $ 494.35, plus interest and penalty, if delinquent 4. Deed of Trust and the terms and conditions thereof. Grantor/Trustor., FH1, LLC, a Washington Limited Liability Company Grantee/Beneficiary: James M. Forrester and Patricia Forrester, husband and wife Trustee: First American Title Insurance Company, a Corporation Amount: $600,000x00 Recorded: September 16, 2005 Recording Information: 3768019 5. Deed of Trust and the terms and conditions thereof. Grantor/Trustor: FH1, LLC, a Washington Limited Liability Company Grantee/Beneficiary: Bingo Investments, LLC, a Washington Limited Liability Company Trustee: Michael C. Mainati and Maltman, Reeds Aherns and MaInati, Inc. P.S. Amount: $630,000.00 Recorded: November 14, 2005 Recording Information, 3784293 6. Evidence of the authority of the individual(s) to execute the forthcoming document for FH1, LLC, copies of the current operating agreement should be submitted prior to closirva. 7. Easement, including terms and provisions contained therein: Recorded: Undisclosed Recording Information. 167014 and 167933 In Favor Of: Puget Sound Energy, Inc., a Washington corporation For., Electric transmission and/or distribution system 8. Reservations and exceptions, including the terms and conditions thereof: Reserving: Strip of land 200 feet wide on line of Railroad or any of its branches to be used for right of way Reserved By. N.P.R. Co, Recorded: September 10, 1875 Recording Information: Volume 11, Page 394 FS Order: 129485D -5 - FASTSearch Doc: 785129.FS74513267.TIF FAST Order# 1212588 Conditions, notes, easements, provisions contained and/or delineated on the face of the Survey recorded under Recording No. 8602100015 in Thurston County, Washington. 10. Easement, including terms and provisions contained therein: Recorded: November 16, 1988 Recording Information: 8811160071 In Favor Of: Puget Sound Energy, Inc., a Washington corporation For: Electric transmission and/or distribution system 11. Covenants, conditions, restrictions and/or easements,- but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recording Information, 9401120141 12. Terms, covenants, conditions and restrictions as contained in recorded Lot Line Adjustment (Boundary Line Revisions): Recorded: May 22, 1995 Recording Informaton: 9505220008 13. Unrecorded leaseholds, if any, rights of vendors and security agreement on personal property and rights of tenants, and secured parties to remove trade fixtures at the expiration of the term. FS Order: 129485D - 6 - FASTSearch Doc: 785129.FS74513267.TIF FAST Order# 1212588 A. Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating to standardization of recorded documents, the following format and content requirements must be met. Failure to comply may result in rejection of the document by the recorder. a. Any sketch attached hereto is done so as a courtesy only and is not part of any title commitment or policy. It is furnished solely for the purpose of assisting in locating the premises and First American expressly disclaims any liability which may result from reliance made upon it. C. The description can be abbreviated as suggested below if necessary to meet standardization requirements. The full text of the description must appear in the document(s) to be insured. PARCEL A, BI-A-8144, REC. 950522000 A• N: 21725130300 1 D. The following deeds affecting the property herein described have been recorded within 24 months of the effective date of this commitment: 3768018 E Manufactured Home Title Elimination Application recorded under Recording No. 3025151, which recites that a manufactured (mobile) home is, or is being, affixed to said premises. F. All matters regarding extended coverage have been cleared for mortgagee's policy. The coverage contemplated by this paragraph will not be afforded in any forthcoming owner's standard coverage policy to be issued, Property Address: 15026 State Highway 507, Yelm, WA 98597 FS Order: 129485D - 7 - FASTSearch Doc: 785129.FS74513267.TIF FAST Order# 1212588 CONDITIONS 1. DEFINITIONS (a)" Mortgage" means mortgage, deed of trust or other security instrument. (b)"Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located. 2. LATER DEFECTS The Exceptions in Schedule B - Section 11 may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule 6 - Section I are met. We shall have no liability to you because of this amendment. 3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule 13, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing. 4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to: comply with the Requirements shown in Schedule 8 - Section I or eliminate with our written consent any Exceptions shown in Schedule B - Section II. We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you. S. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms. FS Order: 129485D - 8 - FASTSearch Doc: 785129.FS74513267.TIF FAST Order# 1212588 First American PRIVACY POLICY We Are Committed to Safeguarding Customer Information Ftrs�tAmermap rMle Insurance Con7pany Bell Towne Ceritte! 4200 61h Avenue SE, Ste 201 Lacey, WA 98503 Phn - (360)491-2441 Fax - (360)352-7417 in order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information, We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another pemon or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Informallof? Values, a copy of which can be found on our website at www.firstam,com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect inducle; Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency, Use of Information We. request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will riot release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our aff Mated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements, former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's ARXr Informatlan Value--, We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. ' 2001 The First Anierican Corporation - Aft Rights Reserved FS Order: 129485D - 9 - FASTSearch Doc: 785129.FS74513267.TIF FAST Order# 1212588 FirstAmerican Title Insurance Company Bell Towne Centre 4200 6th Avenue SE, Ste 201 { First American Phn - ( 60)49102441 ®4 x Fax - (360)352 -7417 ESCROW COMPANY INFORMATION: Escrow Officer /Closer: ROBIN JONES robinjones @firstam.com First American Title Insurance Company Bell Towne Centre, 4200 6th Avenue SE, Ste 201, Lacey, WA 98503 Phone: (360)491- 2441 - Fax: (360)491 -2431 Title Team (Thurston) Phone No. (360) 491 -2441 Fax No. (360) 455 -5183 Mitch Miller William Tiglao msmiller @firstam.com To: SLC Development LLC 4200 6th Avenue #301 Lacey, WA 98503 Attn: btiglao @firstam.com File No.: 4291 - 785129 Your Ref No.: Re: Property Address: 15026 State Highway 507, Yelm, WA 98597 COMMITMENT FOR TITLE INSURANCE Issued by FIRSTAMERICAN TITLE INSURANCE COMPANY Agreement to Issue Policy We agree to issue a policy to you according to the terms of this Commitment. When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A. If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy. Our obligation under this Commitment is limited by the following: The Provisions in Schedule A. The Requirements in Schedule B -I. The General Exceptions and Exceptions in Schedule B -II. The Conditions. This Commitment is not valid without Schedule A and Section I and II of Schedule B. SCHEDULE A 1. Commitment Date: March 20, 2006 at 7:30 A.M. 2. Policy or Policies to be issued: AMOUNT PREMIUM TAX Short Term Rate Eagle Protection Owner's Coverage $ To Follow $ 0.00 $ 0.00 Proposed Insured: To Follow 3. (A) The estate or interest in the land described in this Commitment is: A fee simple. (B) Title to said estate or interest at the date hereof is vested in: FH1, LLC, a Washington Limited Liability Company 4. The land referred to in this Commitment is described as follows: Real property in the County of Thurston, State of Washington, described as follows: PARCEL A OF BOUNDARY LINE ADJUSTMENT NO. BLA -8144, AS RECORDED UNDER AUDITOR'S FILE NUMBER 9505220008, IN THURSTON COUNTY, WASHINGTON. APN: 21725130300 SCHEDULE B SECTION I REQUIREMENTS The following requirements must be met: (A) Pay the agreed amounts for the interest in the land and /or the mortgage to be insured. (B) Pay us the premiums, fees and charges for the policy. (C) Documents satisfactory to us creating the interest in the land and /or the mortgage to be insured must be signed, delivered and recorded: (D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions. (E) Releases(s) or Reconveyance(s) of Item(s): (F) Other: (G) You must give us the following information: 1. Any off record leases, surveys, etc. 2. Statement(s) of Identity, all parties. 3. Other: SCHEDULE B SECTION II GENERAL EXCEPTIONS PART ONE: A. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. B. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. E. (A) Unpatented mining claims; (B) Reservations or exceptions in patents or in Acts authorizing the issuance thereof; (C) Water rights, claims or title to water; whether or not the matters excepted under (A), (B) or (C) are shown by the public records; (D) Indian Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes. F. Any lien, or right to a lien, for services, labor or materials or medical assistance heretofore or hereafter furnished, imposed by law and not shown by the public records. G. Any service, installation, connection, maintenance, construction, tap or reimbursement charges /costs for sewer, water, garbage or electricity. H. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof, but prior to the date the proposed insured acquires of record for value the escrow or interest or mortgage(s) thereon covered by this Commitment. SCHEDULE B SECTION II EXCEPTIONS PART TWO: Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. The printed exceptions and exclusions from the coverage of the policy or policies are available from the office which issued this Commitment. Copies of the policy forms should be read. 1. Lien of the Real Estate Excise Sales Tax and Surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate for the City of Yelm is at 1.53 %. Levy /Area Code: 170 For all transactions recorded on or after July 1, 2005: • A fee of $10.00 will be charged on all exempt transactions; • A fee of $5.00 will be charged on all taxable transactions in addition to the excise tax due. 2. General Taxes for the year 2006. The first half becomes delinquent after April 30th. The second half becomes delinquent after October 31st. Tax Account No.: 21725130300 1st Half Amount Billed: $ 1,180.93 Amount Paid: $ 0.00 Amount Due: $ 1,180.93 Assessed Land Value: $ 117,650.00 Assessed Improvement Value: $ 75,400.00 2nd Half Amount Billed: $ 1,180.94 Amount Paid: $ 0.00 Amount Due: $ 1,180.94 Assessed Land Value: $ 117,650.00 Assessed Improvement Value: $ 75,400.00 3. General Taxes on the Mobile Home for the year 2006. The first half becomes delinquent after April 30th. The second half becomes delinquent after October 31st. Mobile Home Tax Account No.: 99900798100 1st Half Amount Billed: $ 494.35 Amount Paid: $ 0.00 Amount Due: $ 494.35, plus interest and penalty, if delinquent 2nd Half Amount Billed: $ 494.35 Amount Paid: $ 0.00 Amount Due: $ 494.35, plus interest and penalty, if delinquent 4. Deed of Trust and the t Grantor /Trustor: Grantee /Beneficiary: Trustee: Amount: Recorded: Recording Information: erms and conditions thereof. FH1, LLC, a Washington Limited Liability Company James M. Forrester and Patricia Forrester, husband and wife First American Title Insurance Company, a Corporation $600,000.00 September 16, 2005 3768019 5. Deed of Trust and the terms and conditions thereof. Grantor /Trustor: FH1, LLC, a Washington Limited Liability Company Grantee /Beneficiary: Bingo Investments, LLC, a Washington Limited Liability Company Trustee: Michael C. Malnati and Maltman, Reed, Aherns and Malnati, Inc. P.S. Amount: $630,000.00 Recorded: November 14, 2005 Recording Information: 3784293 6. Evidence of the authority of the individual(s) to execute the forthcoming document for FH1, LLC, copies of the current operating agreement should be submitted prior to closing. 7. Easement, including terms and provisions contained therein: Recorded: Undisclosed Recording Information: 167014 and 167933 In Favor Of: Puget Sound Energy, Inc., a Washington corporation For: Electric transmission and /or distribution system 8. Reservations and exceptions, including the terms and conditions thereof: Reserving: Strip of land 200 feet wide on line of Railroad or any of its branches to be used for right of way Reserved By: N.P.R. Co. Recorded: September 10, 1875 Recording Information: Volume 11, Page 394 Conditions, notes, easements, provisions contained and /or delineated on the face of the Survey recorded under Recording No. 8602100015 in Thurston County, Washington. 10. Easement, including terms and provisions contained therein: Recorded: November 16, 1988 Recording Information: 8811160071 In Favor Of: Puget Sound Energy, Inc., a Washington corporation For: Electric transmission and /or distribution system 11. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recording Information: 9401120141 12. Terms, covenants, conditions and restrictions as contained in recorded Lot Line Adjustment (Boundary Line Revisions): Recorded: May 22, 1995 Recording Informaton: 9505220008 13. Unrecorded leaseholds, if any, rights of vendors and security agreement on personal property and rights of tenants, and secured parties to remove trade fixtures at the expiration of the term. INFORMATIONAL NOTES A. Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating to standardization of recorded documents, the following format and content requirements must be met. Failure to comply may result in rejection of the document by the recorder. B. Any sketch attached hereto is done so as a courtesy only and is not part of any title commitment or policy. It is furnished solely for the purpose of assisting in locating the premises and First American expressly disclaims any liability which may result from reliance made upon it. C. The description can be abbreviated as suggested below if necessary to meet standardization requirements. The full text of the description must appear in the document(s) to be insured. PARCEL A, BLA -8144, REC. 9505220008. APN: 21725130300 D. The following deeds affecting the property herein described have been recorded within 24 months of the effective date of this commitment: 3768018 E. Manufactured Home Title Elimination Application recorded under Recording No. 3025151, which recites that a manufactured (mobile) home is, or is being, affixed to said premises. F. All matters regarding extended coverage have been cleared for mortgagee's policy. The coverage contemplated by this paragraph will not be afforded in any forthcoming owner's standard coverage policy to be issued. Property Address: 15026 State Highway 507, Yelm, WA 98597 CONDITIONS 1. DEFINITIONS (a) "Mortgage" means mortgage, deed of trust or other security instrument. (b) "Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located. 2. LATER DEFECTS The Exceptions in Schedule B - Section II may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section I are met. We shall have no liability to you because of this amendment. 3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing. 4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to: comply with the Requirements shown in Schedule B - Section I or eliminate with our written consent any Exceptions shown in Schedule B - Section II. We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you. 5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms. .f +� k First American PRIVACY POLICY We Are Committed to Safeguarding Customer Information FirstAmerican Title Insurance Company Bell Towne Centre 4200 6th Avenue SE, Ste 201 Lacey, WA 98503 Phn - (360)491 -2441 Fax - (360)352 -7417 In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information — particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fairinformation Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. © 2001 The First American Corporation • All Rights Reserved First American Title Company FASTSearch FAST Order: 1212588 FS Order Number: 137877D Product: Basic Search (No Plant) Title Officer: WT County: THURSTON Requesting Site: Tacoma Destination Site: InterTitle_PI3-- FGU /CGT APN: 67110001500 Address: 10756 PALISADES SE City: Yelm State: WA Start Date /Time: September 30, 2008 11:10 AM Finish Date /Time: September 30, 2008 11:10 AM No starters identified. NONE OF THE FOLLOWING NAME(S) APPEAR ON THE U.S. DEPT. OF THE TREASURY LIST OF SPECIALLY DESIGNATED NATIONALS AND BLOCKED PERSONS. For reference, please consult: https:Hfirstam.net/facentral /reference /underwritin - display.cfm ?casefD=51 Or, visit the US Dept of Treasury webpage: httDS://www.treas.uov/offices/enforcement/ofac/sdn/index.html * * FH 1, LLC NO MATCH * * CYNTHIA M SMITH NO MATCH * * ANDREW J SMITH NO MATCH * * * END COVERPAGE * * * FS Order: 137877D - 1 - FASTSearch FAST Order # 1212588 First American Title Company FASTSearch FAST Order: 1212588 FS Order Number: 138554D Product: Basic Search (No Plant) Title Officer: WT County: THURSTON Requesting Site: Tacoma Destination Site: InterTitle_PI3-- FGU /CGT APN: 67110001500 Address: 10756 PALISADES SE City: Yelm State: WA Start Date /Time: October 1, 2008 01:04 PM Finish Date /Time: October 1, 2008 01:05 PM No starters identified. NONE OF THE FOLLOWING NAME(S) APPEAR ON THE U.S. DEPT. OF THE TREASURY LIST OF SPECIALLY DESIGNATED NATIONALS AND BLOCKED PERSONS. For reference, please consult: https:Hfirstam.net/facentral /reference /underwritin - display.cfm ?casefD=51 Or, visit the US Dept of Treasury webpage: httDS://www.treas.uov/offices/enforcement/ofac/sdn/index.html * * FH 1, LLC NO MATCH * * CYNTHIA M SMITH NO MATCH * * ANDREW J SMITH NO MATCH * * * END COVERPAGE * * * FS Order: 138554D - 1 - FASTSearch FAST Order # 1212588 Form No. 1056.06 ^MFR , Policy Page 1 ALTA Loan Policy (6- 17 -06) '� Policy Number: 1212588 1100301PO50600 LOAN POLICY OF TITLE INSURANCE ISSUED BY First American Title Insurance Company Any notice of claim and any other notice or statement in writing re the Company at the address shown in Section 17 of the Conditions. quired to be given to the Company under this policy must be given to COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation (the "Company") insures as of Date of Policy and, to the extent stated in Covered Risks 11, 13, and 14, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: 1. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired, or otherwise invalid power of attorney; (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii) a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. 3. Unmarketable Title. 4. No right of access to and from the Land. 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or location of any improvement erected on the Land; (c) the subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. 9. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. This Covered Risk includes but is not limited to insurance against loss from any of the following impairing the lien of the Insured Mortgage (a) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (b) failure of any person or Entity to have authorized a transfer or conveyance; (c) the Insured Mortgage not being properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (d) failure to perform those acts necessary to create a document by electronic means authorized by law; (e) a document executed under a falsified, expired, or otherwise invalid power of attorney; (f) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (g) a defective judicial or administrative proceeding. 10. The lack of priority of the lien of the Insured Mortgage upon the Title over any other lien or encumbrance. 11. The lack of priority of the lien of the Insured Mortgage upon the Title (a) as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for services, labor, or material arising from construction of an improvement or work related to the Land when the improvement or work is either (i) contracted for or commenced on or before Date of Policy; or (ii) contracted for, commenced, or continued after Date of Policy if the construction is financed, in whole or in part, by proceeds of the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on Date of Policy to advance; and (b) over the lien of any assessments for street improvements under construction or completed at Date of Policy. 12. The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all liens. 13. The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title (a) resulting from the avoidance in whole or in part, or from a court order providing an alternative remedy, of any transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction creating the lien of the Insured Mortgage because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws; or (b) because the Insured Mortgage constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws by reason of the failure of its recording in the Public Records (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. 14. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 13 that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the Insured Mortgage in the Public Records. The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this policy, but only to the extent provided in the Conditions. First American 7711e Insurance Company ATTEST A� V / SECRETARY Form No. 1056.06 ALTA Loan Policy (6- 17 -06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant, (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing- business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth - in- lending law. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). CONDITIONS 1. DEFINITION OF TERMS The following terms when used in this policy mean: (a) "Amount of Insurance ": The amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by Section 8(b) or decreased by Section 10 of these Conditions. (b) "Date of Policy ": The date designated as "Date of Policy" in Schedule A. (c) "Entity ": A corporation, partnership, trust, limited liability company, or other similar legal entity. (d) "Indebtedness ": The obligation secured by the Insured Mortgage including one evidenced by electronic means authorized by law, and if that obligation is the payment of a debt, the Indebtedness is the sum of (i) the amount of the principal disbursed as of Date of Policy; (ii) the amount of the principal disbursed subsequent to Date of Policy; (iii) the construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the Land or related to the Land that the Insured was and continued to be obligated to advance at Date of Policy and at the date of the advance; (iv) interest on the loan; (v) the prepayment premiums, exit fees, and other similar fees or penalties allowed by law; (vi) the expenses of foreclosure and any other costs of enforcement, (vii) the amounts advanced to assure compliance with laws or to protect the lien or the priority of the lien of the Insured Mortgage before the acquisition of the estate or interest in the Title; Policy Page 2 Policy Number: 1212588 (viii)the amounts to pay taxes and insurance; and (ix) the reasonable amounts expended to prevent deterioration of improvements; but the Indebtedness is reduced by the total of all payments and by any amount forgiven by an Insured. (e) "Insured ": The Insured named in Schedule A. (i) The term "Insured" also includes (A) the owner of the Indebtedness and each successor in ownership of the Indebtedness, whether the owner or successor owns the Indebtedness for its own account or as a trustee or other fiduciary, except a successor who is an obligor under the provisions of Section 12(c) of these Conditions; (B) the person or Entity who has "control" of the "transferable record," if the Indebtedness is evidenced by a "transferable record," as these terms are defined by applicable electronic transactions law; (C) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization; (D) successors to an Insured by its conversion to another kind of Entity; (E) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title (1) if the stock, shares, memberships, or other equity interests of the grantee are wholly -owned by the named Insured, (2) if the grantee wholly owns the named Insured, or (3) if the grantee is wholly -owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly -owned by the same person or Entity; (F) any government agency or instrumentality that is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the Indebtedness secured by the Insured Mortgage, or any part of it, whether named as an Insured or not, (ii) With regard to (A), (B), (C), (D) , and (E) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured, unless the successor acquired the Indebtedness as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, or other matter insured against by this policy. (f) "Insured Claimant ": An Insured claiming loss or damage. (g) "Insured Mortgage ": The Mortgage described in paragraph 4 of Schedule A. (h) "Knowledge" or "Known ": Actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title. (i) "Land ": The land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land" does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. 0) "Mortgage ": Mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law. (k) "Public Records ": Records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge. With respect to Covered Risk 5(d), "Public Records" shall also include environmental protection liens filed in the records of the clerk of the United States District Court for the district where the Land is located. (1) "Title ": The estate or interest described in Schedule A. (m) "Unmarketable Title ": Title affected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title or a prospective purchaser of the Insured Mortgage to be released from the obligation to purchase, lease, or lend if there is a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not continue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. First American Title Insurance Company Form No. 1056.06 ALTA Loan Policy (6- 17 -06) 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured of any claim of title or interest that is adverse to the Title or the lien of the Insured Mortgage, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if the Title or the lien of the Insured Mortgage, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. 4. PROOF OF LOSS In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance, or other matter insured against by this policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. 5. DEFENSE AND PROSECUTION OF ACTIONS (a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleging matters insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs, or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. (b) The Company shall have the right, in addition to the options contained in Section 7 of these Conditions, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title or the lien of the Insured Mortgage, as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. If the Company exercises its rights under this subsection, it must do so diligently. (c) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction, and it expressly reserves the right, in its sole discretion, to appeal any adverse judgment or order. 6. DUTY OF INSURED CLAIMANT TO COOPERATE (a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the name of the Insured for this purpose. Whenever requested by the Company, the Insured, at the Company's expense, shall give the Company all reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the Title, the lien of the Insured Mortgage, or any other matter as insured. If the Company is prejudiced by the failure of the Insured to furnish the required cooperation, the Company's obligations to the Insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. (b) The Company may reasonably require the Insured Claimant to submit to examination under oath by any authorized representative of the Company and to produce for examination, inspection, and copying, at such reasonable times and places as may be designated by the authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, e- mails, disks, tapes, and videos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect, and copy all of these records in the custody or control of a third party that reasonably pertain to the loss or damage. Policy Page 3 Policy Number: 1212588 All information designated as confidential by the Insured Claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, produce any reasonably requested information, or grant permission to secure reasonably necessary information from third parties as required in this subsection, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) To pay or tender payment of the Amount of Insurance under this policy together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (ii) To purchase the Indebtedness for the amount of the Indebtedness on the date of purchase, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of purchase and that the Company is obligated to pay. When the Company purchases the Indebtedness, the Insured shall transfer, assign, and convey to the Company the Indebtedness and the Insured Mortgage, together with any collateral security. Upon the exercise by the Company of either of the options provided for in subsections (a)(i) or (ii), all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in those subsections, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) to pay or otherwise settle with the Insured Claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. S. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the least of (i) the Amount of Insurance, (ii) the Indebtedness, (iii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy, or (iv) if a government agency or instrumentality is the Insured Claimant, the amount it paid in the acquisition of the Title or the Insured Mortgage in satisfaction of its insurance contract or guaranty. (b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title or the lien of the Insured Mortgage, as insured, (i) the Amount of Insurance shall be increased by 10 %, and (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. (c) In the event the Insured has acquired the Title in the manner described in Section 2 of these Conditions or has conveyed the Title, then the extent of liability of the Company shall continue as set forth in Section 8(a) of these Conditions. First American Title Insurance Company Form No. 1056.06 ALTA Loan Policy (6- 17 -06) (d) In addition to the extent of liability under (a), (b), and (c), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions. 9. LIMITATION OF LIABILITY (a) If the Company establishes the Title, or removes the alleged defect, lien, or encumbrance, or cures the lack of a right of access to or from the Land, or cures the claim of Unmarketable Title, or establishes the lien of the Insured Mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals, adverse to the Title or to the lien of the Insured Mortgage, as insured. (c) The Company shall not be liable for loss or damage to the Insured for liability voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy, except payments made for costs, attorneys' fees, and expenses, shall reduce the Amount of Insurance by the amount of the payment. However, any payments made prior to the acquisition of Title as provided in Section 2 of these Conditions shall not reduce the Amount of Insurance afforded under this policy except to the extent that the payments reduce the Indebtedness. (b) The voluntary satisfaction or release of the Insured Mortgage shall terminate all liability of the Company except as provided in Section 2 of these Conditions. 11. PAYMENT OF LOSS When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions, the payment shall be made within 30 days. 12. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT (a) The Company's Right to Recover Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title or Insured Mortgage and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company. If requested by the Company, the Insured Claimant shall execute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit the Company to sue, compromise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. (b) The Insured's Rights and Limitations (i) The owner of the Indebtedness may release or substitute the personal liability of any debtor or guarantor, extend or otherwise modify the terms of payment, release a portion of the Title from the lien of the Insured Mortgage, or release any collateral security for the Indebtedness, if it does not affect the enforceability or priority of the lien of the Insured Mortgage. (ii) If the Insured exercises a right provided in (b)(i), but has Knowledge of any claim adverse to the Title or the lien of the Insured Mortgage insured against by this policy, the Company shall be required to pay only that part of any losses insured against by this policy that shall exceed the amount, if any, lost to the Company by reason of the impairment by the Insured Claimant of the Company's right of subrogation. (c) The Company's Rights Against Noninsured Obligors The Company's right of subrogation includes the Insured's rights against noninsured obligors including the rights of the Insured to indemnities, Policy Page 4 Policy Number: 1212588 guaranties, other policies of insurance, or bonds, notwithstanding any terms or conditions contained in those instruments that address subrogation rights. The Company's right of subrogation shall not be avoided by acquisition of the Insured Mortgage by an obligor (except an obligor described in Section 1(e)(i)(F) of these Conditions) who acquires the Insured Mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond, and the obligor will not be an Insured under this policy. 13. ARBITRATION Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association (' Rules'). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured. All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction. 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached to it by the Company is the entire policy and contract between the Insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises out of the status of the Title or lien of the Insured Mortgage or by any action asserting such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A of this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. 15. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 16. CHOICE OF LAW; FORUM (a) Choice of Law: The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged therefor in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of title insurance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title or the lien of the Insured Mortgage that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction. 17. NOTICES, WHERE SENT Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at 1 First American Way, Santa Ana, CA 92707, Attn: Claims Department. POLICY OF TITLE INSURANCE i First American Title Insurance Company Form No. 1056.06 ALTA Loan Policy (6- 17 -06) SCHEDULE A First American Title Insurance Company Name and Address of Title Insurance Company: First American Title Insurance Company Bell Towne Centre, 4200 6th Avenue SE, Ste 201 Lacey, WA 98503 File No.: 4291 - 1212588 -B Policy No.: 1212588 Loan No.: 0000430298 Address Reference: 10756 Palisades Street SE, Yelm, WA 98597 Amount of Insurance: $371,950.00 Premium: $491.00 Date of Policy: October 09, 2008 at 2:45 p.m. 1. Name of Insured: Policy Page 5 Policy Number: 1212588 Homestreet Bank, a Washington State chartered savings bank, its successors and assigns, as their interests may appear, as defined in the paragraph entitled "Definitions of Terms" contained in this Policy. 2. The estate or interest in the Land that is encumbered by the Insured Mortgage is: Fee Simple 3. Title is vested in: Andrew J. Smith and Cynthia M. Smith, husband and wife 4. The Insured Mortgage, and its assignments, if any, are described as follows: Deed of Trust /Mortgage: Grantor/Trustor: Andrew J. Smith and Cynthia Smith, husband and wife Trustee: First American Title Co. of Thurston County, a California Corp. Grantee /Beneficiary: Homestreet Bank, a Washington State chartered savings bank Original Amount: $371,950.00 Dated: October 02, 2008 Recorded: October 09, 2008 Recording No.: 4039765 Said instrument is a re- record of recording no(s). 4039621 5. The Land referred to in this policy is described as follows: Real property in the City of Yelm, County of Thurston, State of Washington, described as follows: LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. APN:67110001500 First American Title Insurance Company Form No. 1056.06 Policy Page 6 ALTA Loan Policy (6- 17 -06) Policy Number: 1212588 6. This policy incorporates by reference those ALTA endorsements selected below: ] 4 -06 (Condominium) ] 4.1 -06 X ] 5 -06 (Planned Unit Development) ] 5.1 -06 ] 6 -06 (Variable Rate) ] 6.2 -06 (Variable Rate -- Negative Amortization) X ] 8.1 -06 (Environmental Protection Lien) Paragraph b refers to the following state statute(s): R.C.W. 70.121.140 X ] 9 -06 (Restrictions, Encroachments, Minerals) ] 13.1 -06 (Leasehold Loan) ] 14 -06 (Future Advance - Priority) ] 14.1 -06 (Future Advance - Knowledge) ] 14.3 -06 (Future Advance - Reverse Mortgage) X ] 22 -06 (Location) The type of improvement is a Single Family Residence, and the street address is shown above. First American Title Insurance Company Form No. 1056.06 ALTA Loan Policy (6- 17 -06) File No.: 4291 - 1212588 -B SCHEDULE B Policy No.: 1212588 EXCEPTIONS FROM COVERAGE PART I Policy Page 7 Policy Number: 1212588 This Policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees, or expenses that arise by reason of: 1. Taxes which may be assessed and extended on any subsequent roll for the tax year 2008, with respect to new improvements and the first occupancy which may be included on the regular assessment roll and which are an accruing lien not yet due or payable. 2. Easement, including terms and provisions contained therein: Recorded: May 26, 1926 Recording No.: 167013 In Favor of: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and /or distribution system 3. Easement, including terms and provisions contained therein: Recorded: June 18, 1926 Recording No.: 167933 In Favor of: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and /or distribution system 4. Easement, including terms and provisions contained therein: Recorded: November 16, 1988 Recording No.: 8811160071 In Favor of: Puget Sound Power & Light Company, a Washington corporation For: underground electric transmission and /or distribution system 5. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: January 12, 1994 Recording No.: 9401120141 6. Terms, covenants, conditions and restrictions as contained in recorded Lot Line Adjustment (Boundary Line Revisions): No.: BLA -8144 Recorded: May 22, 1995 Recording No.: 9505220008 First American Title Insurance Company Form No. 1056.06 Policy Page 8 ALTA Loan Policy (6- 17 -06) Policy Number: 1212588 7. Conditions, notes, easements, provisions and encroachments contained and /or delineated on the face of the survey recorded under Thurston County Recording No. 9505220009. 8. Mitigation Agreement and the terms and conditions thereof: Between: Yelm Community Schools District No. 2 And: FH1, LLC Recorded: October 25, 2006 Recording No.: 3875687 9. Warranty Agreement and the terms and conditions thereof: Between: FH1, LLC And: City of Yelm Recorded: February 12, 2008 Recording No.: 3988602 10. The terms and provisions contained in the document entitled "Residential Agreement to maintain Stormwater Facilities and to implement a Pollution Source Control Plan" Recorded: February 12, 2008 Recording No.: 3988604 11. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: February 12, 2008 Recording No.: 3988605 12. Provisions of the articles of incorporation and by -laws of the Palisades West Homeowners' Association, and any tax, fee, assessments or charges as may be levied by said association. 13. Restrictions, conditions, dedications, notes, easements and provisions, if any, contained and /or delineated on the face of the plat recorded under Thurston County Recording No. 3988607. First American Title Insurance Company Form No. 1056.06 ALTA Loan Policy (6- 17 -06) File No.: 4291 - 1212588 -B SCHEDULE B PART II Policy No.: 1212588 Policy Page 9 Policy Number: 1212588 In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage: None First American Title Insurance Company el t4 L __,Z: Y } M1L}' / C'lY4'.i ry .,.v i. vr. ,., ��� .. t ., •. }. Form No. 1402.06 ^ . E R , Policy Page 1 ALTA Owner's Policy (6- 17 -06) '� Policy Number: 1212588 1100302PO50600 OWNER'S POLICY OF TITLE INSURANCE ISSUED BY First American Title Insurance Company Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at the address shown in Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation (the "Company's insures, as of Date of Policy and, to the extent stated in Covered Risks 9 and 10, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: 1. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired, or otherwise invalid power of attorney; (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii) a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. 3. Unmarketable Title. 4. No right of access to and from the Land. 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or location of any improvement erected on the Land; (c) the subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. 9. Title being vested other than as stated in Schedule A or being defective (a) as a result of the avoidance in whole or in part, or from a court order providing an alternative remedy, of a transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws; or (b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws by reason of the failure of its recording in the Public Records (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. 10. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this policy, but only to the extent provided in the Conditions. First American Title Insu�r�a/nJc/e� CompLww By gTfESr SECRETgRr Form No. 1402.06 ALTA Owner's Policy (6- 17 -06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant, (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risks 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. CONDITIONS 1. DEFINITION OF TERMS The following terms when used in this policy mean: (a) "Amount of Insurance ": The amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by Section 8(b), or decreased by Sections 10 and 11 of these Conditions. (b) "Date of Policy ": The date designated as "Date of Policy" in Schedule A. (c) "Entity ": A corporation, partnership, trust, limited liability company, or other similar legal entity. (d) "Insured ": The Insured named in Schedule A. (i) The term "Insured" also includes (A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs, devisees, survivors, personal representatives, or next of kin; (B) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization; (C) successors to an Insured by its conversion to another kind of Entity; (D) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title (1) if the stock, shares, memberships, or other equity interests of the grantee are wholly -owned by the named Insured, (2) if the grantee wholly owns the named Insured, (3) if the grantee is wholly -owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly -owned by the same person or Entity, or (4) if the grantee is a trustee or beneficiary of a trust created by a written instrument established by the Insured named in Schedule A for estate planning purposes. Policy Page 2 Policy Number: 1212588 (ii) With regard to (A), (B), (C), and (D) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured. (e) "Insured Claimant ": An Insured claiming loss or damage. (f) "Knowledge" or "Known ": Actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title. (g) "Land ": The land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land" does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. (h) "Mortgage ": Mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law. (i) "Public Records ": Records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge. With respect to Covered Risk 5(d), "Public Records" shall also include environmental protection liens filed in the records of the clerk of the United States District Court for the district where the Land is located. (j) "Title ": The estate or interest described in Schedule A. (k) "Unmarketable Title ": Title affected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title to be released from the obligation to purchase, lease, or lend if there is a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not continue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured hereunder of any claim of title or interest that is adverse to the Title, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if the Title, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. 4. PROOF OF LOSS In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance, or other matter insured against by this policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. 5. DEFENSE AND PROSECUTION OF ACTIONS (a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleging matters insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs, or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. (b) The Company shall have the right, in addition to the options contained in First American Title Insurance Company Form No. 1402.06 ALTA Owner's Policy (6- 17 -06) Section 7 of these Conditions, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title, as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. If the Company exercises its rights under this subsection, it must do so diligently. (c) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction, and it expressly reserves the right, in its sole discretion, to appeal any adverse judgment or order. 6. DUTY OF INSURED CLAIMANT TO COOPERATE (a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the name of the Insured for this purpose. Whenever requested by the Company, the Insured, at the Company's expense, shall give the Company all reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the Title or any other matter as insured. If the Company is prejudiced by the failure of the Insured to furnish the required cooperation, the Company's obligations to the Insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. (b) The Company may reasonably require the Insured Claimant to submit to examination under oath by any authorized representative of the Company and to produce for examination, inspection, and copying, at such reasonable times and places as may be designated by the authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, e- mails, disks, tapes, and videos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect, and copy all of these records in the custody or control of a third party that reasonably pertain to the loss or damage. All information designated as confidential by the Insured Claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, produce any reasonably requested information, or grant permission to secure reasonably necessary information from third parties as required in this subsection, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Insurance under this policy together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) To pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) To pay or otherwise settle with the Insured Claimant the loss or damage provided for under this policy, together with any costs, Policy Page 3 Policy Number: 1212588 attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. S. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the lesser of (i) the Amount of Insurance; or (ii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy. (b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title, as insured, (i) the Amount of Insurance shall be increased by 10 %, and (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. (c) In addition to the extent of liability under (a) and (b), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions. 9. LIMITATION OF LIABILITY (a) If the Company establishes the Title, or removes the alleged defect, lien, or encumbrance, or cures the lack of a right of access to or from the Land, or cures the claim of Unmarketable Title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals, adverse to the Title, as insured. (c) The Company shall not be liable for loss or damage to the Insured for liability voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY All payments under this policy, except payments made for costs, attorneys' fees, and expenses, shall reduce the Amount of Insurance by the amount of the payment. 11. LIABILITY NONCUMULATIVE The Amount of Insurance shall be reduced by any amount the Company pays under any policy insuring a Mortgage to which exception is taken in Schedule B or to which the Insured has agreed, assumed, or taken subject, or which is executed by an Insured after Date of Policy and which is a charge or lien on the Title, and the amount so paid shall be deemed a payment to the Insured under this policy. 12. PAYMENT OF LOSS When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions, the payment shall be made within 30 days. 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT (a) Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company. If requested by the Company, the Insured Claimant shall execute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit the Company to sue, compromise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. First American Title Insurance Company Form No. 1402.06 ALTA Owner's Policy (6- 17 -06) (b) The Company's right of subrogation includes the rights of the Insured to indemnities, guaranties, other policies of insurance, or bonds, notwithstanding any terms or conditions contained in those instruments that address subrogation rights. 14. ARBITRATION Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association (' Rules'). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured. All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached to it by the Company is the entire policy and contract between the Insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises out of the status of the Title or by any action asserting such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A of this policy. Policy Page 4 Policy Number: 1212588 (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. 16. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 17. CHOICE OF LAW; FORUM (a) Choice of Law: The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged therefore in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of title insurance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction. 18. NOTICES, WHERE SENT Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at 1 First American Way, Santa Ana, CA 92707, Attn: Claims Department. POLICY OF TITLE INSURANCE First American Title Insurance Company Form No. 1402.06 ALTA Owner's Policy (6- 17 -06) SCHEDULE A First American Title Insurance Company Name and Address of Title Insurance Company: First American Title Insurance Company Bell Towne Centre, 4200 6th Avenue SE, Ste 201 Lacey, WA 98503 File No.: 4291 - 1212588 -A Policy No.: 1212588 Address Reference: 10756 Palisades Street SE, Yelm, WA 98597 Amount of Insurance: $413,350.00 Premium: $365.00 Date of Policy: October 09, 2008 at 2:45 p.m. 1. Name of Insured: Andrew J. Smith and Cynthia M. Smith, husband and wife 2. The estate or interest in the Land that is insured by this policy is: Fee Simple 3. Title is vested in: Andrew J. Smith and Cynthia M. Smith, husband and wife 4. The Land referred to in this policy is described as follows: Policy Page 5 Policy Number: 1212588 Real property in the City of Yelm, County of Thurston, State of Washington, described as follows: LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. APN:67110001500 First American Title Insurance Company Form No. 1402.06 ALTA Owner's Policy (6- 17 -06) File No.: 4291 - 1212588 -A SCHEDULE B Policy No.: 1212588 EXCEPTIONS FROM COVERAGE Policy Page 6 Policy Number: 1212588 This Policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees, or expenses that arise by reason of: Part One: Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. Any lien, or right to a lien, for services, labor or materials or medical assistance heretofore or hereafter furnished, imposed by law and not shown by the public records. 6. (A) Unpatented mining claims; (B) Reservations or exceptions in patents or in Acts authorizing the issuance thereof; (C) Water rights, claims or title to water; whether or not the matters excepted under (A), (B) or (C) are shown by the public records; (D) Indian Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes. 7. Any service, installation, connection, maintenance, construction, tap or reimbursement charges /costs for sewer, water, garbage or electricity. Pa rt Two: Taxes which may be assessed and extended on any subsequent roll for the tax year 2008, with respect to new improvements and the first occupancy which may be included on the regular assessment roll and which are an accruing lien not yet due or payable. First American Title Insurance Company Form No. 1402.06 ALTA Owner's Policy (6- 17 -06) Policy Page 7 Policy Number: 1212588 2. Deed of Trust /Mortgage and the terms and conditions thereof: Trustor /Grantor: Andrew J. Smith and Cynthia Smith, husband and wife Trustee: First American Title Co. of Thurston County, a California Corp. Beneficiary: Homestreet Bank, a Washington State chartered savings bank Amount: $371,950.00 Dated: October 02, 2008 Recorded: October 09, 2008 Recording No.: 4039765 Said instrument is a re- record of recording no(s). 4039621 3. Easement, including terms and provisions contained therein: Recorded: May 26, 1926 Recording No.: 167013 In Favor of: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and /or distribution system 4. Easement, including terms and provisions contained therein: Recorded: June 18, 1926 Recording No.: 167933 In Favor of: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and /or distribution system 5. Easement, including terms and provisions contained therein: Recorded: November 16, 1988 Recording No.: 8811160071 In Favor of: Puget Sound Power & Light Company, a Washington corporation For: underground electric transmission and /or distribution system 6. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: January 12, 1994 Recording No.: 9401120141 7. Terms, covenants, conditions and restrictions as contained in recorded Lot Line Adjustment (Boundary Line Revisions): No.: BLA -8144 Recorded: May 22, 1995 Recording No.: 9505220008 8. Conditions, notes, easements, provisions and encroachments contained and /or delineated on the face of the survey recorded under Thurston County Recording No. 9505220009. First American Title Insurance Company Form No. 1402.06 ALTA Owner's Policy (6- 17 -06) 9. Mitigation Agreement and the terms and conditions thereof: Between: Yelm Community Schools District No. 2 And: FH1, LLC Recorded: October 25, 2006 Recording No.: 3875687 10. Warranty Agreement and the terms and conditions thereof: Between: FH1, LLC And: City of Yelm Recorded: February 12, 2008 Recording No.: 3988602 Policy Page 8 Policy Number: 1212588 11. The terms and provisions contained in the document entitled "Residential Agreement to maintain Stormwater Facilities and to implement a Pollution Source Control Plan" Recorded: February 12, 2008 Recording No.: 3988604 12. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: February 12, 2008 Recording No.: 3988605 13. Provisions of the articles of incorporation and by -laws of the Palisades West Homeowners' Association, and any tax, fee, assessments or charges as may be levied by said association. 14. Restrictions, conditions, dedications, notes, easements and provisions, if any, contained and /or delineated on the face of the plat recorded under Thurston County Recording No. 3988607. First American Title Insurance Company r471 ,,--.WTTT.r?.TM"r 71MIFUNW41ii'm A. Settlement Statement e. Type of Loan First American Title Insurance Company Final Statement 1-5. Loan Typo 6. File Number 4291-1212588 7. Loan Number 8. Mortgage Insurance Case Number C. Note: This form is furnished to give you a statement of actual settlement Costa. Amounts paid to and by the Settlefinient agent are S=, items marked '(POC)'wora paid outside this closing; they are shown here (or informational purposes and are not included in the totals, D. Name of Borrower: Andrew J. Smith, Cynthia M. Smith 15339105th Avenue SE, Yelm, WA 98597 E. Name of Seller: FH1, LLC 4200 6th Avenue #301 Lacey, WA 90503 F. Name of Lender: HomeStreet Bank 2100 SE 164th Ave., #F103 Vancouver, WA 98683 G. Property Location: 10756 Palisades Street SE, Yelim, WA 98597 H. Settlement Agent: First American Title Insurance Company Address: Bell Towne Centre, 4200 6th Avenue SE, Ste 201, Lacey, WA 98503 1. Settlement Date: 1010612008 Print Date: 10812008, 3:00 PM Disbursement Date: 101082008 Place of Settlement Address: Bell Towne Centre, 4200 6th Avenue SE, Ste 201, Lacey, WA 98503 J. Summary of Borrower's Transaction K. Summary of Seller's Transaction 100. Gross Amount Due From Borrower 400. Gross Amount Due To Seller 101. Contract Sales Price 401. Contract Sales Price 84,000 00 102. Personal Property 402. Personal Property 103. Settlement charges to borrower (line 1400) 403, Total Deposits 104, 404. 105, 405. Adjustments for items paid by seller In advance Adjustments for Items paid by seller in advance 106. CItyAown taxes 400. Cityttown taxes 107. County taxes 407. County taxes 1101080 to 01101109 ig$84.091yr 19.58 108. Assessments 408, Assessments 1109. 409, 110, 410. ill, 411. 112, 412. 113. 4113' 114. 414. 115. 4W 120. Gross Amount Due From Borrower 420. Gross Amount Due To Seller 94,019.58 200. Amounts Paid By Or In Behalf of Borrower 500. Reductions In Amount Due to Seller 201. Deposit or earnest money 501. Excess deposit (see instructions) 202. Principal amount of new loan(s) 502. Settlement charges (line 1400) 1,848.46 203. Existing loan(s) taken subject 503. Existing bari(s) taken subject to 204. 504. Payoff of first mortgage loan - Washington First International 82,171.12 205, 505. Payoff of second mortgage loan 206. 506, 207. 507• 20& 508, 209, 509, Adjustments for Items unpaid by seller Adjustments for items unpaid by sailer 210. C ftyAown taxes 510. ctly%own taxes 211. County taxes 511. County taxes 212. Assessments 512. Assessments 213. 511 214, 514. 215. 515,, 216, 516• 217. 517• 218. 5% 219. 519, 220, Total Paid Byll'or Borrower 520. Total Reduction Amount Due Seller 84,019.58 300. Cash At Settlement FromiTo Borrower 600. Cash At Settlement TolFrorn Seller 301. Gross amount due from Borrower (line 120) 601. Gross amount due to Sailer (line 420) 94.019.58 302. Less amounts paid byMor Borrower (line 220) 303. 602. Less reductions In amounts due to Seller (line 520) 603. 84,019.58 The HUD-1 Settlement Statement which I have prepared is a true and accurate account of this transaction. I have caused or will cause the funds to be disbursed in accordanc w is statipmerr. )_ Settlement Agent:- * See Supplemental Page for details, M.- L. Settlement Charges 700, Total Sales/Broker's Commission based on price Paid From Borrower's Funds at Settlement Paid From Seller's Funds at Settlement Division of Commission (line 700) 03 follows 701, 702, 703, Commission paid at Settiernent 704, 800. hems Noble In Connection with Loan 801. Loan Origination Fee 802, Loan Discount M. Appraise! Fee We, Credit Report 805. Lender's Inspection Fee 806, Mortgage Insurance Application Premium W. Assumption Fee N& 809. 810, 811. $12, 811 814. Supplemental Summary 900. items 5NuM by Leader to be Paid In Advance 901. Interest 902. 903. Hazard Insurance Premium for 904. 905. Supplemental Summary 1000. Reserves Deposited with Lender 1001. Hazard Insurance 1002. "age Insurance 1003. City Property Taxes 1004. County Prop" Taxes I DOS. Annual assessments 1006. 1007, 1008. Aggregate Accounting Adjustment 11100, Title Cha!qes 1101, Settlement or closing fee - First American Ti be Insurance Company $675-00 Sales Tax: $56-70 162M 1102, Abstract or title search 1103. Title examination 1104, Title Insurance Binder 1105, Document Fee 1106, Notary Fee 1107. Attorney Fee (includes above item numbers: 1108. Title Insurance - See supplemental page for breakdown of Individual few and payees 395.66 (induda3 above item numbers: 1109, Lender's coverage $371,950,00 1110, Owner's coverage $64,000,00 Premium: $365,00 Sales Tax: $30-66 1111. 1112, 1113, 1114. 1115, 1116. 1117. 1200. Government Recording and Transfer Charges 1201. Recording fees: 1202. *Cityfcounty tax/stamps: Deed $1285.20 Mortgage $0.00 1,285.20 1203. State taxistamps; 1204, Excise Tax - REET Electronic Technology Fee - Thurston County Treasury 5.00 1205. 1206. 1300. Additional Settlement Charges 1301. Survey to 1302, Pest Inspection to 1303. 1304. IN& 1306. 1307. 1308, 1309, 1310. 1311. 1312. 1311 1314. Supplemental Summary 1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K) 11,84&46 * See Supplemental Page for details. Paid From Paid From Section L. Settlement Charges continued Borrowers Settees Funds at Funds at Settlement Settlement 1108, Supplemental Summary 395.66 a) Pol1g: ALTA Owners - 2006 STD - First American Tile Insurance Company $365.00 Sales Tax: $30.66 395,66. 1202. Supplemental Summary 1,285.20 1 a) Excise Tax - Thurston Coun�, Tmasu!y 1,285.20 1 The following Section Is restated from the Settlement Statement Page I File No., Supplemental Page 4291.1212588 HUD-1 Settlement Statement 601. Gross Amount due to Seller (line 420) First American Title Insurance Company Loan No. Final Statement 601. Less reductions In amounts due to Seller (line 520) 84,019.58 Settlement Date: 10/0612008 Borrower Name & Address: Andrew J. Smith, Cynthia M. Smith 15339105th Avenue SE, Yelm, WA 98597 Seller Name & Address: FHJ, LLC 4200 6th Avenue #301 Lacey, WA 98503 Paid From Paid From Section L. Settlement Charges continued Borrowers Settees Funds at Funds at Settlement Settlement 1108, Supplemental Summary 395.66 a) Pol1g: ALTA Owners - 2006 STD - First American Tile Insurance Company $365.00 Sales Tax: $30.66 395,66. 1202. Supplemental Summary 1,285.20 1 a) Excise Tax - Thurston Coun�, Tmasu!y 1,285.20 1 The following Section Is restated from the Settlement Statement Page I 300, Cash At Settlement FromNo Borrower 600, Cash At Settlement TolFrom Seller 301. Gross amount due from Borrower (line 120) 601. Gross Amount due to Seller (line 420) 94,019.58 302. Less amounts paid by/for Borrower (line 220) 601. Less reductions In amounts due to Seller (line 520) 84,019.58 301 603. I have carefully reviewed the HUM Settlement Statement and to the best of my knowledge and belief, It Is a true and accurate statement of all receipts and distributions made on my account or by me In this transaction. I further cortily that I have received a copy of the HUM Settlement Statement C Frun,h estad Bnrdt - Digit 3911107 v" - WON 14 :513 1376 P.M101 x One Step Cost Breakdown .�fldreKL:1{�}'O11ip�tliltl! Luang 430x96 r Addrtw 10756 Pnlisket Swo Se, Yelm, WA 995F Cm*nlor: Trianrt, lot Phalc t; l.tpQ,6p, La 15?Or,� IOT P18EE �'Amh Fees $2 OEM 1R2 �ntils F ate. 14,000.OD 143 CleatL� Fxeavation aril Baekiitl &I 500.10 Ip4 Uode UgliCics 51,400.40 l0S Cvacrtte Founclrtirm VOW 1Cb BasementlSlaNG Fluor S190D.00 yf V Framia Mileriai SY5 0aw 108 Framio Labor S154{11,D4 109 Trusses 59004.00 111 &iwmat6ll sl 110.W If 1- ADO Lkor a %ouplVenwfire FacaChimncv .DD 113 Prefab. F"r a late 120404 114 RoaCm ahak4et b$0p.0D 115 Oattrsy Dofta Isis 900.Dp Li 114 wudM 8,00D.90 117 ixteri4r DoarslGlara c Doors S3 70k,10 116 Se ' Se+szr Sb.000.40 i l9 Phrmmhl • SYaier hua aad rnetet 3I 000.�T 1 Plumhi Rau A In S9 54D.00 k2 ur�i Finish � 22 Ela;iric -Tam ,Service 5150.00 123 Electrical - ROUO in 59,5110.00 124 FlectrlralFixtraea L s St 8411,08 125 lasulatiaa SS 900.OQ 126 b 004.% 137 2!ce TckJT exturc 111,50DA 129 Cabinet 0,0003D 129 Floors- Hardwood $4, OD 130 Ca $4 500,40• I:1 Viu l�t.'tncleum $2,014,00 132 co miff 3 S4 SDD.OD 133 iftwork - kohen, Bath $4 00p,D0 134 Millwork • inferior Dears & Trim S14 0D0.41 i5h Labor 134 Portia - lulular 52900,D0 137 Pginliag- ]rxkniar 529110.08 M ApOk= $1,900 139 alydware ' 140 19allgetiolDrivewa • 580,D4 141 i.a &a ' S {504.00 142 irrorsr5bwer Duets S1 DM00.0M0 143 CM FtrlCira (10D,{jQ 144 ImurF tiabili '&aisk 54,500.01 143 Mxlahar $1,50ON 146 Clea6 up znd t III erd natal 2,Dwa 147 Dome Wa=4 sad Setts Commission $075.00 - 146 Canmcdon iMt he 80.40 149 Ccatmc&s ProFit,10verhead 4 EER Subtotal SalesTaxRate 5309 91.b1 51.00 $0.40 150 Sdrs:Ta SAbtata a9 34.44 Aw Aft - � ��# AmaQUt Ay ota t e nstrutiivu t f 2,351, Loi Vilue at to k Oluded in tract Amount 8410 MAcqcWtacost * +b+loty e) Nwr's$lg uwe Data Builders5igcahare D 'M ./. a ... From: Origin ID: OLIVIA (360)491-2441 Melony Johns FecE�z. First American Title EXPIVS8 4200 6th Ave SE Ste 201 Lacey, WA 98503 0 ;111114 SHIPTO: 3602539614 BILL SENDER Jennifer Tappe Homestreet Bank 2100 SE 164TH AVE STE F103 VANCOUVER, WA 986838934 Ship Date: 29SEP08 ActWgt: I LB CAD: 7610185/INET8091 Account#: S Ref # Invoice # PO# Dept # Page 1 of I MMF17 M'A PRIORITY OVERNIGHT After printing this label: 1. Use the 'Print' button on this page to print your label to your laser or inkjet printer. 2. Fold the printed page along the horizontal line, 3. Place label in shipping pouch and affix it to your shipment so that the barcode portion of the label can be read and scanned. Warning: Use only the printed original label for shipping. Using a photocopy of this label for shipping purposes is fraudulent and could result in additional billing charges, along with the cancellation of your FedEx account number. Use of this system constitutes your agreement to the service conditions in the current FedEx Service Guide, available on fedex.com.FedEx will not be responsible for any claim in excess of $100 per package, whether the result of loss, damage, delay, non-delivery,misdelivery,or misinformation, unless you declare a higher value, pay an additional charge, document your actual loss and file a timely claim. Limitations found in the current FedEx Service Guide apply, Your right to recover from FedEx for any loss, including intrinsic valueof the package, loss of sales, income interest, profit, attorney's fees, costs, and other forms of damage whether direct, incidental,consequential, or special is limited to the greater of $100 or the authorized declared value. Recovery cannot exceed actual documented loss.Maximum for items of extraordinary value is $500, e.g. jewelry, precious metals, negotiable instruments and other items listed in our ServiceGuide. Written claims must be filed within strict time limits, see current FedEx Service Guide. https://www.fedex.com/shipping/html/en/PrintIFrame.html 9/29/2008 From: Origin ID: OLIVIA (360)491-2441 Melony Johns FecE�z. First American Title EXPIVS8 4200 6th Ave SE Ste 201 Lacey, WA 98503 0 ;111114 SHIPTO: 3602539614 BILL SENDER Jennifer Tappe Homestreet Bank 2100 SE 164TH AVE STE F103 VANCOUVER, WA 986838934 Ship Date: 070CT08 ActWgt: I LB CAD: 7610185/INET8091 Account#: S Ref # Invoice # PO# Dept # TRK# nl 7911 5671 0845 Page 1 of I PRIORITY OVERNIGHT After printing this label: 1. Use the 'Print' button on this page to print your label to your laser or inkjet printer. 2. Fold the printed page along the horizontal line, 3. Place label in shipping pouch and affix it to your shipment so that the barcode portion of the label can be read and scanned. Warning: Use only the printed original label for shipping. Using a photocopy of this label for shipping purposes is fraudulent and could result in additional billing charges, along with the cancellation of your FedEx account number. I Use of this system constitutes your agreement to the service conditions in the current FedEx Service Guide, available on fedex.com.FedEx will not be responsible for any claim in excess of $100 per package, whether the result of loss, damage, delay, non-delivery,misdelivery,or misinformation, unless you declare a higher value, pay an additional charge, document your actual loss and file a timely claim. Limitations found in the current FedEx Service Guide apply, Your right to recover from FedEx for any loss, including intrinsic valueof the package, loss of sales, income interest, profit, attorney's fees, costs, and other forms of damage whether direct, incidental,consequential, or special is limited to the greater of $100 or the authorized declared value. Recovery cannot exceed actual documented loss.Maximum for items of extraordinary value is $500, e.g. jewelry, precious metals, negotiable instruments and other items listed in our ServiceGuide. Written claims must be filed within strict time limits, see current FedEx Service Guide. https://www.fedex.com/shipping/html/en/PrintIFrame.html 10/7/2008 2360 45B 6434 P.001/001 -26-2008 FRI 01:47 PM FACILITIES 360,459,6116 0 FAX- 360.458.6434 0 4 0 1 COME RVE, IJW PO Box 4 7 6 Dzsz=-' Ift YELM, WA 96597-0476 FACILITIES SECRETARY Dealree—mcconnelldyes.Wednet V/7 RE: Mitigation Fees Esorow No.: Attn- Melony Fax: 866,341-0145 Mitigation Fee was jug paid recetitty and has yet to be recorded at Thurston Co�nty- Tb=k You- Desirce' McConnell Facilities Secretary YELId COMMUNITY SCHOOLS XS AN EQUAL OPPORTUNITY EXPLOYER AND FOLLOWS TITLz, xx amouzx= mts, Accepting Office: First American Title Insurance Company Address: Bell Towne Centre, 4200 6th Avenue SE, Suite 201, Lacey, WA 98503 OR: 4291-1212588 Filing Reference: INDEMNITY AGREEMENT I (Mechanics' Liens) THIS INDEMNITY AGREEMENT (this "Agreement") is made and entered into this Thirtieth day of September, 2008, by Fl-11, LLC, hereinafter (individually and collectively, the "Indemnitor"), in favor of First American Title Insurance Company, a WA corporation and its agents and employees (collectively "First American Title Insurance Company "). RECITALS: A. Indemnitor is the owner of, and/or has, either directly or indirectly, an interest in, the Property or in a transaction involving the Property. B. Construction of certain improvements has or will commence on the Property. C. In connection with a contemplated transaction involving the Property, First American Title Insurance Company has been requested to issue one or more Title Policies in respect to the Property insuring against loss by reason of Mechanics' Liens. D. In connection with future transactions, First American Title Insurance Company may issue one or more Title Policies insuring against Mechanics' Liens and if First American Title Insurance Company , at its sole discretion, elects to so issue a Title Policy for the Property, it will do so in material reliance on each of the covenants, agreements, representations and warranties of Indemnitor set forth in this Agreement. NOW, THEREFORE, the parties hereto agree as follows: AGREEMENT: 1. DEFINITIONS: As used herein, the following terms shall have the following meanings: TERM: DEFINITION: Construction: Any and all work, construction and/or replacement or segregation of materials which may give rise to the right for liens to be filed against the Property under the applicable statutes and/or equitable laws of the State. Construction Costs: All costs, fees, expenses and/or obligations for labor, materials and/or services for or in connection with, the Construction. Effective Date: The date this Agreement becomes effective in accordance with Paragraph 3 below. Mechanics' Liens All liens or rights to lien existing against the Property or which subsequently attach or are claimed against the Property due to Construction. Policy Date: The date of issuance of a Title Policy for the Property. Property: That certain real property as described on Exhibit attached hereto and incorporated herein by reference. State. The state in which the Property is located. Title Policy(ies): Policy or policies of title insurance issued by First American Title Insurance Company with respect to the Property insuring against loss or damage due to Mechanics' Liens. Page 1 c2001 First American Title Insurance Company All Rights Reserved 2. REPRESENTATIONS, WARRANTIES AND COVENANTS. As of the Effective Date, Indemnitor shall be deemed to represent, warrant and covenant to First American Title Insurance Company as to the Property that (a) all sums due and owing for Construction on the Property have been paid or will be paid promptly and in full before the respective times for filing Mechanics' Liens affecting the Property; (b) Indemnitor has funds sufficient to pay all Construction Costs applicable to the Property; and (c) there are no Mechanics' Liens or potential Mechanics' Liens against the Property except as previously specified by Indemnitor in writing to First American Title Insurance Company. All representations, warranties and covenants contained herein are material to First American Title Insurance Company decision to issue a Title Policy for the Property. 3. EFFECTIVE DATE. Delivery of this Agreement by Indemnitor to First American Title Insurance Company shall not be deemed acceptance of this Agreement by First American Title Insurance Company or a commitment to issue a Title Policy for the Property. First American Title Insurance Company has no duty to Indemnitor to accept this Agreement or, in the future, to agree to issue a Title Policy for the Property. Upon acceptance of this Agreement by First American Title Insurance Company as evidenced by the issuance of a Title Policy, this Agreement shall remain in effect as long as First American Title Insurance Company has any possible liability under any Title Policy issued at any time in reliance on this Agreement. First American Title Insurance Company may rely on this Agreement to issue Title Policies at any time without notice to or further consent by Indemnitor. 4. MULTIPLE INDEMNITORS. 4.1 Joint and Several. If there is more than one Indemnitor under this Agreement, all of the obligations contained in this Agreement shall be the joint and several obligations of each and every Indemnitor. Each Indemnitor shall be fully liable to First American Title Insurance Company even if another Indemnitor is not liable for any reason, including the failure of such Indemnitor to execute this Agreement. 4.2 Waiver and Release. First American Title Insurance Company has the right, in its sole and absolute discretion and without notice to or consent by Indemnitor, to (a) waive any provision of this Agreement as it relates to any Indemnitor, at any time or from time to time, without providing the same or similar waiver for the benefit of any other Indemnitor, and/or (b) release any Indemnitor from any or all obligations under this Agreement at any time or from time to time, without releasing any other Indemnitor. S. INDEMNIFICATION OBLIGATIONS. 5.1. Payment of Construction Costs. Indemnitor covenants and agrees that all Construction Costs on the Property shall be paid promptly and in full before the respective times for filing Mechanics' Liens affecting the Property. 5.2. Indemnity. In addition to any other rights or remedies available to First American Title Insurance Company, at law or in equity, Indemnitor agrees to pay, protect, defend, indemnify, hold and save harmless First American Title Insurance Company from and against any and all liabilities, claims of liability, obligations, losses, costs, charges, expenses, causes of action, suits, demands, judgments and damages of any Wind or character whatsoever, including, but not limited to, reasonable attorneys' fees and costs (including appellate fees and costs) incurred or sustained by First American Title Insurance Company, and actual attorneys' fees and costs awarded against First American Title Insurance Company , directly or indirectly, by reason of, or arising under any Title Policy relating to Mechanics' Liens, or in any other action at law or in equity under any theory of recovery as a result of the existence of Mechanics' Liens. 5.3. Duty to Notify First t American Title Insurance Company. In the event that (a) Indemnitor is in any manner notified of a claim which could affect the interests of First American Title Insurance Company under a Title Policy relating to Mechanics' Liens, or (b) any action is filed at law or in equity or any judicial or non -judicial proceeding (including arbitration) is commenced against the Property relating to Mechanics' Liens, Indemnitor agrees to promptly notify First American Title Insurance Company in writing of such claim, action or proceeding as soon as possible of Indemnitor's acquisition of knowledge thereof but, in no event, later than seven (7) days from receipt of said knowledge. 5.4. Rights and Oblinatigns. , Upon the filing of any action at law or in equity or the assertion of any claim, cause of action or judicial or non-judicial proceeding relating to Mechanics' Liens, or at any other time which First American Title Insurance Company shall, in its opinion, deem it reasonable to protect itself or its insured(s) under a Title Policy, First American Title Insurance Company shall have the right, but not the obligation, (a) to take such action as First American Title Insurance Company deems reasonable to protect its interest and that of its insured under any Title Policy, and/or (b) to demand that Indemnitor, at Indemnitor's sole cost and expense, promptly do, one or more of the following: (a) Cause a properly executed release of the Mechanics' Lien to be filed of record in the proper governmental office. Page 2 c2001 First American Tide Insurance Company All Rights Reserved (b) Cause to be recorded with respect to the Mechanics' Lien a bond releasing the Property from the effect of the Mechanics' Lien, should such bond be available and effective in removing the effect of such Mechanics' Lien from the Property as a matter of law. (c) In situations where affirmative legal action or proceedings at law or in equity are necessary to discharge, eliminate, or remove the Mechanics' Lien with respect to the Property, Indemnitor shall cause (1) counsel selected by First American Title Insurance Company to institute such action or proceeding as is necessary to discharge, eliminate or remove the Mechanics' Liens as to the Property; and (2) such counsel to deliver to First American Title Insurance Company a written representation in a form reasonably satisfactory to First American Title Insurance Company that such counsel (i) has accepted employment as counsel to commence and vigorously prosecute to conclusion such action or procedure, (H) will promptly Undertake any and all steps reasonably necessary to diligently prosecute such action, and (iii) will keep informed as to the status of such action or procedure as reasonably requested by First American Title Insurance Company, at no cost or expense to First American Title 'Insurance Company. Indemnitor may object to First American Title Insurance Company choice of counsel for reasonable cause. (d) if an action or proceeding concerning the Mechanics' Lien is instituted by a third party, Indemnitor shall cause (1) such action or proceeding to be timely defended and resisted by counsel selected by First American Title Insurance Company which counsel will protect First American Title Insurance Company and any and all insured(s) to whom First American Title Insurance Company may have possible liability as a result of the issuance of a Title Policy; and (2) such counsel to deliver to First American Title Insurance Company a written representation, in a form reasonably satisfactory to First American Title Insurance Company to the effect that such counsel (i) has accepted employment as.counsel to defend any such action or resist any such proceeding, (ii) will promptly undertake any and all reasonable steps to protect First American Title Insurance Company and its insured(s), and (ii!) will keep informed as to the status of such action or procedure as reasonably requested by First American Title Insurance Company, at no cost or expense to First American Title Insurance Company. Indemnitor may object to First American Title Insurance Company choice of counsel for reasonable cause. (e) If the payment of a sum of money Will discharge, eliminate or remove the effect of the Mechanics' Lien as to the Property, Indemnitor shall pay such sum as is sufficient to discharge, eliminate or remove the Mechanics' Lien in a manner legally sufficient to effect the release of the Mechanics' Lien of record and shall deliver documents to First American Title Insurance Company, in a form reasonably satisfactory to First American Title Insurance Company . (f) Indemnitor shall take such action with respect to the Mechanics! Lien as First American Title Insurance Company shall, in its discretion, authorize Indemnitor in writing to undertake, provided that any such authority shall not be a waiver by First American Title Insurance Company to require Indemnitor at any time to comply with the foregoing subparagraphs of this Paragraph above, within ten (10) days of First American Title Insurance Company written revocation of authority to take action other than that under any other subparagraphs of this Paragraph, and demand that Indemnitor comply with any other subparagraphs of this Paragraph. S.S. Inter-est. Indemnitor agrees that any sums which might be advanced or incurred by First American Title Insurance Company pursuant to this Agreement or by its exercise of any rights hereunder shall be repaid by Indemnitor to First American Title Insurance Company within ten (10) days of Indemnitor's receipt of First American Title Insurance Company written demand, together with interest thereon at four percent (4%) above the reference rate as charged by Bank of America as of the date such sum was advanced by First American Title Insurance Company and continuing until it is repaid in full, but in no event, shall such rate of interest exceed the lesser of: (a) ten percent (10%) per annum, or (b) the maximum rate permitted by law. 5.6. Determination of Coverage. Any determination of coverage by First American Title Insurance Company shall be conclusive evidence that the matter is within the Title Policy coverage as to the Mechanics' Liens for purposes of this Agreement. If First American Title Insurance Company accepts the defense of a matter within the Title Policy as to the Mechanics' Liens with a reservation of rights, all costs, damages, expenses and legal fees incurred by First American Title Insurance Company shall be deemed within the terms and obligations of Indemnitor under this Agreement even if the matter is subsequently determined by a court to not be within the Title Policy as to the Mechanics' Liens. 6. REMEDIES. Indemnitor specifically acknowledges that upon any default by any Indemnitor under this Agreement after demand by First American Title insurance Company, First American Title Insurance Company shall have the right to exercise any and all remedies available at law, in equity or under this Agreement against any and all of the Indemnitors, including, but not limited to, injunctive relief, specific performance, Page 3 02001 First American Title Insurance Company All Rights Reserved damages, self-help and/or resort to any collateral held by First American Title Insurance Company to secure the obligations of Indemnitor under this Agreement. 7. SUBROGATION AND SUBORDINATION. Indemnitor hereby unconditionally grants to First American Title Insurance Company any and all rights of subrogation Indemnitor may have with respect to the Mechanics' Liens and agrees to promptly execute any documents with respect to the Mechanics' Liens or any other matter relating to this Agreement request by First American Title Insurance Company with respect to such right of subrogation and to deliver same to First American Title Insurance Company. Indemnitor hereby subordinates any and all debts owed to any Indemnitor from any other Indemnitor to the obligations owed to First American Title Insurance Company under this Agreement. 8. FINANCIAL INFORMATION. Each Indemnitor represents and warrants to First American Title Insurance Company as of the date of delivery of the financial statements that the statements delivered to First American Title Insurance Company with respect to that Indemnitor: (a) were prepared in accordance with generally accepted accounting principles ("GAAP") unless otherwise noted therein; (b) are true, complete and correct in all material respects; (c) disclose all material financial information regarding Indemnitor; (d) fairly represent and present the financial condition and operations of Indemnitor; (e) if said statements were not prepared in accordance with GAAP, no GAAP statements and/or audited financial statements exist; and (f) since the date of the financial statements delivered to First American Title Insurance Company , there has been no material adverse change in the financial condition, operations, assets, liabilities, properties or business prospects of Indemnitor. Each Indemnitor agrees to promptly notify (but in no event later than ten (10) days after Indemnitor learns, by any means, of such event) First American Title Insurance Company in writing of any event which would reasonably be anticipated to, or which, in any event, would materially alter or in any material respect change said financial condition, operations, assets, liabilities, properties or business prospects. Upon request by First American Title Insurance Company, each Indemnitor further agrees to deliver to First American Title Insurance Company current financial statements and that by delivery of same, such Indemnitor shall be deemed to make all the same representations and warranties as to the new financial statements as set forth herein above except as otherwise disclosed in writing to First American Tide Insurance Company concurrently with the delivery of the financial statements. Each Indemnitor hereby specifically. grants to First American Title Insurance Company and its agents, representatives, and professionals, the right, at any time and from time to time, at the sole cost and expense of Indemnitor, to (a) examine the books, accounts, records and property of Indemnitor pertaining to the financial condition of Indemnitor, (b) furnish to First American Title Insurance Company for examination and copying all such books, accounts, records and other pertinent information, and/or (c) provide such further assurances as may be reasonably demanded by First American Title Insurance Company . In the event of more than one Indemnitor, each Indemnitor shall independently comply with this paragraph. 9. WAIVERS AND COVENANTS. In the event that Indemnitor is indemnifying First American Title Insurance Company with respect to a Property which is not directly owned by Indemnitor, Indemnitor understands and agrees that First American Title Insurance Company has no obligation to secure an indemnity from the owner(s) of the Property ("Owner"). Indemnitor agrees that the validity of this Agreement and the obligations of Indemnitor hereunder shall in no way be terminated, affected, limited or impaired by reason of (a) the assertion by First American Title Insurance Company of any rights or remedies which it may have under any other indemnity agreement or against any person or entity obligated thereunder or against the Owner, (b) First American Title Insurance Company failure to exercise, or delay in exercising, any such right or remedy or any right or remedy First American Title Insurance Company may have hereunder or in respect to this Agreement, (c) the commencement of a case under the Bankruptcy Code by or against the Owner or any person or entity obligated under the law or any other indemnity agreement, or (d) Indemnitor owning less than the entire interest in the Property. Indemnitor further covenants that this Agreement shall remain and continue in full force and effect as to any Title Policies issued at any time by First American Title Insurance Company with respect to the Property and that First American Title Insurance Company shall not be under a duty to protect, secure, insure, or enforce any rights it may have under any indemnity agreement or any other right against any third party, and that other indulgences or forbearance may be granted under any or all of such documents, all of which may be made, done or suffered without notice to, or further consent of, Indemnitor. First American Title Insurance Company may, at its option, proceed directly and at once, without notice, against any Indemnitor to collect and recover the full amount of the liability hereunder or any portion thereof, without proceeding against the Owner or any other person or entity. Indemnitor hereby waives and relinquishes (a) any right or claim of right to cause a marshalling of any Indemnitor's assets; (b) all rights and remedies accorded by applicable law to inclemnitors or guarantors, except any rights of subrogation which Indemnitor may have, provided that the assurances and Page 4 c2001 First American Tile Insurance Company All Rights Reserved obligations provided for hereunder shall not be contingent upon the existence of any such rights of subrogation; (c) notice of acceptance hereof and of any action taken or omitted in reliance hereon; (d) presentment for payment, demand of payment, protest or notice of nonpayment or failure to perform or observe, or other proof, or notice or demand; (e) any defense based upon and election of remedies by First American Title Insurance Company, including without limitation an election to proceed in a manner which has impaired, eliminated or otherwise destroyed Indemnitor's rights of subrogation and reimbursement, if any, against the Owner or any third party; (f) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (g) the defense of the statute of limitations in any action hereunder or in any action for the collection or performance of any obligations covered by this Agreement; (h) and any duty on the part of First American Title Insurance Company to disclose to Indemnitor any facts First American Title Insurance Company may now or hereafter know about the Owner, since Indemnitor acknowledges that Indemnitor Is fully responsible for being and keeping informed of the financial condition of the Owner and of all circumstances bearing on the risk of nonperformance of any obligations covered by this Agreement. 10. NOTICE. Any notices, demands or communications under this Agreement between Indemnitor and First American Title Insurance Company shall be in writing, shall include a reasonable identification of the Property together with First American Title Insurance Company order number, and may be given either by personal service, by overnight delivery, or by mailing via United Stated mail, certified mail, postage prepaid, return receipt requested, addressed to each party as set forth on the signature page of this Agreement. If the address for First American Title Insurance Company Is not completed on the signature page, notice to First American Title Insurance Company shall be given to First American Title Insurance Company State office. All notices given in accordance with the requirements in this Paragraph shall be deemed to be received as of the earlier of actual receipt by the addressee thereof or the expiration of ninety-six (96) hours after depositing same in the United States Postal System. 11. MISCELLANEOUS. 11.1. No Waiver. No delay or omission by First American Title Insurance Company in exercising any right or power under this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by First American Title Insurance Company of a breach of any of the covenants, agreements, restrictions, obligations or conditions of this Agreement to be performed by the Indemnitor shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, obligations or conditions under this Agreement. Furthermore, in order to be effective, any waiver must be in writing executed by First American Title Insurance Company. 11.2. No Third Party Beneficiaries. This Agreement is only between Indemnitor and First American Title Insurance Company , and is not intended to be, nor shall it be construed as being, for the benefit of any third party. 11.3. Partial Invalidity., In any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstance shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extend permitted by law. 11.4. Modification or Amendment. Any alteration, change, modification or amendment of this Agreement or any documents incorporated herein, in order to become effective, shall be made by written instrument executed by all parties hereto. 11.5. Execution in Counterpart. This Agreement and any modification, amendment or supplement to this Agreement may be executed by Indemnitor in several counterparts, and as so executed, shall constitute one Agreement binding on all Indemnitors, notwithstanding that all Indemnitors are not signatories to the original or the same counterpart. 11.6. Qualification; Authority. Each individual executing this Agreement on behalf of an Indemnitor which is an entity, represents, warrants and covenants to First American Title Insurance Company that (a) such entity is duly formed and authorized to do business in the State, (b) such person is duly authorized to execute and deliver this Agreement on behalf of such entity in accordance with authority granted under the organizational documents of such entity, and (c) such entity is bound under the terms of this Agreement. 11.7. Merger of Prior Agreements and Understandings. This Agreement and other documents incorporated herein by reference contain the entire understanding and agreement between the parties relating to the obligations of the parties with respect to Mechanics' Liens for future transactions involving the Property and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, shall be of no force or effect. Page 5 c2001 First American Title Insurance Company All Rights Reserved 11.8. Other. This Agreement shall be construed according to its fair meaning as if prepared by all parties to this Agreement. This Agreement shall be interpreted in accordance with the laws of the State and Indemnitor hereby agrees to submit to the jurisdiction of any state or federal court of First American Title Insurance Company choosing having competent jurisdiction, and to make no objection to venue therein should any action at law or in equity be necessary to enforce or interpret this Agreement. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party in such action shall be entitled to have and to recover from the other party its reasonable attorneys' fees and other reasonable expenses in connection with such action or proceeding in addition to its recoverable court costs. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. The recitals set forth hereinabove are incorporated into this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall be deemed to include the others wherever and whenever the context so dictates. This Agreement shall inure to the benefit of and bind the personal representatives, successors and assigns of the parties hereto. 12. SECURITY. Indemnitor has or will provide security for this Agreement to First American Tide Insurance Company as follows: None at this time Letter of Credit Agreement with Sight Draft Form Security Agreement* (Non Cash) j Control Agreement Security Agreement* (Cash) j Deed of Trust Security Agreement (Letter of Credit) Mortgage * Requires a UCC Financing Statement to be executed and filed. A breach by an obligor, pledgor or debtor under any of the foregoing documents as well as any documents which may be referenced in such documents shall be deemed a breach by Indemnitor under this Agreement. Unless otherwise agreed in writing, any sums held by First American Title Insurance Company as security may be held by First American Title Insurance Company in its general accounts and not deposited into an interest bearing account. Indemnitor understands that as a result of maintaining its accounts with a financial institution and its on-going banking relationship with the specific financial institution, First American Title Insurance Company may receive certain financial benefits such as an array of bank services, accommodations, loans or other business transactions from the financial institution ("collateral benefits"). Indemnitor agrees that any and all such collateral benefits shall belong solely to First American Title Insurance Company and First American Title Insurance Company shall have no obligation to account to Indemnitor for the value of any such collateral benefits. If the funds are deposited into a special interest bearing account, all such interest shall be added to and retained in the account as part of the security for First American Title Insurance Company . Any such interest earned shall be attributed for tax purposes to the Indemnitor depositing same. (Note: If security is to be taken, additional forms must be executed. Please be advised that additional documents maybe needed to perfect a personal property security interest Please follow directions on said forms as to additional requirements or consult your local underwriter) 13. ESTOPPEL. NOTWITHSTANDING ANY POSSIBLE DIFFERENCE IN THE PARITY OF THE' PAR77ES HERETO, INDEMNITOR UNDERSTANDS THAT FIRST AMERICAN 7777-E INSURANCE COMPANYIS UNDERTAKING A RISK S1GN1f7C4N77Y GREATER THAN 77-IAT UNDERTAKEN IN THE NORMAL COURSE OF PROVIDING TITLE INSURANCE POLICIES AND RELA 7FD SERVICES BY ENTERING INTO THIS AGREEMENT AND ISSUING POLICIES OF TITLE INSURANCE IN RELIANCE ON THIS AGREEMENT, AND, THEREFORE, INDEMNITOR HEREBY DECLARES ITS WILLINGNESS TOEN7FRINTO THIS AGREEMENT AND TO INDUCE FIRST AMERICAN 777ZE INSURANCE COMPANY TO ACCEPT THIS AGREEMENT, REALIZING THAT INDEMATTOR S BEST IN7FREST, IN THE OPINION OF INDEMNITOR, IS BEING SERVED THEREBY. NOTICE: THIS AGREEMENT CONTAINS PROVISIONS WHICH PERSONALLY OBLIGATE INDEMNITOR. IT IS STRONGLY RECOMMENDED THAT INDEMNITOR CONSULT LEGAL COUNSEL PRIOR TO EXECUTING THIS AGREEMENT. INDEMNITOR,: Page 6 c2001 First American Title Insurance Company All Rights Reserved FH1, LLC, a Washington limited liability company '1 "7�r'j berlain, Manager / M. MR i Opemnslenfifies executing this Agreement shall be deemed named parties to this Agreement as if their name also appeared in the introductory paragraph on page 1. Notice Address: Social Security or Tax ID No. Notice Address: ADDRESS FOR NOTICE TO FIRST AMERICAN TITLE INSURANCE COMPANY : (If this information is not completed, please see Paragraph 10.) Notice Address: Bell Towne Centre, 4200 6th Avenue SE, Suite 201 Lacey, WA 98503 Page 7 c2001 First American Title Insurance Company All Rights Reserved DESCRIPTION OF PRQPERTY Order No. 4291 - 1212588 (REQluia>ED) Street Address: 10756 Palisades Street SE, Yelm, Washington 98597, Legal Description: LOT 1S OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. Page 8 c2001 First American Title Insurance Company All Rights Reserved First A merican Property �p Casualty Jusurunre Company 4/3/2008 ANDREW J. SMITH 15339 105TH AVENUE SE YELM WA 98597 Congratulations! We've heard that you are about to complete the purchase of your new home or the refinance of your present home. We'd like to make that process a little easier. It's a requirement of most lenders to have evidence of homeowners' insurance prior to the close of the transaction. It's commonly part of the closing process that you are solely responsible for. Now, First American, through its affiliate First American Property & Casualty Insurance Company, can help to easily complete this process for you. We've already created an annual premium quote for you, which you'll find enclosed. The building replacement coverage is based on square footage and the year the home was built. If needed, this amount may be changed to show a different cost of replacing the home. Also, should new information be provided, or additional coverage be required, we can certainly amend this quote. Otherwise, with your approval, this stage of the process is done! We require NO APPLICATION and NO CREDIT REPORT. Please sign and return this quote in the envelope as indicated or callus with your approval. We'll coordinate the issuance of the coverage with your escrow office when your file closes. It's that simple. Why should you consider First American for your homeowner's coverage? Our company is rated "A" by AM Best and offers a policy which is competitive in features and rates. We also offer FLOOD INSURANCE. Best of all, this coverage is provided by a company known first for its attention to customer service and it's brought to you by First American, a solid organization with more than a century of experience in title insurance and real estate-related businesses. More good news! If you are purchasing a First American Title policy that is owner occupied, you qualify for a MULTI-PRODUCT DISCOUNT. We're here to help you close your transaction quickly, with the confidence that you and your home are well protected. If you have any questions, or want to discuss coverage specifies, please don't hesitate to call. You can reach us at (888) 546-5118. We look forward to the opportunity to serve you. The First American Property & Casualty Insurance Team P.O.Box 1679 Santa Ana, CA 92702-9972 888-546-5118 vv tR First American Property &- Casualty Insurance Company Owner Occupied Insurance Quote Coverage Letter ANDREW J. SMITH Date: 413/2008 10756 PALISADES STREET SE Escrow No.: 1212588 YELM WA 98597 Quote No.: WA 793454 First American Property & Casualty Insurance Company is part of the First American Corporation Family of Companies. We have prepared a quote for the premium of the homeowner's insurance policy required in the above referenced transaction. You are not obligated to purchase this coverage from us. This quote is not a solicitation by First American Title Insurance Company, which is also part of The First American Corporation Family of Companies. Your decision to purchase or not to purchase your homeowner's insurance from First American Property & Casualty Insurance Company will not affect in Any respect the escrow or title insurance services you may obtain from First American Title Insurance Company. This quote is based on available information and may change if additional information is provided. Unless you instruct us differently by initialing the instructions below, you may be contacted by telephone to discuss the policy. This coverage is not available for commercial, vacant or rental properties. Dwelling $344,000 Liability $300,000 Other Structures $34,400 Medical Payments $1,000 Personal Property $240,800 Deductible $1,000 Loss of Use $68,800 Earthqual-ce Coverage - not included --------- The following endorsements are included in this coverage with Enhancement Plus (*ENH) Protective Device Credit New Home Credit Multi-Product Discount Replacement Cost Contents Fire Depart. Serv. Charge(750) Business Property(2,500) *ENH Jewels-Watches-Furs(1,500) *ENH Money(300) *ENH Silver-Gold-Pewter(2,500) *ENH Credit Cards(1,000) *ENH Loss Assessment(2,000) *ENH Ordinance or Law Coverage 10% *ENH Refrigerated Property(500) *ENH Extended Replacement Cost (125%) *ENH TOTAL ANNUAL PREMIUM (INCLUDES ENDORSEMENTS AND DISCOUNTS) ............ $365 This coverage for your personal home is conditional on a review of the property And its uses. If you have an unusual situation or have been denied coverage before, please call (888) 546-5118 to see if the property qualifies for this type of coverage. Also, please call if you have fire or burglary protection devices because an additional discount may be available. If you would like First American Property & Casualty to consider providing insurance, please sign below and return this form in the envelope provided, or FAX signed form to (866) 863-4723. Your signature on this form does not guarantee coverage; and a separate insurance binder is required for evidence of insurance. This quote for insurance expires 90 days from date of issue. ( ) Owner Occupied ( ) Secondary Resident Lender: Yes No Signature BEST T13\4E TO REACH YOU BY TELEPHONE: Certificate of Authority No. 1839 Form: FAPC WA Direct —quote Added: 2/16/2006 9:56 AM Telephone Number Do not contact me by phone Initials Disclosure Notice ANDREW J. SMITH Date: 413/2008 10756 PALISADES STREET SE Escrow: 1212588 'ELM WA 98597 Quote No.: WA 793454 This is to give you notice that First American Title Company has a business relationship with First American Property & Casualty Insurance Company. Both First American Title Company and First American Property & Casualty Insurance Company are owned by First American Corporation, which owns 100% of First American Title Company. Because of this relationship, this referral may provide First American Title Company or its parent, The First American Corporation a financial or other benefit. Set forth below is the estimated charge for the settlement services listed. You are NOT required to use the listed provider(s) as a condition of the settlement of your loan on, or the purchase or refinance of, the subject property. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES. Homeowners Insurance Annual Premium .............................. $365 Please see the attached Insurance -- Rate Quote from First American for the explanation of the annual premium. Please call (888) 546-5118 if you have any questions. Acknowledgement: I / we have read this disclosure form, and understand that First American Title Company is referring me/us to purchase the above-described settlement service(s) and may receive a financial benefit as a result of this referral. Signature Date Signature Date Certificate of Authority No. 1839 Form: FAPC—WA—Direct —Disclosure Added: 5/1512007 3:33:00 PM 9/25/2008 2:25:32 PM PACE 2/002 Fax Server COMMISSION DISBURSEMENT FORM SELLING OFFICE MUST: (1) Complete the following, in full, then -sign in the space providec (2) Distribute as follows: • Spend the ORIGINAL to," Listing Office, Retain a COPY for your records BUYERI Andreiv 1. Smith and Cvnwta M. Smith SELLER: _T6an6is 13iroup yjic� NV LS NO: TODAY DATE. t I PROPERTY ADDRESS: 10756 Palll$ad" Street SE,)felrn WA 99597 CLOSIqG AGENT: Fin* American Title insurance Com pang CLOS* AGENT �ESS: "I Towne C ---------------------- ESCROW OFFICER: Mari Beckley p CLOSING AGENT FILE Na: 4291-12125SS (MO) ESCROW OFFICER FAX: (866)341-0145 The Closing Agent is instriucted to disburse The Selling Ofte's share of the ocrinniiissiDn and mail it direct, with phot000pieg of this form as folkma: Van Dom Rea (SEL134G BRMR) Address: To: Address,, TO: Address: $ 0.00 . Earnest Money depwited with Selling Broker by the above named Buyer. i SELLIMS LICE 94(�OMPANf); Agent: au men Nielland Phom, (360)180-3102 BY LISTIV OFFICE UST: (1) Cqnptetethe ll(s�Mnq, In full, n sign in the sp= pmvided (2) D)14tribute as Oribu lows - Send the ORIG34AL to the Closing Agent - Retain a COPY for your records The total comrni*(1 owed both the Selling and Listing Offices is $(140 of which the USting Offices share is 0.00 TI,e Closing Age nti3is In-,Uucted to disburse the Listing Offlice's share of the comrnission and mail it dlrec , with photocopies; of this form as l'ollows: 0/-::!, $Q—,d To: Man Oarm Piea!Wt Inc (LISTING BROKER) Address: Address: $ TO: Address: $ 0.00. Earnest Money deposited with Listing Bricker by the above named Buyer. L-d C67-J--Z6Z-09C '01-11 'AIIS8� WJOCI U13A eeZ: 1. 29 9Z deS 89/25/2008 16:05 3007539611 PANE 02 `s DECLARATIONS We wig' provide the Mauranoe, desc ed*d in this policy In return for the premium and compliance with all applicable pmvlslons of this policy, Named Inalosd and Mailing Address SMITH, ANDREW A CYNTHIA 16339 105TH AVE SE YELM, WA 981597,0414 The Pollcy Period gins and ends at 12:01 a.m. Standard Tuna at the residences premises, 10101i2005 Eftoflve Cute 112 months - Policy Period 10101/7009 Explreffort of P'ollcy Period Limit of Liability - Section 1 $350,0(0 Govarage A Dwelling Policy Typo Homeowners Pcxticy Al . Reple(*mtlnt Cost - Similar Cortstruction Increased Dwelling Up to 371),000 - Option ID Location of Prsrt►leea 10758 PALISADF -S STREET S.E. YELM, WA 96597 Farrtb►, t7ptieltrs, Is Endoreemei tc Dwelling Undr;r Constniclion Morigagsa A Addl. Internts MORTGAGEE HOMESTREET BANK ITS SUCOESSORS AND /OR ASSIGNS $01 UNION ST STE MO SEATTLE, WA 9810f -2328 r i A . . r State Faffn Fire and Cowialty Company E W Wilmington .# ,. 61-61707101 . - SUODNAjAg policy period, If this policy Is. terrninaled, we rl*tic-6 in Compliance with the policy provisions or as ,equired . .:. lUotiblias - SwI11W I S11,0W ALL LOSSES In cese of low under Ws policy, the deductible will be applied pw !.► r ,# if i Agent Flame & Address Brown, William E 1133 East: Fourth Ave 01YInpia, WA 9860614018 (360) 943 -6740 Mailing Address- PO Box 2011 Olympls, WA 98507 -0201 Prepared: 01- 266 -2009 Agent's Code: 2920 559 -915.5 MORTGAGEE CDPY 03/25/2008 16:05 3607539611 POLICY NUMBER "" I"'­',.---- — 47- BD- T615 -8 LOCATION 10756 PALISADES STREET- S,E. YLLM. WA 985W INSURER SMITl1, ANDREW $ CYNTHIA 15339 105TH AVE SE YELM, WA 985R7.8414 PREMIUM NOTICt STATE FARM INSURANCE COMPANIES AGENT ISSUED DECLARATIONS BILLING PERIOD AGENT CODE FROM 10101/2008 TO 10011213D9 1 2120 A1ORMAGEF 9 AIDDL,. INTEREST'S MORTGAGEE HOMESTREFT BANK ITS SUCCESSORS ANDIOR ASSIGNS 601 UNION ST STE 20M SEATTLE. WA 99101 -2326 PREMIUM # 907.00 AMOUNT LAID 0.00 CREW AMOUNT S 0.00 AMOUNT DUE $ 907.00 DATE DUE 1012912008 AGENT NAME A ADDRESS Brown, WtNtam E 1133 East Fourth Ave Olympia, WA_ 98506-4018 (360 )843 -8740 Mailing Address: PO Boot 209 Olympia, WA 98507 -0201 .` A. This iq the only nonce you wRl w.elve, Please make check payable to STATE FARM and return It with this notice td the address shown below. Your canceled check is your receipt- Thann for tatting. Lm serve you. STATE FARE INSURANCE COMPANIES ro BOX 5000 DUPOnt, WA 98327 -5000 ""w" INVOICE File NLIII`I3e1: 080912 STEPHANIE NOGUEROLA HOMESTRFET BART( 2100 S.C. 164TH AVENUE, #F103 VANCOUVER. WA 99583 BDRI)Afer : ANDREW1CYNTHIA SMITH invoice Ordei Date : 0911012008 Reference /Case t-N #43x298 PO Number LEGAL_ LOT 15 PALISADES WEST 10756 PALISADES STREET SE YELM, WA 98597 APPRAISAL FEE: PURCHASE Invoice Total State Sales Tax @ Deposit DeposA Amount Due i Tems: IF PAID AFTER 10(1512008, FEE WILL BE 1495.00_ Please Make Check Payable To: LAKE APPRAISAL COMPANY, LLG P.O. BOX 7684 OLYMPIA, WA 98507 fed. I.D. #,: 41- 1435866 $ 450.00 -------------- 450.00 $ 0.00 P_O, BOX 7684, OLYMPIA, WA 98507 360 - 352- U9141360- 352 -3032 FAX �'i i 1 Ira 9709 Third Ave NE #I 10. Seattle, WA 206-525-8118 (phone) 206-528-2202 {fax} To: First American Title Insurance Company Attn: Mari Beckley Email: mcbeckley@firstam.com Re: FHI LLC Loan #3800320001 Property: 10756 Palisades Street SE Yelm WA 98597 Escrow #4291-1212588 WF Capital will issue Request for Partial Reconveyance without Satisfaction upon our receipt of 100% of net sale proceeds plus $135.00 for Partial Reconveyance fee. Please notify me at 206-528-9308, 24 hours prior to funding. We will also require a copy of the signed Closing Statement and a legal description upon Closing. Wire instructions: WASHINGTON FIRST INTERNATIONAL BANK 9709 3RD AVE NE #110 SEATTLE WA 98115 ABA # 125008165 A/C #3800320001 If you have any questions, please call me at (206) 528-9308 Sincerely, --�r L' 1 John Yip Loan Servicing Department Ile Fee Ho 14. 11. Financing Statement from to Flied Fee — ❑ (1) File with County Auditor Ile loo. ❑ (2) File with Secretary of State — advanced $ orwarded It Is understood that the U.C.C. financing Statement will be riled In accordance with instructions without examination or review of sufficiency. 12. - Taxes: ❑ Receipt attached ❑ Pay per check attached ❑ Paid —please verify ❑ Show on Policy ❑ Order type tax registration v CLOSING/ RECORDING INSTRUCTIC3NS COUNTY: Thurston 3Q: `First American Title Insurance Company ORDER NO.: 4291- 1212588 .. Attn: William Tiglao (360)491 -2441 DATE: September 30, 1 k' First American Title Insurance Company HomeStreet Bank 3 Bell Towne Centre, 4200 6th Avenue SE, Ste 201 2100 SE 164th Ave., #F103 Laoey, UVA 98503 send copies to: Vancouver, WA 98683 Attn: Mari Beckley (360)491 -2441 Attn: Re": 429i'1212588 Reference: 430298 ti x i . EXAMINE AND HOLD ABOVE INSTRUMENTS PENDING FURTH .ER INSTRUCTIONS ❑, Record enclosed Instruments ❑ Attach stamps on Deed No.: below in the amount of $ ❑' GIVE VERBAL ❑ Send pencil supplemental report ❑ B111 charges to Issue your ❑Purchaser's ❑ Owner's 2 Mortgagee's ❑Issue after mtg. assigned i' ❑ Endorsements 100 116. 8.1 & PUD RIDER . Policy.showing tide in Andrew 1. Smith and Cynthia M. Smith husband and wife Subject to paragraphs 2 9 THRU 20 We request deletion of items numbered 1,3-8 j we guarantee to obtain and deliver for recordation documentation required to release said items. Mari Beckley, Escrow Officer Additional Instructions: R ❑ Send copies of Take -Off (recorded) documents within 3 days of closing ,. =riled Fee 1. Deed/Contract from FH1, LLC to Smith le No. Excse lax ❑ Check for Payment clse No. Recorded Fee 2. Deed/Contract from to o. Excise Tax ❑ Check for Payment ❑ No. ded Fee 3.� 1- Mtg/Trust Deed from Smith to HgmeStreet Bank o. ijecDrd ed Fee 4. 2`O MtgfTrust Deed from to o. Insued Q Not Insured ❑ No. ded Fee Asgmt Mtg/Deed of Trust from to o` ded Fee 6. Release of Mortgage /Reconveyance of Deed of Trust referred to In paragraph of Title Report 19le No. i rded Fee 7. No. E { corded Fee 8. r ile No. x ecorded Fee 9. File No. Ile Fee Ho 14. 11. Financing Statement from to Flied Fee — ❑ (1) File with County Auditor Ile loo. ❑ (2) File with Secretary of State — advanced $ orwarded It Is understood that the U.C.C. financing Statement will be riled In accordance with instructions without examination or review of sufficiency. 12. - Taxes: ❑ Receipt attached ❑ Pay per check attached ❑ Paid —please verify ❑ Show on Policy ❑ Order type tax registration v Form No. 106.8-2 A 7 Plain Language Cornilitinent I PirstAmerican A-1fol 6 'r . � 11111119*5 =*, $fif MEN 1 1 0644,11011 & 1411FIV011LA49L I lllir�� 1 -1 - 111 .. I 77MMIMIC-1 To: Van Dorm Realty, Inc. 1530 Black Lake Blvd SW, Suite IF Olympia, WA 98502-5613 Attn: Maureen Wieland 9j7Mn?jz0E= Issued by I -M it, F711X71 1-11 When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A. If the Requirements shown in this Commitment have not been met within six months after the I Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy Is issued and then our obligation to you will be under the Policy. 0 The Requirements In Schedule B-I. The General Exceptions and Exceptions in Schedule B-IL Th-- Conditions. 1: . his Commitment is not valid without Schedule A and Section I and II of Schedule B. RrStAmedcan Titfe Form No. 1068-2 ALTA Plain Language Commitment SCHEDULE A 1. Commitment Date: April 15, 2008 at 7:30 A.M. 2. Policy or Policies to be issued: AMOUNT Builder's Rate 35D Owner's Standard Coverage i o low Proposed Insured: Andrew J. Smith and Cynthia M. Smith, husband and wife ALTA Simultaneous Issue fQt5a Extended Mortgagee's Coverage To Fallow. Proposed Insured: To Follow mrtment No.: 4291-1212598 Page 2 of 9 PREMIUM _ . (A) The estate or interest in the land described in this Commitment is: A fee simple. (B) Title to said estate or interest at the date hereof is vested in: FH1, LLC, a Washington Limited Liability Company WX 4. The land referred to in this Commitment is described as follows: Real property in the City of Yelm, County of Thurston, State of Washington, described as follows: 'RAT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UDDER REC NG -NG-7 3988607; IN THURSTON COUNTY, WASHINGTON. 7172 U-T�t- N RkstAmeiicarl Title Form No. 1OW-2 ALTA Plain Language Commitment I�T*Ula lit] 111A -12L ! Sjuni nt No.: 4291-1212588 Page 3 of 9 lull 12LI't AW i I A. Taxes or assessments which are not shown as existing liens ■ the records of any taxing authority that levies taxes ■ assessments ■ real property or ■ the public records. B, Any facts, rights, interests, ■ claims which are not shown ■ the public records but which could be ascertained by an inspection of said land or ■ making inquiry of persons in possession thereof. C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown ■ the public records. E. (A) Unpatented mining claims; (B) Reservations or exceptions in patents or in Acts authorizing the issuance thereof; (C) Water rights, claims or title to water; whether ♦ not the matters excepted under (A), (B) or (C) are shown by the public records; (D) Indian Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes. F. Any lien, ■ right to a lien, for services, labor ■ materials • medical assistance heretofore ■ hereafter furnished, imposed ■ law and not shown ■ the public records. G. Any service, installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity. H. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public -,ecords or attaching subsequent to the effective date hereof, but prior to the date the proposed insured acquires of record for value the escrow or interest or mortgage(s) thereon covered ■ this Commitment. First Airw cart 77tie Form No, 1068-2 ALTA Plain Language Cweftnent 1KIA82101col 14104 rt 1119MMUre WNT 19PROr a r*1flr4r4Mk11M1 M11 a Cammitment No.: 4291-1212588 Page 4 of 9 Lien of the Real Estate Excise Sales Tax and Surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate for the City of Yelm is at IM %. M� #.3 IN t -inancing Statement Recorded: kecording No.: Debto,,: Secured N:ity: October 19, 2006 3874137 FH1 WF Capital, Inc., a Washington corporation Terms, conditions, provisions and stipulations of the Operating Agreement of FH1, LLQ, a Washington Limited Lability Company. According to said agreement, Steven L. Chamberlain, its managing member thereof, Any amendments to said agreement must be submitted. Any conveyance or encumbrance of the property must be executed by said managing member(s) as provided for therein, subject to said amendments, if any. According to the application for title insurance the proposed seller is to be Triance Group, Inc., a Washington Corporation; however, said entity has no interest of record in the subject premises at this time. Examination of the records discloses no matters pending against said party(ies). FirstAmEy'ican Witte Form No. 1068-2 A' -TA Plain Language Commitment V IlIm / MA rf"I L. Johnson, as president of Triance Group, Inc., a Washington Corporation, to execute the forthcoming instrument. Potential lien rights as a result of labor and/or materials used, or to be used, for improvements to Triance Group, Inc., a Washington Corporation, is being sent to First American Title Insuran Company & Escrow — Lacey and must be submitted to us prior to closing for our review a approval. All other matters regarding extended coverage have been cleared for mortgagee policy. Items A through E and G and H on Exhibit B herein will be omitted in said extend 1 coverage mortgagee's policy. The coverage contemplated by this paragraph will not be afford in any forthcoming owner's standard coverage policy to be Issued. Commitment No.: 4291-1212588 Page 5 of 9 9. Easement, including terms and provisions contained therein: Recorded: May 26, 1926 Recording No.: 167013 In Favor of: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and/or distribution system k1 J0. Easement, including terms and provisions contained therein: Recorded: June 18, 1926 Recording No.: 167933 In Favor 0: Puget Sound Power & Light Company, a Massachusetts corporation For: electric transmission and/or distribution system Easement, including terms and provisions contained therein: Recorded: November 16, 1988 Recording No.: 8811160071 In Favor of: Puget Sound Power & Light Company, a Washington corporation For-, underground electric transmission and/or distribution system Covenants, conditions, restrictions and/or easements; but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: January 12, 1994 Recording No.: 9401120141 Y13.) Terms, covenants, conditions and restrictions as contained in recorded Lot Line Adjustment (\J (Boundary Line Revisions): No.: BLA-8144 Recorded: May 22, 1995 Recording No.: 9505220008 Conditions, notes, easements, provisions and encroachments contained and/or delineated on the face of the survey recorded under Thurston County Recording No. 9505220009. FirstAmeyican 777de Form No, I068-2 Cwmitment No.: 4291-1212588 ALTA Plain Imquage Commitment Page 6 of 9 15. Mitigation Agreement and the terms and conditions thereof: Between: Yelm Community Schools District No. 2 And: FH 1, LLC V Recorded, October 25, 2006 �t Recording No.: 3875687 16. warranty Agreement and the terms and conditions thereof: Between: FHI,LLC And: City of Yelm Recorded: February 12, 2008 Recording No.: 3988602 The terms and provisions contained in the document entitled "Residential Agreement to mainta Stormwater Facilities and to implement a Pollution Source Control Plan" Recorded: February 12, 2008 Recording No.: 3988604 o al Cvenants, conditions, restricti o ns and/or easements; but deleting any c o venant, c ond iti on restriction indicating a preference, limitation or discrimination based on race, color, religion, sq handicap, family status, or national origin to the extent such covenants, conditions or restrictio violate Title 42, Section 3604(c), of the United States Codes: Recorded: February 12, 2008 Recording No., 3988605 Provisions of the articles of incorporation and by-laws of the Palisades West Homeowners' Association, and any tax, fee, assessments or charges as may be levied by said association. Restrictions, conditions, dedications, notes, easements and provisions, if any, contained and/or Udelineated on the face of the plat recorded under Thurston County Recording No. 3988607. First American Tide Form No. 1068-2 ALTA PWn Language Commitment r) INFORMATIONAL NOTES A. According to the application for title insurance, title is to vest in Andrew 1. Smith and Cynthia M. Smith, husband and wife. tumnt No.. 4291-12125M Page 7 of 9 B. General taxes for the year 2008, which have been paid. 1 a Account No.: 21725130300 C\- Code Area: 170 Amount: $ 2,042.21 Assessed Land Value: $ 217,200.00 Assessed Improvement Value* $ 0100 Blink JAIRMn"! A UNION W1 — 11.12 910116*0 61 Rik] a I$- • D, Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating re standardization of recorded documents, the following format and content requirements mus� met. Failure to comply may result in rejection of the document • the recorder. SO AFTER RECORDING MAIL TO: , Andrew 1. Smith and Cynthia M. Smith Thurston County Treasurer Yeim, WA 98597 Real Estate Evcisc Tax P aid BV AA JLDeputy Filed for Record at Request of: -9�" sek%v eds krkr Rewfdss um o* First American Ttle Insurance Company -41-6 FIRST AMERICAN TITLE STATUTORY WARRANTY DEE&$URANCE COMPANY Fili No: 4291-1212588 (MB) Date: September 29, 2008 Grantor(s): FH1, LLC Grantee(s): Andrew 3. Smith and Cynthia M. Smith Abbreviated Legal: LOT 15 PALISADES WEST, REC. NO. 3988607 Additional Legal on page: Assessor's Tax Parcel No(s): 67110001500 THE GRANTOR(S) FH1, LLC, a Washington limited liability company for and 'in consideration of Ten Dollars and other Good and Valuable Consideration, in hand paid, conveys, and warrants to Andrew 3. Smith and Cynthia M. Smith, husband and wife, the following described real estate, situated in the County of Thurston, State of Washington. LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 394118607, IN THURSTON COUNTY, WASHINGTON. Subject To: This conveyance is subject to covenants, conditions, restrictions and easements, it ", affecting title, which may appear in the public record, including those shown on any recorded plat or survey. FH1, LLC, a Washi ited liability company If � Manager/ Page I of 2 LPB 10-05 4039620 Page I of 2 1010812008 04:02 PM Deed Thurston County Nashington FIRST AMERICAN TITLE 11111111 N 1111111111111111111111111111111111111111111111111111111111 Fill 11111 IN 11111111 Description; Thurston,WA Doc=ent-DocID 4039620 Page: 1 of 2 Order: xcf Comment: AM-67210001500 statutory Warranty Deed File No.: 4"1-1212509 (MB) continued Date: 0912912008 STATE OF Washington )-ss COUNTY OF Thurston I certify that I know-or have satisfactory evidence that Steven L Chambedaln,(Pare the per§on(s) who appeared before me and said person(s) acknowledged that=she/they signed this Instrument, on oath stated th6t gihe/theyaare authorized to execute the instrument and acknowledged It as the Managii / Member of FH1, LLC to be the free and voluntary act of such party(les) for the uses and purposes mentioned in this Instrument. Dated- M C Beckley Notary Public in and for the State of Washington Residing at; Olympia My appointment expires., 02-17-2011 g Page 2 of 2 LPB 10-05 4039620 Page 2 of 2 1010812008 04:02 PM Oeed Thurs t an County Washington FIRST AMERICAN TITLE 111111 111111 Ill1 I1II 1 1111111 IN VIII VIII Ill11 11111 III IN IF 11111111 IN Description: Thurston,WA Doc=ent-Doc1D 4039620 Page: 2 of 2 Order: xcf Comment: When Recorded Return To: HOMESTREET BANK 2000 Two Union Square, 601 Union St Seattle, Washington 98101-2326 Q-antor(s): [Spa" Above Thb Live For RecordJug Datal DEED OF TRUST a) ANDREW J. SMITH (2) CYNTHIA M. SMITH (3) (4) (5) (6) QdeL I - t 109 FIRST AMERICAN TITLE INSURANCE COMPANY �3 -1� -2- (j) HOMESTREET BANK, A WASHINGTON STATE CHARTERED SAVINGS BANK (2) FIRST AMERICAN TITLE Co. OF THURSTON COUNTY, A CALIFORNIA CORP. Legal Description (abbreviated): LOT 15, PALISADES WEST, REC. 3988607, THURSTON COUNTY Assessor's Tax Pared ID #: to additional legal(s) on page 3 DEFIMTIONS Words used in multiple'sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Seenrity Instrument" means this document, which is dated October 02, 2008 together with all Riders to this document. (B) "Borrower" is ANDREW J. SMITH AND CYNTHIA. SMITH, HUSBAND AND WIFE Borrower is the trustor under this Security Instrument. WASNINGTON—Single Farnily—Fanuk MaeWreddle Mem UNIFORM MTRUMEW Fori► 304 1101 GREATLAND ■ ITEM 270OLI (001 9--MER$ (Page I ofl6pages) To Order C;;I1A4*53D-9393OFv: 616-791-1131 4039765 Page 1 of 21 1010912008 02:45 PM Deed Of Trust Thurston County Washington FIRST AMERICAN TITLE 11111111 III 111111I 1111111111101 III 111111 X1111 IN 11 lilt 11111111111111111111111111111111111 11111111111 403962L --Page I of 18 1010612 �Qk 02 AM Opmr6—fTrust Turs A tvil shin FhIRST t ARE&VC214 MICH.— Description: Thurston,WA -Docament-DocID 4039765 Pagre. 1 of 21 order. xcf Comment: iZ ii_ (C) 'Under" is HOMESTREET, BANK Lender isa A WASHINGTON STATE CHARTERED SAVINGS BANK organized and existing under the laws of WASHINGTON Leader's address is 2000 Two Union Square, 601 UMon St, Seattle, Washington 981 DI-2326 (D) "Trustee" is FIRST AMERICAN TITLE CO. OF THURSTON COUNTY, A CALIFORNIA CORP. (E) "MFRS" is Mortgage Electronic Registration Systems, Inc. MFRS is a separate, corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the beneficiary under this Security Instrument MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, td. (888) 679 -MERS. (F) "Note" means the promissory note signed by Borrower and dated October 02, 2008 The Note states that Borrower owes Lender Three Hundred Seventy One Thousand Nine Hundred Fifty and no1100 Dollars (U.S. $ 371,950.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in M not later than October 01, 2038 "Property" means the property that is described below under the heading 'Transfer of Rights in the Property." (11) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all suns due under this Security Instrument, plus interest. M "Eiders" means all Riders to this Security Instrument that are executcd'by Borrower. The following Riders are to be executed by Borrower [check box as aM]icablcl:, ❑ Adjustable Rate Rider M Condominium Rider Q Second Home Rider F-1 Balloon Rider EZ Planned'Unit Development Rider ❑ 011=(s) [SPID&A CONSTRUCTION ❑ 14 Family Rider 0 Biweekly Payment Rider ADDENDUM "Applicable Law" mews all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rotes and orders (that have the effect of law) as well as all applicable final, non - appealable judicial opinions. (K) "Community Association Dues, Fees, and Assessments" mr-Ang all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (L) Mectrorde Funds Transfer" rrie-aris any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transfers initiated by telephone, w= transfers, and automated clearinghouse banders. W=A84N—S- mgje reruily—lPawdeXsdFreditte MaeIMFORM MTRUMENT Fonid 3048 1101 GREATLAND ■ ITEM 27090 (4611Y-MERS (Page 2 of 16 pagiv) To Order CaL I-M-530-11M 13Fu: 616-7914131 4039765 Page 2 of 21 10/0912008 02:45 PM Dead Of Trust Thurston County Washington FIRST AMERICAN TITLE 11111111111111 111111111111111111 111111111 E111111 4039621 �0( Trust page 2 of 101081260&-0402 P11 Thvrstdn tan FIRST AMRIC 111 111111 11111 W"I1>11 t Description: Thurston,WA Document-DocID;4039765 Page: 2 of 21 Order: xcf Comment: (M) "Escrow Items" means these items that are described in Section 3. (N) 'Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than h ; wrance proceeds paid under the coverages described in Section 5) for: (i) damage to, or dcoruction of,: the Property-, (R) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (0) "Mortgage Insurance, means insurance protecting Leader against the nonpayment of, or default on, the Loan. 1) (P) "Periodic Payment" mews the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (Q) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 35W), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same, subject matter. As used in this Security inst-wricitt, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loin" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (R) "Successor in Interest of Borrower" means any Party that has taken tide to The Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY The beneficiary of this Security Instrument is VIERS (solely as nominee for Lender and Lender's successors and assigns) and the successors ai�d assigns of MFRS. This Security instrurn i cat secures to Leader. (i) the repayment of the Loan, and all renewals, extensions and modificatims of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the, Note, For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of We, the following described property located in the COUNTY Of THURSTON rrype of Reom-ding Judsdiedon) . (Nam of Pecording JudgdicdmI LOT 15 OF PALISADES WEST, ACCORDING TO THE PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON.COUNTY, WASHINGTON. which currently has the address of 10756 PALISADES STREET SE YELM Washington 98597 ( "Property AddrcW'): [city] [zip Code] NILS, WASHINGTON— Single Family—Fawde M*dFreddk Mae UNIFORM INSTRUMEPff Form 30011101 nREATILAND ■ ITEM 270= (DOI-I} -UERS (Page 3ofl6pages) To Orft C4& 14M3304M C3Fw. 616-791-1131 4039765 Page 3 of 21 10/09/2009 02:46 PM Deed Of Trust Thurston County Washington FIRST AMERICAN TITLE 1111111111 111111 IIII 1111111 IIII 111111111111 I1 1111 VIII 11111 11IN 1111111 IIN IIIII III IF 4039621 P;kge 3 of 18 0.90-0-rlf� , 1010812009 ft-02 PM USX' Thurston Couni'j��Vhinqtoo,-- FIRST AMERICAN T J- 1111111111111011III'Mmillu III Description; Thurston,WA Document-DocID 4039765 Page: 3 of 21 Order: xcf Co ant: TOGETHER WrrH all the improvements now or hereafter erected on the property, and all casements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions " also be covered by this Security Instrument All of the foregoing is referred to in this Security bummment as the "Property." Borrower understands and agrees that MFRS holds only legal tide to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right to exercise any or all of those interests, including, but not limited to, the right to foreclosc and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security instrument. BORROWER COVENANTS:1 that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the property and that the Property is unencurnbc , red, except for encumbrances of record. Borrower warrants and will defend generally the tide to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY* INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real propctly� UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Item, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender impaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (h) money ordcC (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial Payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest an unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by . Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due u ' �dcr the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became duc. Any, remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note, WAS 11INGTO14—SinglFamily— Fannie MaefFireddle Mae UNIFORM INSTRUMENT Foam 3048 1/01 0AEATLAWS ITEFA2700LA (0011} -MERS (Page 4 of 16pages) To Ord" Cat 1-8004 930F&x: 6it-791-1131 4039765 page 4 of 21 I4/0912008 02:45 PM [Seed Of Trust Thurston County Washington FIRST AMERICAN TITLE 111111111111111 I U111 M111111 11111111 IN 111111111111111111111111111111111111 MI 4039621 4 of 28 10/0812008 04�02 PM t Thurston Countv�.Washin FIRST AMERICAN f1% 11NIII1 (III Isfsh kiwi Description.-Thurston,WA Document DocXD 4039765 Page. 4 of 21 Order: xcf Comment: If Lender receives a payment from Borrower for a delinquent Periodic Payment which hichuies, a suf6cieut amount to pay any late Charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or a= Periodic Payments, such excess may be- applied to any late charges due, Voluntary prepayments shall be applied fast to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds:") to provide for paymeat of amounts due for, (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on The Property, if any', (c) premiums for any and all insurance required by Leader under Section 5; and (d) Mortgage Insurance premiums, if any, or any sum payable by Borrower to Lender in lieu of the payment of Mortgage hisuranct Premiums in accordance with the provisions of Section 10. These items are called `Escrow Items." At origination or at any time during the term of the Loan, Leader may require that Community Association Dues, Fees, and A&wsmcnts, if any, be escrowed by Borrower, and such dues, fm and assessments shall be an Escrow Item Borrower shall promptly furnish to Leader all notices of amounts to be paid under this Section. Borrower "I pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Leader may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver'may only be in writing. In the event of such waiver, Borrower shall pay directly, when and whei6 payable, the amounts due for any Escrow; Items for which payment of Funds has been waived by Leader "and, if Lender requires, shall furnish to Leader receipts evidencing such payment within such time period as Lender may requite. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covemint, and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow It=, Lender may exercise its tights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Leader may revoke the waiver as to any or 0 Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Rinds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and bold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Leader shall estimate the amount of Funds due on the basis of current data and reasonable estimates of cxpendiftness of future Escrow Items or otberwise in accordance with Applicable LAW. The Funds shag be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) Of in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items DO later than d— time specified under RESPA. Lender shall not charge Borrower for holding and ipplying the Fonda; annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Leader to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Leader shall not be required to pay Borrower any interest or earnings on the Funds,: Borrower and Leader can agree in writing, however, that interest shall be paid on the Funds. Lender sball give to Borrower, without charge, an annual accounting of the Funds as required by RESPA- If them is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to f t excess funds in accordance with RESPA, If there is a sbortngc of Funds held in escrow, as WL0 W r, 1-1,he S,.,,, Fe —Fnle :1 MaeWreddle Mae WGFORM INSTRUMENT Fona 3048101 GREATLAW 0 ITEM 27M5 (001 0—MERS (Pager 5 of 16 pag-) To "t CA i-SM-W-9393131ax 06. 791-1131 4039765 Page 5 of 21 4039621 1010912008 02:45 PM Deed Of Trust of 18 10108120%$ 04;02 PM- —U6id Of Trust- Thurston County Vashington Thurston Linty M)P*iglon FIRST AMERICAN TITLE FIRST AMERICAU� flu III I 11111111111 IHI lip 4 1111111111111111111111111111 V ustfimlo-k- 111111111111191 lull Description: Thurston,WA Doctmtent7DoCID 4039765 Page: 5 of 21 Order: xcf Comment; defined under RESPA, Lender shalt notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to "e up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower " pay to Under the amount necessary to make up the deficiency in ac cordatice with RESPA, but in no more than 12 monthly payments. Upon payment in fall of all mum secured by this Security Instrument, Lender shall Promptly refund to Borrower any Funds held by Lender. 4, Charges; Liens. Borrower " pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any; and Community Association Dues, Fees, and Assessments, if any. To the extent that time items are Escrow Items, Borrower " pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument Unless Borrower (a) agrees in writing to the payment of the obligation secured by the hen in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Leader's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from df-- holder of the lien an agreement satisfactory to Under subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien Or take One or more of the actions set forth above in this Section 4. Leader may require Borrower '. to pay a one-time charge for a real estate tax verification and/or reporting service used by Leader in connoctibi'n with this Low. S. Property Insurance. Bo'nower shall keep the improverucrits, now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Leader requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Under requires. What Leader requires pursuant to the preceding sentelices can change during the tam of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which Tight shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time rcmappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described, above, Lender may obtain insurance coverage, at Leader's option and Borrower's expense, Leader is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide gremcr or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the 'insurance coverage so obtained alight significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Leader under this Section 5 "1 become additional debt of Borrower secured by this Security Instrument These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Leader to Borrower requesting payment. All insurance policies required by Lender and renewals of Such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as WAS rr— Single Family -- Fannie MadFreddle Mae TJWFORM HqSMUMEM Form 304$ 1/01 GFIeATLAND 0 ITEM 2709LO (Wi (Page 6 of 16 pages) To 044 Cal: I-80H59-9393 OF*X: 616-791-11131 4039765 Page 6 of 21 10109120118 02:45 PM Thurston county Washington Deed Of Trust FIRST AMERICAN TITLE I Hill 11114111111 alla M1 InIll 101 111in Ina III 1113H 1111 all 4039621 '; Page 6 of 18 10108j2DO-s 04-.�Q_2 PM ­E)eed­Ot_TrUst__ "ah _j on Thurston County JKs FIRST AMERICAN TIXE-- li1 11 t U2 COI MI flif Description; Thurston,TfA Document-DocID 4039765 ragra; 6 of 21 Order: xcE Comment: mortgagee and/or as an additional loss payer. Lender shall have the riot to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal noticca If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the'Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or't s an additional loss payee, In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Under may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was requited by Leader, "'be applied to restoration or repair of the Property, if the restoration Or repair is economically feasible and Lender's security is not lessened! During such repair and restoration period, Leader alll have the tight to bold such insurance proceeds until Lender has had an opporumity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration m a shoe payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of B orrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds Shall be applied to the sums seamed by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the ingarance carrier has offered to settle a claim, then Leader may negotiate and settle the claim. The 30-day period will begin when the notice is given, In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any: refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore, the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and we the Property as Borrower's principal residence within 60 days after th ' c execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit wage on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order . to prevent the Property from deteriorating or 'decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair The Property if damaged to avoid further deterioration or damage. if insurance or conderanation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Leader may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sWicient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Leader shall give once at the time of or prior to such an interior inspection specifying such reasonable cause. OW3 �1 W WI—TaIN—Single Fabuly—Fannie MaeT*eddle Mae WWORM MTRUMENT Fares 3048 1101 I N GREATLANDU rTEM21rOX? (001i) --MEM (PaSt 7 of 16 pages) To Order CsR I-8011-SM-4MOFmc 616-701-11 1 4039765 Page 7 of 21 10/09/2008 02:45 PM Deed Of Trust Thurston Cunty Washington FIRST AMERICAN TITLE I Will I 11111.111114111111111111111111 M 11111 M 1111 H1111 go III IF 11 4039621, --Page 7 of 18 10108/2008'10k:02 PM -Deerd-b-f—Trust Thurston Coun tlesi 5n FIRST AMERICAN 1911111111111181H Description: nurston,WA Docuzaent-DoclD 4039765 Page: 7 of 21 Order: xcf Comment: ii 8. Borrower's Loan Application. Borrower "I be in default if, during the LA= application process, Borrower or any persom or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) M- connection, with the Loan. Material representations include, but are not limited to,' representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Leader's1riterest, in the Property and Rights Under this Security Instruinm'L If (a) Borrower fails to perform the" covenants and agreements contained in this' Security histrunient, (b) them is a legal proceeding that might significantly affect Lender's interest in the Pro . perty and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeitum, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws cc regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Leader's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing andvor repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property andlor rots under this Security instrument, including its secured position m a bankruptcy proceeding, Securing the Property includes, but is not limited to, catering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities tamed an or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized undex this Section 9. 1 Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrunte:nt. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security lustrument, is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, 'the leasehold and the fee title sW11 not merge unless Leader agrees to the merger in writing. , 10. Mortgage Inivurance. If Leader required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premium required to obtain coverage substantially equivalent to the Mortgage, Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in rATed, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Leader the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Leader will accept, use and retain these payments as a non- refundable loss reserve in lieu of Mortgage Itimmince. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in fall, and Leader: shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer rewire loss reserve payments if Mortgage Insurance coverage (in & amount and for the period that Lender requires) provided by an insurer selected by Leader again becomesivailable, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage insuratim If Leader required Mortgages Insurance as a condition of age making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, B orrower shall pay the premiums required to maintain, Mortgage Insurance in effect, a4j-S WAZG�T�oSinsle Family—FauWe Maefteddit Mae UNIFORM 94STRUMMT Form 30481N2 GREATLAND 8 ITEM 27091.8(001t} -MgR8 (Page 8 of 16 pager) To Order Cal: t-$0VSV-W90 0 Fax'00gi-i 191 4039765 Page 8 of 21 1010912008 02:45 PM Dead Of Trust Thurston County Washington FIRST AMERICM TITLE 11! 111111111 IN Hill 1111111111111 IN IIIIIII III III 11111111111111 IN 111111111 IN IIII Jill 4039621 Page 8 of 18 1010812008 04 b2 PM ,Ikfgd _— of Trust Thurston Cou 11-hingk n FIRST nMERICAy TIILP----- - I Jill 111111111111 Ih milli 11 till IN 111111111111111 Description: Thurston,WA Document-Doc= 4039765 Page., 8 of 21 Order: xcf Comment: I or to provide a non - refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until Lamination is required by Applicable Law. Notbuig in this Section 10 affects Borrower's obligation to pay interest at the rate provided is the Note, Mortgage Insurance reimburses Leader (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party -to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are an terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premium). As a result of these agreements, Leader, any purchaser of 'the Note, another *insurer, any reinsurer, any other entity, or any affiliate of ani'of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often tamed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Jnsurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has --if any—with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any * other law. The rights may include the right to receive certain disclosures, to request and obtain cancellationr or the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or tensinallo". 11. Assignment or Miscellaneous aneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and "I be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Leader's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Propesjy, to ensure the work has been completed to Leader's satisfaction, provided that such inspection sliall, be undertaken promptly. Leader may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Leader shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the mum secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking;Acstruction, or less in value of the Property, the Miscellaneous Proceeds .,ball be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sum secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise Wee in writing, the surns secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the a et' ion: the total amount of the sums secured immediately Wore the partial taking W N- - Single e( a ) ws Family—Fanate Maefflreddle Mae tWIFORM YNSTRUMENT Form 30481/01 GREATLAND 0 ITEM 2709LO (0O1i>—Wft (page -9 of 16 Poo-) To Or*r Car 11IM410-9393 OW 616-7914M 4039765 Page 9 of 21 10/0912008 02;45 PM Deed Of Trust Thurston County Washington FIRST AMERICAN TI 4039621 page 9 of 18 10/0812006 04-V2 PM O ied­6f Trust Thurston County' hin FIRST AMERICAN TITL I Bill 91111,111 111 Iffil 11 1111il 111110 111111 ill is 11111111111 IN Description: Thurston,;a Document;-DoCXD 4039765 Page: 9 of 21 Order: xcf Comment: destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss m" value. Any balance shall bepaid to Borrower. In the event of a partial taking, destruction, or loss in vahic of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of die gums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agrec, in writing, the Miscellaneous Proceeds shall be applied to the mum secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Leader within 30 days after the date the notice is gives, Leader is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the an= secured by this Security Instrument, whether or not then due, "Opposing Party" means the third party, that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or Criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights ' re under this Security Instrument. Borrower can cu such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or fights under this Security Instrument The proceeds of any award or claim for damages that are attributable to the impainnent of Leader's interest in the Property are hereby assigned and shall be paid 6 Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section I 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to connuence, proceedings against any Successor in Interest of Borrower . or to refuse to emend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts ]=a than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers, Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several, However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"). (a) is co-signing this Security Instrument only to mortgage, grant and convey the eD-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-sigacr's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Leader, shall obtain all of Borrower's rights and benefits under this Security Instrument Borrower shall not be rdcasod from Borrower's obligations and liability under this Security Instrument unless Leader agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender, WVA-4�osingle Family—Faxink Ma&Vreddle Mae UMFORM IMTRUMENT Feral 3048 im 6FUEATLAND ■ ITEU 270OLIO (001 1j- ERS (Page 10 of 16 pages) 'Tti OrCW Cai: i-M-5"93 Oftr. 615-791-1131 4039765 Page 10 of 21 IQ109f2808 02.45 PM Dead Of Trust Thurston County Washington FIRST AMERICAN TITLE I Jill 11111111111 it 1111111111111111111111111111111111111111111111111111111111111111111111111111 Jim IIIII Ell It 4039621 11, Page 10 of 18 1010812000 04:02 0�0,od-OT-Trust 01� OR Thurston County Wa ingt FIRST AMERICAN TITL 111IIIIINIIIll111111111EEM Jill Description: Thurston,WA Document-DoclD 4039765 Page: 10 of 21 Order: xcf Covent: 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this valuation m. In Security Instrument, including,� bui not limited to, attorneys' fees, Property inspection and v f regard to any other fecs,'Che absence of express authority in this security Instrument to charge a specific fee J to Borrower shall not be construed as a prohibition on the charging of such fee, Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so Loan, k that the interest or other loan charges collected or to be collected in connection with the exceed the permitted limits, then. (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the lIcanitted Emit-, and (b) any sum already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this rdmid, by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (Whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such rdund made by direct Payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security IMS1111113XVIt must be in writing. Any notice to! Borrower in coonextiou with this Security Instrument shall be deemed to I have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means: Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law cxp=sJy requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrowers change of 1s address, then Borrower shall only report a change of address through that specified procedure. Them may be notice Instrument tune only one designated no addresiuntirr this Security Ins ent at any our. m Any notice to Lender shall be given by delivering it or by mailing it by first elms mail to Lender's address stated he unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. if any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law r0quil7cmCilt will sad* the corresponding requirement under this Security Instrument 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall 'be governed by federal law and thel', law of the jurisdiction in which the Property is 1ocaVA All rights and obligations contained in this , Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Lawi might explicitly or implicitly allow the parties to agree by contract or it might be silent but such silence shall ' not be construed m a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect'other provisions of this Security Jusuvinent or the Note which m be given effect PrOV181 without the conflicting provision, ; As used in this Security Instiument: (a) words of the masculine gender shall mew and include corresponding neuter words or words of the feminine gender; (b) wor ds in the singular shall mean and include the plural and vice versa; and (c) the word Tray" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instnurient. 18. Transfer of the Property or a Beneflcial Interest In Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transfer in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (Or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior IWNSHGT N—Single Fatuity—Faunte Madfreddle Mae UMFORM MTRUMEM F01nn 3049 3*1 --no ITEM 2709 L1 1 (001 I)--MERS 4039765 Page 11 of 21 010912008 02:45 Pm Deed Of Trust Thurston County Washington FIRST AMERICAN TITLE IIII 111 1111111 IN Mill 11111111111111111111111111111111111111111111111111111 (page I I -f 16J-9-) To Dift cd: 41039621 Page 11 of Is 10108120M %. 02 PM Deed Of Trust Thurston Cou y Woshington 111111111 II ICI FIRST AMERICAR LE WIMMI 111111111111 IIII I11111111 ill lip 111111111111110 Description: Thurston,WA Document-DOCID '4039765 Page., 11 of 21 Order: xcf Comment: j written consent: Lender tray require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this ;option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice for demand on Borrower, 19 Borrower's *Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before mile of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry, of a judgment enforcing this Security Instrument Those conditions are that R Borrower: (a) pays Lender all sums which then would be due under this Security Instrwrient an d the Note as 11 if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (a) pays all expenses *incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose. of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Leader may reasonably require to assure that Lender's interest in the Property and rights under this Security instrument, and Borrower's obligation to pay the aims secured by this Security hishumcut, shall Continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following form, as selected by Lender: (a) cash; (b) money order, (c) certified chock bank chock, treasurer's check or cashier's 6eck, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity-, or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective, as if no acceleration had occurred. However, this right to reinstate shall not apply in the caw of acceleration under Section 18, in 20. Sale of Note- Changeof Loan Servicer, Notice of Grievance. The Note or a partial in terest, the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A We might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. 'Merc also might be one or more changes of the Loan Servicer, unrelated to a sale of the Note. If there is a change of the Loan Savicer, Borrower will be gives; written notice of the change which will state the time and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Low Servicer and are not assumed by the !I Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or tbc'member o'f a class) that arises from the other party's actions pursuant to this Security Instrument or that allcg6 that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. V Applicable Law provides a time period which must dapsc'before certain action can be taken, that time period will be deemed to be reasonable for purposes of this 'paragraph, The notice of acceleration and opportunity to cure given to Borrower pursuant to section 22 and the notice of acceleration given to Borrower pursuant to Section 18 deemed I o satisfy the notice and opportunity to take corrective action provisions of this Section 20. w w ingle'Family—FRnzrte MadFreildlie Mae UMFORM IT4STRUMENT Farm 3448 1101 OREATLAND 0 ITEM 270CLI 2 JODI 11)--► $ (Page 12 of J 6 pa8 as) Tot Call; I-8W5349MDFVr6i6791-1I131 4039765 Page 12:1of 21 1010912008 02!45 PM Deed Of Trust Thurston County Washington FIRST AMERICAN TITLE 4039621 page 12 of 18 1010812608 04:02 PK,, Of Trust Thurston County Wash11%U,6n FIRST AMERICAN TITLE Description,- Thurston,WA Document-DocID ;4039765 Page: 12 of 21 Order: xcf CommIent: 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substance" are those substances defined as toxic or hazardous substan=, pollutants, or wastes by Environmental Law and the following substances, gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive matedals; (b) 'Environmental Law" mews federal laws and laws of the jurisdiction where the Property is located that relate to health, safety . or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law-, and (d) an "Environmental Condition" mews a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation Of ROY Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the preseim, use, or storage on the Property of small quantities of'Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in cousumerproducts). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. if Borrower Seams, or is notified by any governments] or regulatory authority, or any private party, that any removal or other remcdiation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Clealinp. NON-UNIFORM COVENANTS. Borrower and Lender further covenant `and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement In this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default-, (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice Is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified In the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property at public auction at a date not less than 120 days In the future. The notice shall th I rther inform Borrower or the right to reinstate after acceleration, the right to bring a court action to assert the non - existence or a default or any other defense of Borrower to acceleration and sale, and any other matters required to be Included In the notice by Applicable Law. It the default is not co" on or before the date specified in the notice, Lender at is option, may require Immediate payment In fall of all sums secured by this Security Instrument without further demand and may Invoke the pow"er of sale an&or any other remedies permitted by Applicable Low. Lender shall be entitled to collict all expenses Incurred In pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. It Lender Invokes the powei of sale, Lender shall give written notice to Trustee of the occurrence of an event or default and or Lender's election to cause the Property to be sold. Trustee and Lender shall take such action regarding notice of sale and shall give such notices to Borrower and to other persons as Applicable Law may require. After the time required by Applicable law and after publication of the notice or sale, Trustee, without demand on Borrower, shall sell the Property at pu ! a to the highest bidder at the time and place and under the terms designated In the notice tiV on to Family—Fannie Maeffteddle Mae W-11FORM MTRUMEM Form, 30451101 GREATLAND 0 ITEM270OL13 (001)-MMS (Page 13 of 16pases) T*Ofdw CA 1-$0"W=0FWC616-7%1-11M d 409765 Page 13 of 21 10109120M 02:45 PM Deed Of Trust Thurston County Washington FIRST AMERICAN TITLE 1101111111111111111111111111111111111111111111111111111111 lip 11111111111111111 1111111111111111 1111 4039621 Page 13 of IS 1010812006 04:09'PtIJ "aidd Of Trust Thurston County in 4t5 n FIRST AECANT,TL " .- 1111111111 1 M 11111 n il Ill Nl 1111M 111llin oil 1111 Description:, Thurston,WA Document-DoclD 4039765 Page: 13 of 21 Order: xcf Comment: of'sale In one or more parcels and in any order Trustee determines. Trustee may postpone sale of the Property for a period or periods permitted by Applicable Law by public announcement at the time and place fixed to the notice of sale. Lender or its designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property without any covenant or warranty,,expressed or Implled. The recitals in the Trustee's deed shall be prima facie Ii evidence or the truth or the statements made therein.. Trustee shall apply the proceeds or the sale In the following order: (a) to all expenses of the sale, Including, but not limited to, reasonable Trustee's and attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it or to the clerk of the superior court of the county in which the sale took place. 23. Reconveyance. Upon payment of all sums seamed by this Security Instrumcaut, Leader shall request Trustee to reconvey the Property and shall surrender this Security Instrument and all notes evidencing debt secure by this Security Tw4ument to Trustee. Trustee shall rcconvey the Property without warranty to 's the person or persons legally entitle to it Such person or persons shall pay any recordation costs and the Trustee's fee for preparing the iecvnveyance. 24. Substitute Trustee. In ,accordance with Applicable Law, Lender may from time to time appoint a sucxessor trustee to any Trustee 'appointed hereunder who has ceased to act. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by Applicable Law.' 2s. Use or Property. The property is not used principally for agricultural purposes. 26. Attorneys' Fees. Lender shall be entitled to recover its reasonable attorneys' foes and costs in any action or proceeding to construe or' enforce any terra of this Security Instrument. The term "attorneys' fers," i whenever used in" Security Instrument, shall include without limitation attorneys' fees incurred by Lender in any bankruptcy proceeding or on appeal. WA TON-- Single Pai ly —Famak Maz(Freddte Mae CR+11FORM MSTRUMEM ITEM 270OL14 IDDI11 —# EAS 4039765 Page 114 of 21 14/0912008 42:46 PM Dead Of Trust Thurstan.County Washington FIRST AMERICAN TITLE 1 1111111111111111 l IIII 1111 lilt III mIIII 111111 1111111 III I11t Illil 11111III 111 �II1!1�11111111111 (Page 14 of 16pages) Form 3049 M ORERTtAND ■ To fter Cab: h6D443D-9a93 ❑ Fa a 616.791.1131 4039621 -' Page 14 of 18 1010612048 04,04.PM Deed Of Trust Thurston County ington FIRST pMERICIN T 11111,1111111II1� 1111 JIM 11111111 Is III I III IN10itIt Description:" Thurston,WA Doc intent =DocID 4039765 Page: 14 of 21 Order. xcf Comment. �E � ORAL AGREEMENTS OR ORAL COMMTMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. BY SIGNING BELOW, Borrower aocVts and agrees to the terms and covenants cwtained in pages I through 16 of this Security Inswurnint and in any Rider executed by Borrower and recorded with it 9, AND J. Sm—ffH– -Borrower CYNTHIA M. SMITH -Bormwer (seal) -Borrower - Borrower Witness: (Sew) - Borrower Witness: WASHjN(;T0N_SjnSk Family—FeImae,bbefFreddle Mac MFORM V5TRUMEW Fem 3048 IMI rEATLAN1,1* ITEM 270OLIS (00il)—MER0 (Page J 5 of 16 pag es) T6 Order C* 1-80"$D-9393 0 6.791.1 , , 4039765 1 Page 15 of 21 10/09/2008 02:45 AM Deed Of Trust Thurston County Uashington FIRST AMERICAN TITLE 111111111111111 lilt E111111 111111111 Ilia III III 1111 1111 111111111111111111111111111111111 4039621 %.. Page 15 of 18 10108/2008 04:02"PrI DevrcT'Of Trust Thurston County Wishin,%UiA 11111111111 RI TITLE-'--' 111 —mill 1111111111111111111111111111111111111111111 Description: Murston,TVA Docent -DociD 4039765 page: 15 of 21 Order: xcf Comment: State, of )SS. County of On this day person I ally appeared beforeme, ANDREW J. SMITH, CYNTHIA M. SMITH to me known to be the indivi"(s) ,described in and who executed the within and foregoing instrument, and acknowledged that he (she or they) signed the same as his, (her or their) free and voluntary act and deed, for the uses and purposes therein mentioned. (fiven,under my hand and official seal this day of rn'l R. JO�y )JI �V. 1/1 Hatary Public in and fox dt olt�""XIIMJ%if , e State of Washington residing at ON 1z 50 r. My commission expires: S' fill Cj REQUEST FOR RECONVEYANCE TO TRUSTEE: The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes, together with all other indebtedness secured by the Deed of Trust, have been paid in full. You,are hereby directed to cancel said note or notes and this Deed of Trust, which are delivered hereby, and to reconvey, without warranty, all the estate now held by you under this Deed of Trust to the person or persons legally entitled thereto. DATED: By elks 15 �or4--Single Family—Fannie MRe%cdtlie Mae WffORM MTRUMERr ITEM270906(0010-11 G 4039765 Page 16'of 21 10109/2008 02:45 PM Deed Of Trust Thurston County Washington FIRST AMERICAN TITLE (Page 16 of 16 pages} Form 3448 1101 GREATIAND ■ To Ogwt CA I-$00430-9393 Oftw: 61 V91413 4039621 P Rage 16 of IS 10/00/2009 04: 0 01 Trust 1 1111111 ll l�� ill 111 iTj PM Thurston Count ngtan FIRST AMERICAN Description: Thurston,W-A Doc=ent-Doc1D*4039765 Page: 16 of 21 Order: xcf Coment: 130miLULU THIS PLANNED UMT DEVELOPMENT RIDER is made this 2nd day of October 2008 ' , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrumour) of the Sam daft, given by the undersigned (the "Borrower"} to secure Borrower's Note to HOMESTREET BANK, A WASHINGTON STATE CHARTERED SAVINGS BANK (the -Lender-) of the same date and covering the Property described in the Security Instrument and located at: 10756 PALISADES STREET SE YELM, WA 98597 (ft-p-ty Address] The Property includes, but is not limited to, a parcel of land improved with a, dwelling, together. with other such parcels and certain common areas and facilities, as described in the Dacia: ration of Covenants, Conditions, and Restrictions (the "Declaration'). The Property is a put of a planned unit development known as PALISADES WEST HOMEOWNERS' ASSOCIATION [Noma of Pja=ed Unit Development] (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association ") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the Covenants and agreements made in the Security Instrument; Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PTJD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrow" shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance.. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and'! which provides insurance coverage in the amounts (including deductible levels), for the j criods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender'of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on ft Property is deemed 'satisfied to the extent that the required coverage is provided by the Owners Association policy., . What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. h1 eu-s ,r. PUD RIDER -- Single Family— F*Tmie MaelFreddle Mae UNIFORM INSTRUMENT Form 3150 1/01 MFCD2W2 (Page I of 2pages) 430298 To Or4or Colt 1400QW4776 iTEM IUMI (0411) 4039765 Page 27 of 21 10109/2008 02:45 PM Deed Of Trust Thurston County Washington FIRST AMERICAN TITLE 1 1111111 Il 111111111 IN III RE fill 11111111111111 ill 111111111111111111111111111111 it [Ill 4039621 Page 17 of 18 10/0B12008 04:'82 PM -'" aed Of Trust - Thurston County- shing t on FIRST AMERICAN T 1111111 III 11111111 RE Is 0-1111 lilt I ill 11111 IN 111111 II 11111 Ill IN 11111 IN Description: Thurston,NA Document-DocID 4039765 Page: 17 of 21 Order: xcf Comment: In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender. shall apply the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower, C. Public Liability Insurance. 'Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lendcr. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination' f the PUD, except for abandonment or termination required by law in the case of substantial tiLstruction by fire or other casualty or in the case of a taking by Condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express, benefit of Lender, (iii) termination of professional management and assumption of self-management of the Owners Association; or (W) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedlei. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any amount's disbursed by Lender under this paragraph F shall become additional debt of Borrower seemed by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in pages I and 2 of this PUD Rider. Ott'"' VVU "J'I'Dr. S4 AND J. ITH Borrower CWHIA M. SMITH— -Barrower —(Sea]} -Barrower (Sod) -Borrower (Seal) -Borrower — (Seal) -Borrower STATE PUD RIDER—Singie Family— Fannie MaaWredffie Mac UNIFORM INSTRUMENT Form 31501101 W 430298 GmatDoce- CD2062 ITEM 16221 (0411) {Page 2 of 2 Fag-) To Order Calk 1-800-M-6775 4039765 Page 18 of 21 1010912008 02:45 PM Deed Of Trust Thurston County Washington FIRST AMERICAN TITLE 11111 111111111111111 lill In lilt 1111 milli [Hill IN 1111 IIIE IN 11111111111 Hill IN ilill 111111101 4039621 Page 18 of 18 10108t2009 04:0;KPM ,,— Deed Of Trust Thurston County W Kigton FIRST AMERICAN T il ;111 111 Nil 1111111111111111 Description. Thurston,WA Document-Docil) 4039765 Page: 18 of 21 Order: xcf Comment: CONSTRUCTION RIDER TO SECURITY INSTRUMENT (ONE STEP LOAN) THIS CONSTRUCTION RIDER is made by the undersigned (individually and collectively, H more than one, the "Bormwerl this 3RD day of.00TOBER, 2008, and is incorporated into and shall be deemed to amend and stipplement the mortgage, dead of trust, or other security instrument of the same date (the "Secuffly Instrument" -given by the Borrower to HomeStreet Bank, a Washington state chartered savings bank, (the "Lender') to secure Borrowers obligations to Lender under the promissory note of the some date, as amended by any addendums or riders thereto (the "Nobj. The Security Instrument covers the property described therein and located at the following address: 10756 PALISADES STREET SE, YELM, WA 98597 (the "Propertyl. THE TERMS OF 6ORROWEkS LOAN PROVIDE FOR BOTH CONSTRUCTION AND PERMANENT FINANCING. THIS RIDEk. CONTAINS SPECIAL PROVISIONS APPLICABLE TO THE CONSTRUCTION PERIOD OF,; THE LOAN. DURING SUCH CONSTRUCTION PERIOD, MONTHLY PAYMENTS SHALL BE CALCULATED IN A MANNER DIFFERENT FROM THAT SET FORTH IN THE NOTE. F.1 K P1 111101 k' TO �i W 11 Lender, Borrower, and, where applicable, Borrower's construction contractor (the "General ConVactorl have entered into a One Step Residential Construction Loan Agreement (the "Loan Agreement') setting forth the terms and conditions of a Wn from Lender for the construction of a single family residence and certain other improvements on the Property (the "Loan"}. In addition to and as an amendment to the covenants and agreements made by Borrower in the related Security Instrument, Borrower further covenants and agrees with Lender as follows: 1. Djoilty of Rider To the extent that this Rider conflicts with the terms and conditions set forth in the Security Instrument, the terms and conditions set forth In this Rider shall supersede and control any such inconsistent provisions. Defined terms In the Note orithe Security Instrument shall have the same meaning when used herein. 2. Loan Tenn. The loan term shall begin with a Construction Period and convert to a Permanent Financing Period on the Transition Date. Those terms are defined as follows: 2,1 Transition Date The Transition Date shall be the first day of the first month following completion of construction as defined in paragraph 2.4 below. 2.2 Construction Pon the date of �od The Construction Period shall constitute that period of time from the Note to, but not including, the Transition Date. 2.3 Permanent Fi , The Permanent Financing Period shall constitute that period of time from and Including the Transition Date to the Maturity Date, as defined In the Note, 2,4 62Mdeflon of Construction. Construction shall be complete when, in the sole discretion of Lender, construction on the Property is one hundred percent (100%) finished in accordance with the plans and specifications approved by Lender, and the following conditions have also been satisfied: 14.1 2f unancv. Lender has been furnished with a copy of the applicable final permits or cerfificates pertaining to the improvements on the Property, signed by the appropriate governm6rital authorities, showing satisfactory completion of the Improvements and the right to occupy and use the improvements for the purposes for which they were designed; 2.4.2 Tie Update. Lender has received an update to Lender's policy of title insurance and any related endorsements deemed necessary by Lender Insuring that the Property is free and clear of any and all liens or that did not appear in the Ceridees policy of We insurance Issued upon the recording of the Secuirity Instument; One Stop Loan Rider to Security Agreement Mamh 2006 Revision 1126700 10011-021 k1_00d= page I 4039765 Page 19 of 21 Thi(1109/2WS 02-46 PM Deed Of Trust urston county washinston FIRST AMERICAN TITLE 141111111111111111121 Big 1111A 1111 WI I III MIN 11111 Descrlpt;lon. Thurston,WA Document-DoclD 4039765 Page: 19 of 21 Order: xcf Comment: Loan No. 430296 2.4,3 fttemk by B=Mr and General Contractor: Lender has received a statement signed by Borrower and General Contractor certifying, wider oath, that all bills related to construction on the Property have been paid and no liens or claims of lion exist or have been threatened against the Property; P 2.44 Rebedikdmn of Value. Lender has received, in a form acceptable to Lender and from an appraiser approved by Lender, a recertification of value Indicating that the . value of thii Improvements as completed is not less than one hundred percent (100%) of the completed value estimated at the time of loan approval; and 2.4,5 & Other Defaults. There exist no other defaults by Borrower or General Contractor under the Note or the Security Instrument. 1 Interest Rate. Interest shall accrue during both the Construction Period and the Permanent Financing Period at the rate set forth in the Note te (the "Note Rate'. 11 the Note so provides, the interest rate my change on certain Change Dates. Interest shall accrue upon disbursed portions of the total principal amount of the Note from the time of clsbursament. 1 4. Loan Payments During g2niboon Period, Interest accruing during the Construction Period "It be payable in monthly installments an the first day of each month commencing on NOVEMBER 1, 2008, and continuing through, and including, the Transition Date. Except upon default and acceleration, no repayment of principal shall be due during the Construction Period. 5. Loan payments Dtijiig Permanent Financing _Period Following the application of any remaining undisbursed Loan funds in accordance with the terms of the Loan Agreement, Lender shall, on or before the Transition Date, determine the amount of the monthly payment that would be sufficient to repay in full the outstanding principal amount that Borrower owes together with interest at the Note Rate in substantially equal monthly payments aver the remaining portion of the term of the Note. The result of this calculation will be the new amount of Borrowers next monthly payment. Such monthly payment Shall be due an the first of each month oornmencing one month after the Transition Data. If the Note so provides, the amount of such monthly payment may change following a Change Date. 6. Security Lor Construction Loan Agreement. The Security Instrument secures to Lender the performance of each and every covenant and agreement of Borrower under the Note, the Security Instrument, and the Loan Agreement. A default by Borrower under the Loan Agreement, including Borrower's failure to complete construction vAthin the time limits set forth therein, shall also constitute a def6ult under the Note and Security Instrument and entitle Lender to exercise all remedies available to Lender upon default under 04 Note or Security Instrument. 7 Sale or Transfer of E' rTNIV During Construction Period Any provision in the Note or Security Agreement that permits Borrower to sell or otherwise transfer the Property without paying Bormwer's obligations to Lender in full Is inapplicable until Borrower has made the first payment of principal and interest that becomes due during the Permanent Financing Period pursuant to Paragraph 5 above. 8. 1 Ocowancy gs Nn!jRjl Residence Borrower's obligation under the Security Instrument to occupy the Property as Borrower's principal residence shall commence thirty (30) days after the Transition Date. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Construction Rider to Security Instrument as of the day and year first above written. NMI. Or* Step Wait Rider to Sftv* Agreement page 2 #26700 10011-02f M-041.doc 4039765 Page 20 of 21 10/09120M 02:45 PM Deed Of Trust Thurston County Washington FIRST AMERICAN TITLE 111111111 II I 1111111311111111111 #11111 ill 11111111111111111111111 Description. Thurston,WA Document-DOCID'4039765 Page: 20 of 21 Order. xcf Comment, GYMNIA M. SMITH One S* Lawn Rider to Security Agreement #26700 1001f-021 ki-04Wbc 4039765 Page 21 of 22 101 0912008 02:45 PPS Deed of Trust Thurston CountY Washington FIRST nmERICAN TITLE 1110 111111111121 Ill In III U 11 U Description; Thurston,VA Document-DocID 4039765 Page: 21 of 21 Order: xcf Comment: Page 3 CLOSING/RECORDING INSTRUCTIONS COUNTY: Thurston TO: `First American Title Insurance Company ORDER NCI.: 4291 - 1212588 Attn: William Tiglao (3611)491 -2441 DATE. September 30, 2008 i! Fir st American Title Insurance Company Hometreet Bank Bell Towne Centre, 4200 6th Avenue 5E, Ste 201 2100 SE 164th Ave., #F103 Lacey, WA 98503 Senn copies to: Vancouver, WA 98683 Attn: Mari Beckley (360)491 -2441 Attn: Re:4241= 1212588 Reference: 430298 X i EXAMINE AND ! -TOLD ABOVE INSTRUMENTS PENDING FURTHER INSTRUCTIONS Record enclosed instruments ❑ Attach stamps on Deed No.: below In the amount of $ GIVE VERBAL Send pencil supplemental report BIII charges to Issue your El Purchaser's Owner`s 0 Mortgagee's Issue after mtg. assigned Endorsements 100 116, 8.1 & PUD RIDER r Policy showing title in Andrew J. Smith and Cynthia M Smith, husband and wife ii, Subject to paragraphs 2 9 THRU 20 We request deletion of items numbered 1,3-8 We guarantee to obtain and deliver for recordation documentation required to release said items. y n 1 Mari Beeklev. Escrow Officer 0 Additional Instructions: Send copies of Take -Off (recorded) documents within 3 days of closing 1; Deed /CDntract from FH1, LLC to Smith ' Excise Tax Check for Payment 2. Deed/ Contract from to t` Excise Tax Q Check for Payment 3. 1" Mtg/Trust Deed from Smith to HomeStreet Bank 4. 2nd Mtg/Trust Deed from Insured to Not Insured 5, Asgmt Mtg /Deed of Trust from to 6. Release of Mortgage /Reconveyance of Deed of Trust referred to in paragraph of Title Report 8. s' 9. s 10. . -. .. Fee ze No. )rded Fee No. >rded Fee !.. Fee )rded Fee No. )riled Fee se No. )riled Fee No. )rded Fee No. >rded Fee No, )rded Fee No. )riled Fee No. )rded Fee Noy. 11. ?; Financino Statement from to Filed Fee (1) File with County Auditor File No. IQ tZ) File with Secretary of State -- advanced $ Forwarded r It is understood that the U.C.C. financing Statement will be filed in accordance with Instructions without examinatlon or review of sufficiency. 12. q Taxes: ❑ Reeelpt attached Pay per check attached Paid — please verify Show on Policy r ' Order type tax registration v part mont of evenue C: REAL ESTATE EXCISE TAX AFFIDAVIT This form is your receipt ............... ................... PLEASE TYPE OR PRINT CHAPTER 82.45 RCW — CHAPTER 458-61A WAC when stamped by cashier. THIS AFFIDAVIT WILL NOT BE ACCEPTED UNLESS ALL AREAS ON ALL PAGES ARE FULLY COMPLETED (See back of last page for instructions) Check box if partial sale of ',Name:" FH1, LLC, a Washington limited liability company PA Mailing Address 4200 6th Avenue #301 city/§tatelzi Lace) � WA 98503 Phone No. (including area code) r Narric Street If multiple owners, list percentage of ownership next to name Name: Andrew 3, Smith and Cynthia M. Smith,- 11 and wife MailingAddress_ • City/state/zip Yelm, WA 9859 Phone No. (including area uode) Same as BuyedGran Send all property tax correspondence to! r - too List all real and personal property tax parcel account List assessed value(s) L-2i I aunibers-check box if personal prorxettY — ki CityiStatc Zip_ W.Vu F� 000 Phone No (including area code) 170• Street address of property: 10756 Palisades Street SE y Yelmj WA 98597 This property is located in F7 unincorporated County OR within City of yelm F-1 6.k be- if any of the listed parcels are being segregated from a larger parcel. Legal description of property (if more space is needed, you may attach a separate sheet to each page of the affidavit) LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN-THUkSTON COUNTY, WASHINGTON. i Select Land Use Code(s): 111s4 a, 11 price. enter.any additional codes: a (See back of last page of instructions) YES I NO Is this property exempt from property tax per chapter D N 84.36 RCW, (non profit organization)? YES NO Is this property designated as forest land per chapter $4.33 RCW? LAJ Is this property classified as current use (open space, farm and F7X agricultural, or timber) land per Chapter 84,34 RCW? is this property receiving special valuation as historical property El Ey per Chaptcr, 84.26 RCW? If any answers are yes, complete as instructed below. (1) NOTICE OF CONTINUANCE (FOREST LAND OR CURRENT USE) NEW OWNER(S): To continue the current designation as forest land or classification as current use (open space, farm and agriculture, or timber) land, you must sign ,on (3) below. The county assessor must then determine if the land transferred continues to qualify and will indicate by signing below. if the land no longer qualifies or you do not wish to continue the designation or classification, it will,bc removed and the compensating or additional taxes will be due and payable by the seller or transferor at the time of sale. (RCW 84.33.140 or RCW 84,34,108), Prior to signing (3) below, you may contact your local county assessor for more information. F] This•land does does not qualify for continuance. DEPUTY ASSESSOR DATE • (2) NOTICE OF CO MPLIANCE (HISTORIC PROPERTY) NEW ONVNER(S).- To continue special valuation as historic property, sign (3) below. If the new owner(s) do not wish to continue, all additional tax calculated pursuant to chapter 84,26 RCIA1, shall be due and payable by the seller or transferor at the time of sale. (3) ONNIINER(S) SIGNATURE PRINT NAME I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOREGOING IS T UEAND ORRECT. C Of Signature f N o 0 0 1�- Gr�ntor r Grantor's A,:-t' X - K Grantee. r Grantee's Agent Name (print): First Arnencan Title Insurance CornPanY Name (print) Andrew 3. Smith 1! Date & city of signing: Vj Lacey Date and Place of signing: — Lac i --Ferfive years, or jury: Perjury is a class C felony which is punishable by imprisonment in the state correctional institution for a maximum term of not more than by a fine in an amount fixed by the court of not more than five thousand dollars (S5,000.00), orby both imprisonment and fine (RCW 9A.20.020(IC)). REV 84 00011 a (02113107) THIS SPACE - TREASURER'S USE ONLY COUNTY TREASURER First American Title Insurance Company M .i in If claiming an exemption, list WAC number and reason for exemption: WAC No, (Sectiort/Subsectioril Reason for exemption; Type of Document Statutog Warranty Deed Date of Document September 29, 2008 Gross Selling Price $ *Personal Property (deduct) Exemption Claimed (deduct) $ Taxable Selling Price $ Excise Tax: State S Local $ *Delinquent Interest: State S Local S *Delinquent Penalty S subtotal $ *State Technology Fee $ *Affidavit Processing Fee $ Total Due $ 841000-00 1,285.20 5.00 1,290.20 A MINIMUM OF $10.00 IS DUE IN FEE(S) AND/OR TAX 'SEE INSTRUCTIONS AFTER RECORDING MAIL TO: Andrew J. Smith and Cynthia M. Smith 10756 Palisades Street SE Yelm, WA 98597 Filed for Record at Request af: above hne�R VZ7WV First American Title Insurance Company FIRST AMERICAN TITLE STATUTORY WARRANTY DEE�S�RANSE COMPANY File No: 4291 - 1212588 (MB) [late: September 29, 2008 Grantor(s): FHI, LLC Grantees): Andrew 7. Smith and Cynthia M. Smith Abbreviated Legal: LOT 15 PALISADES WEST, REC. NO. 3988607 Additional Legal on page: Assessor's Tax Parcel No(s): 67110001500 :i THE GRANTOR(S) FHI, LLC, a Washington limited liability company for and in . consideration of Ten Dollars and tither Good and Valuable Consideration, In hand paid, conveys, and warrants to Andrew J. Smith and Cynthia M. Smith, husband and wife, the following described real estate, situated in the County of Thurston, State of Washington. s" LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO, 3988607, IN THURSTON COUNTY, WASHINGTON. i.. Subject To: This conveyance is subject to covenants, conditions, restrictions and easements, if any, affecting title, which may appear in the public record, including those shown on any recorded ' plat or survey. FH1, LLC, a Was company liability in, Manager 1 Page 1 of 2 Lpa 110 -Q5 I I 9 APIA: 67110001500 Statutory Warranty Deed File No.: 4791 - 1211588 (MB)I - continued pate: 0912912008' STATE OF Washington � )-SS COUNTY OF Thurston } I certify that I know or have satisfactory evidence that Steven L Chamberlain, is /are the person(s) who appeared before reef and said person(s) acknowledged that he /she /they signed this instrument, can oath stated that he /she /they is/are authorized to execute the instrument and acknowledged it as the Manager / Member of F11-11, PLC to be the free and voluntary act of such party(ies) for the uses and purposes mentioned in this instrument. Dated: YtrVr - M C Beckley Notary Public in and for the State of Washington Residing at: Olympia My appointment expires: 02 -17 -2011 R � yr.t.tco Page 2 of 2 LPB 10 -05 When Recorded Retum To: HOMESTREET BANK 2000 Two Union Square, 601 Union St Seattle, Washington 98101-2326 [Space Above This Line For Recording Data] DEED OF TRUST NIIN: 10004 `200004302989 FIRST AMERICAN TITLE Grantor(s): INSURANCE COMPANY (1) ANDREW J. SMITH (2) CYNTHIA M. SMITH (3) (4) (5) (6) GrAntee(s }: (1) HOMESTREET BANK, A WASHINGTON STATE CHARTERED SAVINGS BANK (2) FIRST AMERICAN TITLE CO. OF THURSTON COUNTY, A CALIFORNIA CORP. Legal Description (abbreviated): LOT 15, PALISADES WEST, REC. 3988607, THURSTON COUNTY additional legal(s) on page Assessor's Tax Parcel ID W: 21725130300 ' DEFINITIONS Words used in multiple sections of this document are defined below and other wards are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated September 26, 2008 , togetber with all Riders to this document. (S) "Borrower*' is ANDREW J. SMITH AND CYNTHIA jSMTTH, HUSBAND AND WIFE Borrower is the trustor under this Security Instrument. L� 811th WASIIINGTON --- Single Fancily— Fanule MaetFreddle Mae LNIFOItM INSTRUMENT Form 3t�4 GREATLAND s ITEM2709L1 (0011) –MME (Page 1 of 16 pages) To Order Cal: t- SW530- 9393 © Fax: 516-791 -1131 (C) 'Under" is HOMESTREET BANK Lender is a A WASHINGTON STATE CHARTERED SAVINGS BANK organized and existing under the laws of WASHINGTON . Lender's address is 2000 Two Union Square, 601 Union St, Seattle, Washington 98101-2326 (D) ',Trurteell is FIRST AMERICAN TITLE CO. OF THURSTON COUNTY, A CALIFORNIA CORP. El Adjustable Rate Rider Condominium Rider ED Second Home Rider Balloon Rider Planned Unit Development Rider El Other(s) [specify] CONSTRUCTION 14 Family Rider Biweekly Payment Rider ADDENDUM (J) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (K) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (L) "Electronic Funds Transfer" racans any transfer of funds, other than a transaction originated by chock, draft, or similar paper instrument, which is initiated through an electronic terminal, m1cphonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limi" to, point-of-sale, transfers, automated teller machine s, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. Fom 3048 1101 3VA0G s)N'�'—Singk NAW —F-anle Mat(Freddle Mae LMFORM WSTRUMENT Akin 0 ITEM 270062 J0011�MERS (Page2 of] 6paggs) To fter Call: 1-8G0­&V-93930F2x; 616-791-1131 1 ,t t 10 i s (M) 11Eserow items" means those items, that are described in Section 3. (1) `°Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (ether than insurance proceeds paid under the overages described in Section S) for: (i) damage to, or destruction of, the Property; (ti) condemnations or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (0) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (P) 'Terlodle Payment" means the regularly scheduled amount Clue for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (Q) "RESPA" means the Real Estate Settlement Procedures Act (12 U S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a `federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (R) "Successor In Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument, TRANSFER OF RIGHTS IN THE PROPERTY The beneficiary of this Security Instrument is NIERS (solely as nominee for Leader and Lender's successors and assigns) and the successors and assigns of MERS. This Security Instrument secures to Lender: 0) the repayment of the Loan, and all renewals, extensions and modifications of the Note, and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the COUNTY of THURSTON [Type of Recording Jurisdiction] [Name of lording Jurisdiction] LOT 15 OF PALISADES WEST, ACCORDING TO THE FLAT RECORDED FEBRUARY 1, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. .f which currently has the address of 10756 PALISADES STREET SE [street] YELM , Washington 98597 ("Property Address "): [City) [Zip Cede) )WR�GTON—Singlc Family — Fannie MadF reddie Mae UNIFORM IMTRU ENT Form 30491101 GRGnrLAND ■ ITEM 27ODL3 (001 i) --MER$ (Page 3 of 1 Spages) To Ordsr Cali:1.8� 53d 4393 LI Fa�:816 i91 -1 t31 WO-WTI M., Mum r F t s defined. under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall. pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 1 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Leader. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security lnstrumemrt, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, of defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lieu which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 14 days of the date on which that notice is given, Borrower shall satisfy fire lien or take one or more of the actions set forth above in this Section 4. Lender inay require Borrower to pay a one -time charge for a real estate tax verification and/or reporting 3' service used by Lender in connection with this Loan. S. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This ' insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loair. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loran, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such deten-nination or certification. Borrower shall also be responsible for the payment of any fees t, imposed by the Federal Emergency Management Agency in connection with the review of any flood zone Y. determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverarge. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cast of the insurance coverage so obtained might significantly exceed the cast ref insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security instrument. These amounts shall bear interest at { the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Leader to Borrower requesting payment. 1 All insurance policies required by Lender and renewals of such policies shall be subject to Lender's a right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as wessrm�ginuip -PFm a, Tannte Mae/Freddte Mae UJ HF'ORM INSTRUMENT i' ITEM 2709L6 (001 11 --MERE (Page S of 16 pages) Irorin 30481101 GREATLANQ ■ To Order Cali: i- SOO.630 -9393 © Fax: 616-791 -1131 mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices, if Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage, to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Leader has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and "I be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds Shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 1 If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. in either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts, unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under thee. Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this security Instrument and SMI continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. if insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Leader or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Leader shall give rr r notice at (be time of or prior to such an interior inspection specifying such reasonable cause, 'T=01r o' I -4 Form 3048 M1 e —F 1 6� F51 GREATLAND ■ NWA y anule Maeffteddie Mae UNIFORM INSTRUMENT ITEM 27091-7 {0011 }—MERS (Page 7 of 16 pages) To Order Call; 1-800-630-9393 War 616-791-1131 8, Borrower's Loan Application. Borrower Shall be in default if, during the Loan application process, Borrower or any pmous or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Leader (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. this Security Instrument. 9. Protection of Lender's Interest in the Property and Rights Under If (a) Borrower fails to perform the covenants and agreements contained in this Security instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay fur whatever is reasonable or appropriate to protect Leader's interest in the Property and rights 'under this Security Instrument, including protecting and/or assessing the value of the Pioperty, and securing and/or repairing the ti Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instruincrit; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Propci-ty includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. disbursed by Leader under this Section 9 shall become additional debt of Borrower Any amounts secured by this Security Insa -ument. These amounts shall bear interest at the Note rate from the date of disbursement and Shall be payable, with such interest, upon notice from Lender to Borrower requesting payment Borrower shall comply If this Security Instrument is on a leasehold, Bon _y with all the provisions of the lease. shall If Borrower acquires fee title to the Property, the leascbold and the f m title not merge unless Lender agrees to the merger in writing, 10. Mortgage Insurance, If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, ed ceases in the Mortgage Insurance coverage required by Lender es to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage insurance, Borrower shall pay the premiums -required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If Substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these, payments as a non- e shall be run- refundable, refundable loss reserve in lieu of Mortgage Insurance. Such loss resew all un notwithstanding the fact that the Loan is ultimately paid in fall, and Leader "I not be required to pay o a Borrower any interest or earnings on such loss reserve. Lender can no longer require lass reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make, separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, WASHiNGTON—Shtee Family—Faunfe Mae/Freddie Mae UNIFORM INSTRUARNT Form 3048 VOT • GREATLAND ■ 1TEM27D9L8 [001ii—MERS (page 8 of j6pages) ToOrdatCalla 1-800-530-90930fix:616-791-1131 or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in or until j, accordance with any written agreement between Borrower and Lender providing for such termination termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. e certain losses may Mortgage Insurance reimburses Lender (or any entity that purchases the, Note) for 10 s it Y incur if Borrower does not repay the Loan as agreed. Borrower is not R patty to the Mortgage Insumucc time to time, and may Mortgage insurers evaluate their total risk on all such insurance in force from enter into agreements with other parties that share or modify their risk or reduce losses. These agreements arc on terms and conditions that are satisfactory to the mortgage insurer and the other party (of parties} to to make payments using any source of I these agreements. These agreements may require the mortgage i funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premium). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurcr, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive e from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in excliang for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive rcuisuraacc. Furthe r: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has—if any—with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. to restoration or ak the If the Property is damaged, such Miscellaneous Proceeds shall be applied rep of W Property, if the restoration or repair is economically feasible and Lender's security is not lessenc& During such repair and restoration period, Leader shall have the right to hold such Miscellaneous Proceeds until as been completed ed Lender's Lender has had an opportunity to inspect such Property to ensure the work h b c mpi t to er s satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repair s an d restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the property immediately before the partial taking, destruction, or loss in value is equal to or greater than ale amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the 1 vin fraction. (a) the total amount of the sums secured immediately before the partial taking, WA GTUl "ily—Fanute MacrrFeeddle Mae UNIFORM HNISTRUMN'4T Form 3049 V01 aREATLAND • ITEM 270ftO (001 *—HERS [Page 9 of 16 papes) To Order Cat 1-SW530-093 DFax: 61&791-1131 Ir destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or lass in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the Amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Mi=Uaneous Proceeds either to restoration or repair of the Property or to the sums secured by this } Security instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous i, Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security instrument The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 722. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify aottiz m ation of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Leader's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co- signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co -signs this Security Instrument but does not execute the Notc (a "co- signer "): (a) is co- signing this Security Instrument only to mortgage, grant and convey the co- signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terns of this Security Instrument or the Note without the co- signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security instrument unless Leader agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors And assigns of Lender. WASHINGTON—Sit Family—Fawde MadFred lle Mae LT gFORM MTRUMPNT Forin 30491101 GRUTLANrr ■ ITEM 270900 (6811 —MERS (Page 10 of 16 pages) To Order Call: 1- BDO-530-93930 FbX: 06-791.1131 �. ..�_j 5 uTiticu consent, Lender may require immediate Payment in fall Of all sums secured by this Security Instrument However, us option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the dam the notice is given in accordance with Section 15 within which Borrower must pay all sum secured by this Security InstruinctiL If Borrower fails to pay these stuns prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower mects certain conditions, Borower shall have the right to have enforcement of this Security Ins trumen t discontinued at an y time prior to the earliest of-, (a) five days before We of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if, no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) Pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorney,-.' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may -reasonably require to assure that Leader's interest in the Property and Tights under this Security A Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic funds Transfer. Upon reinstatement by Borrower, this Security instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurr-ed. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 2o. sale or Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "I oan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Scrvi= or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, j04 or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that The other party has breached any provision of, or any duty owed by reason of, this Security Jnstitiment, 'until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 fy the notice and opportunity to take corrective action provisions of this Section 20, ecmed to satis Form 3048 1/01 WA4SIG=T0JN—SiaW7trTfamiJy—F anate MaefFreddle Mae UNIFORM INSTRUMENT GREATLAND A ITEM 27ORL12 {0011 }- ERS (Page 12 of 16pages) To Order Call; 1-800-530-9393 Wax; 61 6-701 -1131 21. Hazardous Substances. As used in this Section , 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law, and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other reanediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON - UNIFORM COVENANTS. Borrower and Lender further covenant and agree as fellows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Bormwer's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property at public auction at a date not less than 120 days in the future. The notice shall further inform Borrower of the right to reinstate after acceleration, the right to bring a court action to assert the non- existence of a default or any other defense of Borrower to acceleration and sale, and any other matters required to be included In the notice by Applicable Law. If the default is not cured on or before the date specified in the notice, Lender at is option, may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and/or any ether remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender Invokes the power of sale, Lender shall give written notice to Trustee of the occurrence of an event of default and of Lender's election to cause the Property to be sold. Trustee and Lender shall take such action regarding notice of sale and shall give such notices to Borrower and to other persons as Applicable Law may require. After the time required by Applicable Law and after publication of the notice of sale, Trustee, without demand on Borrower, shall sell the Property at wA�b is auetdlon to the highest bidder at the time and place and under the terms designated in the notice tlxNtY1'oN— singlM1u)y— Fannie Mae/Freddie MaeU�ORM INSTRUMENT Fc 'ATL ND r3FiEAT�ANG7 ■ ITEM 27D903 (0011} —HERS (Page 13 of 16pages) To Order CA: 1- 800-530- 93930FV:616- 791-1131 f' 9 i i. Y N k 5- n: of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sale of the Property for a period or periods permitted by Applicable Law by public announcement at the time and place fixed in the notice of sale. Lender or Its designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's decd conveying the Property without any covenant or warranty, expresser) or implied. The recitals In the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable Trustee's and attorneys' fees; (b) to all sums secured by this Security Instrument; and {c} any excess to the person cur persons legally entitled to it or to the clerk of the superior court of the county in which the sale took place. 23. Reconveyance. Upon payment of all sums secured by this Security luistruznent, Leader shall request Trustee to reconvey the Properly and shall surrcnder this Security lnstrurnent and all notes evidencing debt secured by this Security Instrument to Trustee. Trustee shall reconvey the Property without warranty to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs and the Trustee's fee for preparing the reconveyance. 24. Substitute Trustee. In accordance with Applicable Law, Lender may from time to time appoint a successor trustee to any Trustee appointed hereunder who has ceased to act. Without conveyance of the property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by Applicable Law. 25. Use of Property. The property is not used principally for agricultural purposes. 26. Attorneys' Fees. Lender shall be entitled to recover its reasonable attorneys' fees and casts in any action or proceeding to construe or enforce any term of this Security Instrument. The term. "attorneys' fees," whenever used in this Security Instrument, shrill include without limitation attorneys' fees incurred by Leader in any bankruptcy proceeding or on appeal. WASF€IN ON— Singe Fasnity— Faagfe Macffi�reddie Mae IJWORM INSTRUMENT ITEM 2709LU M011} --MIIiS (Page 14 of 16 pages) Form 30481J01 OREATLAND ■ To Oj&r Cal; 1.80939313F= 61 6Y791 -1131 's ORAL AGREETVIENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT ENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. BY SIGNING BELOW, Borrower accepts and agrees to the terms an covenants contained in pages l through 16 is Security Ins ent and in any Rider executed by Borrower and recorded with iL (Seal) (Seal) AND W J_ H - Borrower CYNT A M. SMITH - Harrower 4 — (Seal) (Seal) - Borrower - $crrower (Seal) - Borrower Witness: Witness: — (Seal) - Borrower WASHINGTON— Single Family—Fawile Mac/Weddle Mae UNIFORM INSTRUMENT Forms 30981!01 OnEATLAND ■ ITEM 270OL15 (Doti) —MERS (Page 15 of 16 pages) TO Order Cal: 1- 80G- 530-939912W:616-791 -1131 State of County of On this day personally appeared beforenie ANDREW J. SMITH, CYNTHIA K SMI1j R• kaown • be M ffi-Vidual(s) -&MTAAM�x zVi-414*1, AIAwff Irs and acknowled that he (he Of signed the same as his (her or Ue'r free and voluntary act and deed, for the uses and purposes ICI' I mentioned. Given under my hand and official " this ZW'c�' day of S*"O-1 AO C.? ;iz UBVN N 40 47 0 N.ff O �*— �q g kyj wr-, g log memo 10 TRUSTEE: The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note *r notes, together with all other indebtedness secured by the Deed of Trust, have been paid in fu I I. You are hereby directed to cancel said note or notes and this Deed of Trust, which are -ielivered hereby, and to reconvey, without warranty, all the estate now held by You under this Deed of Trust to the person or persons legally entitled thereto. DATED:- Z WASHINGTON— Single Family—F__qieNia_jFreddieNiaeUQFORMDISTRIAIIENT 1TEM270906 (0011)—AAERS (Page 16 of 16 pages) Form 30481101 eREATLAND N To Ordor Cat: J-OW500-M OW 61&791-11$1 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 26th day of September 2008 and is incorporated into and shall be deemed to amend and supplement - the Mortgage, Deed of Trust, or Security Deed (the "Security Instr ument! ) of the same date, given by the undersigned (the "Borrower") to secure Borrower's Note to HOMESTREET BANK, A WASHINGTON STATE CHARTERED SAVINGS BANK (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 10756 PALISADES STREET SE YELM, WA 98597 fhopeM Ad&cssl The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in the Declaration of Covenants, Conditions, and Restrictions (the -Deularation"). The Property is a part of a planned unit dcvcl6pment known as PALISADES WEST HOMEOWNERS'ASSOMTION (Name of Planned Unit D velopmenlj (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PLJD (the "Owners Association") and the uses, benefits and proceeds of Borro-sver's interest- PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then. (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. MULTISTATE PuD RIDER—Single Family—FABBleMactFreddie Afac UNIFORM INSTRUMENT Form 3150 1101 MFCD2062 430298 GrantDoca- ITEM 1=0 (0411) (Page I of2pag-) To Order Calk 1 -800.868-5775 In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Under. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for The express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (W) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shalt become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate from Lender to Borrower requesting payment. r and shall be payable, with interest, upon notice f BY SIGNING BELOW, Borrower accepts and,agrees to the terms and covenants contained in pages I and 2 of this PUD Rider. (Seat) AND WJ. I H -Borrower CYNTMA M. SMITH -Borrower —(Seal) -Borrower — (S cal) -Borrowor —(Seal) -BoTrower —(Sea,]) -Borrower MULTISTATE PUT? RIDER—Single Family—Fannic Mae/Freddie Mac 'UNIFORM ]INSTRUMENT Form 3150 1101 430298 GreatDocs- NfFCD2ff ge 2 10 Order Cart 1400-968-5776 ITEM ie22L (0411) (Pa 2 of 2 1-gay) 4 - When Recorded Return To: HOMESTREET BANK 2000 Two Union Square, 601 Union St Seattle, Washington 98101-2326 Grantor(s): Grantee(s): (Space Above This Line For Recording Data) DEED OF TRUST (i) ANDREW J. SMITH (2) CYNTHIA M. SMITH (3) (4) (5) (6) I; NAG FIRST AMERICAN TITLE INSURANCE COMPANY -- (1) HOMESTREET BANK, A WASHINGTON STATE CHARTERED SAVINGS BANK (2) FIRST AMERICAN TITLE CO. OF THURSTON COUNTY, A CALIFORNIA CORP. Legal Description (abbreviated): LOT 15, PALISADES WEST, REC. 3988607, THURSTON COUNTY additional legal(s) on page 3 Assessor's Tax Parcel ID #: 21725130300 1111:1210111cow, Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated October 02, 2008 together with all Riders to this document. (B) "Borrower" is ANDREW J. SMITH AND CYNTHIA. SMITH, HUSBAND AND WIFE Borrower is the trustor under this Security Instrument. WASHINGTON—Single Family—Fannie MaefFreddle Mae UNIFORM INSTRUMENT Form 3048 1/01 GREATLAND ■ ITEM 2709LI (0011 }—MFRS (Page I of 16 pages) To Order Call: 1-800-530-9393 OF= 616-791 .1131 (C) "Lender" is HOMESTREET BANK Lender isa, A WASHINGTON STATE CHARTERED SAVINGS BANK organized and existing under the laws of WASHINGTON . Lender's address is 2000 Two Union Square, 601 Union St, Seattle, Washington 98101-2326 (D) "Trustee" is FIRST AMERICAN TITLE GOOF THURSTON COUNTY, A CALIFORNIA CORP. (E) "WRS11 is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS Is the beneficiary under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679 -MERS. (F) "Note" means the promissory note signed by Borrower and dated October 02, 2008 The Note states that Borrower owes Lender Three Hundred Seventy One Thousand Nine Hundred Fifty and no1100 Dollars (U.S. $ 371,950.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than October 01, 2038 (G) "Property" means the property that is described below under the heading "Transfer of Rights in the Propcny.$, (H) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (1) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: Adjustable Rate Rider ❑ Condominium Rider F-1 Second Home Rider ❑ Balloon Rider � Planned Unit Development Rider Other(s) [specify] CONSTRUCTION Biweekly Payment Rider ❑ 14 Family Rider F ❑-1 ADDENDUM (J) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (K) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (L) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Sucb term includes, but is not limited to, point-of-sale transfers, automated teller machine WVs, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. ASG_101N—SinCgJe gamily— Fannie MadFreddle Mae UMFORM INSTRUMOrr Form 3048 1/01 GREATLAND ■ ITEM 270912 (0011y--MERS (Page 2 of 16 pages) To Oider CA; 1-800-530-93930 Fax: 616-791-1131 (M) "Escrow Items" means those items that are described in Section 3. (N) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (0) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (P) "Periodic. Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (Q) 1IRESPA11 means the Real Estate Settlement Procedures Act (12 U.S.C. § 2.601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed ' in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (R) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instniment. TRANSFER OF RIGHTS IN THE PROPERTY The beneficiary of this Security Instrument is MERS (solely as nominee for Lender and Lender's successors and assigns) and the successors and assigns of MFRS. This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the COUNTY of THURSTON [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 15 OF PALISADES WEST, ACCORDING TO THE PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. which currently has the address of 10756 PALISADES STREET SE [Street) YELM Washington 98597 ("Property Address"): [City] [Zip Code] WASHINGTON—Single family—Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 30481/01 GREATLAND N ITEM 27091.3 (0011) --MERE (Page 3 of 16 pages) To Order Call: 1-800-530-939313 Fw 06. 791-1131 TOGETHER WITH all the improvements now or hereafter erected on the property, and all casements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MFRS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right- to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the tide to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (e) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied fiords until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such foods will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority. (a) interest due under the Note-, (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. WASHINGTON—Single Family—Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 30481101 GREATLAND ■ ITEM 2709L4 (001 1�MERS (Page 4 of 16 pages) To Order Call: 1-800539 -93930 Fax; 616 -791 -1131 If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in fall. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as alien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Leader all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall famish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver. as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3, Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law, The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Leader shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to a er for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as Cr for me WA a�y—Faunte Mae/Freddie Mae LMFORM INSTRUMEM Form 3049110I GREATLAND ■ ITEM 2709LS (Doi 1}–MERS (Page 5 of 16 pages) To Wes Calt 1.800-53"393 0 Fax: 616.791 -1131 defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make, up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any hen which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. S. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's Tight to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense, Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall -name Lender as WAS Single Family— Fannie Mae/Freddie Mae UMFORM R4STRUMEW ITEM 2709L6 (0011)—MERS (Page 6 of 16 pages) Form 30481/01 GREATLAND ■ To Order Call: 1-80D-530-9393 0 Fax: 616.791 -1181 mortgagee and/or as an additional loss payee. Lender'shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Leader may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lesscuc& During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property, Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall he responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give B!!lTUN — Single ticc at the time of or prior to such an interior inspection specifying such reasonable cause. WA WA ra. Family — Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 30481/01 GREATLAND ■ ITEM 27091-7 100111 —MERE (Page 7 of 16 pages) To Order Call: 1-800-634-939313 Fax: 618 - 741.1131 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest In the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with A the provisions of the lease. If Borrower acquires fee tide to the Property, the leasehold and the fee tide shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to he in effect. Lender will accept, use and retain these payments as a non- refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, WAGNGLTO 4—Single Family --- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 30481/01 GREATLAND ■ ITEM 2709LB (0011)- ERS (Page 8 of 16 pages) To Order Call: 1-80D-630-9393OFax: 616- 7914131 or to provide a non-refundable loss reserve, until Leader's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has—if any- with respect to the Mortgage Insurance under the Homeowners Protection Act or 1998 or any other law. These rights may Include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund or any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to bold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall he applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the I fraction: (4) the total amount of the sums secured immediately before the partial taking WIA&G N—Sing6leWFa&raily—Fannie Mae/Freddie Mae tMFORM MTRUMENT Form 30481/01 GREATLAND ■ ITEM 2709LO (0011 }—MFRS (Page 9 of 16 pages) To Order Call: 1-800-534-8393 0 W: 616-701 - 1131 destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the -urns secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due, "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of The Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instntment or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument, Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. WASQNTTON Single Family—Fannie MaefFreddie Mae UNIFORM INSTRUMENT Form 3048 1101 GREATLAND ■ ITEM 270OLI0 (001 I Y—MERS (Page 10 qfl6pages) To Order Call: 1-800-W-93930Fax: 616-791-1131 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce The charge to the pennitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge, 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security hishninent shall not he deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can he given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18, Transfer of the Property or a Beneficial Interest In Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of tide by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior WVASHGT�OSingle Family -- Fannie MaclFreddte Mac UNIFORM INSTRUMENT Form 3048 V01 GREATLAND 0 ITEM2709L11 (0011} —MERS (Page 11 of 16 pages) Ta Order Call: 1-800-53D-W93 0 Fax: 616-791-1131 written consent, Lender may require immediate payment in full of all sums secured by (his Security instrument, However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument If Borrower fails to pay These sums prior to the expiration of this period, Lender may invoke any remedies permitted by this' Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower inects certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of, (a) five days before sale of the Property pursuant to any -power of sale contained in this Security Instrurnent-, (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and tights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There, also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RE SPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or he transferred to a successor Loan Servicer and arc not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will he deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 s be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. !N M9 VIJO Single'Family—Fannic MatTrWille Mae UNIFORM INSTRUMENT Form 3046 1101 GREATLAND ■ ITEM 2709LI2 [0011) —MERE (Page 12 of16pages) To Drder Call: I-BOD-M-939313Fax: 616-7011-111311 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON - UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property at public auction at a date not less than 120 days In the future. The notice shall further inform Borrower of the right to reinstate alter acceleration, the right to bring a court action to assert the non - existence of a default or any other defense of Borrower to acceleration and sale, and any other matters required to be included In the notice by Applicable Law. If the default is not cured on or before the date specified in the notice, Lender at is option, may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and/or any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give written notice to Trustee of the occurrence of an event of default and of Lender's election to cause the Property to be sold. Trustee and Lender shall take such action regarding notice of sale and shall give such notices to Borrower and to other persons as Applicable Law may require. After the time required by Applicable Law and after publication of the notice of sale, Trustee, without demand on Borrower, shall sell the Property at pu i on to the highest bidder at the time and place and under the terms designated in the notice WAS T lY —Sing e�y— Fannie Maeffteddte Mae UNIFORM INSTRUMENT Form 30481101 GASATl.ANQ ■ ITEM270903 {0011} --HERS (Page 13 of 16 pages) To Order Call: 1- SOD - 530.9393 Wax: 616.701.1431 of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sale of the Property for a period or periods permitted by Applicable Law by public announcement at the time and place fixed in the notice of sale. Lender or its designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable Trustee's and attorneys' fees; (b) to all sums secured by this Security Instrument; and (e) any excess to the person or persons legally entitled to it or to the clerk of the superior court of the county in which the sale took place. 23. Reconveyanee. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security instrument to Trustee. Trustee shall reconvey the Property without warranty to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs and the Trustee's fee for preparing the reconveyance. 24. Substitute Trustee, In accordance with Applicable Law, Lender may from time to time appoint a successor trustee to any Trustee appointed hereunder who has ceased to act. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by Applicable Law. 25. Use of Property. The property is not used principally for agricultural purposes. 26. Attorneys' Fees. Lender shall be entitled to recover its reasonable attorneys' fees and costs in any action or proceeding to construe or enforce any term of this Security Instrument. The term "attorneys' fees," whenever used in this Security instrument, shall include without limitation attorneys' fees incurred by Lender in any bankruptcy proceeding or on appeal. ITEM 27O904 (DO11)--MERS (Page 14 of 1 b pages) Form 30481/01 GREATLAND ■ TD Order Catl:1- 8DD- 53D•93930Fax: 615 -791 -1131 ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in pages 1 through 16 of this Security Instrument and in any Rider executed by Borrower and recorded with it. -(Sea]} (Seal) ANDNffW J. §MfH -Borrower CYNTHIA M. SMITH -Borrower Witness: (se2j) (Seal) -Borrower -Borrower (Seal) (Seal} -Borrower -Borrower Witness: NVASHINGTON—Single Family— Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 34481101 GREATLAND ■ ITEM 2709LI5 (0011)—MERS (Page 15 of 1 6 pages) To Order Call: 1-800-530-9393 0 Fax: 615 -741 -1131 state of )SS. County of On this day personally appeared before me ANDREW J. SMITH, CYNTHIA M. SMITH , to me known to be the individual(s) described in and who executed the within and foregoing instrument, and acknowledged that be (she or they) signed the same as his (her or their) free and voluntary act and deed, for the uses and purposes therein mentioned. Given under my hand and official seal thisil day of The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes, together with all other indebtedness secured by the Deed of Trust, have been paid in full. You are hereby directed to cancel said note or notes and this Deed of Trust, which are delivered hereby, and to reconvey, without warranty, all the estate now held by you under this Deed of Trust to the person or persons legally entitled thereto. By WS WAS &G ON—Single Family—Fannie Mae/Freddle Mae TMFORM MTRUMENT ITEM 270OL16 (0011} -HERS (Page 16 of 16 pages} Form 311481141 GFISATLAND ■ To Drder Call; 1-800-530-9393 0 Fax: 616-791 -11 3, rl� C) 0 N Notary Public in and for the State of Washington residing at: It, :74 g� A V' A Ln My commission expires: (P tir OF W P's The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes, together with all other indebtedness secured by the Deed of Trust, have been paid in full. You are hereby directed to cancel said note or notes and this Deed of Trust, which are delivered hereby, and to reconvey, without warranty, all the estate now held by you under this Deed of Trust to the person or persons legally entitled thereto. By WS WAS &G ON—Single Family—Fannie Mae/Freddle Mae TMFORM MTRUMENT ITEM 270OL16 (0011} -HERS (Page 16 of 16 pages} Form 311481141 GFISATLAND ■ To Drder Call; 1-800-530-9393 0 Fax: 616-791 -11 3, PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 2nd day of October 2008 , 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 HOMESTREET BANK, A WASHINGTON STATE CHARTERED SAVINGS BANK (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 10756 PALISADES STREET SE YELM, WA 98597 [Property Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in the Declaration of Covenants, Conditions, and Restrictions (the "Declaration"). The Property is a part of a planned unit development known as PALISADES WEST HOMEOWNERV ASSOCIATION [Name of Planned Unit Development) (the "PUD"), The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PLJD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PLTD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association, Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term C4 extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. .�J. PUID REDER—Single Family—Fannie Mac/Freddie Mac UNIFORM INSTRUMENT Form 3150 1101 MFCD2062 430298 GreatDocs- ITEM 1622LI (0411) (Page I of 2 pages) To OrderCalt 1.8MM-5775 In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Leader; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in pages I and 2 of this PUD Rider. (Seal) (Seal) AND EW J. IT. -Borrower GYWH 1A M. SMITH ri -Borrower (Seal) (Seal) -Borrower -Borrower —(Seal) (Seal) -Borrower -Borrower I M L R ISTATE PUD RIDER— Single Family— Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 31591/01 MFCD2062 430298 GrestDacs" ITEM 16221-2 (0411) (Page 2 of 2 pages) To Order Calt 1400 .968.6775 EXHIBIT A LEGAL DESCRIPTION: Real property in the County of Thurston, State of Washington, described as follows: LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. WARNING- IMPORTANT NOTICE PLEASE VERIFY THE EXCISE TAX RATE CALCULATED FOR YOUR FILE. IF THE RATE IS INCORRECT PLEASE MAKE THE NECESSARY CHANGE TO THE CHARGE AMOUNT, THEN IMMEDIATELYNOTIFY YOUR SYSTEM ADMINISTRATOR (rnelson(dfirstam.com <mailto:rnelson(&firstam.com> OR sbrewer(afirstam.com <mailto:sbrewer (&firstam.com >) OF THE CORRECT AMOUNT. AFTER READING THIS NOTICE, PLEASE CHECK THE WAIVE BOX FOR THE PHRASE SO THAT IT DOES NOT PRINT WITH YOUR DOCUMENT. )"Parrmeni of evenue REAL ESTATE EXCISE TAX AFFIDAVIT This form is your receipt PLEASE TYPE OR PRINT CHAPTER 82.45 RCW — CHAPTER 458 -61A WAC when stamped by cashier. THIS AFFIDAVIT WILL NOT BE ACCEPTED UNLESS ALL AREAS ON ALL PAGES ARE FULLY COMPLETED (See back of last page for instructions) Check box if partial sale of property If multiple owners, list percentage of ownership next to name Name: FH1, LLC, a Washington limited liability Name: Andrew J. Smith and Cynthia M. Smith, husband company q and wife x w w Mailing Address 4200 6th Avenue #301 W N Mailing Address 10756 Palisades Street SE az .a City /State /Zi _ Lacey, WA 98503 ; city /state /zip Yelm, WA 98597 Phone No. (including area code) Phone No. (including area code) © Send all property tax correspondence to: F] Same as Buyer /Grantee List all real and personal property tax parcel account List assessed value(s) numbers -check box if personal property Name 67110001500 n 7,650.00 Street F-1 0.00 City /State Zip I 1 0.00 Phone No. (including area code) 170 F-1 0.00 ® Street address of property: 10756 Palisades Street SE, Yelm, WA 98597 This property is located in ❑ unincorporated County OR within FX City of Yelm ❑ Check box if any of the listed parcels are being segregated from a larger parcel. Legal description of property (if more space is needed, you may attach a separate sheet to each page of the affidavit) LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. ® Select Land Use Code(s): 11 enter any additional codes: a (See back of last page of instructions) YES I NO Is this property exempt from property tax per chapter ❑ 84.36 RCW (non profit organization)? M YES NO Is this property designated as forest land per chapter 84.33 RCW? ❑ Is this property classified as current use (open space, farm and ❑ agricultural, or timber) land per Chapter 84.34 RCW? Is this property receiving special valuation as historical property ❑ ER per Chapter 84.26 RCW? If any answers are yes, complete as instructed below. (1) NOTICE OF CONTINUANCE (FOREST LAND OR CURRENT USE) NEW OWNER(S): To continue the current designation as forest land or classification as current use (open space, farm and agriculture, or timber) land, you must sign on (3) below. The county assessor must then determine if the land transferred continues to qualify and will indicate by signing below. If the land no longer qualifies or you do not wish to continue the designation or classification, it will be removed and the compensating or additional taxes will be due and payable by the seller or transferor at the time of sale. (RCW 84.33.140 or RCW 84.34.108). Prior to signing (3) below, you may contact your local county assessor for more information. This land ❑ does ❑ does not qualify for continuance DEPUTY ASSESSOR DATE (2) NOTICE OF COMPLIANCE (HISTORIC PROPERTY) NEW OWNER(S): To continue special valuation as historic property, sign (3) below. If the new owner(s) do not wish to continue, all additional tax calculated pursuant to chapter 84.26 RCW, shall be due and payable by the seller or transferor at the time of sale. (3) OWNER(S) SIGNATURE PRINT NAME List all personal property (tangible and intangible) included in selling price. If claiming an exemption, list WAC number and reason for exemption: WAC No. (Section/Subsection) Reason for exemption: Type of Document Statutory Warranty Deed Date of Document September 29, 2008 Gross Selling Price $ *Personal Property (deduct) $ Exemption Claimed (deduct) $ Taxable Selling Price $ Excise Tax: State $ Local $ *Delinquent Interest: State $ Local $ *Delinquent Penalty $ Subtotal $ *State Technology Fee $ *Affidavit Processing Fee $ Total Due $ 84,000.00 1,285.20 5.00 1,290.20 A MINIMUM OF $10.00 IS DUE IN FEE(S) AND /OR TAX *SEE INSTRUCTIONS I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT. Signature of Signature of Grantor or Grantor's Agent Grantee or Grantee's Agent Name (print): First American Title Insurance Company Name (print) Andrew J. Smith Date & city of signing: Lacey Date and Place of signing: Lacey Perjury: Perjury is a class C felony which is punishable by imprisonment in the state correctional institution for a maximum term of not more than five years, or by a fine in an amount fixed by the court of not more than five thousand dollars ($5,000.00), or by both imprisonment and fine (RCW 9A.20.020(1C)). REV 84 0001a (02/13/07) THIS SPACE - TREASURER'S USE ONLY COUNTY TREASURER First American Title Insurance Company ON Departnnl Crf u iveyenue REAL ESTATE EXCISE TAX AFFIDAVIT This form is your receipt PLEASE TYPE OR PRINT CHAPTER 82.45 RCW — CHAPTER 458 -61A WAC when stamped by cashier. THIS AFFIDAVIT WILL NOT BE ACCEPTED UNLESS ALL AREAS ON ALL PAGES ARE FULLY COMPLETED (See back of last page for instructions) Check box if partial sale of property If multiple owners, list percentage of ownership next to name Name: FH1, LLC, a Washington limited liability Name: Andrew J. Smith and Cynthia M. Smith, husband company q and wife x w w Mailing Address 4200 6th Avenue #301 w F az Ci /State /Zi _ Lacey, WA 98503 Phone No. (including area code) Send all property tax correspondence to: F] Same as Buyer /Grantee Name Street City/State Zip Phone No. (including area code) Mailing Address 10756 Palisades Street SE city/state /zip Yelm, WA 98597 Phone No. (including area code) List all real and personal property tax parcel account numbers -check box if personal property 67110001500 n n n 170 n List assessed value(s) 7,650.00 0.00 0.00 0.00 ® Street address of property: 10756 Palisades Street SE, Yelm, WA 98597 This property is located in n unincorporated County OR within FX City of Yelm F—] Check box if any of the listed parcels are being segregated from a larger parcel. Legal description of property (if more space is needed, you may attach a separate sheet to each page of the affidavit) LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. ® Select Land Use Code(s): List all personal property (tangible and intangible) included in selling 11 price. enter any additional codes: a (See back of last page of instructions) YES I NO Is this property exempt from property tax per chapter n 84.36 RCW (non profit organization)? M YES NO Is this property designated as forest land per chapter 84.33 RCW? n Is this property classified as current use (open space, farm and n agricultural, or timber) land per Chapter 84.34 RCW? Is this property receiving special valuation as historical property ❑ ER per Chapter 84.26 RCW? If any answers are yes, complete as instructed below. (1) NOTICE OF CONTINUANCE (FOREST LAND OR CURRENT USE) NEW OWNER(S): To continue the current designation as forest land or classification as current use (open space, farm and agriculture, or timber) land, you must sign on (3) below. The county assessor must then determine if the land transferred continues to qualify and will indicate by signing below. If the land no longer qualifies or you do not wish to continue the designation or classification, it will be removed and the compensating or additional taxes will be due and payable by the seller or transferor at the time of sale. (RCW 84.33.140 or RCW 84.34.108). Prior to signing (3) below, you may contact your local county assessor for more information. This land n does n does not qualify for continuance DEPUTY ASSESSOR DATE (2) NOTICE OF COMPLIANCE (HISTORIC PROPERTY) NEW OWNER(S): To continue special valuation as historic property, sign (3) below. If the new owner(s) do not wish to continue, all additional tax calculated pursuant to chapter 84.26 RCW, shall be due and payable by the seller or transferor at the time of sale. (3) OWNER(S) SIGNATURE PRINT NAME If claiming an exemption, list WAC number and reason for exemption: WAC No. (Section/Subsection) Reason for exemption: Type of Document Statutory Warranty Deed Date of Document September 29, 2008 Gross Selling Price $ *Personal Property (deduct) $ Exemption Claimed (deduct) $ Taxable Selling Price $ Excise Tax: State $ Local $ *Delinquent Interest: State $ Local $ *Delinquent Penalty $ Subtotal $ *State Technology Fee $ *Affidavit Processing Fee $ Total Due $ 84,000.00 1,285.20 5.00 1,290.20 A MINIMUM OF $10.00 IS DUE IN FEE(S) AND /OR TAX *SEE INSTRUCTIONS I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT. Signature of Signature of Grantor or Grantor's Agent Grantee or Grantee's Agent Name (print): First American Title Insurance Company Name (print) Andrew J. Smith Date & city of signing: Date and Place of signing: Perjury: Perjury is a class C felony which is punishable by imprisonment in the state correctional institution for a maximum term of not more than five years, or by a fine in an amount fixed by the court of not more than five thousand dollars ($5,000.00), or by both imprisonment and fine (RCW 9A.20.020(1C)). REV 84 0001a (02/13/07) THIS SPACE - TREASURER'S USE ONLY COUNTY ASSESSOR First American Title Insurance Company ON Departnnl Crf u iveyenue REAL ESTATE EXCISE TAX AFFIDAVIT This form is your receipt PLEASE TYPE OR PRINT CHAPTER 82.45 RCW — CHAPTER 458 -61A WAC when stamped by cashier. THIS AFFIDAVIT WILL NOT BE ACCEPTED UNLESS ALL AREAS ON ALL PAGES ARE FULLY COMPLETED (See back of last page for instructions) Check box if partial sale of property If multiple owners, list percentage of ownership next to name Name: FH1, LLC, a Washington limited liability Name: Andrew J. Smith and Cynthia M. Smith, husband company q and wife x w w Mailing Address 4200 6th Avenue #301 w F az Ci /State /Zi _ Lacey, WA 98503 Phone No. (including area code) Send all property tax correspondence to: F] Same as Buyer /Grantee Name Street City/State Zip Phone No. (including area code) Mailing Address 10756 Palisades Street SE city/state /zip Yelm, WA 98597 Phone No. (including area code) List all real and personal property tax parcel account numbers -check box if personal property 67110001500 n n n 170 n List assessed value(s) 7,650.00 0.00 0.00 0.00 ® Street address of property: 10756 Palisades Street SE, Yelm, WA 98597 This property is located in n unincorporated County OR within FX City of Yelm F—] Check box if any of the listed parcels are being segregated from a larger parcel. Legal description of property (if more space is needed, you may attach a separate sheet to each page of the affidavit) LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. ® Select Land Use Code(s): List all personal property (tangible and intangible) included in selling 11 price. enter any additional codes: a (See back of last page of instructions) YES I NO Is this property exempt from property tax per chapter n 84.36 RCW (non profit organization)? M YES NO Is this property designated as forest land per chapter 84.33 RCW? n Is this property classified as current use (open space, farm and n agricultural, or timber) land per Chapter 84.34 RCW? Is this property receiving special valuation as historical property ❑ ER per Chapter 84.26 RCW? If any answers are yes, complete as instructed below. (1) NOTICE OF CONTINUANCE (FOREST LAND OR CURRENT USE) NEW OWNER(S): To continue the current designation as forest land or classification as current use (open space, farm and agriculture, or timber) land, you must sign on (3) below. The county assessor must then determine if the land transferred continues to qualify and will indicate by signing below. If the land no longer qualifies or you do not wish to continue the designation or classification, it will be removed and the compensating or additional taxes will be due and payable by the seller or transferor at the time of sale. (RCW 84.33.140 or RCW 84.34.108). Prior to signing (3) below, you may contact your local county assessor for more information. This land n does n does not qualify for continuance DEPUTY ASSESSOR DATE (2) NOTICE OF COMPLIANCE (HISTORIC PROPERTY) NEW OWNER(S): To continue special valuation as historic property, sign (3) below. If the new owner(s) do not wish to continue, all additional tax calculated pursuant to chapter 84.26 RCW, shall be due and payable by the seller or transferor at the time of sale. (3) OWNER(S) SIGNATURE PRINT NAME If claiming an exemption, list WAC number and reason for exemption: WAC No. (Section/Subsection) Reason for exemption: Type of Document Statutory Warranty Deed Date of Document September 29, 2008 Gross Selling Price $ *Personal Property (deduct) $ Exemption Claimed (deduct) $ Taxable Selling Price $ Excise Tax: State $ Local $ *Delinquent Interest: State $ Local $ *Delinquent Penalty $ Subtotal $ *State Technology Fee $ *Affidavit Processing Fee $ Total Due $ 84,000.00 1,285.20 5.00 1,290.20 A MINIMUM OF $10.00 IS DUE IN FEE(S) AND /OR TAX *SEE INSTRUCTIONS I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT. Signature of Signature of Grantor or Grantor's Agent Grantee or Grantee's Agent Name (print): First American Title Insurance Company Name (print) Andrew J. Smith Date & city of signing: Date and Place of signing: Perjury: Perjury is a class C felony which is punishable by imprisonment in the state correctional institution for a maximum term of not more than five years, or by a fine in an amount fixed by the court of not more than five thousand dollars ($5,000.00), or by both imprisonment and fine (RCW 9A.20.020(1C)). REV 84 0001a (02/13/07) THIS SPACE - TREASURER'S USE ONLY DEPT OF REVENUE, First American Title Insurance Company I )t•,.earlmunl Cif vrevenue REAL ESTATE EXCISE TAX AFFIDAVIT This form is your receipt PLEASE TYPE OR PRINT CHAPTER 82.45 RCW — CHAPTER 458 -61A WAC when stamped by cashier. THIS AFFIDAVIT WILL NOT BE ACCEPTED UNLESS ALL AREAS ON ALL PAGES ARE FULLY COMPLETED (See back of last page for instructions) Check box if partial sale of property If multiple owners, list percentage of ownership next to name Name: FH1, LLC, a Washington limited liability Name: Andrew J. Smith and Cynthia M. Smith, husband company q and wife x w w Mailing Address 4200 6th Avenue #301 w F az Ci /State /Zi _ Lacey, WA 98503 Phone No. (including area code) Send all property tax correspondence to: F] Same as Buyer /Grantee Name Street City/State Zip Phone No. (including area code) Mailing Address 10756 Palisades Street SE city/state /zip Yelm, WA 98597 Phone No. (including area code) List all real and personal property tax parcel account numbers -check box if personal property 67110001500 n n n 170 n List assessed value(s) 7,650.00 0.00 0.00 0.00 ® Street address of property: 10756 Palisades Street SE, Yelm, WA 98597 This property is located in n unincorporated County OR within FX City of Yelm F—] Check box if any of the listed parcels are being segregated from a larger parcel. Legal description of property (if more space is needed, you may attach a separate sheet to each page of the affidavit) LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. ® Select Land Use Code(s): List all personal property (tangible and intangible) included in selling 11 price. enter any additional codes: a (See back of last page of instructions) YES I NO Is this property exempt from property tax per chapter n 84.36 RCW (non profit organization)? M YES NO Is this property designated as forest land per chapter 84.33 RCW? n Is this property classified as current use (open space, farm and n agricultural, or timber) land per Chapter 84.34 RCW? Is this property receiving special valuation as historical property ❑ ER per Chapter 84.26 RCW? If any answers are yes, complete as instructed below. (1) NOTICE OF CONTINUANCE (FOREST LAND OR CURRENT USE) NEW OWNER(S): To continue the current designation as forest land or classification as current use (open space, farm and agriculture, or timber) land, you must sign on (3) below. The county assessor must then determine if the land transferred continues to qualify and will indicate by signing below. If the land no longer qualifies or you do not wish to continue the designation or classification, it will be removed and the compensating or additional taxes will be due and payable by the seller or transferor at the time of sale. (RCW 84.33.140 or RCW 84.34.108). Prior to signing (3) below, you may contact your local county assessor for more information. This land n does n does not qualify for continuance DEPUTY ASSESSOR DATE (2) NOTICE OF COMPLIANCE (HISTORIC PROPERTY) NEW OWNER(S): To continue special valuation as historic property, sign (3) below. If the new owner(s) do not wish to continue, all additional tax calculated pursuant to chapter 84.26 RCW, shall be due and payable by the seller or transferor at the time of sale. (3) OWNER(S) SIGNATURE PRINT NAME If claiming an exemption, list WAC number and reason for exemption: WAC No. (Section/Subsection) Reason for exemption: Type of Document Statutory Warranty Deed Date of Document September 29, 2008 Gross Selling Price $ *Personal Property (deduct) $ Exemption Claimed (deduct) $ Taxable Selling Price $ Excise Tax: State $ Local $ *Delinquent Interest: State $ Local $ *Delinquent Penalty $ Subtotal $ *State Technology Fee $ *Affidavit Processing Fee $ Total Due $ 84,000.00 1,285.20 5.00 1,290.20 A MINIMUM OF $10.00 IS DUE IN FEE(S) AND /OR TAX *SEE INSTRUCTIONS I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT. Signature of Signature of Grantor or Grantor's Agent Grantee or Grantee's Agent Name (print): First American Title Insurance Company Name (print) Andrew J. Smith Date & city of signing: Date and Place of signing: Perjury: Perjury is a class C felony which is punishable by imprisonment in the state correctional institution for a maximum term of not more than five years, or by a fine in an amount fixed by the court of not more than five thousand dollars ($5,000.00), or by both imprisonment and fine (RCW 9A.20.020(1C)). REV 84 0001a (02/13/07) THIS SPACE - TREASURER'S USE ONLY TAXPAYER First American Title Insurance Company kF First Ame -rican NORTHWEST GAB Entry Form [ x ] New [ ] Edit existing entry [ ] Delete [ ] Existing Entry Code Order /Escrow No: 4291 - 1212588 iEntity Type: Miscellaneous Indicate Entity Screen Location (Navigation Tree): File Homepage - Business Source Additional Role: Miscellaneous If Entity Type is Attorney, Construction Company /Builder /Exchange Company - Automatically mark Buyer /Seller Type of Business Entity [ ] Buyer /Seller Type is Business Entity Business/ Individual Information Name: Triance Homes Address - Billing /Business /Mailing 18741 Nutmeg Street SW Rochester WA, 98579 -9143 Telephone Business: Business Fax: Mobile: Email Address: Location/ Description: [ ] STATUS EMAIL Sales Rep 1: Sales Re[) 2: [ ] Contact Information [ ] Real Estate Agent Information [ ] STATUS EMAIL Name: Address - Billing /Business /Mailing Telephone Business: Business Fax: Mobile: Email Address: Location/ Description: Sales Reo 1: Sales Rep 2: Insurance Clause - Lender Entity Type (Lender Entity Type ONLY) Title Insurance Mortgagee Clause Hazard Loss Payee Clause Additional Information: Submitted by: Kim Mapes kimmapes @pnwt.com / / 4299 - Thurston County - Thurston Title (BUID 808) / 4291 - Thurston County - Olympia - Escrow (BUID 805) Time of Request: / Date of Request: To be filled in by Intertitle. File Input Complete: [ x ] ID Code: 2437113 Address Book ID Code: Contact ID Code: U.S.—Washington _GAB Request Form_Rev.(7 /12/04) File No.: 4291 - 1212588 Accepting Office: First American Title Insurance Company Address: Bell Towne Centre, 4200 6th Avenue SE, Suite 201, Lacey, WA 98503 OR: 4291 - 1212588 Filing Reference: INDEMNITY AGREEMENT I (Mechanics' Liens) THIS INDEMNITY AGREEMENT (this "Agreement ") is made and entered into this Thirtieth day of September, 2008, by FH1, LLC, hereinafter (individually and collectively, the "Indemnitor "), in favor of First American Title Insurance Company, a WA corporation and its agents and employees (collectively "First American Title Insurance Company "). RECITALS: A. Indemnitor is the owner of, and /or has, either directly or indirectly, an interest in, the Property or in a transaction involving the Property. B. Construction of certain improvements has or will commence on the Property. C. In connection with a contemplated transaction involving the Property, First American Title Insurance Company has been requested to issue one or more Title Policies in respect to the Property insuring against loss by reason of Mechanics' Liens. D. In connection with future transactions, First American Title Insurance Company may issue one or more Title Policies insuring against Mechanics' Liens and if First American Title Insurance Company , at its sole discretion, elects to so issue a Title Policy for the Property, it will do so in material reliance on each of the covenants, agreements, representations and warranties of Indemnitor set forth in this Agreement. NOW, THEREFORE, the parties hereto agree as follows: AGREEMENT: 1. DEFINITIONS: As used herein, the following terms shall have the following meanings: TERM: DEFINITION: Construction: Any and all work, construction and /or replacement or segregation of materials which may give rise to the right for liens to be filed against the Property under the applicable statutes and /or equitable laws of the State. Construction Costs: All costs, fees, expenses and /or obligations for labor, materials and /or services for or in connection with, the Construction. Effective Date: The date this Agreement becomes effective in accordance with Paragraph 3 below. Mechanics' Liens All liens or rights to lien existing against the Property or which subsequently attach or are claimed against the Property due to Construction. Policy Date: The date of issuance of a Title Policy for the Property. Property: That certain real property as described on Exhibit A attached hereto and incorporated herein by reference. State: The state in which the Property is located. Title Policy(ies): Policy or policies of title insurance issued by First American Title Insurance Company with respect to the Property insuring against loss or damage due to Mechanics' Liens. Page 1 c2001 First American Title Insurance Company All Rights Reserved 2. REPRESENTATIONS, WARRANTIES AND COVENANTS. As of the Effective Date, Indemnitor shall be deemed to represent, warrant and covenant to First American Title Insurance Company as to the Property that (a) all sums due and owing for Construction on the Property have been paid or will be paid promptly and in full before the respective times for filing Mechanics' Liens affecting the Property; (b) Indemnitor has funds sufficient to pay all Construction Costs applicable to the Property; and (c) there are no Mechanics' Liens or potential Mechanics' Liens against the Property except as previously specified by Indemnitor in writing to First American Title Insurance Company. All representations, warranties and covenants contained herein are material to First American Title Insurance Company decision to issue a Title Policy for the Property. 3. EFFECTIVE DATE. Delivery of this Agreement by Indemnitor to First American Title Insurance Company shall not be deemed acceptance of this Agreement by First American Title Insurance Company or a commitment to issue a Title Policy for the Property. First American Title Insurance Company has no duty to Indemnitor to accept this Agreement or, in the future, to agree to issue a Title Policy for the Property. Upon acceptance of this Agreement by First American Title Insurance Company as evidenced by the issuance of a Title Policy, this Agreement shall remain in effect as long as First American Title Insurance Company has any possible liability under any Title Policy issued at any time in reliance on this Agreement. First American Title Insurance Company may rely on this Agreement to issue Title Policies at any time without notice to or further consent by Indemnitor. 4. MULTIPLE INDEMNITORS. 4.1 Joint and Several. If there is more than one Indemnitor under this Agreement, all of the obligations contained in this Agreement shall be the joint and several obligations of each and every Indemnitor. Each Indemnitor shall be fully liable to First American Title Insurance Company even if another Indemnitor is not liable for any reason, including the failure of such Indemnitor to execute this Agreement. 4.2 Waiver and Release. First American Title Insurance Company has the right, in its sole and absolute discretion and without notice to or consent by Indemnitor, to (a) waive any provision of this Agreement as it relates to any Indemnitor, at any time or from time to time, without providing the same or similar waiver for the benefit of any other Indemnitor, and /or (b) release any Indemnitor from any or all obligations under this Agreement at any time or from time to time, without releasing any other Indemnitor. 5. INDEMNIFICATION OBLIGATIONS. 5.1. Payment of Construction Costs. Indemnitor covenants and agrees that all Construction Costs on the Property shall be paid promptly and in full before the respective times for filing Mechanics' Liens affecting the Property. 5.2. Indemnity. In addition to any other rights or remedies available to First American Title Insurance Company, at law or in equity, Indemnitor agrees to pay, protect, defend, indemnify, hold and save harmless First American Title Insurance Company from and against any and all liabilities, claims of liability, obligations, losses, costs, charges, expenses, causes of action, suits, demands, judgments and damages of any kind or character whatsoever, including, but not limited to, reasonable attorneys' fees and costs (including appellate fees and costs) incurred or sustained by First American Title Insurance Company, and actual attorneys' fees and costs awarded against First American Title Insurance Company , directly or indirectly, by reason of, or arising under any Title Policy relating to Mechanics' Liens, or in any other action at law or in equity under any theory of recovery as a result of the existence of Mechanics' Liens. 5.3. Duty to Notify First American Title Insurance Comoanv. In the event that (a) Indemnitor is in any manner notified of a claim which could affect the interests of First American Title Insurance Company under a Title Policy relating to Mechanics' Liens, or (b) any action is filed at law or in equity or any judicial or non - judicial proceeding (including arbitration) is commenced against the Property relating to Mechanics' Liens, Indemnitor agrees to promptly notify First American Title Insurance Company in writing of such claim, action or proceeding as soon as possible of Indemnitor's acquisition of knowledge thereof but, in no event, later than seven (7) days from receipt of said knowledge. 5.4. Riahts and Obligations. Upon the filing of any action at law or in equity or the assertion of any claim, cause of action or judicial or non - judicial proceeding relating to Mechanics' Liens, or at any other time which First American Title Insurance Company shall, in its opinion, deem it reasonable to protect itself or its insured(s) under a Title Policy, First American Title Insurance Company shall have the right, but not the obligation, (a) to take such action as First American Title Insurance Company deems reasonable to protect its interest and that of its insured under any Title Policy, and /or (b) to demand that Indemnitor, at Indemnitor's sole cost and expense, promptly do, one or more of the following: (a) Cause a properly executed release of the Mechanics' Lien to be filed of record in the proper governmental office. Page 2 c2001 First American Title Insurance Company All Rights Reserved (b) Cause to be recorded with respect to the Mechanics' Lien a bond releasing the Property from the effect of the Mechanics' Lien, should such bond be available and effective in removing the effect of such Mechanics' Lien from the Property as a matter of law. (c) In situations where affirmative legal action or proceedings at law or in equity are necessary to discharge, eliminate, or remove the Mechanics' Lien with respect to the Property, Indemnitor shall cause (1) counsel selected by First American Title Insurance Company to institute such action or proceeding as is necessary to discharge, eliminate or remove the Mechanics' Liens as to the Property; and (2) such counsel to deliver to First American Title Insurance Company a written representation in a form reasonably satisfactory to First American Title Insurance Company that such counsel (i) has accepted employment as counsel to commence and vigorously prosecute to conclusion such action or procedure, (ii) will promptly undertake any and all steps reasonably necessary to diligently prosecute such action, and (iii) will keep informed as to the status of such action or procedure as reasonably requested by First American Title Insurance Company, at no cost or expense to First American Title Insurance Company. Indemnitor may object to First American Title Insurance Company choice of counsel for reasonable cause. (d) If an action or proceeding concerning the Mechanics' Lien is instituted by a third party, Indemnitor shall cause (1) such action or proceeding to be timely defended and resisted by counsel selected by First American Title Insurance Company which counsel will protect First American Title Insurance Company and any and all insured(s) to whom First American Title Insurance Company may have possible liability as a result of the issuance of a Title Policy; and (2) such counsel to deliver to First American Title Insurance Company a written representation, in a form reasonably satisfactory to First American Title Insurance Company to the effect that such counsel (i) has accepted employment as counsel to defend any such action or resist any such proceeding, (ii) will promptly undertake any and all reasonable steps to protect First American Title Insurance Company and its insured(s), and (iii) will keep informed as to the status of such action or procedure as reasonably requested by First American Title Insurance Company, at no cost or expense to First American Title Insurance Company. Indemnitor may object to First American Title Insurance Company choice of counsel for reasonable cause. (e) If the payment of a sum of money will discharge, eliminate or remove the effect of the Mechanics' Lien as to the Property, Indemnitor shall pay such sum as is sufficient to discharge, eliminate or remove the Mechanics' Lien in a manner legally sufficient to effect the release of the Mechanics' Lien of record and shall deliver documents to First American Title Insurance Company, in a form reasonably satisfactory to First American Title Insurance Company . (f) Indemnitor shall take such action with respect to the Mechanics' Lien as First American Title Insurance Company shall, in its discretion, authorize Indemnitor in writing to undertake, provided that any such authority shall not be a waiver by First American Title Insurance Company to require Indemnitor at any time to comply with the foregoing subparagraphs of this Paragraph above, within ten (10) days of First American Title Insurance Company written revocation of authority to take action other than that under any other subparagraphs of this Paragraph, and demand that Indemnitor comply with any other subparagraphs of this Paragraph. 5.5. Interest. Indemnitor agrees that any sums which might be advanced or incurred by First American Title Insurance Company pursuant to this Agreement or by its exercise of any rights hereunder shall be repaid by Indemnitor to First American Title Insurance Company within ten (10) days of Indemnitor's receipt of First American Title Insurance Company written demand, together with interest thereon at four percent (4 %) above the reference rate as charged by Bank of America as of the date such sum was advanced by First American Title Insurance Company and continuing until it is repaid in full, but in no event, shall such rate of interest exceed the lesser of: (a) ten percent (10 %) per annum, or (b) the maximum rate permitted by law. 5.6. Determination of Coverage. Any determination of coverage by First American Title Insurance Company shall be conclusive evidence that the matter is within the Title Policy coverage as to the Mechanics' Liens for purposes of this Agreement. If First American Title Insurance Company accepts the defense of a matter within the Title Policy as to the Mechanics' Liens with a reservation of rights, all costs, damages, expenses and legal fees incurred by First American Title Insurance Company shall be deemed within the terms and obligations of Indemnitor under this Agreement even if the matter is subsequently determined by a court to not be within the Title Policy as to the Mechanics' Liens. 6. REMEDIES. Indemnitor specifically acknowledges that upon any default by any Indemnitor under this Agreement after demand by First American Title Insurance Company, First American Title Insurance Company shall have the right to exercise any and all remedies available at law, in equity or under this Agreement against any and all of the Indemnitors, including, but not limited to, injunctive relief, specific performance, Page 3 c2001 First American Title Insurance Company All Rights Reserved damages, self -help and /or resort to any collateral held by First American Title Insurance Company to secure the obligations of Indemnitor under this Agreement. 7. SUBROGATION AND SUBORDINATION. Indemnitor hereby unconditionally grants to First American Title Insurance Company any and all rights of subrogation Indemnitor may have with respect to the Mechanics' Liens and agrees to promptly execute any documents with respect to the Mechanics' Liens or any other matter relating to this Agreement request by First American Title Insurance Company with respect to such right of subrogation and to deliver same to First American Title Insurance Company. Indemnitor hereby subordinates any and all debts owed to any Indemnitor from any other Indemnitor to the obligations owed to First American Title Insurance Company under this Agreement. 8. FINANCIAL INFORMATION. Each Indemnitor represents and warrants to First American Title Insurance Company as of the date of delivery of the financial statements that the statements delivered to First American Title Insurance Company with respect to that Indemnitor: (a) were prepared in accordance with generally accepted accounting principles ( "GAAP ") unless otherwise noted therein; (b) are true, complete and correct in all material respects; (c) disclose all material financial information regarding Indemnitor; (d) fairly represent and present the financial condition and operations of Indemnitor; (e) if said statements were not prepared in accordance with GAAP, no GAAP statements and /or audited financial statements exist; and (f) since the date of the financial statements delivered to First American Title Insurance Company , there has been no material adverse change in the financial condition, operations, assets, liabilities, properties or business prospects of Indemnitor. Each Indemnitor agrees to promptly notify (but in no event later than ten (10) days after Indemnitor learns, by any means, of such event) First American Title Insurance Company in writing of any event which would reasonably be anticipated to, or which, in any event, would materially alter or in any material respect change said financial condition, operations, assets, liabilities, properties or business prospects. Upon request by First American Title Insurance Company, each Indemnitor further agrees to deliver to First American Title Insurance Company current financial statements and that by delivery of same, such Indemnitor shall be deemed to make all the same representations and warranties as to the new financial statements as set forth herein above except as otherwise disclosed in writing to First American Title Insurance Company concurrently with the delivery of the financial statements. Each Indemnitor hereby specifically grants to First American Title Insurance Company and its agents, representatives, and professionals, the right, at any time and from time to time, at the sole cost and expense of Indemnitor, to (a) examine the books, accounts, records and property of Indemnitor pertaining to the financial condition of Indemnitor, (b) furnish to First American Title Insurance Company for examination and copying all such books, accounts, records and other pertinent information, and /or (c) provide such further assurances as may be reasonably demanded by First American Title Insurance Company . In the event of more than one Indemnitor, each Indemnitor shall independently comply with this paragraph. 9. WAIVERS AND COVENANTS. In the event that Indemnitor is indemnifying First American Title Insurance Company with respect to a Property which is not directly owned by Indemnitor, Indemnitor understands and agrees that First American Title Insurance Company has no obligation to secure an indemnity from the owner(s) of the Property ( "Owner "). Indemnitor agrees that the validity of this Agreement and the obligations of Indemnitor hereunder shall in no way be terminated, affected, limited or impaired by reason of (a) the assertion by First American Title Insurance Company of any rights or remedies which it may have under any other indemnity agreement or against any person or entity obligated thereunder or against the Owner, (b) First American Title Insurance Company failure to exercise, or delay in exercising, any such right or remedy or any right or remedy First American Title Insurance Company may have hereunder or in respect to this Agreement, (c) the commencement of a case under the Bankruptcy Code by or against the Owner or any person or entity obligated under the law or any other indemnity agreement, or (d) Indemnitor owning less than the entire interest in the Property. Indemnitor further covenants that this Agreement shall remain and continue in full force and effect as to any Title Policies issued at any time by First American Title Insurance Company with respect to the Property and that First American Title Insurance Company shall not be under a duty to protect, secure, insure, or enforce any rights it may have under any indemnity agreement or any other right against any third party, and that other indulgences or forbearance may be granted under any or all of such documents, all of which may be made, done or suffered without notice to, or further consent of, Indemnitor. First American Title Insurance Company may, at its option, proceed directly and at once, without notice, against any Indemnitor to collect and recover the full amount of the liability hereunder or any portion thereof, without proceeding against the Owner or any other person or entity. Indemnitor hereby waives and relinquishes (a) any right or claim of right to cause a marshalling of any Indemnitor's assets; (b) all rights and remedies accorded by applicable law to indemnitors or guarantors, except any rights of subrogation which Indemnitor may have, provided that the assurances and Page 4 c2001 First American Title Insurance Company All Rights Reserved obligations provided for hereunder shall not be contingent upon the existence of any such rights of subrogation; (c) notice of acceptance hereof and of any action taken or omitted in reliance hereon; (d) presentment for payment, demand of payment, protest or notice of nonpayment or failure to perform or observe, or other proof, or notice or demand; (e) any defense based upon and election of remedies by First American Title Insurance Company, including without limitation an election to proceed in a manner which has impaired, eliminated or otherwise destroyed Indemnitor's rights of subrogation and reimbursement, if any, against the Owner or any third party; (f) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (g) the defense of the statute of limitations in any action hereunder or in any action for the collection or performance of any obligations covered by this Agreement; (h) and any duty on the part of First American Title Insurance Company to disclose to Indemnitor any facts First American Title Insurance Company may now or hereafter know about the Owner, since Indemnitor acknowledges that Indemnitor is fully responsible for being and keeping informed of the financial condition of the Owner and of all circumstances bearing on the risk of nonperformance of any obligations covered by this Agreement. 10. NOTICE. Any notices, demands or communications under this Agreement between Indemnitor and First American Title Insurance Company shall be in writing, shall include a reasonable identification of the Property together with First American Title Insurance Company order number, and may be given either by personal service, by overnight delivery, or by mailing via United Stated mail, certified mail, postage prepaid, return receipt requested, addressed to each party as set forth on the signature page of this Agreement. If the address for First American Title Insurance Company is not completed on the signature page, notice to First American Title Insurance Company shall be given to First American Title Insurance Company State office. All notices given in accordance with the requirements in this Paragraph shall be deemed to be received as of the earlier of actual receipt by the addressee thereof or the expiration of ninety -six (96) hours after depositing same in the United States Postal System. 11. MISCELLANEOUS. 11.1. No Waiver. No delay or omission by First American Title Insurance Company in exercising any right or power under this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by First American Title Insurance Company of a breach of any of the covenants, agreements, restrictions, obligations or conditions of this Agreement to be performed by the Indemnitor shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions, obligations or conditions under this Agreement. Furthermore, in order to be effective, any waiver must be in writing executed by First American Title Insurance Company . 11.2. No Third Party Beneficiaries. This Agreement is only between Indemnitor and First American Title Insurance Company , and is not intended to be, nor shall it be construed as being, for the benefit of any third pa rty. 11.3. Partial Invalidity. In any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstance shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement, or the application of such term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extend permitted by law. 11.4. Modification or Amendment. Any alteration, change, modification or amendment of this Agreement or any documents incorporated herein, in order to become effective, shall be made by written instrument executed by all parties hereto. 11.5. Execution in Counterpart. This Agreement and any modification, amendment or supplement to this Agreement may be executed by Indemnitor in several counterparts, and as so executed, shall constitute one Agreement binding on all Indemnitors, notwithstanding that all Indemnitors are not signatories to the original or the same counterpart. 11.6. Oualification; Authority. Each individual executing this Agreement on behalf of an Indemnitor which is an entity, represents, warrants and covenants to First American Title Insurance Company that (a) such entity is duly formed and authorized to do business in the State, (b) such person is duly authorized to execute and deliver this Agreement on behalf of such entity in accordance with authority granted under the organizational documents of such entity, and (c) such entity is bound under the terms of this Agreement. 11.7. Mercier of Prior Agreements and Understandings. This Agreement and other documents incorporated herein by reference contain the entire understanding and agreement between the parties relating to the obligations of the parties with respect to Mechanics' Liens for future transactions involving the Property and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, shall be of no force or effect. Page 5 c2001 First American Title Insurance Company All Rights Reserved 11.8. Other. This Agreement shall be construed according to its fair meaning as if prepared by all parties to this Agreement. This Agreement shall be interpreted in accordance with the laws of the State and Indemnitor hereby agrees to submit to the jurisdiction of any state or federal court of First American Title Insurance Company choosing having competent jurisdiction, and to make no objection to venue therein should any action at law or in equity be necessary to enforce or interpret this Agreement. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party in such action shall be entitled to have and to recover from the other party its reasonable attorneys' fees and other reasonable expenses in connection with such action or proceeding in addition to its recoverable court costs. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. The recitals set forth hereinabove are incorporated into this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall be deemed to include the others wherever and whenever the context so dictates. This Agreement shall inure to the benefit of and bind the personal representatives, successors and assigns of the parties hereto. 12. SECURITY. Indemnitor has or will provide security for this Agreement to First American Title Insurance Company as follows: None at this time Security Agreement* (Non Cash) Security Agreement* (Cash) Security Agreement (Letter of Credit) * Requires a UCC Financing Statement to be executed and filed. ] Letter of Credit Agreement with Sight Draft Form Control Agreement Deed of Trust Mortgage A breach by an obligor, pledgor or debtor under any of the foregoing documents as well as any documents which may be referenced in such documents shall be deemed a breach by Indemnitor under this Agreement. Unless otherwise agreed in writing, any sums held by First American Title Insurance Company as security may be held by First American Title Insurance Company in its general accounts and not deposited into an interest bearing account. Indemnitor understands that as a result of maintaining its accounts with a financial institution and its on -going banking relationship with the specific financial institution, First American Title Insurance Company may receive certain financial benefits such as an array of bank services, accommodations, loans or other business transactions from the financial institution ( "collateral benefits "). Indemnitor agrees that any and all such collateral benefits shall belong solely to First American Title Insurance Company and First American Title Insurance Company shall have no obligation to account to Indemnitor for the value of any such collateral benefits. If the funds are deposited into a special interest bearing account, all such interest shall be added to and retained in the account as part of the security for First American Title Insurance Company . Any such interest earned shall be attributed for tax purposes to the Indemnitor depositing same. (Note: If security is to be taken, additional forms must be executed. Please be advised that additional documents maybe needed to perfect a personal properly security interest. Please follow directions on said forms as to additional requirements or consult your local underwriter.) 13. ESTOPPEL. NOTWITHSTANDING ANY POSSIBLE DIFFERENCE IN THE PARITY OF THE PARTIES HERETO, INDEMNITOR UNDERSTANDS THAT FIRST AMERICAN TITLE INSURANCE COMPANYIS UNDERTAKING A RISK SIGNIFICANTLY GREATER THAN THAT UNDERTAKEN IN THE NORMAL COURSE OF PROVIDING TITLE INSURANCE POLICIES AND RELATED SERVICES BY ENTERING INTO THIS AGREEMENT AND ISSUING POLICIES OF TITLE INSURANCE IN RELIANCE ON THIS AGREEMENT, AND, THEREFORE, INDEMNITOR HEREBY DECLARES ITS WILLINGNESS TO ENTER INTO THIS AGREEMENT AND TO INDUCE FIRST AMERICAN TITLE INSURANCE COMPANY TO ACCEPT THIS AGREEMENT, REALIZING THAT INDEMNITOR 'S BEST INTEREST, IN THE OPINION OF INDEMNITOR, IS BEING SERVED THEREBY. NOTICE: THIS AGREEMENT CONTAINS PROVISIONS WHICH PERSONALLY OBLIGATE INDEMNITOR. IT IS STRONGLY RECOMMENDED THAT INDEMNITOR CONSULT LEGAL COUNSEL PRIOR TO EXECUTING THIS AGREEMENT. INDEMNITOR1: Page 6 c2001 First American Title Insurance Company All Rights Reserved FH1, LLC, a Washington limited liability company By: Steven L. Chamberlain, Manager/ Member Steven L. Chamberlain, Manager /Member Date 1 All persons /entities executing this Agreement shall be deemed named parties to this Agreement as if their name also appeared in the introductory paragraph on page 1. Social Security or Tax ID No. Notice Address: Social Security or Tax ID No. Notice Address: ADDRESS FOR NOTICE TO FIRST AMERICAN TITLE INSURANCE COMPANY: (If this information is not completed, please see Paragraph 10.) Notice Address: Bell Towne Centre, 4200 6th Avenue SE, Suite 201 Lacey, WA 98503 Page 7 c2001 First American Title Insurance Company All Rights Reserved EXHIBIT A DESCRIPTION OF PROPERTY Order No. 4291-1212588 (REQUIRED) Street Address: 10756 Palisades Street SE, Yelm, Washington 98597, Legal Description: LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. A.P.N. 67110001500 Page 8 c2001 First American Title Insurance Company All Rights Reserved =ME TR OS CAi1l PROPER T Y PROFIIR= Thurston (WA) OWNERSHIP INFORMATION Parcel Number :2172 51 30300 S :25 T:17N R:01E Q:NE Owner :Sirs Eran B CoOwner Site Address :15026 State Route 507 SE Yelm 98597 Mail Address :15026 State Route 507 SE Yelm tea 98597 Phone :Owner: Transferred :11/06/2007 Document # :3969811 Sale Price Deed Type :Quit Claim % Owned :100 Vesting Type . SALES AND LOAN INFORMATION Loan Amount Lender Loan Type. Excise Tax # :363203 Interest Rate ASSESSMNT AND TAX INFORMATION Land :$217,200 Exempt Type Structure :$15,300 % Improved :7 Total :$232,500 Previous Total . Nbrhd Code .0510 Levy Cade :170 Sub Area :28ml 20707 Taxes :$2,711.89 Census Land Use Property Type Property Type 2nd Legal PROPERTY DESCRIPTION :Tract :124.10 Block :l :18 Other Residential :MOBILE -HOME :Residence :SECTION 25 TOWNSHIP 17 RANGE 1E :QUARTER SW NE BLA -8144 TR..A :DOCUMENT 2407/527 Profile -Page 1 of Information compiled from various sources. Real Estate Solutions makes no representations or warranties as to the accuracy or completeness of Information contained in this report 12 S88 =ME TROS CAN PROPERTY PR Orr LE= Thurston (NA) Parcel #:2172 51 30300 2_ .. PROPERTY CHARACTERISTICS Bedrooms Year Built Lot Acres :10.92 Bathrooms Stories Lot Sq Ft *475,675 Bath Full Living Area : Lot Shape Bath 3 Qtr Addition SF ; WtrFrntType Bath Half Storage SF : WtrFrntFeet Quality GarageType : Perimeter BldgCond Garage SF View :Yes AirMthod Carport SF Topography HeatTypel Patio Roof Matrl HeatSrcel Patio SF Roof Shape Wood Stove Porch WallMatl Fireplace Porch SF Wall Height Bldg Style Pool Foundation Sewer Type :Septic Deck Type Flr Cover Attic SF Deck SF FireSprklr AtticFinSF Balcony SF Water Src Well Fixtures Basement Area Residence Area Bsmnt Tot SF Main Fin Area SF Fin Bsmt SF Upper Fin Area SF Unfin Area SF Comm Grd Flr SF Mobile Home Skirt Comm Bldg Use Mobile Home Dimensions Profile-Page 2 of 2 Information compiled from various sources. Real Estate Solutions makes no representations or warranties as to the accuracy or completeness of information contained in this report. F� W h Q . _ xaexr ,w t _ t yF Y�� z W UJ F cli �s t4i.li � T CD - Ct Tot y, ii • �w ! �' �v, j6y� 4])ty� y �� j7 C%j w � db-ea ai .CtdRro S s- � �, � I gI ! .iYiC riq; } . Ftk wr W Y�� z W UJ F �p 4+�J.Yrviyle r ��R$��88 � w 991i �M RHO IM ik Q3 Y 17j, Oz -(1�57 F 7j ■. cli �s t4i.li � T q - Ct Tot y, ii +�.4llk7Ct 1 tr I gI ! .iYiC riq; } . Ftk wr � � W G t awl i� II13Mmpumm a 7Atg0I/itM Cello �p 4+�J.Yrviyle r ��R$��88 � w 991i �M RHO IM ik Q3 Y 17j, Oz -(1�57 F 7j ■. �1� A�� n1�N O �� N�Y INi ��� ..viO""' w ".it°x�� f H I .w� i �� -~�' D ;0 Z =*b*d L09886C al —n - .7u9mm-Oca YM'uO4rxngZ :UO- F3dT.=sea lit us . :g Ix 8 i s rah It S.J 1 1 Fk_y -_ _ - � � � i •` ••• - i - - -� �bKi ii Xxryr xti rranria`J - ,— n pp 3 J t I o ti Y� ' �4x d 1 � � ,``:. - - -- _ - - — - -� - K'd'CGlf 3 ��i9[t0 �� _. _ - lc'77Y - — - - — rave` �J+z+y Lei 6 qq �3 : 4 rre o x:)MVMSNx S' ZIX HVZ)I Tl x.Sell : ,x4ppzo D e� E :Atb4d Z09886E f12ooa -bus, , ,c `uo:zgxngz : opicr -pacw6a 3 F: W` fL. h r 3� u � :;srsmco MNYZMSKX STZTZ lumxy zsbtl.3 :svp-'p 6t> r` g3 �t39886 tilQ -� y'ucssnry :trordrzoss{� � d ail lot- cm _ --° # p s sx�r, Ilk OPW T .Ci7i` ,{may `..r .4u i[fN6 i n sy1 cU N W = W z te cm 0 S 4i CSt tj ! M * ■ .st,�,re s i ya i'.Q'q. t stau yj .F Yt 4 ■ .tLL i .CUp rFSC +M.GGti�.ui g A% UGF.V'Skv �ry @ L 4,p r::8it �# rpgiAlO S N TW O �x =fig 8 . a 2 itiY`�il $ t to Ogj f j�l, 9y iii j�E���5�5�9 -w -,_ „_ - � �6 ,._— __.— eerrrr+r�rre��r�rer���rr�� � I� Y �fy +ems x. rr i�CiC a Thurston County Treasurer - Tax Statement Page 1 of 1 Proper Tax/Other Charges Statement New Se—ar-c—hl The data dl IdaYI i r i 13 118 03 :00 AM T�ursday, , Account Information Property Number: 21725130300 Tax a er: FH 1 LLC Mailing Address: 4200 6TH AVE SE ## 301 Cit State/Zip: LACE, A 98503 Abbreviated Legal: Section 25 Townshi2 17 Range lE Property Wcation: 15026 STATE ROUTE 507 SE Tax Code Area: 170 Land Value: $217,200 Building Value: 2 042.21 Tax Rate er 1 0f10: 9.27 Payment Information Tax Bill Detail 2008 Property Tax: $2,013.16 Other Charges $3,511.56 Conservation District: $6.00 Stormwater: $9,336.99 Weed Control: $S.15 State Forest Patrol Prince al: $17.90 Total Other Char ess $29.05 Total Tax and Other Charges: $2,042.21 2008 Total Billed: 2 042.21 Payment History Year Amount allied 20t?7 $3,511.56 2Qt76 $2,479.81 2005 $9,336.99 217164 $634.14 2(7{73 $586.86 Click the hi hli htetl year buttons can each line to see billing details fbr that year. http: / /tcproperty.co.thiL ston .wa.us/propsgl/tax_summ.asp?pn= 1725130 00 4/18/2008 Thurston County A+ Parcel Search. 21725130300 Wage 1 of 1 Thurston County Assessor Parcel Humber: 21725130300 date: 4/18/2008 Situs Address: 15026 STATE ROUTE 507 SE Set#/'i`vwn/Range: 25 17 iE Owner: FH1 LLC Stre: 10.92 Acres Address: 4200 6TH AVE SE # 301 LACEY, WA 98503 TCA Number: 170 Neighborhood, 28M1 Taxpayer: FH1 LLC property Type: MOBILE -HOME Address: 4200 6TH AVE SE # 301 Tbxabie: YES LACEY, WA 98503 Active Exemptions: bane School District: YELM S.D. #2 Legal Description: Section 25 Township 17 Range ii= Quarter 8144 TR A Document 2407/527 + SW NE BLA- Water Source: WELL Sewer Type: SEPTFC Market Values Tax Year 2008 2007 2006 2005 2004 2003 Assessment Year 2007 2006 2005 2004 2003 2002 Current Use Buildings $74,800 $12,000 $11,500 Current Use Land $31,500 $31,500 $31,460 Current Use Total $106,x,300 $43,500 $42,960 Market Value Buildings $87,300 $75,400 $74,500 $12,000 $11,500 Market Value Land $217,200 $161,100 $117,650 $101,450 $92,600 $79,400 Market Value Total $217,200 $248,300 $193,050 $176,250 $104,600 $90,900 Detached Structures Code Year Built Square Feet Quality Condition GEM -PUR -BLDG 1989 11100 FAIR AVERAGE Permits Permit Issue Date: 11/01 /1966 Permit Humber: 34004 S Permit Type: RESIDENTIAL- DET -STR Amount: $4,392 Jurisdiction: County Builder: Please note: permits Issued within the past two weeks or before 1996 may not be Included.. The Assessor's Office maintains property records on a proximatelyy 112 000 parcels In Thurston County for tax purposes. Though retards are updated regularly the accuracy and timeliness of publisheW data cannot be guaranteed. Any person or entity that relies on information obtalneW from this web5ite does sir at his or her own risk, Neither Thurston County nor the Assessor will be held liable for damage or losses caused by use or this Information. AN CrAdcal lntormatlon should be Independently verMed Office of the Assessor Patricia Costello, Assessor 2000 Lakeridge Drive SW - Olympia, WA 95502 Customer Service (360 )786 -6410 -- Fax (380 )794 -2958 -- TDD (360)754 -2933 http:// tcproperty. co. thurston .wa.us/propsgl/basic _p.asp?pn= 21725130300 4/1812008 Form Na. 14 SubdWd$m G"Wfte (4-10-75) First Ammican Title Timm {Thu rsto) Phan* No. (360) 491-2441 FOX Not (8011) 343-5409 AWAnwfaw IWO A=&ov0W &MPMY &A Towne Cc** 4MO ft Avenue SE, SUU 201 U*W, WA MO Ftw - (W) 491-2441 FU -MO 343-S" Mftch Miller VAIllan Tiqlao, w,,_"llkw4fflndBm.C*1 btl9lao0fi t I. FOURTH REPORT SUBDMSION GWUW4= K_ ` " ' .#. =7 R771Zj= I Q,3 ilk t CkoX0 kI;,1 (41XV-171 oll 1. No guarantee is given nor Wity assumed with respect to the vWkky, 100 effect or priority of any matter shown therein. t1jjjjjjjjLjj�8r7kk1v:1l [rjzq MEEK .4-7107-Mr-rTz.- Mild W7 WIWI' i Pager 3 of 36119W plot c-&rtifleato 02112126M 68;44 ON Thwros�%tv W&8h1n6t*n PALI T INININISHINIMS1011 Description., Thurstan,M DocLmont-DocXD 3988606,Pago.- 3 of 8 Ords.r. FIRST AMERICAN TZ= ZNSEW-W= Canwent. Farm No. 14 Subdivision Guarantee (4- ID-75) SCHEDULEA The assurances referred to on the face page are: A. Title is vested in: Guarantee No.: 4299 - 993347 Page No.: 2 Eran Ben Sira, as to that portion entitled Tract "E" of the proposed plat of Palisades West as described on Quit Claim Deed recorded under Recording No. 3969811 and FH 1, LLC, a WashIngton Limited Liability Company, as to the remainder B. That according to the Company's title plant records relative to the following described real property (including those records maintained and indexed by name), there are no other documents affecting title to said real property or any porition thereof, other than those shown below under Record Matters, The following matters are excluded from the coverage of this Guarantee: 1. Unpatented Mining Claims, reservations or exceptions In patents or in acts authorizing the issuance thereof. 2. Water rights, claims or title to water. 3. Tax feeds to the State of Washington. 4. Documents pertaining to mineral estates. a TION: The land referred to in this report is described in Exhibit A attadhed hereto. 3988de6 Page 4 of 8 22M212008 08:44 AN Plat Certificate p rgon County Description: Thurston,WA Document -DoCID 3988606 Page: 4 of 8 Order: FIRST AMERICAN TITLE INSVRANCN Comment: 3888808 Page 5 of 8 02113 2004 08:44 IAN Plat certificate Thurspaan :Counnty stashington Description: Thurston,WA Document -DoclD 3988606 P&qo. 5 of 8 Order: FXRST AMMXCAN TITLE INSUP -4 E Ca= nt. Form Mm 14 Subdntiim Guimfte [4- 10-75] RECORD MATTERS: Delinquent Gener Tax Account too.: Amount Bided: Amount Paid: Amount Due: Guarantee NCB,: 4299 -W Pap Nw 4 ai Taxes far the year 2006. 21725130200 1st Half $ 1,134.26 $ 1,134.26 $ 0.00, plus interest and penalty 2nd Half Amount Billed: $ 1,134.26 Amount Paid: $ 0.00 Amount Cale: $ 1,134.26, plus interest and penally (as to Parcel A) Liability, if any, for general taxes, said premises not being carried on the General Tax Roils. (as to Parcel C) 3. peed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing and the terms and conditions thereof. Grantor: FH1, LLC, a Washington Limited Liability Company Beneficiary: WF Capital, Ric,, a Washington Corporation Trustee: Tiffin Tit Services, Im, a Washington Corporation, and Its successor's in trust and assigns Amount: $7,775,000.00 Recorded: October 19, 2006 Recording No(s).: 3874132, 3874133, 3874134 and 3874135 (affects Parcels A and B) Deed of Trust and the terms and conditions thereof. 01 Grantor: FH1, LLC, a Washington Limited Liability Company Beneficiary: Prairie Baptist Church Trustee: First American Title Insurance Company, a Corporation Amount: $300,000.00 Recorded: April 03, 2006 Recording No.: 3820153 (affects Parcel A) Time lien of said Deed of Trust was subordinated to the lien of the instrument recorded October 19, 2006 under Recording No(s). 3874132, 3874133, 3874134 and 3874135 by agreement recorded O fiber 19, 2006 under Recording No. 3874136. October 19, 2006 3874137 ffit, LLC, a Washington Limited Liability Company WF Capital, Inc., a Washington Corporation X 212 as:" Apt Plat Corti fma of a Tmwrkt- GOWtv NashingUn PALMDES HEST 'THIN Description: Thurston,WA Docament-DOCID 3988606 Page: 6 of 8 Order: FIRST AMERICAN T17ZE INSi7RANCE Co=ient: Financing Statement Date Recorded: Recording No.: Debtor: Secured Party: (affects Parcel A) October 19, 2006 3874137 ffit, LLC, a Washington Limited Liability Company WF Capital, Inc., a Washington Corporation X 212 as:" Apt Plat Corti fma of a Tmwrkt- GOWtv NashingUn PALMDES HEST 'THIN Description: Thurston,WA Docament-DOCID 3988606 Page: 6 of 8 Order: FIRST AMERICAN T17ZE INSi7RANCE Co=ient: Form No, 14 awaraw N0.: 414 33+1? Subdi slw cxwarke (1-10 -75) Pap W. s This guarantee does not include the mobile acme located on the property herein described. Reservations and exceptions, including the terms and conditions thereof: Reserving: strip of land 200 feet wide on lire of Railroad or any of Its , branches to be used for right of way VS Reserved By. N.PARA, Co. Filed: September 10, 1875 YolunWPage(s): 11/394 8. Easement, including terms and provisions contained therein: Recording Nv(s).: 167014 and 167933 In Favw3r Of: Puget Sound Pwer & Light Ca., a Washington corporation For: electric transmission and/or distribution system }l Conditions, notes, easements, provisions and encroachments contained and /or delineated on the face of the survey recorded under Thurston County Recording No. 8602100015. D 0. Easement, including terms and provisions contained therein: Recorded: November 16, 1988 Recording Information: 8811160071 In Favor €3f: Puget Sound Power & Light Co., a Washington corporation Far. ekKt is transmission and/or distribution system The terms and pravWwns contained in the document entitled "Sewage Operation and Maintenance Permit" i7t'- ' Recorded: [member 12, 1990 Recording No.: 9012120103 .12. Covenants, conditions, restrictions and /or easements; but deleting any covenant, condition or restriction Indicating a preference, limitatlon or discrimination based on race, color, religion, sex, handicap, family status, or national origin to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes: Recorded: 3anuary 12, 1994 Retarding No.: 9401120141 13. Terms, covenants, conditions and restrictions as contained in recorded Lot Line musbnent (Boundary line Revisions): No.: BLA -8144 Recorded: May 22, 1995 Recording No.: 9505220008 Easement, including terms and provisions contained therein: Recorded: September 7, 2006 Recording No.: 3863511 In Favor of: YCOM Networks, a Washington Corporation, Its successors and assigns For: underground telephone transmissions lines and appurtenances f2/1286 0 : Plat GrrtiPa 7 Of a star Cturrty Maihinptat r+pLtSWOES WE6T I i g ON MEN NINO Ingo Description: Thurston,WA Dool t -DocID 3988606 Page: 7 of a Order_ FIRST AbSRZCAW TITIZ INSURANCE Cent: Form No. 14 SubdtvWon Guarantee (4 -10 -75) Guarantee No.: 4299. 993347 Page No.: 6 Mitigation Agreement and the terms and conditions thereof: �J Between: Yeim 0DMMLn{ty Schools District No. 2, Yeim, Washington And: FH 1, LLC Recorded: October 25, 2006 Recording No.: 3875587 Matters which may be determined upon examination of the final plat. INFGRKATIONAL NOTES A. general taxes for the year 2007, which have been paid. Tax Account No.: 21725130200 Code Area: 182 Amount: $ 2,516.23 Assessed Land Value: $ 139,75(1.041 Assessed Improvement Value: $ 122,900.00 (affects Parcel A) B. General taxes fbr the year 2007, which have been paid. Tax Account No.: 217251311300 Code Area: 182 Amount: $ 2,711.84 Assessed Land Value: $ 161,100.00 Assessed Improvement Value: S 87,200.00 (affects Parcel 8) C. Any sketch attached hereto Is clone spa as a courtesy only and Is not part of any We commitment or polity. R is furnished solely, for the purpose of assisting In locating the premises and First American expressly disclaims any liability which may result from reliance made upon It 398111116416 Paige a of 8 02112J26W 08 44 AM Piet tertirloate Thera an Coun V Waahi� ton FillI DES WEST Description: Thuraton,WA Document -DoaXD 3988606 Page: 8 of a Order: FIRST AMERICAN TITLE Z'NSEMYCE Comment: eturn Address ity of Yelm isha R. Box D Box 479 elm, WA 98597 Document title(s) for transactions contained therein ): 1. Subdivision Guarantee for Palisades West. Reference Number(s) of Documents assigned or released: (on page of documents(s)) Granter(s) (Last name, first name, middle initial) 1. FHI, LLC 2. Palisades West Subdivision Grantee(s) (Last names first name, middle initial) 1. City of Yelln 2. Legal Description ( abbreviated: i.e. lot, black, plat or section, township, range) SWII4 NE114 of S 25, T 17N, R IE, W.M. Assessors Property Tax Parce lAecount Number: 21725130300 MOGN Page 1 of a 1i 211212008 06:44 AN Plat Certificate PAID stpD�ES MS Washington ' FEE III F 1111! 111 :1 Description: Thurston,WA Doct:mant- Docll) 3988606 Page: I of 8 Order: rIR$3' AMERICAN TITLE INSZTRAN= Ccsmmant., Form Hm 14 Subdi (Wm Guarantm i� w Nt t n. Issued by Guaranwe ice.: 42WO233U First American TIVe Insurance Company Bell Towne Centre, 4206 6th Ave. SE, x#201, Lacey, WA 98503 77-Ne Officer.- Mach Miller Phone: (3610 491-2441 FAX (866) 3435409 3988606 Page z of 8 82112212008 08:44 AM Plat Ctrtiiis�at• AL ifl[7EE GUAty Nathin8taa WEST '10101011001MIN Description: Thurston,WA Docent -DocW -9988606 Pago: 2 of 8 order: FIRST AMERICAN TITLE INSVRAMM Cant: Corporations: Registration Detail CORPORATIONS DIVISION - REGISTRATION DATA SEARCH TRIANCE GROUP INCORPORATED UBI Number Category Profit/Nonprofit Active /inactive State of Incorporation Date of Incorporation License Expiration Date 602534624 Regular Corporation Profit Active WA 0812712005 0813112008 Registered Agent information Agent Name JOHN L JOHNSON `Address 18741 NUTMEG ST SW City ROCHESTER State WA ZIP 98570 Special Address Information Address City State Zip cc Return to Search List Page 1 of http: / /www.secstate.wa. govt pri nt. aspx?« 1= http :l /www,secstate.wa.govlcorps /search detail.asp ?... 411812008 NTIA • FIRST AMERICAN-THURSTON, FAX, F159 THURS TOO WA 0411812008 12:28PM HJZR ORDER SEARCH RESULTS PAGE i OF I ORDER-, 1212588 TOF: WCT COMMENT: PLANT THROUGH APRIL 15, 2008 (Full) INSTRUMENT: 4003407 APRIL 15, 2008 04:29PM COURT HOUSE: APRIL 15, 2008 SEARCH PARAMETERS TRIANCE GROUP INC iSPOUSE MI LST 4 SSN PRTY I 9EARCH: FROM 00/00/0000 THROUGH 99/99/9999, EXCLUDING PROPERTY (SOUNDEXED) (PERMIT DATEDOWNS i USE IN FALLOUT) INST: PARAMETER ENTERED: LASTICO NAME FIRST MI LST 4 SSN TRIANCE GROUP INC UA IE Uf--1Zm SEARCHED PARAMETER: LASTICO NAME FIRST MI LST 4 SSN RT r; TkTq a IFT-ETOTIT m- Til m LASTICO NAME FIRST MI INST RECORDED PRTY Comp VOLPAGE INST NO. DOLLAR AMOUNT LOAN •RIG INST NO. TRIANCE GROUP INC STARTER 10/11/2007 FA FAOF 07-403 GWIERAL INDEMI: LOTS 8, 9. & 41 VINTAGE GREENS, REC. 387178 ONLY fWIANCE GROUP INC/' STARTER 10/11/2007 FA FAOF 07-404 �ERAL INDEM: LOTS 8,9,8 41, VINTAGE GREENS, REC 3871786 ONLY END SEARCH file://C:\Documents and Settings\btiglao\Application Data1DTS2\Content153-067-FA-34\result\HJ... 411812008 Page 1 of 5 FIRST AMERICAN THURSTON, FAX, F159 THURSTON, WA 0411812008 09:55AM HJZR ORDER SEARCH RESULTS PAGE 1 OF 5 ORDER: 1212588 TOR WCT COMMENT: PLANT THROUGH APRIL 13, 2408 (Full) INSTRUMENT: 4003407 APRIL 15, 2008 04:29PM COURT HOUSE: APRIL 1v, 2008 SEARCH PARAMETERS LOT HI LOT BLOCK VOLUME /PAGE SUB LOT HI SUB LOT 13 3988 -607 SUBDIVISION: PALISADES WEST SEARCH: FROM 40100=00 THROUGH 9919919999 DISPLAY AUTO CHAIN; OUTPUT ALL POSTINGS; ALL ADJOINING STARTERS (CREATE A STARTER I PERMIT DATEDOWNS I USE IN FALLOUT) INST: ORIG INST NO. 3874132 ALL REFERENCES (PERMIT DATEDOWNS / USE IN FALLOUT) ORIG INST NO. 3874137 ALL REFERENCES (PERMIT DATEDOWNS 1 USE IN FALLOUT) LASTICO NAME FIRST MI LST 4 SSN FH1 LLC (NICKNAME01 M1 LST 4 SSN PRTY SEARCH: FROM 40/00/0000 THROUGH 89/9919999; (PERMIT DATEDOWNS 1 USE IN FALLOUT) EXCLUDING PROPERTY INST: (SOUNDF-XED) LASTICO NAME FIRST MI LST 4 SSN SMITH ANDREW d (NICKNAMED) SPOUSE ml LST 4 SSN PRTY CYNTHIA M SEARCH: FROM 00100/0000 THROUGH 9919819999; (PERMIT DATEDOWNS 1 USE IN FALLOUT) EXCLUDING PROPERTY MUST: (SOUNDEXED) LASTICO NAME FIRST MI LST 4 SSN TRIANCE HOMES INC (NICKNAMED) SPOUSE MI LST 4 SSN PRTY SEARCH: FROM 04/00/0000 THROUGH 9919818999; EXCLUDING PROPERTY (SOUNDEXED) (PERMIT DATEDOWNS I USE IN FALLOUT) INST: PARAMETER ENTERED: LOT HI LOT BLOCK VOLUME/PAGE SUB LOT HI SUES LOT 10 3988 -607 AUTO CHAIN: file : //C :\Documents and Settings \btiglao\Application Data \DTS2 \Content \53 - 067 -F .- 34\result\ J... 4/18/2008 Page 2 of 5 FIRST AMERICAN- THURSTON, FAX, F159 THURSTOK WA D411812008 09:55AM HJZR ORDER SEARCH RESULTS PAGE 2 OF 5 ORDER: 1212588 TOF: WCT COMMENT: 02/12/2008 PLAT BLA -8144 BLOCK LOT A SUB LOT 3988607 CREATED PLAT 3988 -607 SEARCHED PARAMETER: LOT HI LOT BLOCK VOLUMEIPAGE SUB LOT Hl SUB LOT 15 3588 -607 NO OPEN ORDERS FOUND LOT BLOCK VOLUMEIPAGE SUB LOT 3988 -867 RECORDED INST INST NO. VOL PAGE COMP PORTION DOLLAR AMOUNT LOAN REMARKS LOTISUB LOT RANGE ORIG INST NO. PARTY LAST FIRST MI 02/12/2008 PLT 3988 607 PALISADES WEST LOT BLOCK VOLUMEIPAGE SUB LOT 75 3588 -607 RECORDED INST INST NO. VOL PAGE COMP PORTION DOLLAR AMOUNT LOAN REMARKS LOTISUB LOT RANGE ORIG INST NO. PARTY LAST FIRST MI 0211212008 AGR 88602 PARTYI FHILLC PARTY2 YELM CITY 02/12/2008 BSL 88603 PARTYI FH1 LLC PARTY2 YELM CITY 02/1212008 AGR 88604 PARTYI FHILLC PARTY2 YELM CITY 02/12/2008 CCR 88603 PARTYI PALISADES WEST HOMEOWNERS ASSOCIATION PARTY2 FHILLC 02/12/2008 NOT _.. 0688606 PARTYI FHILLC PARTY2 YELM CITY sARAMETER ENTERED: :)RIG INST NO. 387'4132 ORIG INST NO, 3874132 RECORDED INST VOL PAGE INST NO. COMPANY DOLLAR AMOUNT LOAN ORIG INST NO. PARTY LAST FIRST MI 1vt79 /2uutj SUB MTG 3874136 FA file: //C :\Documents and Settingslbtiglao\Application Data\DTS2 \Content 153 - 067 -F - 34\result\HJ... 4/18/2005 Page 3 of 5 FIRST AMERICANTHURSTON, FAX, F159 THURSTOK A 04118/2008 09 :55AM HJZR GIRDER SEARCH RESULTS PACE 3 OF 5 GIRDER: 1212588 TGIF: WCT COMMENT: 3874132 PARTYI PRAIRIE BAPTIST CHURCH PARTY2 WF CAPITAL INC PLAT BLA - 8144 BLOCK LOT A SUB LOT ARB 25 17 1E 0013 02 PARAMETER. ENTERED: ORIG INST NO. 3874137 i PARAMETER ENTERED: LASTICO NAME FIRST MI LST 4 SSN FH1 LLC SPOUSE MI LST 4 SSN SEARCHED PARAMETER: LASTICO NAME FIRST Ml LST 4 SSN LASTICO Im NAME FIRST MI INST RECORDED PRTY COMP VOLPAGE INST NO. DOLLAR i LOAN ORIG i 08/W2001 rZ47370.1 PARAMETER ENTERED: LASTICO NAME FIRST MI LST 4 SSN SMITH ANDREW J SPOUSE MI LST 4 SSN CYNTHIA M SEARCHED PARAMETER: LASTICO NAME FIRST Ml LST 4 SSN SMITH LAST /CO NAME AND* FIRST ORIG INST NO, RECORDED VOLPAGE INST NO. DOLLAR i LOAN 10125/2001 fiIe:HC:\Documents and SettingstbtiglaolA.pplication Data1DTS2\Content \53- 067- FA- 34\result\HJ... 411812008 Page 4 of 5 FIRST AMERICAN•THURSTON, FAX, F159 THURSTON, WA 04118!2008 09:55AM HJZR ORDER SEARCH RESULTS PAGE 4 OF 5 ORDER: 1212588 TOF: WCT COMMENT: SMITH ! JDG 0610611989 PARTYI 892007964 9007625 SMITH - -� I JDG 1012311989 PARTYI 892013808 29015016 SMITH A J POA 0312311990 PARTYI 1716 -903 1990 - 03230020 SMITH ANDRE SLN 0712412006 PARTY? 3850706 $3,180.00 SLN1L 09/1&2007 3850706 3958843 SMITH AEA JDG 0910812005 PARTYI 052017063 $1,125.00 059008744 NO ATT SMITH EA JDG MOD 0911912005 PARTY1 052017063 059008744 GENERATED PARAMETER: LASTICO NAME FIRST MI LST 4 SSN SMITH CIN* M LASTICO NAME FIRST MI INST RECORDED PRTY COMP VOL PAGE INST NO. DOLLAR AMOUNT LOAN ORIG INST NO. SMITH C JDG 0212011998 PARTYI 982003364 $2,690.00 ,#9003637 SMITH CINDY VDIV 0510911994 PARTYI 94300584.8 2ND SMITH DAVID SEARCHED PARAMETER: LASTICO NAME FIRST MI LST 4 SSN SMITH CYN* M file:/1CADocuments and Settingslbtiglao\Applicatiun Data1DTS2\Content \53- 067 -F - 34\result1HJ - -. 4/18/2008 Page 5 of FIRST AMERICAN-THURSTON, FAX, F159 THURSTON,WA 0411812008 09:55AM HJZR ORDER SEARCH RESULTS PAGE 5 OF 5 ORDER- 1212588 TOF: WCT COMMENT: LAST/CO NAME FIRST MI INST RECORDED PRTY COMP VOL PACE INST NO. DOLLAR AMOUNT LOAN ORIG INST NO. GENERATED PARAMETER: LASTICO NAME FIRST MI LST 4 SSN SMITH DRE* NO INSTRUMENTS/CASES FOUND ,iGENERATED PARAMETER: LAST/CO NAME FIRST MI LST 4 SSN SMITH DRU* NO INSTRUMENTSICASES FOUND GENERATED PARAMETER: LASTICO NAME FIRST MI LST 4 SSN SMITH SYN* M NO INSTRUMENTSICASES FOUND PARAMETER ENTERED: LASTICO NAME FIRST Mil LST 4 SSN TRIANCE HOMES INC ISPOUSE MI LST 4 SSN SEARCHED PARAMETER: LASTICO NAME FIRST ml LST 4 SSN TRIANCE HOMES INC NO INSTRUMENTSICASES FOUND I #'Ll I file://C:\Documents and Settings\btiglao\Application Data\DTS2\Content\53-067-FA-34\result\HJ... 4/18/2008 Page 1 of FIRST AMERICAN- THURSTON, FAX, F159 THUR TON, A 34/18/2008 09 :06AM HJZR INVESTIGATIVE SEARCH RESULTS PAGE 1 OF 2 PLANT THROUGH APRIL 15, 2008 (Full) INSTRUMENT: 4003407 APRIL 15, 2008 04:29PM COURT HOUSE: APRIL 15, 2048 SEARCH PARAMETERS LOT HI LOT BLOCK VOLUME/PAGE SUB LOT HI SUB LOT 15 3988 -607 SUBDIVISION, PALISADES WEST SEARCH: FROM 0010010000 THROUGH 99/9919999 DISPLAY AUTO? CHAIN; OUTPUT ALL POSTINGS ENTERED: -OT HI LOT • r LUME/PAGE SUB LOT HI SUB LOT 95 3988 -607 AUTO CHAIN: 0219212008 PLAT BLA -8144 BLOCK LOT A SUB LOT 3988607 CREATED PLAT 3988 -607 mARCHED �OT HI LOT # VOLIUMEIPAGE SUB LOT 15 3588 -607 NO OPEN ORDERS FOUND LOT BLOCK VOLUMEIPAGE # 3988-607 RECORDED INST INST NO, VOLPAGE COMP PORTION DOLLAR # UNT LOAN REMARKS LOTISUB LOT ORIG INIST NO. 04122008 PILT 3989607 +i's 607 PALISADES LOT BLOCK VOLUME/PAGE r 1 RECORDED INST INST NO. VOLPAGE COMP PORTION i DOLLAR # #' # LOT RANGE ORIG INST NO. UZi`I: 1ZQUt$ AGR 1 3988602 - PARTYI FH9 LLC PARTY2 YELM CITY 0211212008 SSL. 3988603 PARTY1 FHI LLC PARTY2 YELM CITY 02/1212008 AGR - 3988604 w PARTY9 FHI LLC PARTY2 YELM CITY 02112/2008�CCR 3908605 V PARTYI PALISADES WEST HOMEOWNERS ASSOCIATION PARTY2 FHI LLC file. //C :\Documents and Settings \btiglao\Application Data\DT 2 \Contentl53- 067 -F - 4\resultWJ, -. 411812008 Page 2 of FIRST AMERICAN THURSTON, FAX, F159 THURSTON, WA 041i$/2008 09:06AM HJZR INVESTIGATIVE SEARCH RESULTS PAGE 2 OF 2 42112/2008 NOT 3988606 � PARTY! FHILLC PARTY2 YELM CITY M file: //C :\Documents and Settingstbtiglao\Application Data\DT \Content \5 - 067- FA- 34\result\HJ... 4/1812008 FIRST AMERICAN- THURSTON, FAX, F159 THUI TOO A )4118120118 09 :06AM HJZR INVESTIGATIVE SEARCH RESULTS PAGE 1 OF 4 PLANT THROUGH APRIL 15, 2008 (Full) INSTRUMENT; 4003407 APRIL 15, 2008 04 :29PM COURT HOUSE: APRIL 15, 2008 SEARCH PARAMETERS LOT HI LOT BLOCK VOLUMEIPAGE SUB LC}T HI SUB LOT A SLA -8144 SUBDIVISION: BLA -8144 SEARCH: FROM 00/00/0000 THROUGH 99/99/9999 DISPLAY AUTO CHAIN; OUTPUT ALL POSTINGS �IARAMETER ENTERED: .OT HI LOT BLOCK VOLUMEIPAGE SUB LOT HI SUS LOT A BLA -8144 AUTO CHAIN 02/12/2008 PLAT BLA -8144 BLOCK LOT A SUB LOT 3988607 CREATED PLAT 3988 -607 i OT HI LOT BLOCK VOLUMEMAGE SUB LOT A BLA -8144 CURRENT OPEN s-i LOT HI LOT BLOCK VOLUMEIPAGE LOT l uD l iju A BLA- 8144 1197776 A BLA -8144 LOT BLOCK VOLUME/PAGE - LOT RECORDED INST INST NO. VOLPAGE COMP PORTION DOLLAR AMOUNT * REMARKS LOT/SUB ORIG INST NO. uolvW -1vaz) UVU IWO - < bUtiuUtt 2412 -981 PARTYI FULLERTON LANI � PARTY2 WASHINGTON MUTUAL SAVINGS BK 04/06/1996 UC RE 3023280 / 1995- 06050028 10104/1955 TDD 1995 - 10040014 2462 -156 $30,000.00 FAT#54621 PARTY? FORRESTER JAMES PARTY2 FIRST COMMUN TY BANK 0711911996 TD RE 3041678 1995 - 10040014 04105/1996 TOD 3023022 $160,400.00 file : //C :\Documents and SettingslbtiglaelApplication Data \DT52 \Content 153 - 067 -F - 41r sult\HJ... 4/18/2008 Page 2 of 4 (FIRST AMERICAN- THURSTON, FAX, F159 THURSTON, A 0411812008 09:06AM HJZR INVESTIGATIVE SEARCH RESULTS - PAGE 2 OF 4 TD REL PARTY( FORRESTER JAMES M PARTY2 INTEREST SAVINGS BANK 09!2512002 12/1611997 TDD( 125475 850495 FA 0211912x03 LLJJ 3023022 3504479 04/18/1996 MHT ELM 3025151 3212775 PARTY1 HARR FAMILY HOMES 1 iiMi06T STARTER PARTY( FORRESTER JAMES M STARTER PARTY2 INTERWEST SAVINGS BAND 09/1612005 10/20/1997 TDD 3115808 3768017 FA $158,400.00 PARTY( FORRESTER .JAMES M PARTY2 HEADLANDS MORTGAGE COMPANY 12/23/1997 rDD ASN 3126409 3115808 10/11/2406 TDD APP 3872012 PARTYi FORRESTER JAMES PARTY2 FORRESTER PATRICIA 09/16/2005 DED WAR 3768018 + FA $15,305.00 PARTY( FORRESTER PARTY2 FHILLC 09/18/2005 TDD 3768019 FA $600,000.00 PARTY1 FH1 LLC PARTY2 FORRESTER JAMES JAMES PARTY3 FIRST AMERICAN TITLE INSURANCE CO M N I& 10/1012007 TDD EL (963908 FA •,/3768019 - 09120!2005 vp4bT 3769062 PARTY( TFiiJRSTON COUNTY PARTY2 FORRESTER JAMES M 1111412005 TDD 3784293 FA $630,000.00 PARTY( FHILLC PARTY2 BINGO INVESTMENTS LLC PARTY3 MALNATI MICHAEL C file: / /C:IDocuments and Settingslbtiglao\A.pplication Data\DTS21 Content \53 - 067- FA- 341result\HJ... 4/18/2008 3115808 10/1112006 TD REL 3872013 vi 115608 09!2512002 STARTER 850495 FA 0211912x03 AGR REL 3504479 3212775 PARTY1 HARR FAMILY HOMES 1 iiMi06T STARTER 64007 -T FA 12/24/2003 STARTER 80930 FA 09/1612005 POA 3768017 FA PARTYi FORRESTER JAMES PARTY2 FORRESTER PATRICIA 09/16/2005 DED WAR 3768018 + FA $15,305.00 PARTY( FORRESTER PARTY2 FHILLC 09/18/2005 TDD 3768019 FA $600,000.00 PARTY1 FH1 LLC PARTY2 FORRESTER JAMES JAMES PARTY3 FIRST AMERICAN TITLE INSURANCE CO M N I& 10/1012007 TDD EL (963908 FA •,/3768019 - 09120!2005 vp4bT 3769062 PARTY( TFiiJRSTON COUNTY PARTY2 FORRESTER JAMES M 1111412005 TDD 3784293 FA $630,000.00 PARTY( FHILLC PARTY2 BINGO INVESTMENTS LLC PARTY3 MALNATI MICHAEL C file: / /C:IDocuments and Settingslbtiglao\A.pplication Data\DTS21 Content \53 - 067- FA- 341result\HJ... 4/18/2008 Page 3 of 4 FIRST AMERICAN- THURSTON, FAX, F159 THUR TOO A 0411812008 09:06AM HJZR INVESTIGATIVE SEARCH RESULTS PAGE 3 OF 4 1017012007 TDD APP 3963909 3784293 9011012007 3 TDD(n Sit? N4784293 04/03/2006 TDO ^ V 3820149 $3,000,000.00 FA FA FA PARTY1 FHILLC PARTY2 CENTRUM FINANCIAL SERVICES INC PARTY3 FIRST AMERICAN TITLE INSURANCE CO 04121/2006 TDD ASN 3825405 FA FA 3820149 10/10/2007 TDD ASN 3983941 FA 3820149 10/1012007 TDD EL. 3963942 FA 20152 V6820149 FA - 04/03/2006 AGR 20156 FA PARTY/ FHILLC PARTY/ FH1 LLC PARTY2 PARTY2 CENTRUM FINANCIAL SERVICES INC 04103/2006 ASR 320151 FA �� PARTYi FHILLC PARTY2 CENTRUM FINANCIAL SERVICES INC 04/03/2006 UGC 20152 FA PARTY/ FHILLC PARTY2 CENTRUM FINANCIAL SERVICES INC 04/0312006 UCC 20154 PARTY/ FHILLC PARTY2 CENTRUM FINANCIAL SERVICES INC 04103/2006 SUB MTG 3820155 FA 3768019 PARTY/ FORRESTER JAMES M 3820149 PARTY2 CENTRUM FINANCIAL SERVICES INC 04/03/2006 SUB MTG 3820156 FA 3820149 PARTY/ PRAIRIE BAPTIST CHURCH 3820153 PARTY2 CENTRUM FINANCIAL SERVICES INC 04/21/2005 UCC 3825466 FA PARTY/ CENTRUM FINANCIAL SERVICES INC PARTY2 VENTURE BANK 1012712006 UCC(5 3876188 V3825466 09112/2006 MHT 864560 PARTY/ FHI LLC 09/2612006 STARTER 188244T FA 55 10119/2006 TDD 3874132 + FA $7.775,000.00 PARTY/ FHILLC PARTY2 WF CAPITAL INC file: / /C:1Documents and Settingslbtiglao\Applicatian Data\DTS21Content 153 - 067- FA- 34\result\HJ... 411812008 FIRST AMERICAN-THURSTON, FAX, Fl 59 THUS STOO WA 04/1 8/2008 09.,06AM HJZR INVESTIGATIVE SEARCH RESULTS PAGE 4 OF 4 10119/2006 AGR 3874133-0 10/1912006 ASR 3874134 PARTY3 TITAN TRUSTEE SERVICES INC FA PARTY1 FHI LLC PARTY2 WF CAPITAL INC PARTY1 FHILLC 12 PARTY2 WF CAPITAL INC LL 10/1912006 Ucc 3874135 & FA ENWERR PARTY2 WF CAPITAL INC 10/19/2006 SUB MTG 3874136 4 FA 3874132 PARTY2 WFCAPITALINC fw rill drif : PARTY2 WF CAPITAL INC v-TRA-1visaw.r1we 03/2712007 STARTER 785062 FA 03/27/2007 STARTER 785129 FA 08102(2007 US *7681 PT 072015415 PARTY1 FHlLLC PARTY2 MCKENZIE A S 10/29/2007 STARTER 917201 FA - 04 I. R I Im ■ 3a KO • 1:0AW&MI00 PARTY2 SIRA ERAN 02112/2008 PLT .39886070 3988 607 PALISADES WEST 02/26/2008 STARTER 993347 FA file://C:\Documents and Settings\btiglao\Appli cation Data1DTS2\Content\53-067-FA-34\result\14J... 4/18/2008 .............................................................................................................................. . .. nter.. r1en... y ............................... .. ... ... . 51,:6522.94::: DATE: 09/30/2.008.: TYPE :.:CRED3T ... ... ... ... ... ... ... PayMeth: .. ... ... ... .. .. FED .. .. .. ... ... ... .............................................................................................................................. ............................................ .... 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USAA FED.; SA :::::::::::::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::: ............................... : ACVBKABA::::1: 222:41: 255 ::::::::::::::::::::::::::::::::::::::: :::::::::::::::: .............................................................................................................................. .......... ................... : : : : : : : : : : :: RCVBKNAME:... .............................................................................................................................. ............................... FST AM TR CO SAN. A........................................... ............................... ............................... . ::::ORG *.:::ANDREW .............................................................................................................................. J SMITH OR14420 HOWARD LN D1YON: J :::::::::::::: ::::::::::::::::::::::::::::::: ............................... 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CO.4200 : 6TH::AVE::SE::STE: 201::LAC "EY : WA ::::::::::::::::::: ::::::::::::::::::::::::::::::: ..........................................................40503 ............................ .............................. .............................................................................................................................. ................................................................. ............................... ............................................................. ............................... ............................... :::::OB:I ; ::: REF::ANDREW: J: AND::CYNTHIA: E :SMITH: FO:::::::::::::::::: ::::::::::::::::::::::::::::::: : .............................................................................................................................. ............................... 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T : : : : : : : : : : : :l ttps: /1f#n nail.firstantrust. con /srclprinter friendly Tbotto i .pl p?passedtnt j d =l ivail �o..::: 9/30/2008 ::::::::::::: : ................. ............................... 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RE...... ................. ............................... https://ftnfnall.firgtamtr-u8t.com/src/`pril . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ....................l.e .. .....: ..: . . . . . . . . . . . . . . ..: .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... .................................................... ............................... 1Q/Q8:f.2:0Q:8::T:YP:E:::::C mit .................................................... ............................... 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AVENUE:: SE: :STE:: 2:Q 1:: LAC EY ;:: WA:: 9: 85:03 ..... ............................... ............. ............................... E S CROAT : #:: 4 2:91:. 1:2125 8:8 SMI T H LOAN: .................................................... ............................... 4302:98:/ ::SMI'T'H::::::::::: .. .. 10.D:8 20.x:8 23:::38:: .... ............................... .................................................... ............................... 200828204244:Q0:::::::::: . .. .. .. .. .. ter�friendlyTbotton .php`?passedTentjd =l luailbo.....10/8/ 008 First American Title Insurance Company Bell Towne Centre, 4200 6th Avenue SE, Ste 201 Lacey, WA 98503 PR: NWEST Ofe: 4291 (805) DATE- 10/01/2008 RECEIPT. Nth.: 429121929 RECEIPT FOR DEPOSIT FILENO-:-, -4NI-1212588 FUNDS IN THE AMOUNT OF: S20,000-00 WERE RECEIVED FROM. Triance Homes CREDITED TO THE ACCOUNT OF: Other TYPE OF DEPOSIT. Cashier's Check [ Comments: REPRESENTING: Closing Costs I Property Location: 10756 Palisades Street SE, Yelm, WA 98597 BY: Mari Beckley, 10/01/2008 ESCROW OFFICER: Mari Beckley "The validity of this receipt, for the deposit referenced, is subject to clearance by the depositary financial institution and credit to our account." ...................... . . ... ..... ... Bankof America 9,1000, CASHIER'S CUECK 19-2 %00" 120— CK.4 4531407687 Purchaser-DANIEL L LEE VOID AFTER. 90 DAYS ISSUE DAT11:00tober 01, 2008 TRIANCE HOMES g 4' €x:'' R "D 4� 111'hk r t:1250000244 21313 940111 5 2 2 Customer Copy I. First American Title Insurance Company Bell Towne Centres 4200 6th Avenue SE, Ste 201 Lacey, WA 98503 PR- NWEST Ofc: 4291 (805) DATE: 10/01/2008 RECEIPT NO.: 429121929 RECEIPT FOR DEPOSIT FILE NO.: 4291-1212588 FUNDS IN THE AMOUNT OF: $20,000 00 WERE RECEIVED FROM. Triance Horries CREDITED TO THE ACCOUNT OF: Other TYPE OF DEPOSIT: Cashier's Check REPRESENTING: Closing Costs Comments: Property Location: 10756 Palisades Street SE, Yetm, WA 98597 BY. Mari Beckley, 10/01/2008 ESCROW OFFICER; Mari Beckley "The validity of this receipt, for the deposit referenced, is subject to clearance by the depository financial institution and credit to our account." Bankof America CAS=R'S CHECK 19-2 - '20 CK# 4531407687 P u rchaser: D AN I EL L LEE ISSUE DATE: October 01, 2008 TRIANCE HOMES VOID AFTER 40 DAYS [iLaG 1, 110453140768 7l's 1:1250000241: 2138 9401's Customer Copy 522 k -�_ I n ? AFTER RECORDING MAIL TO: FH1, LLC 4200 6th Avenue *301 LAY, Wit 98503 First American Title Insurance Company 16 SEP'03 342811 Tiqurston County Trewurw Reu1 Estate tae Taxpold Is, By �. ( -` STATUTORY WAIRRANTY DEED? File No: 4291 - 674684 (R)) Grantor(s): 3ames Forrester and Patricia Forrester Grantees): FH1, LLC Abbreviated legal: Parcel A of BLA 8144 Addftbnal Legal on page: Assessor's Tax Parcel No(s): 21725180300 IWOAMAMM nM Zdawwom Cesar Date: September 13, 2005 THE GRANTOR(S) San es M. Forrester and Patricia Forrester, husband and wife for and In consideration of Ten Dollars and other Good and Valuable Consideration, In hmW paid, conveys, and warrants to FH1, LLC, a Washington Limited Liability C.ornpany, the fblbwing described real estate, situated in the County of Thurston, State of Washington. PARCEL A OF BOUNDARY LINE AWUSTMENT NO. BLA -8144, RECORDED UNDER FI UNG NUMBER 9505220008, IN THURSTON COUNTY, WASHINGTON. Subject To: This conveyance Is subject to covenants, conditions, restrictions and easements, if any, affecting tide, whkh may appear in the public record, Inducting those shown on any recorded plat or survey. Page 10f 2 L Dsscription: Thurstan,WA D0cuzz0nt -DooZD 3766018 Figo: 1 of 2 Order: FXRST ADQERICAN TIT1Z 1,VSURANCE Conzvnt: UV-10 7197 ME 3788018 III mill Page: I of 89/16/5 83115P TITLE 0 1. Thurston Co, lilt APN: 2172SI3030EJ StaWbxy Wwanty Deed Fk 1to.: 42ft- 674664 (IRS) . Continued Date: 091131 t Pape 2 Ct 2 LPB-10 7167 3768018 Page! / TL F TI $ � hw , UR Description: Thurston,Wk Document -DocM 9768028 Fags: 2 ce 2 Order: FIRST AbZRICAW TSTbF IN$URAN= Comeeentr N V " tNnS;!' `% � z Robin W�ng� Notary Public in and the Staft ot 1 Z : � 4I L Residing at: Lacey My aMointment expires: 12 -19-05 *4f", 11400#111 go Pape 2 Ct 2 LPB-10 7167 3768018 Page! / TL F TI $ � hw , UR Description: Thurston,Wk Document -DocM 9768028 Fags: 2 ce 2 Order: FIRST AbZRICAW TSTbF IN$URAN= Comeeentr AFTER RECORDING MAIL TO: Andrew J. Smith and Cynthia M. Smith 10756 Palisades Street SE Yelm, WA 98597 Filed for Record at Request of: Space above this Are for Recorders use First American Title Insurance Company STATUTORY WARRANTY DEED File No: 4291 - 1212588 (MB) Date: September 29, 2008 Grantor(s): FH1, LLC Grantee(s): Andrew J. Smith and Cynthia M. Smith Abbreviated Legal: LOT 15 PALISADES WEST, REC. NO. 3988607 Additional Legal on page: Assessor's Tax Parcel No(s): 67110001500 THE GRANTOR(S)FH1, LLC, a Washington limited liability company for and in consideration of Ten Dollars and other Good and Valuable Consideration, in hand paid, conveys, and warrants to Andrew J. Smith and Cynthia M. Smith, husband and wife, the following described real estate, situated in the County of Thurston, State of Washington. LOT 15 OF PALISADES WEST, ACCORDING TO PLAT RECORDED FEBRUARY 12, 2008 UNDER RECORDING NO. 3988607, IN THURSTON COUNTY, WASHINGTON. Subject To: This conveyance is subject to covenants, conditions, restrictions and easements, if any, affecting title, which may appear in the public record, including those shown on any recorded plat or survey. FH1, LLC, a Washington limited liability company By: Steven L. Chamberlain, Manager/ Member Page 1 of 2 LPB 10 -05 APN: 67110001500 Statutory Warranty Deed File No.: 4291 - 1212588 (MB) - continued Date: 09/29/2008 STATE OF Washington COUNTY OF Thurston ) -ss I certify that I know or have satisfactory evidence that Steven L. Chamberlain, is /are the person(s) who appeared before me, and said person(s) acknowledged that he /she /they signed this instrument, on oath stated that he /she /they is /are authorized to execute the instrument and acknowledged it as the Manager / Member of FH1, LLC to be the free and voluntary act of such party(ies) for the uses and purposes mentioned in this instrument. Dated: M C Beckley Notary Public in and for the State of Washington Residing at: Olympia My appointment expires: 02 -17 -2011 Page 2 of 2 LPB 10 -05