CC Resolution No. 5738 ~ ~
RESOLUTION NO. 5738
A RESOLUTION OF T}:E CITY COUNCIL OF THE CITY OF CUPERTINO
' • AUTHORIZING EXECUTION OF PARTIAL RELEASE OF PARTICIPATION
j AGREEMENT CITY OF CUPERTINO BELOW MARKET RATE HOUSING
~ PROGRAM, TRACT 7039, PARK PLAZA
~ WHEREAS, there has been presented to the City Council a Partial Release
of "Participation Agreement Ci[y of Cupertino Aelow Market Rate Housing
~ Program" for Trac[ 7039, Park Plaza, nnd the terms and conditions oE said
release having been approved by the Director of Planning and Development
and [he Ci[y Attorney;
~ NOW, THEREFORE, BE IT RESOLVED that the Mayor and [he City Clerk are
hereby authorized to execute said release in behalf of the City of Cuper-
tino.
! PASSED AND ADOPTED at a regular meeting of the City Council of the
~ City of Cupertino this 20th day of October , 1981 by the following vote:
i
Vo[e Members of the Ci[y Council
AYES: Johnson, Plungy, Rogers, Sparks
NOES: None
ABSEHT: Gatto
ABSTAIN: None
APPROVED:
/
' ?
Mayor, City of pertino
ATTEST:
City Clerk
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RESOLUTION N0. 5738 .~~Fi,,,.~~ }~~S
~3~~r~Ta cLaR:, c~~~~:iY~
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPER~.~GE A 1;!~'~r~
. AUTHORIZING EXECUTION OF PARTIAL RELEASE OF PARTICIP~~Id~~Ari ~t=~n~~~
AGREEMENT CITY OF CUPERTINO BELOW MARKET RATE HOUSING
PROGRAM, TRACT 7039, PARK PLAZA
WHEREAS, there has been presented to the City Council a Partial Release
,of "Participation Agreement City of Cupertino Below Market Rate Housing
Program" for Tract 7039, Park Plaza, and the terms and conditions of said
release having been approved by the Director of Planning and Development
and the City Attorney;
NOW, THEREFORE, BE IT RESOLVED that the Mayor and the City Clerk are
hereby authorized to execute said release in behalf of the City of Cuper-
tino.
PASSED AND ADOPTED at a regular meeting of the City Council of the
City of Cupertino this 20th day of October , 1981 by the following vote:
Vote rlembers of the City Council
AYES: Johnson, Plungy, Rogers, Sparks
NOES: None
ABSENT: Gatto
ABSTAIN: None
APPROVED:
/s/ Reed Sparks
Mayor, City of Cupertino
ATTEST:
/s/ Dorothy Cornelius .
City Clerk THis i~_, T? c,~,:~~ ~.,,~~'t-~iv
INSTRUM~NT I~, ATfZLJ'~ Afv'J C?i~F~T~Cf COPY
?F THE ~Fri;~INA~ ?N F~ IN THIS-,OFFICE.
ATTEST , 19~
CITY t-~;-'"i ii'~ CiTY P~f~TIN~
BY ^
` '''i - -
~-----3
G 454 639
Recorded at the request of:
City of Cupertino
When recorded, please return to:
City of Cupertino
10300 Torre Avenue
~ Cupertino, California 95014
No fee in accordance with
Government Code 6103
PARTIAL RELEASE OF
"PARTICIPATION AGREEMENT
CITY OF CUPERTIlVO BELOW MARKET RATE HOUSING PROGRAM"
WHEREAS, that certain document entitled "Participation Agreement - City of
Cupertino Below Market Rate Housing Program" was filed for record on January 23,
1981 under Series Number 6962324 in Book F-867 of Official Records, at Page 577, et
seq., Santa Clara County Records, State of California, affecting Lots 2, 5, 40, 43, 67,
69, 72 and 74 in the seventy-nine (79) unit, multiple family, residential housing project
commonly known as Tract 7039~ Park Plaza and Assessor's Parcel LVumber
369-5-13 & 14, Cupertino, California, and being more particularly described as follows:
"LOTS 2~ 5~ 40~ 43~ 67, 69~ 72 and 74~ as shown on that certain Map
entitled 'Tract 7039~ Park Plaza'~ which said Map was filed for record on
January 9, 1981 in Book 478 of Maps, at Pages 24, 25, 26 and 27, Santa
Clara County Records, State of California"; and,
WHEREAS, on September 8, 1981 the City of Cupertino City Council approved the
modification of the Below Market k2ate (BMR) Housing Program as it affects said
"Tract 7039, Park Piaza" by reducing the developer's required participation therein by
fifty percent (509b) and designating Lots 2, 5, 40 and 43 above referred to as sufficient
to comply with said City's BMR Housing Program requirements:
NOW THEREFORE, the undersigned hereby declare that the above referred to
"Participation Agreement - City of Cupertino Below Market Rate Housing Program" is
rescinded and of no further force and effect whatsoever with regard to the above
referred to Lots 67, 69, 72 and 74 in said "Tract 7039, Park Plaza".
All other provisions, terms and conditions of said "Participation Agreement - City of
Cupertino Below Market Housing Program" above referred to are to remain in full
force and effect with regard to the above referred to Lots 2, 5, 40 and 43 in said
"Tract 7039~ Park Plaza".
IN WITNESS WHEREOF, the undersigned have hereunto set their hands on the dates
set forth hereafter.
~ • ~ , Date:
CITY F RTIlVO ~
ATTESTs ^ ~ - -
~ ~ ~ ~ j ~ ~
~ - - _ g ~ a'/,/ i . ) % ~
y: J
C1ty C er MAYOR, CITY OF ~TP RTINO
~•r,:
STATE OF CALIFORIVIA, ^ _ ~as4 ~ ' ~ -
- -'-~T-'County of Santa _Clara~.--- f
, On tkis_._X11R~h________~ day of__ O~~Q~~~____.___~._.__..~.in tk¢ year one thousand nine
hundsed and-------~-~'-•----••_-°- --------befose me,-°--$#3I11~j[__L..--HD_ti3lc~.Y_d------°°-°--------------•
, a Notary Public, Staie of Colifornia, duly commissioned and szvorn, personally appeare3
-----Ja cnn__~har_ti8t'-----°-•°------------------°----------°_......----
OFFICIAL SEA~ to me to be one of the partners of the pa~tnersh{p that esecuted the uritkin instrrsment,
STANLEY L. HOWARD and acknowledged to me tkat such partne~ship executed the same.
NOTARY PUBtiC CALIFORNIA IN WITNESS WHEREOP I have hereunto set my ha+rd and aj~xed my o8'+cial seal,
. 5!tNT. A CLAKA COUNTY in ehe Counsy ot~_S's3.[]~t~__G.1.dS's"i------------------•--••-----rhe day and yea~ in ehis
t,ev cnr.+~+iss~oN ~XPIFES OCTOBER 18. 1984 cert4ficatt fi~.rt abovt vnittes~.
, l ~ /
, ,i Notary Public, State of California.
Cowdery's Form No. 29-(Aclmowled~mmt-Partnership)
My Commission Expires------Q~t.Qb_~C---~-$-~--•~.9~~F-----------------
(C. C. Sec. 1189)
. ~ o s
. . RE'f'U$N TO CITY fj~#~~3~,~~
"rJF CUPEi~Tlhdifl
(10y00 TORRE AVE ~O FE~ t4oi ~",;~°^~~~ANC~
(Q~GpERTii~40, CA 95014 P~'~RTICIPATION A~P.F.E"tENT WITH 60V C~p~ gt03
CITY OF CiJPFRTINO BELOTd MARKET RATE HOUSING PROGRAM
F ~~`7 ~'7'7
This a~reement Made and entered into this dav of ~
1981, by and between the City of Cupertino, California (hereinafter "Citv"), and
g P _ -
C~ H PARTNERSHIP, a eneral artnershi
(hereinafter "develoner"), ~•~itnesseth:
i,~hereas, dev~loner is the o~~mer and develoaer of that narcel of real nroperty
conunonlv kno~an as TTaCt 7039 Park Plaza=_ ~
and Assessor's parcel ~?umber 369-5_13 ~ 14 Cun•~rtino, ~al_itornia;
t~'hereas, c~eveloner nro~oses to develon a seven~nine 79~unit, multiple
tamilv, residenti.~il hou5i.nu nroject (!~ereinafter "nroiect") on abo~~e-described
nronertv;
T~~hereas, on November 17, _ , 1940, the Cit_y Council of the City of
Cunertino, hv adontion of. Tentative Map T'~• _19-TM-RO
annro~ed the develonment of s~_id nronPrtv in a manner consistent ~aith the terms and
conditions herein contained, one oF such conditions beinQ develoPer's ~articination
in the selow rlarket Rate (Ti`'1?:) 1-~ousin~ Pro~ram of the City of Cunertino, and
~,?hereas, it is the intention o~ both narties to s~t forth the covenant, conditio~
and restrictions arnl.icahle to E`•tR nropram narticination in this se~arate document. ~
_ ~
1`?0~•*, therefore, in consideration of the foreQOin~, and of the mutual terms and ~
covenants hereinafter set forth, the narties herebv agree that developer shall ~
particina.te ir_ the above-described nro~ram, subject to the follo~•ring terms and ~
~
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conditions: ~
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1. SATISFACTIOr?S OF CQT?DITIONS. CITy herehy aQrees that execution, recordation
and ~erformance of this agreement shall constitute nerf.ormance of those conditions of
suh~ivision approval for the PROJRCT which relate to sale of units ~ursuant to the
CITY's R?'IR Frogram and the incor~oration of related terms in the organizational documents
~for the PROJECT, and shall be sufficient in that respect to ~ermit recordation of the
final subdivision map, subject to City Council anvroval of s2id final man, satisfaction ~1'
_ ~
of all other anolicable conditions and comnliance with all nrovisions of laG7. ~
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1~1
2. SALE OF UNITS. Developers lierebV agree t'~at they shall offer units for sale, ~
based unon the unit des~ription, as shown below, to households ~
qualified by the City or its desi~nee nursuant to the City's Belo~o ~1ark.et P.ate
Nousing Prograr~ and the ~uidelines established thereunder. The sales price of the
units shall he estabJ_ished ninetv (9~) davs nrior to the proiected date of occupancv
accordin~ to the formula set in the City policy based on the median incone levels
for Santa Clara Count~• as ou~lishec~ bv the San Francisco Office of the tJ.S. Department
of Housing and lirban I)evelonment which will be in effect on the nrojected date of
C~.rificate of Occupancy. Developer further agrees to insert in any deed or other
conveyance of any of said units tnose certain terms, conditions and restrictions
atta;.hed hereto as "EXHIBIT A" and incorporated herein by this reference.
Tract Number Lot Number Unit Type, No. Bedrooms
7039 2,5,40,43,67,69,72 ~ 74 +-1189 Sauare Feet (Each)
2 bedrooms (Each)
3. OPINION OF COTIVSEL. Conciirrent ~vith the execu*~on hereof, develoner shall
provide to City a letter of opinion from its legal counsel stating that in the opinion
of counsel this a~reement constitutes a valid and binding contract unon develoner and
that the inclusion of the terms hereof in this agreement rather than in the Declaration
of Covenants, Conditions and Restrictions for the nroiect does not impair developer's
le~al ability to comply with said terms nor the enforceability of this agreement by City.
4. RECORDATIO:V. Developer shall execute this agreement, cause the same
to be acknowledged and deliver said executed and acknowled~ed document to the
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. . . ! F ~V ! ?~r: J ( ~7
Citv in such form as to vermit its recordation in the of.fice of the County Recorder
of the County of Santa Clara, State of California. This agreement shall be recorded
at the same time as the final subdivision map for the Project is recorded. City
shall not be obligated to nermit recordation of the final subdivision map prior to
such delivery of. this agreement.
5. LIMITED CONSTRUCTION. Nothing contained herein shall be <leemed compliance
with or waiver of any orovision of law or condition of subdivision avnroval exceDt
as expressly stated herein with respect to conditions relatin~ to BMR iznits.
6. AGREEi•IET?T BIN?~I^1G. The terms, covenants and conditions of this agreement
shall apply to, ar.d shall bind, the heirs, successors, executors, administraturs, assigns,
contractors, subcontractors and grantees of both narties and shall be covenants
runnin~ coith the land.
7. 41AIVFRS. The waiver by an_y party of any breach or violation of any tern,
covenant or conditiun of this agreement or of anv provision, ordinance or law shall
not be deemed to be a waiver of such term, covenant, condition, ordinance or law or
of any subsequznt breach or violation of the same or of any other term, covenant,
condition, ordinance or law.
8. COSTS AP;D ATTORNEY'S FEES. The prevailin~ party in any action brought
to enforce the terms of this a~reement or arising out of this agreement may recover
its reasonable costs and attorney's fees exoended in connection with such an action
from the other party.
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. . F I
IN {dITNESS 6•7HEREOF, CITY AND DEVELOFER have executed this agreement the day
and year first above ~oritten.
ATTEST: CITY OF CUPERTINO
,~i~~~y~}"~'
e~ r
.~P " ~•r ~
v' ~ i 4.' .
by
-l C ;ty'' ~1~~' = t• ~'Y' City '~fanager
~ ('ee•j
c. .~'`i.,
.:~~_t
C H PARTNERSHIP, a general partnership
Devetoper
~~°,"~'d /f
%
bv: `
p i ion:~~Jason Chartier Partner
os t ,
aPnroved:
~ -
D' ector of Planning Denartment
Approved as to Form:
City At orney
STATE OF CALIFORNL~I, )
Santa --}fs.
- - couney of_.. Clara- - - - - - ~
-
~ Onrhis._..seventh__da o __~J_anua
y f :~-.~...in the yeas one thousa~rd nine
~ ku„dred and__ e~htY_ ~__before me,.. Sta?11C'~'._L,_ _ Howar
a Notary Public, Stale of Californio, duly commissioned and sworn
Jason Chartier- - - - - - - - - ~ p~s~~y aPpea~e3
knoum to me to be one of the partxers of the partnership that executed the within instrument,
~~F~C~~ ~A~ and acknowledged to me that such partnership executed the same.
STANLEV L. HOWARD IN WITNESS WHEREOF I huve hereunto set my hand nnd o~'ixed my o8'icial seol,
~ NOTARY PUBLIC CALIFORNIA ~n - - - - - - - - - - - Santa
.-.._.Counry of_._.----•--••••-••--Cl ara - - - - - - - -..rhe da y
SANTA CLARA COUNTY ~~ti Y a~ eas in tku
ficate first above written.
MY COMMISSION EXPINES OCTOBER 18, 199I
.~.:1 ~ - .
~-f~~ ~
-
Notary Public, State of California
Cowdery'a Form No, 2~(p~oW~~~rot_partnership)
cc. c. s«. iis9> My Canmission Expires..._ OCtObeT---18-r. .1984 -
• January 7, 1981 '
EXHIBIT A
TERriS ~ND C01VnITiOrTS r ~~?-y _
t' ~
Sub.j ect to :
An option to purchase the real nronerty conveyed hereby and any improvements
thereon (hereafter "the Premises") und.er conditions herein later set forth, vested
in the City of Cupertino (hereinafter "City~~)• City may designate a governmental
or non-profit organization to exercise its option to nurchase. Citv or its desi~nee
may assign this option to an individual private buyer ~•rho meets the City's eligibility
qualifications. After the exercise of said ontion by City, its assignee or designee
may assi~n said right to purchase to any substitute individual nrivate buyer ~~ho meets
the City's eligibitity reauirements and is approved by the City: nrovided, however,
that such subsequent assignment shall not extend any time limits contained herein.
In the case of the ori~inal transfer. from the develo~er to the City, its
assignee or designee, the City, its assignee or designee shall have the right to
exercise its ontion to purchase said nremises within thirty (30) days aEter tne
occurrence of the later of the following events:
1. The subject premises are ready for occupancy; or
2. T~Iithin 90 days from the date the developer notifies the City
that building nermits have been issued to the develoner for the
development of the subject vremises.
The escrow shall be closed within ten (1Q) days of the exercising of the
ontion.
If the subject premises are not expected to be completed *aithin ninety (90)
days from the date the developer notifies the City that said building nermits have
been issued~'the develoner shall notify the City of the projected comnletion date at
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least ninety (90) days nrior to the Certificate of Occuoancy of the subject premises.
All such notices shall be personally delivered or deposited in the United States
mail, postage preoaid, first class, certified, addressed to the City rtanager, City of
Cupertino, 103~0 Torre Avenue, Cupertino, California 95~14.
In the case of the transfer from the oriQinal grantee to a aualified purchaser,
whenever the owner (including Grantee and all successors in interest) of said Premises
shall no longer desire to own said Premises, owner shall notify City in writing to
that effect. Such notice shall be Personally delivered or deoosited in the United
States mail, oostage ~repaid, first class, certified, addressed to City ~'[anager, City
of Cunertino, 1~3~0 Torre Avenue, Cupertino, Cali`ornia 95014. Citv, its assignee
or designee, shall then have t`ie right to exercise its option to nurchase said
Premises by delivery of written notice, by personal deliverv or certified mail, to
the o~mer thereof at any time ~•rith.in sixtv (6!~) dars ~rom the receiot by City of such
wr`tten notice from owner of intent to sell or written notice of any other method or
mode of termination of ownershio. As tised hereinafter, "Grantee" shall refer to the
original grantee and all successors in interest.
If and in the event that City or its designee exercises its ontion to purchase
said Premises, close of escrow of said. purchase shall be within sixty (60) days of the
opening of such escrow by either narty, except in the case of the original transfer
from the developer to the City, its assignee or designee (see ahove). Such escrow
shall be opened upon delivery to owner of ~oritten notice of the exercise of the oPtion •
or as soon thereafter as oossible. In the case of the origina3. transfer from the developer
to the City, its assi~nee or designee, closing costs shall be oaid in the same manner
for Below N[arket Rate units as for the market rate units in the develonment. In the
case of subsequent transf.ers, closing costs and title ins~irance shall be paid oursuant
to the custom and practice in the City of Cuvertino, Santa Clara County, at the time of
the ovening of such escrow. Anv prenayment fees charged by seller's lender will be
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naid by the buyer and that amount will be added to the buyer's base ~urchase price
to allow it to be recovered upon resale hy the buyer.
The seller will be required to obta.in and pay for a structural p~st control
reoort and to pay for any necessary corrective worlc. The seller will not be obligated
to perform nreventative, but not currently necessary, work; the buyer may Derform
such work at his or her expense.
The ourchase nrice shall be paid in cash at the close af escrow or as may be
otherwise provided by mutual agreement of btiver and seller.
The purchase price oE the Premises shall '~e Eised at the lowest amount arrived
at via the follo~aing methods:
l. In the case oY the original tran5f.er from developer to the City or
its assigned interest~ t}le purchase pricz or the units shall be established
ninety (90) days prior to the orojected date of occupancy according to the
formula set in the City nolicy based on the median income levels for Santa
Clara County as nublished by the San Francisco Oftice of the U.S. Department
of Housing and Urban Development which ~aill be in effect on the projected
Certificate of Occupancy.
2, In the case of_ all transfers other than the original transfer from the
developer to the City, its assignee or designee, the purchase price shall be
fixed at and is based uoon:
a) The purchase price paid by the selling o~aner plus an amount, if any,
to compensate for any increase in the cost of living as measured by the
Consumer Price Index for the San Francisco-Oakland area published by the
U.S. Department of I.abor, Bureau of Labor Statistics (herein "the Index").
For that purpose, the Index prevailing on the date of purchase by Gran.tor
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F ~~?`7 t'~r: ~~4
" of said premises shall be compared with that estimated to be prevailing
sixty days subsequent to receipt by City of notice of intent to sell.
The yearly compounded increase in the Index, if any, shall be
computed and the base price shall be increased in the same aercentage;
provided, however, that the price as determined under subparagraph 2(a)
shall in no event be lower than the purchase price paid the selling owner.
b) The adjusted purchase price, as deterni~eci by subparagranh 2(a~, shall
be increased by the amount of any prepavment fees charged by the previous
owner's lender and paid by the current seller at the time the current
seller purchased said Premises.
c) The adjusted purchase Price, as determined under subnaragraph '?(a) and
2(b) shali be increased by tlle value of any substantial or structura.l or
permanent fixed improvements which cannot be removed without substantial
damage to the premises or substantial or total loss of value of said
improvements as hereinafter provided. No such adjustment shall be made
except for improvements made or installed by the selling owner. No
improvement shall be deemed substantial unless the actual initial costs
of the imorovement to the owner exceeds one (1) percent of the purchase
price paid by the selling owner for the premises. tiotwithstanding the
foregoing, improvements to the common areas of a condominium or Planned
L'nit Development made by a mandatory assessment by the homeowner's
association will be considered the same as an improvement made directly
by the owner. The one (1) percent minimum expenditure requirement
will not apply to such assessments. In addition, reolacement of
appliances, fixtures and equipment which were originally sold as part
of the unit will be deemed substantial improvements if the replace-
ment is required by the nonoperative or deteriorated nature of the
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original appliance, fixttire, or equipment. The replacement must be of
comnarative value. The one (1) percent minimum exnenditure requirement
will not anply to such reolacements. No adjustment shall be made for the
value of any improvements unless the owner shall present to the City valid
written documentation of the cost of said imnrovements. The value of
such imnrovements and th.e amount by which the sales price shall be
adjusted shall be the appraised market value of the improvements when
considered as additions or fixtures to t'ie premises (i.e., the amount by
which said improvements enhance the marb:et value of the premises) at the
time of sale. City or its desi~nee sllail have an appraisal made by an
appraiser of its choice to estahlish the marlcet value. The oumer may also
have an appraisal made by an appraiser or owner's choice to establish
the market value. If agreement cannoc be reached, the average of the two
appraisals shall be termed the Market t~rice.
In all sales, the sales price, fixed as designated above, sha11 be recorded
clearly as a part of the deed transferring ownership.
Upon resale, an inspecr_io=: of the Premises will be made by the Chief Builcling
Inspector of the City of Cupertino. Damage done to the premises as a result of the
selling owner's failure to adequately maintain the oremises will be identified by said
Inspector and the cost to repair them will be estimated. The seller has the option,
exercisable prior to the close of escrow of either renairing the identified damaged
conditions and receiving the full sale nrice as established above or having the cost
to repair the identified damaged conditions deducted from the oroceeds of the sale.
Those funds would remain in escrow and guarantee that the renairs be made.
In no event shall City become in any way liable to Grantee, nor become obligated
in any manner, by reason of the assignment of its option to purchase, nor shall City
be in any way obligated or liable to Grantee for any failure of City's assignee
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to consummate a purchase of the Premises or to comply with the terms of any sale
agreement.
Until such time as the City's option to nurchase is exercised, waived or
expires, said Premises and any interest in title thereto shall not be sold, leased,
rented, assigned or otherwise transferred to any person or entity except with the
express written consent of the City or its designee, which consent shall be consistent
with the City's goal of creating, preserving, maintaining, and nrotecting housing in
Cupertino for persons of low and moderate income.
In the event that City abandons or fails to exercise its option to nurchase
said Premises within sixty (60) davs after it receives the notice of intent to sell,
City will cause to be recorded in Santa Clara County a notice of intent not to exercise
its option with respect to said Premises, and declarina that the provisions of this option
are no longer applicahle to said Premises, and shall deliver a copy thereof to owner
of said Premises. Said notice shall be recorded within fifteen (15) days of City's
decision not to exercise its option, but no later than sisty (60) days after City
receives the notice of intent to sell. Upon recordation of said notice, the provisions
of this option shall no longer be applicable to said Premises.
The following transfers of title or any interest therein are not subject to the
option urovisons of this deed; Transfers by gift, devise or inheritance to grantee's
snouse or issue; transfers of title to snouse as part of divorce or dissolution
proceedings; acquisition of title or interest therein in conjunction with marriage;
provided, however, rhat these covenants shall continue to run with the title to said
Premises following said transfers.
The provisions set forth in this deed relating to City`s option to nurchase shall
terminate and become void automatically fifty (50) years following the date of recordation
of this deed unless extended in writing for one additional fifty (50) year neriod at the
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optionJof the City and the same shall constitute covenants which shall run taith the
land and be binding unon grantee(s) and successors and assignee, and all parties
having or acquiring any right, title or interest in or to any part of the property.
Any attempt to transfer title or any interest therein in violation of these covenants
shall be void.
Grantee covenants to cause to be filed for record in the Office of the Recorder
of the County of Santa Clara a request for a copy of any notice of default and of any
notice of sale under any deed of trust or mortgage ~vith power of sale encumbering said
Unit pursuant to Section 2924(b) of the Civil Code of the State of. Calif.ornia. Such
request shall specify that any such notice shall be mailed to the City Manager, City of_
Cupertino, 10300 Torre Avenue, Cunertino, California, 95014. In the event grantee
fails to give sucn notice to City, all surplus to which ~rantee may be entitled
pursuant to Section 727 of the Code of Civil Procedure of the State of California
shall be naid to City. If grantee gives oroper notice, any surplus to which grantee
may be entitled Dursuant to Code of Civil Procedure Section 727 shall be paid as
follows: That portion of surplus (after payment of encumbrances if any, up to,
but not to exceed, the net amount that grantee ~aould have received after payment of
encumbrances under the formula set forth above ~ad City exercised its ontion to
purchase the property on the date of the foreclosure sale, shall be paid to grantee
on the date of the foreclosure sale: the balance of surplus, if any, shall be paid
to the City.
In the event that the Unit is destroyed and insurance uroceeds are distributed
to grantee instead of being used to rebuild, or in the event of condemnation, if
proceeds thereof are distributed to ~rantee, or in the event of termination of the
condominium, liquidation of the association and distribution of the assets of the
association to the members thereof, including grantee, any surplus of proceeds so
distributed remaining after payment of encumbrances on said Unit shall be distributed
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as follows: That portion of the surplus up to but not to exceed the net amount that
grantee would have received under the formula set forth above had City exercised its
option to purchase the nroperty on the date of the destruction, condemnation
evaluation date, or liquidation, shall be distributed to grantee, and the balance of
such surplus, if any, shall be distributed to the City.
All no=ices required herein shall be sent to the following addresses:
City: Declarant Purchaser
City Manager - -
City of Cupertino
10300 Torre Avenue -
Guoertino, CA 95~14 _
BY ACCEPT~vCE of this deed, grantee accePts and agrees to be bound by the eovettant5
contained lzerein.
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