RES 2004-0273 - Supplemental agmt consenting to transfer by Emily Hollingsworth of interest in 3725 Franklin St to Emily and Elain Hollingsworth _ f .r' -f
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City of Omaha Robert C.Peters
Mike Fahey,Mayor arch 9, 2004 Director
Honorable President
and Members of the City Council,
Attached is a proposed Resolution approving a Supplemental Agreement between the City of
Omaha and Emily Hollingsworth. This Agreement adopts all the terms and conditions of the
Loan Agreement approved by the City Council, on March 28, 2000, by Resolution No. 892, with
the exception of consenting to the transfer by Emily Hollingsworth of her interest in the real
property, commonly known as 3725 Franklin Street, subject to the City's mortgages/deeds of
trust and grant agreement, to Emily Hollingsworth and Elaine Hollingsworth for estate planning
purposes. The 2000 Loan Agreement provided for the financing of the rehabilitation of the
property, such financing consisting of a CDBG funded repayable loan in the original amount of
$20,000.00 and a CDBG funded deferred loan in the amount of$25,000.00.
The terms of the Loan Agreement, the Deeds of Trust, and the Promissory Notes state that the
loans become due upon the sale, lease or other transfer of any kind or nature of the mortgaged
property, or any part thereof, without the prior written consent of the City. Ms. Emily
Hollingsworth has requested that the City allow her to transfer a portion of her interest in the
property by adding her daughter, Elaine Hollingsworth, to the property title for estate planning
purposes.
The proposed Resolution approving a Supplemental Agreement would result in the City's
interest in the property being maintained.
Your favorable consideration of the Resolution is requested.
Sincerely, Referred to City Council for Consideration:
T L •L r.,/ Z -Z•,6— pit
Robert C. Peters Mayor's Office Date
Planning Director
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SUPPLEMENTAL AGREEMENT
THIS SUPPLEMENTAL AGREEMENT is to the Loan Agreement between the
City of Omaha (sometimes hereinafter referred to as "City"), a Municipal Corporation in
Douglas County, Nebraska, and Emily Hollingsworth, 3725 Franklin Street, Omaha, Nebraska,
68111 (sometimes hereinafter referred to a"Owner") approved by the City Council of the City of
Omaha on March 28, 2000, by Resolution 892.
RECITALS:
WHEREAS, the City of Omaha -is a municipal corporation located in Douglas
County, Nebraska, organized and existing pursuant to the laws of the State of Nebraska and
pursuant to its Home Rule Charter, and is authorized and empowered to exercise all powers
conferred by the State constitution, laws, Home Rule Charter of the City of Omaha, 1956, as
amended, and local ordinances, including,but not limited to,the power to contract; and,
WHEREAS, on March 28, 2000, a Loan Agreement between the City of Omaha
and Emily Hollingsworth was approved by the City Council, by Resolution No. 892, and
executed by the Mayor of the City of Omaha on April 3, 2000; and,
WHEREAS, the Loan Agreement provided for the partial financing of the
rehabilitation of property located at 3725 Franklin Street, owned by Ms. Hollingsworth. This
financing consisted of a CDBG funded repayable loan in the original amount of$20,000.00 and
a CDBG funded deferred loan in the amount of$25,000.00. The funding is secured by a CDBG
Repayable Loan Deed of Trust and Note and a CDBG Deferred Loan Deed of Trust and Note;
and,
WHEREAS, the terms of the Loan Agreement, the Repayable Loan Deed of Trust
and Promissory Note, and the Deferred Loan Deed of Trust and Promissory Note state that the
loans become due upon the sale, lease or other transfer of any kind or nature of the mortgaged
part thereof, without theprior written consent of the City; and,
property, or any Y
WHEREAS, the Owner has requested that the City allow her to add the name of her
daughter, Elaine Hollingsworth, to the property title for estate planning purposes; and,
WHEREAS, the City of Omaha's security interest in the property will not be
harmed in any way by this action.
NOW, THEREFORE, in consideration of these mutual covenants, herein contained,
the parties hereto agree as follows:
Section 1 paragraph (h) of the Loan Agreement shall be deleted in its entirety and
the following paragraph(h) shall be inserted in its place:
- � I
(h) "Deferred Loan" shall mean the loan is payable only upon the sale, grant,
mortgage, assignment or other transfer of the property or portion thereof by
the owner; except that the owner may, for estate planning purposes, convey
her interest to herself and Elaine Hollingsworth on the conditions that they
execute an Amended Deferred Loan Deed of Trust and Promissory Note that
allows the City of Omaha to secure this loan by the entire interest of the
subject property.
Section 1 paragraph (i) of the Loan Agreement shall be deleted in its entirety and
the following paragraph (i) shall be inserted in its place:
(i) "HCD Repayable Loan" shall mean the loan is-amortized over a period of
time, normally from ten (10) to twenty-five (25) years, and monthly payments
are required, including principal, interest, and escrow payments which may
include taxes and insurance. The loan balance will become due and payable
immediately on the first day after Owner transfers a portion of her interest in
the property, except that the Owner may convey her interest to herself and
Elaine Hollingsworth for estate planning purposes on the condition that they -
execute an Amended Repayable Loan Deed of Trust and Promissory Note that
allows the City of Omaha to secure this loan by the entire interest of the
subject property.
Section 4 paragraph (c) of the Loan Agreement shall be deleted in its entirety and
the following paragraph(a) shall be inserted in its place:
(a) own the Premises and principally reside at the Dwelling for the entire term
of the Repayable Loan and for the ten (10) years after the issuance of the.
certificate of completion pursuant to the Rehabilitation Contract, except that
the Owner may transfer a portion of her interest in the property to Elaine
Hollingsworth for estate planning purposes; and,
WHEREAS, the remainder of the Loan Agreement approved by the City Council on
March 28, 2000,by Resolution No. 892, shall be and hereby is in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Supplemental Agreement
as of the date first above written.
ATTEST: CITY OF OMAHA, A Municipal Corporation
1/1A-A-124
C CLERK OF THE CITY OF OMAHA MAYOR OF THE CI Y OF OMAHA
- 2 -
STATE OF NEBRASKA )
) ss.
COUNTY OF DOUGLAS )
On this //t4- day of 7�Z-��c c._!� ,<)6t, before me the undersigned, a
Notary Public in and for said County, personally came j41_,,_, e �+ � )n..e e_ofr.2
who executed the above document, and acknowledged the execution thereof to be their voluntary
act and deed as such officer and the voluntary act and deed of the City of Omaha, a Municipal
Corporation.
In testimony whereof I have hereunto set my hand and affixed by Notary Seal at Omaha
in Douglas County, on the day and date last above written.
GENERAL NOTARY-State of Nebraska
J CYNTHIA I.FORD Y
r, my Comm.Exp.Aug.16,2007 �- Z 1� �. �c'L k__-
NOTARY PUBLIC
My Commission expires 8 %0/0 7
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HOMEOWNER:
Emily Hollingsworth
STATE OF NEBRASKA )
) ss.
COUNTY OF DOUGLAS )
On this a�"1day of , allot/before me the undersigned, a
Notary Public in and for said County,personally came *:),egcjdee.t-c,1 �(J
who executed the above document, and acknowledged the execution thereof to be their voluntary
acknowledged that he executed the same as his voluntary act and deed.
In testimony whereof I have hereunto set my hand and affixed by Notary Seal at Omaha
in Douglas County, on the day and date last above written.
GENERAL NOTARY-State of Nebraska
TUWANDA MAYBERRY
My Comn ssfon Bo.May 14,2001
NOTARY PUBLC �� �
My Commission expires L57/'7jc 2 007
- 4 -
HOMEOWNER:
, A
Elaine Hollingsworth /
STATE OF NEBRASKA )
) ss.
COUNTY OF DOUGLAS )
On this A2--' day of j=idmr.,/„r L
o?60�/ , before me the undersigned, a
Notary Public in and for said Count, personally came
to me known to be the person named in and who executed the oregoing instrument, and
acknowledged that she executed the same as her voluntary act and deed.
In testimony whereof I have hereunto set my hand and affixed by Notary Seal at Omaha
in Douglas County, on the day and date last above written.
A GENERAL NOTARY-State of Nebraska
%fi TUWANDA MAYBERRY
v 2s My Commission Exp.May 14,2007
NOTARY PUBLIC 1�� �x. �•�s�
My Commission expires /4//v'7'
APPR AS TO FORM:
Zs ey
A SISTANT CITY ATTO EY
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. I
*AMENDED -
DEED OF TRUST, CONSTRUCTION SECURITY AGREEMENT
AND ASSIGNMENT OF RENTS
THIS CONSTRUCTION SECURITY AGREEMENT (HEREINAFTER MAY BE REFERRED TO AS SECURITY AGREEMENT)
SECURES AN OBLIGATION WHICH THE DEBTOR INCURRED FOR THE PURPOSES OF MAKING IMPROVEMENTS ON THE
REAL PROPERTY DESCRIBED BELOW.
THIS DEED OF TRUST, CONSTRUCTION SECURITY AGREEMENT AND ASSIGNMENT OF RENTS made this 13th day of April,
2000, among Emily Hollingsworth, 3725 Franklin Street, Omaha, NE 68111 and Elaine Hollingsworth, 4015 Nicholas Street,
Apartment#7, Omaha, NE, 68131,
as Trustor;
Jackie Barfield,Attorney-at-Law, P. O. Box 11570, Omaha, Nebraska, 68110,
as Trustee; and,
City of Omaha, a Municipal Corporation, 1819 Farnam Street,Omaha, Nebraska,68183,
as Beneficiary:
WITNESSETH:
That Trustor irrevocably grants, transfers and assigns to Trustee in trust, with power of sale, the following described Real Estate:
Lot 15, Block 7, in Orchard Hill, an Addition to the City of Omaha, as surveyed, platted and recorded in Douglas County,
Nebraska (commonly known 3725 Franklin Street)
* This amends the Deed of Trust filed on April 17,2000, in Book 6019 at Page 182,to add Elaine Hollingsworth as an
additional Trustor.
together with all interest which Trustor now has or may hereafter acquire in and to said Real Estate and in and to: (a) all easements
and rights of way appurtenant thereto and all of the estate, right, title, interest, claim and demand whatsoever of Trustor in the Real
Estate, either at law or in equity, now or hereafter acquired: (b) all structures, buildings and improvements of every kind and
description now or at any time hereafter located or placed on the Real Estate (the "Improvements"); (c) all machinery, appliances,
apparatus, equipment and fixtures now or hereafter located in, upon or under the Real Estate or the Improvements, or any part thereof,
and used or usable in connection with any present or future operation thereof, and all additions thereto and replacements therefore; (d)
all articles of personal property and any additions to, substitutions for, changes in or replacements of the whole or any part thereof,
including, without limitation, all furniture and furnishings, now or at any time hereafter affixed to, attached to, placed upon or used in
any way in connection with the use, enjoyment,occupancy or operation of the Real Estate or the Improvements, or any portion thereof,
and owned by the Trustor or in which Trustor now has or hereafter acquires an interest; (3)all of the rents, royalties, issues and profits
of the Real Estate and the Improvements, or arising from the use or enjoyment of all or any portion thereof or from any lease, license,
concession, occupancy agreement or other agreement pertaining thereto (the "Rents and Profits"), and all right, title and interest of
Trustor in and to all leases, licenses and occupancy agreements of the Real Estate or of the Improvements now or hereafter entered
into and all right, title and interest of Trustor thereunder, including without limitation, cash or securities deposited thereunder to secure
performance by tenants, lessees or licensees, as applicable, of their obligations thereunder; (f)all building materials and supplies now
or hereafter placed on the Real Estate or in the Improvements; (g) all proceeds of the conversion, voluntary or involuntary, of any of
the foregoing into cash or liquidated claims, including, without limitation, proceeds of insurance and condemnation awards; and (h) all
other or greater rights and interests of every nature in the Real Estate and the Improvements and in the possession or use thereof and
income therefrom, whether now owned or subsequently acquired by Trustor. The property so conveyed hereunder is hereinafter
referred to as"such property".
FOR THE PURPOSE OF SECURING:
A. Payment of the principal sum of Twenty Thousand and 00/100 Dollars ($20,000.00) as evidenced by that certain promissory
note dated of even date herewith (hereinafter referred to as the "Promissory Note") issued by Trustor in said amount and payable to
the order of Beneficiary, together with interest thereon, late charges and prepayment bonuses according to the terms of the
Promissory Note and all renewals, extensions and modifications thereof.
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B. Performance, discharge of and compliance with every obligation, covenant and agreement of Trustor incorporated by
reference or contained herein or in any other security agreement or deed of trust at any time given to secure any indebtedness hereby
secured, or any part thereof, including the Agreement with the City of Omaha dated March 28, 2000, and approved by City Council
Resolution No. 892.
C. Payment of all fees and charges of Beneficiary,whether or not set forth herein.
D. Payment of future advances necessary to protect such property.
E. Payment of future advances to be made at the option of Trustor and Beneficiary.
TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR COVENANTS:
1. Title: That it is lawfully seized and possessed of a good and indefeasible title and estate to such property in fee simple and will
forever warrant and defend the title thereto against the claims and demands of all persons whosoever; that it will at its expense,
maintain and preserve the lien of this Deed of Trust as a first lien upon such property,
2. Maintenance: To keep such property in good condition and repair; to complete or restore promptly and in good and
workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay,when due,all claims for labor
performed and materials furnished therefor and for any alterations thereof; to comply with the provisions of restrictions affecting such
property; not to remove, demolish or materially alter any building, or the character or use thereof at any time thereon; not to drill or
extract nor to permit the drilling for or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind unless the
written consent of Beneficiary is first had and obtained; not to commit or permit any waste thereof or any act upon such property in
violation of law; to do all other acts in a timely and proper manner which from the character or use of such property may be reasonably
necessary to protect and preserve said security,the specific enumerations herein not excluding the general.
3. Construction of Improvements: To complete in good and workmanlike manner any building or improvement or repair relating
thereto which may be begun on such property or contemplated by the loan secured hereby, to pay when due all costs and liabilities
incurred therefor, and not to permit any construction lien against such property. Trustor also agrees, anything in this Deed of Trust to
the contrary notwithstanding: (a) to promptly commence work and to complete the proposed improvements promptly, (b) to complete
same in accordance with plans and specifications as approved by Beneficiary, (c) to comply with all of the terms of any construction
loan agreement between Trustor and Beneficiary, (d)to allow Beneficiary to inspect such property at all times during construction, and
(e) to replace any work or materials unsatisfactory to Beneficiary, within fifteen (15) days after written notice from Beneficiary of such
fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the
same.
4. Fire and Casualty Insurance:To keep such property insured against loss or damage of fire and other risk or risks which, in the
opinion of Beneficiary should be insured against, under policies of insurance with loss payable to Beneficiary in form, amount and
companies acceptable to Beneficiary. Said policies shall be delivered to and remain in possession of Beneficiary as further security for
the faithful performance of these obligations, which delivery shall constitute an assignment by Trustor to beneficiary to all rights
thereunder, including all return premiums; to deliver to beneficiary a policy or policies renewing or extending any expiring insurance
with a receipt showing premiums paid at least thirty (30) days before expiration. If Trustor fails to so deliver any renewal policies,
Beneficiary may procure such insurance as it may elect and make payment of premiums thereon, which payment is repayable on
demand. Neither Trustee nor Beneficiary shall be responsible for obtaining or maintaining such insurance. Beneficiary, from time to
time, may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any
insurance policy theretofore delivered to Beneficiary pursuant hereto, and any information concerning the loan secured hereby. In no
event and whether or not default hereunder has occurred shall Beneficiary, by the fact of approving, accepting or obtaining such
insurance, incur any liability for the amount of such insurance, the form or legal sufficiency of insurance contracts,solvency of insurers,
or payment of losses by insurers, and Trustor hereby expressly assumes full responsibility therefor and liability, if any, thereunder. In
the event of loss,Trustor shall give immediate written notice to Beneficiary, and Beneficiary may, but is not obligated to, make proof of
loss if not made promptly by Trustor. In case of any loss the amount collected under any policy of insurance on such property may, at
the option of the Beneficiary, be applied by Beneficiary upon any indebtedness and/or obligation secured hereby and in such order and
amount as Beneficiary may determine; or said amount or any portion thereof may, at the option of the beneficiary, either be used in
replacing or restoring the Improvements partially or totally destroyed to a condition satisfactory to said Beneficiary, or said amount, or
any portion thereof, may be released to the Trustor. In any such event neither the Trustee nor the Beneficiary shall be obligated to see
the proper application thereof; nor shall the amount so released or used be deemed a payment on any indebtedness secured hereby.
Such application, use, and/or release shall not cure or waive any default or notice of default hereunder or invalidate any act done
pursuant to such notice. Any unexpired insurance and all returnable insurance premiums shall inure to be the benefit of, and pass to,
the purchaser of the property covered thereby at any Trustee's sale held hereunder. If said property is sold pursuant to the power of
sale contained herein or pursuant to any decree of foreclosure, all right, title and interest of Trustor in and to the proceeds of fire and
other insurance policies for damage prior to the sale, which proceeds are not received prior to the date of said sale, shall belong to
Beneficiary.
5. Taxes and Other Sums Due: To pay, satisfy and discharge, at least ten (10)days before delinquency, all general and special
taxes and assessments affecting such property, and in no event later than the date such amounts become due: (1)all encumbrances,
charges and liens,with interest, on such property,or any part thereof, which are,or appear to Beneficiary to be prior to or superior
2
hereto, (2) all costs, fees and expenses of that trust, whether or not described herein, (3)fees or charges for any statement regarding
the obligation secured hereby in any amount demanded by Beneficiary, not to exceed the maximum amount allowed by law therefor at
the time when such request is made, (4) such other charges as the Beneficiary may deem reasonable for services rendered by
Beneficiary and furnished at the request of Trustor or any successor in interest to Trustor, (5) if such property includes a leasehold
estate, all payments and obligations required of the Trustor, or his successor in interest, under the terms of the instruments or
instruments creating such leasehold, Trustor hereby agreeing not to amend, change, or modify his leasehold interest or the terms on
which he has such leasehold interest, or to do so without the written consent of Beneficiary being first obtained, (6) all payments and
monetary obligations required of the owner of such property under any declaration of covenants, conditions and restrictions pertaining
to such property or any modification thereof. Should Trustor fail to make any such payment, Beneficiary, without contesting the validity
or amount, may elect to make or advance such payment,together with any costs,expenses,fees or charges relating thereto, including
employing counsel and paying his reasonable fees. Trustor agrees to notify Beneficiary immediately upon receipt by Trustor of notice
of any increase in the assessed value of such property and agrees that Beneficiary, in the name of Trustor, may contest by appropriate
proceedings such increase in assessment.
In the event of the passage of any law deducting from the value of real property for the purposes of taxation any lien thereon or
changing in any way the laws for the taxation of deeds of trust or debts secured by deeds of trust for state or local purposes, or the
manner of the collection of any such taxes, so as to affect this Deed of Trust, the holder of this Deed of Trust and of the obligations
which it secures shall have the right to declare all sums secured hereby due as of a date to be specified by not less than 30 days'
written notice to be given to Trustor by Beneficiary; provided, however, that such election shall be ineffective if Trustor is permitted by
law to pay the whole of such tax in addition to all other payments required hereunder and if, prior to such specified date, does pay such
tax and agrees to pay any such tax when hereafter levied or assessed against such property.
6. Sums Advanced to Bear Interest: To pay upon demand any sums advanced or paid by Beneficiary or Trustee under any
clause or provision of this Deed of Trust. Any such sums, until so repaid, shall be secured hereby and bear interest from the date
advanced or paid at the default rate in the Promissory Note and shall be secured by this Deed of Trust.
7. Assignment of Deposits:That as further additional security if this be a construction loan, Trustor hereby transfers and assigns
to Beneficiary during continuance of these Trusts,all rights, title and interest to any and all monies deposited by Trustor or deposited
on behalf of Trustor with any city, county, public body or agency, sanitary district, gas and/or electric company, telephone company
and any other body or agency,for the installation or to secure the installation of any utility by Trustor, pertaining to such property.
8. Failure of Trustor to Comply with Deed of Trust: Should Trustor fail to make any payment, or to do any act as provided in
this Deed of Trust, or fail to perform any obligation secured by this Deed of Trust, or do any act Trustor agreed not to do, Trustor shall
be in default under this Deed of Trust. Beneficiary, but without obligation so to do and without notice to or demand upon Trustor and
without releasing Trustor from any obligation hereof and without contesting the validity or amount of the same, may(a)make or do the
same in such manner and to such extent as it may deem necessary to protect the security hereof, Beneficiary being authorized to
enter upon such property for such purposes, and (b)pay, purchase, contest or compromise any encumbrance, charge or lien,which in
its judgment is or appears to be prior or superior hereto, and (c) in exercising any such power, pay necessary expenses, employ
counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary.
IT IS MUTUALLY AGREED THAT:
9. Litigation:Trustor shall defend this Trust in any action or proceeding purporting to affect such property,whether or not it affects
the security hereof, or purporting to affect the rights or powers of Beneficiary or Trustee, and shall file and prosecute all necessary
claims and actions to prevent or recover for any damage to or destruction of such property, and either Trustee or Beneficiary is hereby
authorized, without obligation so to do, to commence, appear in or defend any such action, whether brought by or against Trustor,
Beneficiary or Trustee,or with or without suit,to exercise or enforce any other right, remedy or power available or conferred hereunder,
whether or not judgments be entered in any action or proceeding; and Trustor or Beneficiary may appear or intervene in any action or
proceeding, and retain counsel therein; and take such action therein, as either may be advised and may settle,compromise or pay the
same or any other claims and, in the behalf and for any of said purposes, may expend and advance such sums of money as either
may deem necessary. Whether or not Trustor so appears or defends, Trustor on demand shall pay all costs and expenses of
Beneficiary and Trustee, including costs of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding
in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise and irrespective of whether the
interest of Beneficiary or Trustee in such property is directly questioned by such action, including but not limited to any action for the
condemnation or partition of such property.
10. Condemnation: All sums due, paid or payable to Trustor, or any successor in interest of Trustor, whether by way of judgment,
settlement or otherwise, (a)for injury or damage to such property,or(b) in connection with any condemnation for public use or injury to
such property or any part thereof, or(c) in connection with the transaction financed by the loan secured hereby,or(d)arising out of all
causes of action,whether accruing before or after the date of this Deed of Trust,sounding in tort or contract, including causes of action
for fraud or concealment of a material fact,together with the settlements, proceeds, awards and damages, direct and consequential, in
connection therewith, are hereby absolutely and irrevocably assigned and shall be paid to Beneficiary. Beneficiary shall be entitled, at
its option, to commence, intervene in, appear in and prosecute in its own name, any action or proceeding, or to make any compromise
or settlement, in connection with any such taking or damage. Trustor agrees to execute such further assignments of any
compensation, award, damages, rights of action and proceeds as Beneficiary may acquire.
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•
All amounts received by Beneficiary pursuant to this Deed of Trust under any fire or other insurance policy, in connection with any
condemnation for public use of or injury to such property, for injury or damage to such property or in connection with the transaction
financed by the loan secured hereby are to be applied, at the option of Beneficiary, upon any indebtedness secured hereby. No such
application, use or release shall cure or waive any default, or notice of default, hereunder or invalidate any act done pursuant to such
notice.
11. Consent, Partial Reconveyance, Etc.:That at any time, or from time to time, without liability therefor, and without notice, upon
written request of Beneficiary, and without affecting the personal liability of any person for payment of the indebtedness secured
hereby, or the lien of this Deed of Trust upon the remainder of such property for the full amount of the indebtedness then or thereafter
secured hereby, or the rights or powers of the Beneficiary or Trustee with respect to the remainder of such property. Trustee may (a)
reconvey any part of such property, (b)consent to the making of any map or plat thereof, (c)join in granting any easement thereon,or
(d)join in any extension agreement or any agreement subordinating the lien or charge hereof.
12. Full Reconveyance: Upon written request of Beneficiary stating that all sums secured hereby have been paid. Trustee shall
reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be
conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be designated as "the person or persons legally
entitled thereto." Such request and reconveyance shall operate as a reassignment of the rents, income, issues and profits herein
before assigned to Beneficiary.
13. Right to Collect and Receive Rents and Profits: Notwithstanding any other provisions hereof, Beneficiary hereby grants
permission to Trustor to collect and retain the rents, income, issues and profits of such property as they become due and payable, but
reserves the right to revoke such permission at any time, with or without cause, by notice in writing to Trustor, mailed to Trustor at his
last known address. In any event, such permission to Trustor automatically shall be revoked upon default by Trustor in payment of
indebtedness secured hereby or in the performance of any agreement hereunder. On any such default, Beneficiary may at any time
without notice, either in person, by agent, or by receiver to be appointed by the court, and without regard to the adequacy of any
security for the indebtedness secured hereby, enter upon and take possession of such property, or any part thereof, make, cancel
enforce or modify leases; obtain and eject tenants, set or modify rents; in its own name sue or otherwise collect the rents, income,
issues and profits thereof, including those past due and unpaid; and apply the same, less costs and expenses of operation and
collection, including reasonable attorneys' fees, upon any indebtedness secured hereby and in such order as Beneficiary may
determine; and except for such application, Beneficiary shall not be liable to any person for the collection or noncollection of any rents,
income, issues or profits,for the failure to assert or enforce any of the foregoing rights, nor shall Beneficiary be charged with any of the
duties and obligation of a mortgagee in possession. The entering upon and taking possession of such property,the collection of such
rents, income, issues or profits, the doing of other acts herein authorized, and the application thereof as aforesaid, shall not cure or
waive any default or notice of default hereunder or invalidate any act done pursuant to such notice.
14. Judicial Foreclosure or Trustee's Sale on Default: Upon default by Trustor in payment of any indebtedness secured hereby
or in performance of any agreement hereunder, or any agreement secured hereby, Beneficiary may declare all sums secured hereby
immediately due and payable and, at the option of the Beneficiary,this Deed of Trust may be foreclosed in the manner provided by law
for the foreclosure of mortgages on real property; or may be sold in the manner provided in the Nebraska Trust Deeds Act under the
power of sale conferred upon the Trustee hereunder.
In the event that the property is sold pursuant to the power of sale conferred upon the Trustee hereunder, the Trustee shall cause to
be filed of record a written notice of default and election to sell such property. After the lapse of such time as then may be required by
law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without
demand on Trustor, shall sell such property, either as a whole or in separate parcels, and in such order as it or Beneficiary may
determine at public auction to the highest bidder. Trustee may postpone the sale of all or any portion of such property by public
announcement at the time and place of sale, and from time to time thereafter may postpone the sale by public announcement at the
time and place fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold,
but without any covenant or warranty, express or implied. The recital in such deed of any matters of fact or otherwise shall be
conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee or Beneficiary, may purchase at such sale.
Trustee may also sell at any sale and as part thereof any shares of corporate stock securing the obligation secured hereby, and
Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge
sale, and Trustor waives demand and notice of such sale.) The Trustee shall apply the proceeds of the Trustee's sale, first, to the
costs and expenses of exercising the power of sale and of the sale, including the payment of Trustee's fees actually incurred, not to
exceed five percent of the principal balance unpaid at the time of recording the notice of default, second, to the payment of the
obligation secured by this trust deed, third, to the payment of junior trust deeds, mortgages or other liens, and the balance, if any, to
the person or persons legally entitled thereto. •
•
Upon any default under this Deed of Trust or any note secured hereby and following any acceleration of maturity of the indebtedness
secured hereby, a tender of payment of the amount necessary to satisfy the entire indebtedness secured hereby, made at any time
prior to a foreclosure sale, whether under the power of sale contained herein or pursuant to judicial foreclosure proceedings, shall
constitute an evasion of the payment terms hereof and shall be deemed a voluntary prepayment of the indebtedness; and any such
payment,to the extent permitted by law, must, therefore, include a premium required under the prepayment privilege, if any, contained
in any note secured hereby; or, if at that time there shall be no privilege of prepayment, then such payment,to the extent permitted by
law, will include a premium for such prepayment of five percent of the then principal balance.
4
15. Personal Property: This Deed of Trust is also intended to encumber and create, and Trustor does hereby grant to Beneficiary,
a security interest in any and all of such property which is personal property owned by Trustor and now or hereafter located on or used
in connection with such property including, but not limited to, all equipment, fixtures, furniture, appliances and articles of personal
property owned by Trustor and now or hereafter located on, attached to or used in and about the improvements which are necessary
to the complete and comfortable use and occupancy of the Improvements for all purposes for which they are intended and such other
goods and chattels and personal property owned by Trustor as are ever to be used or furnished in operating the Improvements, or the
activities conducted therein, and all renewals or replacements thereof or therefore, whether or not the same shall be attached to the
Improvements in any manner, and all building materials and equipment hereafter situated on or about the Real Estate or the
Improvements . The foregoing security interest shall also cover Trustor's leasehold interest in any of the foregoing items which are
leased by Trustor. Trustor shall,from time to time, upon request of Beneficiary, provide Beneficiary with a current inventory of all of the
personal property in such detail as Beneficiary may require.
16. Security Agreement: This Deed of Trust constitutes a security agreement between Trustor and Beneficiary with respect to all
personal property in which Beneficiary is granted a security interest hereunder, and, cumulative of all other rights and remedies of
Beneficiary hereunder. Beneficiary shall have all of the rights and remedies of a secured party under the Nebraska Uniform
Commercial Code. Trustor hereby agrees to execute and deliver on demand and hereby irrevocably constitutes and appoints
Beneficiary the attorney-in-fact of Trustor to execute and deliver and, if appropriate, to file with the appropriate filing officer or officers
such security agreements,financing statements, continuation statements or other instruments as Beneficiary may request or require in
order to impose, perfect or continue the perfection of the lien or security interest created hereby. Upon the occurrence of any default
hereunder not cured within any applicable grace period, Beneficiary shall have the right to cause any of such property which is
personal property and subject to security interest of Beneficiary hereunder to be sold in one of public or private sales as permitted by
applicable law, including at a sale held in conjunction with the sale of such property by Trustee, as provided for in this Deed of Trust,
and Beneficiary shall further have all rights and remedies,whether at law in equity or by statute, as are available to secured creditors
under applicable law. Any such disposition may be conducted by an employee or agent of Beneficiary or Trustee. Expenses of
retaking, holding, preparing for sale, selling or the like shall be born by Trustor and shall include Beneficiary's and Trustee's fees and
legal expenses. Beneficiary shall have the right to enter upon the Real Estate and the Improvements or any other real property or any
personal property which is the subject of the security interest granted herein as located to take possession of, assemble and collect
such personal property or to render it usable, or Trustor, upon demand of Beneficiary, shall assemble such personal property and
make it available to Beneficiary at a place deemed reasonably convenient to Beneficiary. If notice is required by law, Beneficiary shall
give Trustor at least five (5)days prior written notice of the time and place of any public sale or other disposition of such property or of
the time of or after which any private sale or other intended disposition is to be made, and, if such notice is sent to Trustor, as the
same is provided for the mailing of notices herein, it is hereby deemed that such notice shall be and is reasonable notice to Trustor.
Any sale made pursuant to the provisions of this paragraph shall be deemed to have been a public sale conducted in a reasonably
commercial manner if held contemporaneously with the sale under the power of sale granted in this Deed of Trust upon giving the
same notice with respect to the sale under the power of sale given the Trustee under this Deed of Trust.
17. Fixture Financing Statement: This Deed of Trust is intended to be a financing statement within the purview of the Nebraska
Uniform Commercial Code with respect to those items of such property as constitute fixtures on the Real Estate. The address of
Trustor(Debtor) and Beneficiary (Secured Party) are set forth on the first page of this Deed of Trust, This Deed of Trust is to be filed
for record with the Douglas County Register of Deeds where the real estate is located. Trustor is the record owner of the real estate.
18. Substitution of Trustee: That Beneficiary may,from time to time, by instrument in writing,substitute a successor or successors
to any Trustee named herein or acting hereunder, which instrument executed and acknowledged by Beneficiary and recorded in the
office of the register of deeds of the county or counties where such property is situated, shall be conclusive proof of proper substitution
of such Trustee or Trustees, who shall, without conveyance form the Trustee predecessor, succeed to all its title, estate, rights, power
and duties.
19. No Waiver by Beneficiary: No waiver by Beneficiary of any right under this Deed of Trust shall be effective unless in writing.
Waiver of Beneficiary of any right granted to Beneficiary under this Deed of Trust or of any provision of this Deed of Trust as to any
transaction or occurrences shall not be deemed a waiver as to any future transaction or occurrences. By accepting payment of any
sum secured hereby after its due date, or by making any payment or performing any act on behalf of Trustor that Trustor was obligated
hereunder, but failed to make or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby,
Beneficiary does not waive its right to require prompt payment when due of all other sums so secured or to require prompt
performance of all other acts required hereunder, or to declare a default for failure so to pay.
20. Waiver of Statute of Limitations: Time is of the essence in all Trustor's obligations hereunder; and to the extent permitted by
law, Trustor waives all present or future statutes of limitations with respect to any debt, demand or obligation secured hereby in any
action or proceeding for the purpose of enforcing this Trust or any right or remedies hereunder.
21. Inspection and Business Records: Beneficiary at any time during the continuation of this Trust may enter and inspect such
property at any reasonable time. Trustor agrees that in the event such property is now or hereafter used for commercial or residential
income purposes, when requested by Beneficiary, Trustor will promptly deliver to Beneficiary, such certified financial statements and
profit and loss statements of such types and at such intervals as may be required by Beneficiary, which will be in form and content
prepared according to the usual and acceptable accounting principles and practices, which statements shall cover the financial
operations relating to such property. Trustor further agrees when requested by Beneficiary to promptly deliver in writing such further
additional information as required by Beneficiary relating to any such financial statements.
c
22. Acceleration Clause: Should Trustor be in default under this Deed of Trust, or should Trustor, or any successor in interest of
Trustor, voluntarily or involuntarily sell, exchange, convey, transfer, contract to sell, lease with option to purchase, sublease, change
the character or use of, or further encumber such property, or any part thereof, or any interest therein; or if any said parties shall be
divested of title to such property,or any part thereof, or any interest therein,either voluntarily, or involuntarily;or if title to such property
be subjected to any lien or charge, voluntarily or involuntarily, contractual or statutory, without the written consent of Beneficiary being
first had and obtained, then Beneficiary shall have the right, at its option, to declare all sums secured hereby forthwith due and
payable; and this same right of acceleration shall be available to Beneficiary if the undersigned is a partnership and any interest of a
general partner terminates, is assigned or transferred, or is diminished; or if the undersigned is a corporation and any of the corporate
stock is transferred, sold or assigned;or if the undersigned is a trustee of a trust and there is a change of any of the beneficial interest
of the trust.
23. Remedies: No remedy herein provided shall be exclusive of any other remedy herein or now or hereafter existing by law, but
shall be cumulative. Every power of remedy hereby given to Trustee or Beneficiary, or to which either of them may be otherwise
entitled, may be exercised from time to time and as often as may be deemed expedient by them, and either of them may pursue
inconsistent remedies. If Beneficiary holds any additional security for any obligation secured hereby, it may enforce the sale thereof at
its option, either before, contemporaneously with, or after the sale is made hereunder, and on any default of Trustor, Beneficiary may,
at its option, offset against any indebtedness secured hereby, and the Beneficiary is hereby authorized and empowered at its option,
without any obligation so to do, and without affecting the obligations hereof, to apply toward the payment of any indebtedness of the
Trustor to the Beneficiary any and all sums of money of Trustor which Beneficiary may have in its possession or under its control,
including without limiting the generality of the foregoing, any savings account,deposit, investment certificate, escrow or trust funds.
24. Acknowledgment: Trustor agrees and acknowledges that prior to the execution of this Deed of Trust,Trustor did acknowledge
in writing and hereby confirms again that (a) this Deed of Trust is not a mortgage, but a deed of trust, (b) that the power of sale
provided for herein provides substantially different rights and obligations for Trustor than a mortgage in the event of a default or breach
of any obligation hereunder, and (c)the aforementioned written acknowledgment was executed prior to the execution of this Deed of
Trust.
25. Law Applicable:That this Deed of Trust shall be construed according to the laws of the State of Nebraska.
26. Illegality: In the event that any provision or clause of this Deed of Trust conflicts with applicable law, such conflict shall not
affect other provisions of this Deed of Trust which can be given effect without the conflicting provision, and to this end the provisions of
this Deed of Trust are declared to be severable.
27. General Provisions: (a)This Deed of Trust applies to, inures to the benefit of,and binds all parties hereto,their heirs, legatees,
devisees, administrators, executors,successors and assigns. (b)The term"Beneficiary" shall mean the owner and holder(including a
pledge) of any note secured hereby,whether or not named as Beneficiary herein. (c)Wherever the context so requires,the masculine
gender includes the feminine and neuter, the singular number includes the plural, and vice versa. (d) Captions and paragraph
headings used herein are for convenience only, are not a part of this agreement, and shall not be used in construing it. If more than
one person is named herein as Trustor, each obligation of Trustor shall be the joint and several obligation of each such person. The
rights or remedies granted hereunder,or by law,shall not be exclusive, but shall be concurrent and cumulative.
28. Trustee Accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by
law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or any action or proceeding in
which Trustor, Beneficiary or Trustee shall be party, unless brought by Trustee.
29. Address Mailing Notice: Trustor hereby requests that a copy of any notice of default and a copy of any notice of sale
hereunder shall be mailed to each person itemized below at the address indicated:
Emily Hollingsworth,3725 Franklin Street,Omaha, NE,68111
Elaine Hollingsworth,4015 Nicholas Street,Apartment#7,Omaha, NE 68131
6
IN WITNESS WHEREOF,Trustor has executed this Deed of Trust on the date first above written.
•
// - as-y
Emily olllingsworth Date
CORPORATE SEAL
STATE OF NEBRASKA )
)ss.
COUNTY OF DOUGLAS )
On this ,; 1 day of %Z-.6Z64/2y , 2003, before me, the undersigned, a Notary Public duly commissioned and
qualified in and for said county, personally came Emily Hollingsworth, to me known to be the person(s) named in and who executed
the foregoing instrument, and acknowledged that she executed the same as her•voluntary act and deed.
Witness my hand and notarial seal the day and year last above written. GENERAL NOTARY-Slate of Nebraska
TUWANDA MAYBERRY
My commission expires J////'� / -'` MyCommisslonE�.May14,2007
Notary Public
Elaine Hollingsworth v Date
STATE OF NEBRASKA )
)ss.
COUNTY OF DOUGLAS )
ir/
On this ,) day of Fer-B. , 2003, before me, the undersigned, a Notary Public duly commissioned and
qualified in and for said county, personally came Elaine Hollingsworth, to me known to be the person(s) named in and who executed
the foregoing instrument, and acknowledged that she executed the same as her voluntary act and deed.
Witness my hand and notarial seal the day and year last above written. GENERAL NOTARY-State of Nebraska
TUWANDA MAYBERRY
My commission expires �`�/�/; -"( My Commission E .May 11,4 2nn7
Notary Public
7
AMENDED PROMISSORY NOTE
(Amended to Add Additional Trustor)
Project: Target Area Program Place: 3725 Franklin Street
Orchard Hill Omaha, NE 68111
Loan No. 00-HCD//2431 Date: April 13, 2000
FOR VALUE RECEIVED, the undersigned jointly and severally promise(s) to pay to the
order of the CITY OF OMAHA (herein called "City"), acting by and through the Director of the
Planning Department or his successors, the sum of Twenty Thousand and no/100 Dollars
($20,000.00) and to pay the unpaid principal amount of this Note from the date hereof, at the rate
of Zero Percent (0%) per annum until paid. The principal on this Note is payable on the First
Day of Each Month in 240 monthly installments commencing with a payment of $88.33 on
October 1, 2000 and of $88.33 the First Day of Each Month for the remaining 239 months,
commencing on November 1, 2000, in lawful money of the United States at the principal office
of Commercial Federal Bank, 450 Regency Parkway, Omaha, NE, 68114, or at such other places
as shall be designated by the CITY.
The undersigned reserve(s) the right to prepay at any time all or any part of the principal
amount of this Note without the payment of penalties or premiums. All payments on this Note
shall be applied to the principal due on the Note, and the remaining balance shall be applied to
late charges, if any. Except as provided below, all monthly installment payments on this Note
shall be credited as of the due date thereof.
IN THE EVENT the undersigned shall fail to pay the principal amount of this Note when
due, the undersigned shall pay to the CITY a late charge of 4% per calendar month, or fraction
thereof, on the amount past due and remaining unpaid. If this Note be reduced to judgment, such
judgment should bear the statutory interest rate on judgments,but not to exceed 9% per annum.
IF suit is instituted by the CITY to recover this Note, the undersigned agree(s) to pay all
costs of such collection including reasonable attorneys' fees and court costs.
THIS NOTE is secured by a First Deed of Trust, duly filed for record in Douglas
County, Nebraska, on the property legally described as:
Lot 15, Block 7, in Orchard Hill, an Addition to the City of Omaha, as surveyed,
platted and recorded in Douglas County, Nebraska (commonly known as 3725
Franklin Street)
DEMAND, protest and notice of demand and protest are hereby waived, and the
undersigned hereby waives, to the extent authorized by law, any and all homestead and other
exemption rights which otherwise would apply to the debt evidenced by this Note.
IN WITNESS WHEREOF, this Note has been duly executed by the undersigned, as of its
date.
Emily Hollingsworth Date
Elaine Hollingsworth Date
GENERAL NOTARY State of Nebraska
TLIWANDA MAYBERRERRY
,� L My Commission Exp.May 14,2007
•
*AMENDED
DEED OF TRUST, CONSTRUCTION SECURITY AGREEMENT
AND ASSIGNMENT OF RENTS
THIS CONSTRUCTION SECURITY AGREEMENT (HEREINAFTER MAY BE REFERRED TO AS SECURITY AGREEMENT)
SECURES AN OBLIGATION WHICH THE DEBTOR INCURRED FOR THE PURPOSES OF MAKING IMPROVEMENTS ON THE
REAL PROPERTY DESCRIBED BELOW.
THIS DEED OF TRUST, CONSTRUCTION SECURITY AGREEMENT AND ASSIGNMENT OF RENTS made this.13th day of April,
2000, among Emily Hollingsworth, 3725 Franklin Street, Omaha, NE, 68111 and Elaine Hollingsworth, 4015 Nicholas Street,
Apartment#7, Omaha, NE, 68131,
as Trustor;
Jackie Barfield,Attorney-at-Law, P. O. Box 11570, Omaha, Nebraska,68110,
as Trustee; and,
City of Omaha, a Municipal Corporation, 1819 Farnam Street, Omaha, Nebraska, 68183,
as Beneficiary:
WITNESSETH:
That Trustor irrevocably grants, transfers and assigns to Trustee in trust,with power of sale,the following described Real Estate:
Lot 15, Block 7, in Orchard Hill, an Addition to the City of Omaha, as surveyed, platted and recorded in Douglas County,
Nebraska (commonly known as 3725 Franklin Street)
* This amends the Deed of Trust filed on April 17,2000, in Book 6019 at Page 191,to add Elaine Hollingsworth as an
additional Trustor.
together with all interest which Trustor now has or may hereafter acquire in and to said Real Estate and in and to: (a) all easements
and rights of way appurtenant thereto and all of the estate, right, title, interest, claim and demand whatsoever of Trustor in the Real
Estate, either at law or in equity, now or hereafter acquired: (b) all structures, buildings and improvements of every kind and
description now or at any time hereafter located or placed on the Real Estate (the "Improvements"); (c) all machinery, appliances,
apparatus, equipment and fixtures now or hereafter located in, upon or under the Real Estate or the Improvements,or any part thereof,
and used or usable in connection with any present or future operation thereof, and all additions thereto and replacements therefore; (d)
all articles of personal property and any additions to, substitutions for, changes in or replacements of the whole or any part thereof,
including, without limitation, all furniture and furnishings, now or at any time hereafter affixed to, attached to, placed upon or used in
any way in connection with the use,enjoyment, occupancy or operation of the Real Estate or the Improvements, or any portion thereof,
and owned by the Trustor or in which Trustor now has or hereafter acquires an interest; (3)all of the rents, royalties, issues and profits
of the Real Estate and the Improvements, or arising from the use or enjoyment of all or any portion thereof or from any lease, license,
concession, occupancy agreement or other agreement pertaining thereto (the "Rents and Profits"), and all right, title and interest of
Trustor in and to all leases, licenses and occupancy agreements of the Real Estate or of the Improvements now or hereafter entered
into and all right, title and interest of Trustor thereunder, including without limitation, cash or securities deposited thereunder to secure
performance by tenants, lessees or licensees, as applicable, of their obligations thereunder; (f) all building materials and supplies now
or hereafter placed on the Real Estate or in the Improvements; (g) all proceeds of the conversion, voluntary or involuntary, of any of
the foregoing into cash or liquidated claims, including,without limitation, proceeds of insurance and condemnation awards; and (h) all
other or greater rights and interests of every nature in the Real Estate and the Improvements and in the possession or use thereof and
income therefrom, whether now owned or subsequently acquired by Trustor. The property so conveyed hereunder is hereinafter
referred to as "such property".
FOR THE PURPOSE OF SECURING:
A. Payment of the principal sum of Twenty-five Thousand and 00/100 Dollars ($25,000.00) as evidenced by that certain
promissory note dated of even date herewith (hereinafter referred to as the "Promissory Note") issued by Trustor in said amount and
payable to the order of Beneficiary, together with interest thereon, late charges and prepayment bonuses according to the terms of the
Promissory Note and all renewals, extensions and modifications thereof.
1
B. Performance, discharge of and compliance with every obligation, covenant and agreement of Trustor incorporated by
reference or contained herein or in any other security agreement or deed of trust at any time given to secure any indebtedness hereby
secured, or any part thereof, including the Agreement with the City of Omaha dated March 28, 2000, and approved by City Council
Resolution No. 892.
C. Payment of all fees and charges of Beneficiary,whether or not set forth herein.
D. Payment of future advances necessary to protect such property.
E. Payment of future advances to be made at the option of Trustor and Beneficiary.
TO PROTECT THE SECURITY OF THIS DEED OF TRUST,TRUSTOR COVENANTS:
1. Title: That it is lawfully seized and possessed of a good and indefeasible title and estate to such property in fee simple and will
forever warrant and defend the title thereto against the claims and demands of all persons whosoever;that it will at its expense,
maintain and preserve the lien of this Deed of Trust as a second lien upon such property,
2. Maintenance: To keep such property in good condition and repair; to complete or restore promptly and in good and
workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay, when due,all claims for labor
performed and materials furnished therefor and for any alterations thereof; to comply with the provisions of restrictions affecting such
property; not to remove, demolish or materially alter any building, or the character or use thereof at any time thereon; not to drill or
extract nor to permit the drilling for or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind unless the
written consent of Beneficiary is first had and obtained; not to commit or permit any waste thereof or any act upon such property in
violation of law; to do all other acts in a timely and proper manner which from the character or use of such property may be reasonably
necessary to protect and preserve said security,the specific enumerations herein not excluding the general.
3. Construction of Improvements: To complete in good and workmanlike manner any building or improvement or repair relating
thereto which may be begun on such property or contemplated by the loan secured hereby, to pay when due all costs and liabilities
incurred therefor, and not to permit any construction lien against such property. Trustor also agrees, anything in this Deed of Trust to
the contrary notwithstanding: (a) to promptly commence work and to complete the proposed improvements promptly, (b) to complete
same in accordance with plans and specifications as approved by Beneficiary, (c) to comply with all of the terms of any construction
loan agreement between Trustor and Beneficiary,(d)to allow Beneficiary to inspect such property at all times during construction, and
(e) to replace any work or materials unsatisfactory to Beneficiary, within fifteen (15) days after written notice from Beneficiary of such
fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the
same.
4. Fire and Casualty Insurance:To keep such property insured against loss or damage of fire and other risk or risks which, in the
opinion of Beneficiary should be insured against, under policies of insurance with loss payable to Beneficiary in form, amount and
companies acceptable to Beneficiary. Said policies shall be delivered to and remain in possession of Beneficiary as further security for
the faithful performance of these obligations, which delivery shall constitute an assignment by Trustor to beneficiary to all rights
thereunder, including all return premiums; to deliver to beneficiary a policy or policies renewing or extending any expiring insurance
with a receipt showing premiums paid at least thirty (30) days before expiration. If Trustor fails to so deliver any renewal policies,
Beneficiary may procure such insurance as it may elect and make payment of premiums thereon, which payment is repayable on
demand. Neither Trustee nor Beneficiary shall be responsible for obtaining or maintaining such insurance. Beneficiary,from time to
time, may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any
insurance policy theretofore delivered to Beneficiary pursuant hereto, and any information concerning the loan secured hereby. in no
event and whether or not default hereunder has occurred shall Beneficiary, by the fact of approving, accepting or obtaining such
insurance, incur any liability for the amount of such insurance,the form or legal sufficiency of insurance contracts, solvency of insurers,
or payment of losses by insurers, and Trustor hereby expressly assumes full responsibility therefor and liability, if any, thereunder. In
the event of loss,Trustor shall give immediate written notice to Beneficiary, and Beneficiary may, but is not obligated to, make proof of
loss if not made promptly by Trustor. In case of any loss the amount collected under any policy of insurance on such property may, at
the option of the Beneficiary, be applied by Beneficiary upon any indebtedness and/or obligation secured hereby and in such order and
amount as Beneficiary may determine; or said amount or any portion thereof may, at the option of the beneficiary, either be used in
replacing or restoring the Improvements partially or totally destroyed to a condition satisfactory to said Beneficiary, or said amount, or
any portion thereof, may be released to the Trustor. In any such event neither the Trustee nor the Beneficiary shall be obligated to see
the proper application thereof; nor shall the amount so released or used be deemed a payment on any indebtedness secured hereby.
Such application, use, and/or release shall not cure or waive any default or notice Of default hereunder or invalidate any act done
pursuant to such notice. Any unexpired insurance and all returnable insurance premiums shall inure to be the benefit of, and pass to,
the purchaser of the property covered thereby at any Trustee's sale held hereunder. If said property is sold pursuant to the power of
sale contained herein or pursuant to any decree of foreclosure, all right, title and interest of Trustor in and to the proceeds of fire and
other insurance policies for damage prior to the sale, which proceeds are not received prior to the date of said sale, shall belong to
Beneficiary.
5. Taxes and Other Sums Due: To pay, satisfy and discharge, at least ten (10) days before delinquency, all general and special
taxes and assessments affecting such property, and in no event later than the date such amounts become due: (1)all encumbrances,
charges and liens,with interest,on such property,or any part thereof,which are,or appear to Beneficiary to be prior to or superior
hereto, all costs, fees and expenses of that trust, whether or not described herein, (3)fees or charges for any statement regarding
(2) P
the obligation secured hereby in any amount demanded by Beneficiary, not to exceed the maximum amount allowed by law therefor at
the time when such request is made, (4) such other charges as the Beneficiary may deem reasonable for services rendered by
Beneficiary and furnished at the request of Trustor or any successor in interest to Trustor, (5) if such property includes a leasehold
estate, all payments and obligations required of the Trustor, or his successor in interest, under the terms of the instruments or
instruments creating such leasehold, Trustor hereby agreeing not to amend, change, or modify his leasehold interest or the terms on
which he has such leasehold interest, or to do so without the written consent of Beneficiary being first obtained, (6) all payments and
monetary obligations required of the owner of such property under any declaration of covenants, conditions and restrictions pertaining
to such property or any modification thereof. Should Trustor fail to make any such payment, Beneficiary,without contesting the validity
or amount, may elect to make or advance such payment,together with any costs, expenses,fees or charges relating thereto, including
employing counsel and paying his reasonable fees. Trustor agrees to notify Beneficiary immediately upon receipt by Trustor of notice
of any increase in the assessed value of such property and agrees that Beneficiary, in the name of Trustor, may contest by appropriate
proceedings such increase in assessment.
In the event of the passage of any law deducting from the value of real property for the purposes of taxation any lien thereon or
changing in any way the laws for the taxation of deeds of trust or debts secured by deeds of trust for state or local purposes, or the
manner of the collection of any such taxes, so as to affect this Deed of Trust, the holder of this Deed of Trust and of the obligations
which it secures shall have the right to declare all sums secured hereby due as of a date to be specified by not less than 30 days'
written notice to be given to Trustor by Beneficiary; provided, however, that such election shall be ineffective if Trustor is permitted by
law to pay the whole of such tax in addition to all other payments required hereunder and if, prior to such specified date, does pay such
tax and agrees to pay any such tax when hereafter levied or assessed against such property.
6. Sums Advanced to Bear Interest: To pay upon demand any sums advanced or paid by Beneficiary or Trustee under any
clause or provision of this Deed of Trust. Any such sums, until so repaid, shall be secured hereby and bear interest from the date
advanced or paid at the default rate in the Promissory Note and shall be secured by this Deed of Trust.
7. Assignment of Deposits:That as further additional security if this be a construction loan, Trustor hereby transfers and assigns
to Beneficiary during continuance of these Trusts, all rights, title and interest to any and all monies deposited by Trustor or deposited
on behalf of Trustor with any city, county, public body or agency, sanitary district, gas and/or electric company, telephone company
and any other body or agency,for the installation or to secure the installation of any utility by Trustor, pertaining to such property.
8. Failure of Trustor to Comply with Deed of Trust: Should Trustor fail to make any payment, or to do any act as provided in
this Deed of Trust, or fail to perform any obligation secured by this Deed of Trust, or do any act Trustor agreed not to do,Trustor shall
be in default under this Deed of Trust. Beneficiary, but without obligation so to do and without notice to or demand upon Trustor and
without releasing Trustor from any obligation hereof and without contesting the validity or amount of the same, may(a) make or do the
same in such manner and to such extent as it may deem necessary to protect the security hereof, Beneficiary being authorized to
enter upon such property for such purposes,and(b)pay, purchase,contest or compromise any encumbrance, charge or lien,which in
its judgment is or appears to be prior or superior hereto, and (c) in exercising any such power, pay necessary expenses, employ
counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary.
IT IS MUTUALLY AGREED THAT:
9. Litigation:Trustor shall defend this Trust in any action or proceeding purporting to affect such property, whether or not it affects
the security hereof, or purporting to affect the rights or powers of Beneficiary or Trustee, and shall file and prosecute all necessary
claims and actions to prevent or recover for any damage to or destruction of such property, and either Trustee or Beneficiary is hereby
authorized, without obligation so to do, to commence, appear in or defend any such action, whether brought by or against Trustor,
Beneficiary or Trustee, or with or without suit,to exercise or enforce any other right, remedy or power available or conferred hereunder,
whether or not judgments be entered in any action or proceeding; and Trustor or Beneficiary may appear or intervene in any action or
proceeding, and retain counsel therein; and take such action therein, as either may be advised and may settle, compromise or pay the
same or any other claims and, in the behalf and for any of said purposes, may expend and advance such sums of money as either
may deem necessary. Whether or not Trustor so appears or defends, Trustor on demand shall pay all costs and expenses of
Beneficiary and Trustee, including costs of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding
in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise and irrespective of whether the
interest of Beneficiary or Trustee in such property is directly questioned by such action, including but not limited to any action for the
condemnation or partition of such property.
10. Condemnation: All sums due, paid or payable to Trustor, or any successor in interest of Trustor, whether by way of judgment,
settlement or otherwise, (a)for injury or damage to such property,or(b)in connection'with any condemnation for public use or injury to
such property or any part thereof,or(c) in connection with the transaction financed by the loan secured hereby, or(d) arising out of all
causes of action,whether accruing before or after the date of this Deed of Trust, sounding in tort or contract, including causes of action
for fraud or concealment of a material fact, together with the settlements, proceeds,awards and damages, direct and consequential, in
connection therewith, are hereby absolutely and irrevocably assigned and shall be paid to Beneficiary. Beneficiary shall be entitled, at
its option, to commence, intervene in, appear in and prosecute in its own name, any action or proceeding,or to make any compromise
or settlement, in connection with any such taking or damage. Trustor agrees to execute such further assignments of any
compensation, award, damages, rights of action and proceeds as Beneficiary may acquire.
3
All amounts received by Beneficiary pursuant to this Deed of Trust under any fire or other insurance policy, in connection with any
condemnation for public use of or injury to such property, for injury or damage to such property or in connection with the transaction
financed by the loan secured hereby are to be applied, at the option of Beneficiary, upon any indebtedness secured hereby. No such
application, use or release shall cure or waive any default, or notice of default, hereunder or invalidate any act done pursuant to such
notice.
11. Consent, Partial Reconveyance, Etc.:That at any time, or from time to time,without liability therefor, and without notice, upon
written request of Beneficiary, and without affecting the personal liability of any person for payment of the indebtedness secured
hereby, or the lien of this Deed of Trust upon the remainder of such property for the full amount of the indebtedness then or thereafter
secured hereby, or the rights or powers of the Beneficiary or Trustee with respect to the remainder of such property. Trustee may (a)
reconvey any part of such property, (b)consent to the making of any map or plat thereof, (c)join in granting any easement thereon, or
(d)join in any extension agreement or any agreement subordinating the lien or charge hereof.
12. Full Reconveyance: Upon written request of Beneficiary stating that all sums secured hereby have been paid. Trustee shall
reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be
conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be designated as "the person or persons legally
entitled thereto." Such request and reconveyance shall operate as a reassignment of the rents, income, issues and profits herein
before assigned to Beneficiary.
13. Right to Collect and Receive Rents and Profits: Notwithstanding any other provisions hereof, Beneficiary hereby grants
permission to Trustor to collect and retain the rents, income, issues and profits of such property as they become due and payable, but
reserves the right to revoke such permission at any time,with or without cause, by notice in writing to Trustor, mailed to Trustor at his
last known address. In any event, such permission to Trustor automatically shall be revoked upon default by Trustor in payment of
indebtedness secured hereby or in the performance of any agreement hereunder. On any such default, Beneficiary may at any time
without notice, either in person, by agent, or by receiver to be appointed by the court, and without regard to the adequacy of any
security for the indebtedness secured hereby, enter upon and take possession of such property, or any part thereof, make, cancel
enforce or modify leases; obtain and eject tenants, set or modify rents; in its own name sue or otherwise collect the rents, income,
issues and profits thereof, including those past due and unpaid; and apply the same, less costs and expenses of operation and
collection, including reasonable attorneys' fees, upon any indebtedness secured hereby and in such order as Beneficiary may
determine; and except for such application, Beneficiary shall not be liable to any person for the collection or noncollection of any rents,
income, issues or profits,for the failure to assert or enforce any of the foregoing rights, nor shall Beneficiary be charged with any of the
duties and obligation of a mortgagee in possession. The entering upon and taking possession of such property, the collection of such
rents, income, issues or profits, the doing of other acts herein authorized, and the application thereof as aforesaid, shall not cure or
waive any default or notice of default hereunder or invalidate any act done pursuant to such notice.
14. Judicial Foreclosure or Trustee's Sale on Default: Upon default by Trustor in payment of any indebtedness secured hereby
or in performance of any agreement hereunder, or any agreement secured hereby, Beneficiary may declare all sums secured hereby
immediately due and payable and, at the option of the Beneficiary,this Deed of Trust may be foreclosed in the manner provided by law
for the foreclosure of mortgages on real property; or may be sold in the manner provided in the Nebraska Trust Deeds Act under the
power of sale conferred upon the Trustee hereunder.
In the event that the property is sold pursuant to the power of sale conferred upon the Trustee hereunder, the Trustee shall cause to
be filed of record a written notice of default and election to sell such property. After the lapse of such time as then may be required by
law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without
demand on Trustor, shall sell such property, either as a whole or in separate parcels, and in such order as it or Beneficiary may
determine at public auction to the highest bidder. Trustee may postpone the sale of all or any portion of such property by public
announcement at the time and place of sale, and from time to time thereafter may postpone the sale by public announcement at the
time and place fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold,
but without any covenant or warranty, express or implied. The recital in such deed of any matters of fact or otherwise shall be
conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee or Beneficiary, may purchase at such sale.
Trustee may also sell at any sale and as part thereof any shares of corporate stock securing the obligation secured hereby, and
Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge
sale, and Trustor waives demand and notice of such sale.) The Trustee shall apply the proceeds of the Trustee's sale, first, to the
costs and expenses of exercising the power of sale and of the sale, including the payment of Trustee's fees actually incurred, not to
exceed five percent of the principal balance unpaid at the time of recording the notice of default, second, to the payment of the
obligation secured by this trust deed, third, to the payment of junior trust deeds, mortgages or other liens, and the balance, if any, to
the person or persons legally entitled thereto.
Upon any default under this Deed of Trust or any note secured hereby and following any acceleration of maturity of the indebtedness
secured hereby, a tender of payment of the amount necessary to satisfy the entire indebtedness secured hereby, made at any time
prior to a foreclosure sale, whether under the power of sale contained herein or pursuant to judicial foreclosure proceedings, shall
constitute an evasion of the payment terms nereof and shall be deemed a voluntary prepayment of the indebtedness; and any such
payment, to the extent permitted by law, must,therefore, include a premium required under the prepayment privilege, if any, contained
in any note secured hereby;or, if at that time there shall be no privilege of prepayment, then such payment,to the extent permitted by
law, will include a premium for such prepayment of five percent of the then principal balance.
4
15. Personal Property: This Deed of Trust is also intended to encumber and create, and Trustor does hereby grant to Beneficiary,
a security interest in any and all of such property which is personal property owned by Trustor and now or hereafter located on or used
in connection with such property including, but not limited to, all equipment, fixtures, furniture, appliances and articles of personal
property owned by Trustor and now or hereafter located on, attached to or used in and about the improvements which are necessary
to the complete and comfortable use and occupancy of the Improvements for all purposes for which they are intended and such other
goods and chattels and personal property owned by Trustor as are ever to be used or furnished in operating the Improvements, or the
activities conducted therein, and all renewals or replacements thereof or therefore, whether or not the same shall be attached to the
Improvements in any manner, and all building materials and equipment hereafter situated on or about the Real Estate or the
Improvements . The foregoing security interest shall also cover Trustor's leasehold interest in any of the foregoing items which are
leased by Trustor. Trustor shall,from time to time, upon request of Beneficiary, provide Beneficiary with a current inventory of all of the
personal property in such detail as Beneficiary may require.
16. Security Agreement: This Deed of Trust constitutes a security agreement between Trustor and Beneficiary with respect to all
personal property in which Beneficiary is granted a security interest hereunder, and, cumulative of all other rights and remedies of
Beneficiary hereunder. Beneficiary shall have all of the rights and remedies of a secured party under the Nebraska Uniform
Commercial Code. Trustor hereby agrees to execute and deliver on demand and hereby irrevocably constitutes and appoints
Beneficiary the attorney-in-fact of Trustor to execute and deliver and, if appropriate, to file with the appropriate filing officer or officers
such security agreements,financing statements, continuation statements or other instruments as Beneficiary may request or require in
order to impose, perfect or continue the perfection of the lien or security interest created hereby. Upon the occurrence of any default
hereunder not cured within any applicable grace period, Beneficiary shall have the right to cause any of such property which is
personal property and subject to security interest of Beneficiary hereunder to be sold in one of public or private sales as permitted by
applicable law, including at a sale held in conjunction with the sale of such property by Trustee, as provided for in this Deed of Trust,
and Beneficiary shall further have all rights and remedies, whether at law in equity or by statute, as are available to secured creditors
under applicable law. Any such disposition may be conducted by an employee or agent of Beneficiary or Trustee. Expenses of
retaking, holding, preparing for sale,selling or the like shall be born by Trustor and shall include Beneficiary's and Trustee's fees and
legal expenses. Beneficiary shall have the right to enter upon the Real Estate and the Improvements or any other real property or any
personal property which is the subject of the security interest granted herein as located to take possession of, assemble and collect
such personal property or to render it usable, or Trustor, upon demand of Beneficiary, shall assemble such personal property and
make it available to Beneficiary at a place deemed reasonably convenient to Beneficiary. If notice is required by law, Beneficiary shall
give Trustor at least five (5) days prior written notice of the time and place of any public sale or other disposition of such property or of
the time of or after which any private sale or other intended disposition is to be made, and, if such notice is sent to Trustor, as the
same is provided for the mailing of notices herein, it is hereby deemed that such notice shall be and is reasonable notice to Trustor.
Any sale made pursuant to the provisions of this paragraph shall be deemed to have been a public sale conducted in a reasonably
commercial manner if held contemporaneously with the sale under the power of sale granted in this Deed of Trust upon giving the
same notice with respect to the sale under the power of sale given the Trustee under this Deed of Trust.
17. Fixture Financing Statement: This Deed of Trust is intended to be a financing statement within the purview of the Nebraska
Uniform Commercial Code with respect to those items of such property as constitute fixtures on the Real Estate. The address of
Trustor (Debtor) and Beneficiary(Secured Party)are set forth on the first page of this Deed of Trust, This Deed of Trust is to be filed
for record with the Douglas County Register of Deeds where the real estate is located. Trustor is the record owner of the real estate.
18. Substitution of Trustee:That Beneficiary may,from time to time, by instrument in writing,substitute a successor or successors
to any Trustee named herein or acting hereunder, which instrument executed and acknowledged by Beneficiary and recorded in the
office of the register of deeds of the county or counties where such property is situated, shall be conclusive proof of proper substitution
of such Trustee or Trustees,who shall, without conveyance form the Trustee predecessor, succeed to all its title, estate, rights, power
and duties.
19. No Waiver by Beneficiary: No waiver by Beneficiary of any right under this Deed of Trust shall be effective unless in writing.
Waiver of Beneficiary of any right granted to Beneficiary under this Deed of Trust or of any provision of this Deed of Trust as to any
transaction or occurrences shall not be deemed a waiver as to any future transaction or occurrences. By accepting payment of any
sum secured hereby after its due date, or by making any payment or performing any act on behalf of Trustor that Trustor was obligated
hereunder, but failed to make or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby,
Beneficiary does not waive its right to require prompt payment when due of all other sums so secured or to require prompt
performance of all other acts required hereunder,or to declare a default for failure so to pay.
20. Waiver of Statute of Limitations: Time is of the essence in all Trustor's obligations hereunder; and to the extent permitted by
law, Trustor waives all present or future statutes of limitations with respect to any debt,'demand or obligation secured hereby in any
action or proceeding for the purpose of enforcing this Trust or any right or remedies hereunder.
21. Inspection and Business Records: Beneficiary at any time during the continuation of this Trust may enter and inspect such
property at any reasonable time. Trustor agrees that in the event such property is now or hereafter used for commercial or residential
income purposes, when requested by Beneficiary, Trustor will promptly deliver to Beneficiary, such certified financial statements and
profit and loss statements of such types and at such intervals as may be required by, Beneficiary, which will be in form and content
prepared according to the usual and acceptable accounting principles and practices, which statements shall cover the financial
operations relating to such property. Trustor further agrees when requested by Beneficiary to promptly deliver in writing such further
additional information as required by Beneficiary relating to any such financial statements.
5
22. Acceleration Clause: Should Trustor be in default under this Deed of Trust, or should Trustor, or any successor in interest of
Trustor, voluntarily or involuntarily sell, exchange, convey, transfer, contract to sell, lease with option to purchase, sublease, change
the character or use of, or further encumber such property, or any part thereof, or any interest therein; or if any said parties shall be
divested of title to such property, or any part thereof, or any interest therein, either voluntarily, or involuntarily; or if title to such property
be subjected to any lien or charge, voluntarily or involuntarily, contractual or statutory, without the written consent of Beneficiary being
first had and obtained, then Beneficiary shall have the right, at its option, to declare all sums secured hereby forthwith due and
payable; and this same right of acceleration shall be available to Beneficiary if the undersigned is a partnership and any interest of a
general partner terminates, is assigned or transferred, or is diminished; or if the undersigned is a corporation and any of the corporate
stock is transferred, sold or assigned; or if the undersigned is a trustee of a trust and there is a change of any of the beneficial interest
of the trust.
23. Remedies: No remedy herein provided shall be exclusive of any other remedy herein or now or hereafter existing by law, but
shall be cumulative. Every power of remedy hereby given to Trustee or Beneficiary, or to which either of them may be otherwise
entitled, may be exercised from time to time and as often as may be deemed expedient by them, and either of them may pursue
inconsistent remedies. If Beneficiary holds any additional security for any obligation secured hereby, it may enforce the sale thereof at
its option, either before, contemporaneously with, or after the sale is made hereunder, and on any default of Trustor, Beneficiary may,
at its option, offset against any indebtedness secured hereby, and the Beneficiary is hereby authorized and empowered at its option,
without any obligation so to do, and without affecting the obligations hereof, to apply toward the payment of any indebtedness of the
Trustor to the Beneficiary any and all sums of money of Trustor which Beneficiary may have in its possession or under its control,
including without limiting the generality of the foregoing, any savings account, deposit, investment certificate,escrow or trust funds.
24. Acknowledgment: Trustor agrees and acknowledges that prior to the execution of this Deed of Trust, Trustor did acknowledge
in writing and hereby confirms again that (a) this Deed of.Trust is not a mortgage, but a deed of trust, (b) that the power of sale
provided for herein provides substantially different rights and obligations for Trustor than a mortgage in the event of a default or breach
of any obligation hereunder, and (c) the aforementioned written acknowledgment was executed prior to the execution of this Deed of
Trust.
25. Law Applicable: That this Deed of Trust shall be construed according to the laws of the State of Nebraska.
26. Illegality: In the event that any provision or clause of this Deed of Trust conflicts with applicable law, such conflict shall not
affect other provisions of this Deed of Trust which can be given effect without the conflicting provision, and to this end the provisions of
this Deed of Trust are declared to be severable.
27. General Provisions: (a)This Deed of Trust applies to, inures to the benefit of,and binds all parties hereto, their heirs, legatees,
devisees, administrators, executors, successors and assigns. (b)The term"Beneficiary"shall mean the owner and holder(including a
pledge)of any note secured hereby,whether or not named as Beneficiary herein. (c)Wherever the context so requires, the masculine
gender includes the feminine and neuter, the singular number includes the plural, and vice versa. (d) Captions and paragraph
headings used herein are for convenience only, are not a part of this agreement, and shall not be used in construing it. If more than
one person is named herein as Trustor, each obligation of Trustor shall be the joint and several obligation of each such person. The
rights or remedies granted hereunder,or by law,shall not be exclusive, but shall be concurrent and cumulative.
28. Trustee Accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by
law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or any action or proceeding in
which Trustor, Beneficiary or Trustee shall be party, unless brought by Trustee.
29. Address Mailing Notice: Trustor hereby requests that a copy of any notice of default and a copy of any notice of sale
hereunder shall be mailed to each person itemized below at the address indicated:
Emily Hollingsworth, 3725 Franklin Street,Omaha, NE,68111
Elaine Hollingsworth,4015 Nicholas Street,Apartment#7, Omaha, NE 68131
6
IN WITNESS WHEREOF,Trustor has executed this Deed of Trust on the date first above written.
•
;
Emily Nolllingsworth Date
CORPORATE SEAL
•
STATE OF NEBRASKA )
ss.
COUNTY OF DOUGLAS )
On this day of , 2003, before me, the undersigned, a Notary Public duly commissioned and
qualified in and for said county, personally came Emily Hollingsworth, to me known to be the person(s) named in and who executed
the foregoing instrument, and acknowledged that she executed the same as her voluntary act and deed.
Witness my hand and notarial seal the day and year last above written. , GENERAL NOTARY-State of Nebraska
TUWANDA MAYBERRY
My commission expires 61/y/d' 7' . _�'r' My Commission Ep.May14,2007
Notary Public
•
'Elaine Hollingsworth / / Date
STATE OF NEBRASKA )
ss.
COUNTY OF DOUGLAS )
On this 1�._ day of f=e-4,i'u,-:4'Li , 2003, before me, the undersigned, a Notary Public duly commissioned and
qualified in and for said county, personally came Elaine Hollingsworth, to me known to be the person(s) named in and who executed
the foregoing instrument, and acknowledged that she executed the same as her voluntary act and deed.
Witness my hand and notarial seal the day and year last above written. GENERAL NOTAR AStateetNebraska�
TUINAND MAYBERRY
My commission expires ///Ci-7 . My Commission Em,May 14 NW
Notary Public • /.?. /�4.7
7
AMENDED DEFERRED LOAN PROMISSORY NOTE
(Amended to Add Additional Trustor)
Project No. Target Area Program Place: 3725 Franklin Street
Orchard Hill Omaha, NE 68111
Loan No. 00-HCD/2431 Date: April 13, 2000
FOR VALUE RECEIVED, the undersigned jointly and severally promise(s) to pay to the
order of the City of Omaha (herein called "CITY"), acting by and through the Director of the
Planning Department, the sum of Twenty-five Thousand and no/100 Dollars ($25,000.00).
Payment shall be made in lawful money of the United States at the principal office of
Commercial Federal Bank, 450 Regency Parkway, Omaha, NE, 68114, or at such other places as
shall be designated by the City as follows:
1. If the undersigned rents or leases, sells or conveys, grants, mortgages, assigns or
otherwise transfers their interest or a portion thereof within ten (10) years of the date of
this Note, in the property or improvements at and legally described as:
. _ Lot 15, Block 7, Orchard Hill, an Addition to the City of Omaha, as surveyed, platted .
and recorded in Douglas County, Nebraska (commonly known as 3725 Franklin
Street)
(hereinafter referred to as the "Property")
then on the first day after the said transfer the total amount of this Note is due.
2. If the undersigned retains title to the property and resides there more than five (5)but less
than ten (10) years, the Principal shall be due on the first day after the said transfer and
the amount of the Principal due shall be computed as follows:
If the undersigned rents, leases, sells, conveys, grants, mortgages, assigns or
otherwise vacates the property after the first five years, the principal amount
of this Note shall be depreciated by one-one hundred,twentieth (1/120th) for
each month the undersigned occupies the property.
3. If the undersigned shall not rent, sell, lease, convey, grant, mortgage, assign or otherwise
transfer said property for a period of ten (10) years from the above date, this Note shall be
considered paid-in-full and will be released from said property. _
The undersigned reserve(s) the right to prepay at any time all or any part of the principal
amount of this Note without the payment of penalties or premiums.
IN THE EVENT the undersigned shall fail to pay the interest on or principal amount of
this Note when due, and if such failure exists on the date the next installment payment under this
Note becomes due and payable, the unpaid principal amount of this Note, together with accrued
interest and late charges, shall become due and payable, at the option of the CITY, without
notice to the undersigned. Failure of the CITY to exercise such option shall not constitute a
waiver of such default. No default shall exist by reason of non-payment of any required
installment of principal and interest so long as the amount of the optional prepayments already
made pursuant hereto equals or exceeds the amount of the required installments. If the interest
on, and principal of, this Note are not paid during the calendar month which includes the due
date, the undersigned shall pay to the CITY a late charge of four percent (4%) per calendar
month, or fraction thereof, on the amount past due and remaining unpaid. If this Note be reduced
to judgment, such judgment should bear the statutory interest rate on judgments, but not to
exceed nine percent (9%) per annum.
IF suit is instituted by the CITY to recover this Note, the undersigned agree(s) to pay all
costs of such collection including reasonable attorneys' fees and court costs.
THIS NOTE is secured by a Second Deed of Trust duly filed for record in Douglas
County,Nebraska.
DEMAND, protest and notice of demand and protest are hereby waived, and the
undersigned hereby waives, to the extent authorized by law, any and all homestead and other
exemption rights which otherwise would apply to the debt evidenced by this Note.
IN WITNESS WHEREOF, this Note has been duly executed by the undersigned, as of its
date.
.2-,;,q- lt, L ! , -2- 2-e/
Emily Hollingsworth Date Elaine Hollingsworth / Date
GENERAL NOTARY-State of Nebraska
Pi
TUWANDA MAYBERRY
_,Ary My Commission Exp.May 14,2007
/
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•
•
.C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, on March 28, 2000, a Loan Agreement between the City of Omaha
and Emily Hollingsworth was approved by the City Council, by Resolution No. 892, and
executed by the Mayor of the City of Omaha on April 3, 2000; and,
WHEREAS, the Loan Agreement provided for the financing of the rehabilitation of
property located at 3725 Franklin Street, owned by Ms. Hollingsworth. This financing consisted
of a CDBG funded repayable loan in the original amount of $20,000.00 and a CDBG funded
deferred loan in the amount of$25,000.00. The funding is secured by a CDBG Repayable Loan
Deed of Trust and Note and a CDBG Deferred Loan Deed of Trust and Note; and,
WHEREAS, the terms of the Loan Agreement, the Repayable Loan Deed of Trust
and Promissory Note, and the Deferred Payment Loan Deed of Trust and Promissory Note state
that the loans become due upon the sale, lease or other transfer of any kind or nature of the
mortgaged property, or any part thereof, without the prior written consent of the City of Omaha;
and,
WHEREAS, Emily Hollingsworth has requested that the City allow her to transfer a
portion of her interest in the property by adding the name of her daughter, Elaine Hollingsworth,
to the property title for estate planning purposes; and,
WHEREAS, the City of Omaha's security interest in the property will not be
harmed in any way by this action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
:c ZSA CITY OF 'OMAHA
LEGISLATIVE CHAMBER
•
Omaha,Nebraska
PAGE 2
THAT, the attached Supplemental Agreement to the Loan Agreement approved by
the Omaha City Council, on March 28, 2000, by Resolution No. 892, consenting to the transfer
by Emily Hollingsworth of her interest in the real property, commonly known as 3725 Franklin
Street, to Emily Hollingsworth and Elaine Hollingsworth,be and hereby is approved.
P:\P1n5\9974pjm.doc APPROVED AS TO FORM:
CITY ATTORNEY DATE
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By
ouncilmember
Adopted —. 9 004
City Clerk
Approved 1#14'11.4 7 �
Mayor
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