HomeMy WebLinkAboutReso 32-22 124-128 Consent to Encumber-Deed of TrustRESOLUTION NO. 32-22
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
CONDITIONALLY AUTHORIZING THE MAYOR TO EXECUTE DOCUMENTS
NECESSARY FOR A LOAN AND ACCEPTING A DEED OF TRUST
RELATED THERETO WITH MMBS, LLC,
FOR LEASE SITES 124-128/124W-128W & 113W,
LOCATED AT 1213, 1215 & 1217 EMBARCADERO ROAD, MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro
Bay Waterfront described as City Tidelands leases and properties; and
WHEREAS, since July, 2012 MMBS, LLC (owned and operated by Robert
Fowler) has been the lessee of Lease Sites 124-128/124W-128W & 113W, located at
1213, 1215 and 1217 Embarcadero Road, and is a tenant in good standing; and
WHEREAS, MMBS, LLC is requesting approval of loan documents and a deed of
trust, with Del Toro Loan Servicing, as Trustee and Provident Trust Group as
Beneficiary, to secure the financing necessary to refinance existing lending on the Lease
Site that was used to complete the redevelopment of the lease site using the lease
agreement and project improvements as security; and
WHEREAS, lease site lending can only be used to purchase a lease site, to
refinance existing lending on the lease site and/or for leasehold improvements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California, the Mayor is hereby directed to execute, as necessary, any and all
documents, as approved by the City Attorney, necessary to consummate the loan and
deed of trust desired by MMBS, LLC
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting thereof held on the 12th day of April, 2022 on the following vote:
AYES: Headding, Addis, Barton, Ford, Heller
NOES None
ABSENT: None
ing, M-
ayor
ATTEST:
na Swanson, City Clerk
Clerk
01181.0024/781097.1
CONSENT TO ENCUMBRANCE
4121
THIS CONSENT TO ENCUMBRANCE ("Consent") is dated for reference purposes and executed as of" �T 2022 (, by the
City of Morro Bay, a municipal corporation ("Landlord' ), for the benefit of Provident Trust Group, FBO John A Turnbull Jr.
SEP IRA , as to an undivided 33.333% interest and James D. Winegardner and Donna K. Winegardner (and their successors
in trust), Trustees of the Winegardner Living Trust dated October 6, 2004, as to an undivided 29.167% interest and Benjamin
William Delgadillo and Lydia Delgadillo, Trustees or Successors in trust under the Delgadillo Family Trust dated March 8,
2016 and any amendments thereto successors in trust, as to an undivided 12.500% interest and James R. Miller and Jonelle
K. Miller, Trustees of the Miller Family 2010 Revocable Trust, as to an undivided 12.500% interest and James C. Yates,
Surviving Trustee of the James C. Yates and Mary J. Yates 2005 Revocable Trust DTD 09/26/05, as to an undivided 12.5000%
interest ("Lender"), with reference to the following facts:
ARTICLE I: RECITALS
1.1 Landlord and MMBS, LLC, ("Tenant") have entered into that certain lease dated October 19, 2010 (the "Lease")
covering certain premises located in San Luis Obispo County, California, commonly known as Lease Site 124-128/124W-
128W and 113W as delineated on Parcel Map of the City of Morro Bay No. 68-30, which map was recorded on October 10,
1968, in book 3, Page 10 of Parcel Maps in the office of the County Recorder, San Luis Obispo County California (the
"Premises"). The Premises are further described in the Lease Sites map prepared by Garing, Taylor and Associated, which
include detailed survey and dimensional data on said Premises. A copy of the official Lease Site map for Lease Site 124-
128/124W-128W and 113W adopted by City Council Resolution 77-74 is attached hereto as Exhibit B.
1.2 Lender has made or is about to make a loan to Tenant in the amount of One Million Two Hundred Thousand Dollars
and No Cents ($1,200 000.00) (the "Loan"). Repayment of the Loan will be secured by a deed of trust ("Deed of Trust")
encumbering Tenant's leasehold interest in the Premises created by the Lease (the "Leasehold").
1.3 Landlord understands the accuracy m all respects of the information set forth herein by it may be and shall be relied
upon by Lender
NOW, THEREFORE, TO INDUCE LENDER TO MAKE THE LOAN TO TENANT, LANDLORD HEREBY
DECLARES, UNDERSTANDS AND REPRESENTS TO LENDER:
ARTICLE II: CONSENT
2.1 Landlord's Consent. Landlord hereby consents to the encumbrance of the Leasehold, as evidenced by the Deed of
Trust executed by Tenant m connection with the Loan and attached hereto as Exhibit A, provided, that the proceeds from the
Loan are used only (i) to finance acquisition of the Leasehold, (ii) to pay costs directly associated with capital improvements
Tenant makes to the Premises or (iii) to refmance an existing debt secured by the Lease; provided, than any equity is used to
pay for costs directly associated with capital improvements Tenant makes to the Premises
2.2 Surrender of Premises Amendment of Lease. Landlord agrees it shall not allow or agree to any cancellation, mutual
termination, surrender, acceptance of surrender or any material modification or amendment of the Lease that would materially
diminish the Lender's security in the Leasehold as provided by the Deed of Trust or surrender of the Premises without the prior
written consent of Lender.
IN WITNESS WHEREOF, this Consent is executed on behalf of the parties' duly authorized representatives on the date(s) indicated
below and effective as of the date set forth above.
DATE: Orrin; \ c�Ap > agav
LANDLORD'
City of orro Bar
By:
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Rob Livick, Director/ City 5ngineer
DRAWN BY: RZ
DATE:
DATE: J U LY 2010
REVISED: OCTOBER 2010
CITYOF
MORRO BAY
DEPARTMENT OF
PUBLIC SERVICES
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JoANN HEAD LAND SURVEYING�
Post Office Box 567
Santa Margarita, CA 45455
(8051674-1530
December, 2015 146-01 Lease Adjustment Exhlblt,dwg
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
CIVIL CODE § 1189
Ct ,CriVereatk c cra.oristierMe. c-.SCeiNt�etsccoriSenr4\4• W C 'iN eNc!TcW�reN4c cam. c st!a CCCSS—celSc •SVVW%Cir
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of 4afrt. LACc t 5 pa
On Ayr , 2-8
Date
personally appeared
before me, rk4 S'VLnSofrfl, Ob-01-74, Pu61:
Here Insert Name and Title of the Officer
ioktA
N�me(s) of Signer(s)
7
who proved to me on the basis of satisfactory evidence to be the person,(2)° whose name(s) is/qrtee
subscribed to the within instrument and acknowledged to me that he/She/they executed the same in
his/her/Weir authorized capacity(ies)and that by his/her/their signature(} on the instrument the person(,$),
or the entity upon behalf of which the person( acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
DANA SWANSON
Notary Public - California i
San Luis Obispo County >
Commission x 2302650
ap mrt
My Comm. Expires Aug 23. 2023
Place Notary Seal Above
WITNESS my hand and official seal.
Signature
Signature of Notary Public
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Desccr ptoon of Attached D cument
Title or Type of Document: (41A.scetkh etict..A,tbreaft-cisc.- Document Date:
N umber of Pages: Signer(s) Other Than Named Above:
Capacty(es) CDaomec: by Sugrerr(s)
S igner's Name:
l-I Corporate Officer - Title(s):
Partner - Limited General
Individual Attorney in Fact
Trustee Guardian or Conservator
Other:
S igner Is Representing:
?J 12c7 ZZ
Signer's Name:
Corporate Officer - Title(s):
Partner - I Limited General
Individual Attorney in Fact
Trustee _ Guardian or Conservator
Other:
Signer Is Representing:
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2014 National Notary Association www.NationalNotary.org O 1-800-US NOTARY (1-800-876-6827) Item #5907
Recording Requested By
First American Title
When Recorded Mail To
John Arthur Turnbull Jr.
2609 Honolulu Avenue Suite #200
Montrose CA 91020
Title Order No. 4009-6816873
the undersigned hereby certifies that
this is a true and correct copy of the
origi al document or instrument.
FIRS�A �ICAN TITLE COMPANY
B
It
Space above this line for recorder's use
DEED OF TRUST
WITH AN ASSIGNMENT OF RENTS RIDER
A.P.N.- 066-351-040 and 940-000-146
This Deed of Trust, made this 15th day of April 2022, among the Trustor, MIMS, LLC, a California Limited
Liability Company (herein "Borrower") who's mailing address is P.O. Box 1008 Santa Margarita, CA 93453 , Del
Toro Loan Servicing, Inc. (herein "Trustee"), and the Beneficiary, See attached "Lender Identification - EXHIBIT A"
(herein "Lender").
The beneficiaries (or assignees) of this deed of trust have agreed in writing to be governed by the desires of the
holders of more than 50% of the record beneficial interest therein with respect to actions to be taken on behalf of all
holders in the event of default or foreclosure or for matters that require direction or approval of the holders, including
designation of the broker, servicing agent, or other person acting on their behalf, and the sale, encumbrance or lease of
real property owned by the holders resulting from foreclosure or receipt of a deed in lieu of foreclosure.
GRANT IN TRUST
BORROWER, in consideration of the indebtedness herein recited and the trust herein created, irrevocably grants,
transfers, conveys and assigns to Trustee, in trust, with power of sale, the property described in "Exhibit B" Attached, with a
property address of 1215 Embarcadero, Lease site 124-128/124W-128W and 113W, Morro Bay C.A. 93442 ;
"Assignment of Rents Rider" Attached
TOGET,R with all the improvements now or hereafter erected on the property, and all easements, rights,
appurtenances, rents (subject however to the rights and authorities given herein to Lender to collect and apply such
rents), royalties, mineral, oil and gas rights and profits, water, and water rights, and water stock, and all fixtures now or
hereafter attached to the property, all of which, including replacements and additions thereto, shall be deemed to be and
remain a part of the property covered by this Deed of Trust; and all of the foregoing, together with said property (or the
leasehold estate if this Deed of Trust is on a leasehold) are herein referred to as the "Property";
THIS DEED OF TRUST IS MADE TO SECURE TO LENDER:
(a) the repayment of the indebtedness evidenced by Borrower's note (herein "Note") dated 04/15/2022, in the principal
sum of U.S. S1,200,000.00, with payment of interest thereon, the payment of all other sums, with interest thereon,
advanced in accordance herewith to protect the security of this Deed of Trust; the performance of the covenants and
agreements of Borrower herein contained; and (b) repayment of any future advances, with interest thereon, made to the
Borrower by Lender pursuant to paragraph 19 hereof (herein "Future Advances"); and in addition (c) this Deed of Trust
shall provide the same security on behalf of the Lender, to cover extensions, modifications or renewals, including without
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limitation, extensions, modifications or renewals of the Note at a different rate of interest; and the performance of the
covenants and agreements of Borrower herein contained.
Borrower covenants that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and
convey the Property, that the Property is unencumbered except for encumbrances of record, and that Borrower
will warrant and defend generally the title to the Property against all claims and demands, subject to encumbrances of
record.
UNIFORM COVENANTS. BORROWER AND LENDER COVENANT AND AGREE AS FOLLOWS:
1. Payments of Principal and/or Interest Borrower shall promptly pay, when due, the principal of and/or mterest on
the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and/or
interest on any Future Advances secured by the Deed of Trust.
2. Funds for Taxes and Insurance (Impounds). Subject to applicable law, and if required by the Lender, Borrower
shall pay to Lender on theday monthly payments of principal and interest are payable under the Note until the Note is
paid in full, a sum (herein "Funds") equal to one -twelfth of the yearly taxes and assessments (including condominium and
planned unit development assessments, if any) which may attain priority over this Deed of Trust, and ground rents on the
Property, if any, plus one -twelfth of yearly premium installments for hazard insurance, plus one -twelfth of yearly
premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by
Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make
such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a pnor mortgage or
deed of trust if such holder is an institutional Lender.
If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are
msured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply
the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and
applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays
Borrower mterest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may
agree in writing at the time of execution of this Deed of Trust that mterest on the Funds shall be paid to Borrower, and
unless such an agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay
Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of
the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The
Funds are pledged as additional security for the sums secured by this Deed of Trust.
If the amount of Funds held by Lender, together with the future monthly installments of Funds payable prior to the
due dates of taxes, assessments insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents, such excess shall be, at Borrower's option, either promptly repaid to
Borrower or credited to Borrower on monthly installments of Funds If the amount of the Funds held by Lender shall not
be sufficient to pay taxes, assessments insurance premiums and ground rents asa they fall due Borrower shall pay to
Lender any amount necessary to make up the deficiency in one or more payments as Lender may require.
Upon payment in frill of all si ms secured by this Deed of Trust, Lender shall promptly refund to Borrower any Funds
held by Lender. If under Paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Deed of Trust.
3. Application of Payments. Unless applicable law provides otherwise all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by
Borrower under paragraph 2 hereof, if applicable then to interest payable on the Note, then to the principal of the Note,
and then to interest and principal on- any Future Advances.
4. Prior Mortgages and Deeds of Trust; Liens. Borrower shall perform all of Borrower's obligations under any
mortgage, deed of trust or other security agreement with a lien which has prionty over this Deed of Trust, including
Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid at least 10 days before
delinquency, all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain
a priority over this Deed of Trust, and leasehold payments or ground rents, if any.
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5. Hazard Insurance. Borrower agrees to provide, maintain and deliver to Lender fire insurance satisfactory and with
loss payable to Lender. The amount collected under any fire or other insurance policy may be applied by Lender upon any
indebtedness secured hereby and in such order as Lender may determine, or at option of Lender the entire amount so
collected or any part thereof may be released to the Borrower. Such application or release shall not cure or waive any
Default or Notice of Default hereunder or invalidate any act done pursuant to such notice.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided
that such approval shall not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form
acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender
shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other
security agreement with a lien which has pnority over this Deed of Trust.
In the event of a loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof
of loss if not made promptly by Borrower.
If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days. from the date
notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is
authorized to collect and apply their insurance proceeds at Lender's option either to restoration or repair of the Property or
to the sums secured by this Deed of Trust.
If Borrower obtains earthquake, flood or any other hazard insurance, or any other insurance on the Property, and such
insurance is not specifically required by the Lender, then such insurance shall: (i) name the Lender as loss payee
thereunder, and (ii) be subject to all of the provisions of this paragraph 5.
5. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments.
Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the
Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is
on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower s obligations under
the declaration of covenants creating or governing the condominium or planned umt development, the by-laws and
regulations of the condominium or planned unit development, and constituent documents
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Deed of Trust, or if any action or proceeding is commenced which affects Lender's interest in the Property, including but
not limited to proceedings by the Lender to obtain relief from stay in any bankruptcy proceeding which would prohibit
Lender enforcing its rights under the Deed of Trust, then Lender, at Lender's option, may make such appearances,
disburse such sums, including reasonable attorney s fees, and take such action as is necessary to protect Lender s interest.
If Lender required mortgage insurance as a condition of making the loan secured by this Deed of Trust, Borrower shall
pay. the premiums required to maintain such insurance in effect until such. time as the requirement for such insurance
terminates in accordance with Borrower's and Lender's written agreement or applicable law.
Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, includmg but not limited to
payment of delinquent taxes and assessments, insurance premiums due, and delinquent amounts owed to prior lien
holders, shall become additional indebtedness of Borrower secured by this Deed of Trust Such amounts as are disbursed
by Lender shall be payable, upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from
the date of disbursement at the rate payable on the Note. Nothing contained in this paragraph 7 shall require Lender to
mcur any expense or take any action hereunder.
8. Inspection. Lender may make or cause to be made reasonable entries upon and inspection of the Property, provided
that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefore related to
Lender's mterest in the Property.
9. Condemnation The proceeds of any award or claim for damages, direct or consequential, in conjunction with any
condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby
assigned and shall be paid to Lender, subject -to the terms of any mortgage, deed of trust or other security agreement with
a lien which has pnority over this Deed of Trust.
10. Borrower Not Released. At any tune or from time to time, without liability therefore and without notice upon
written request of Lender and presentation of this Deed and said Note for endorsement, and without affecting the personal
liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property,
consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension
agreement or any agreement subordinatmg the lien or charge thereof. Trustee may, but shall be under no obligation or
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duty to, appear in or defend any action or proceeding purporting to affect said property or the title thereto, or purporting to
affect the security hereof or the rights or powers of Lender or Trustee.
11. Forbearance by Lender Not a Waiver. Any forbearance by Lender in exercising any right or remedy hereunder,
or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. The
procurement of insurance or the payment of taxes or other liens or charges by Lender shall not be a waiver of Lender's
right to accelerate the maturity of the indebtedness secured by this Deed of -Trust
12. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other or
remedy under this Deed of Trust or afforded by law or equity, and may be exercised concurrently, independently or
successively.
13. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements herein
contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and
Borrower, subject to the provisions of paragraph 18 hereof. All covenants and agreements of Borrower shall be joint and
several
14. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower
provided for m this Deed of Trust shall be given by delivering it or by mailing such notice by certified mail addressed to
Borrower or the Property at the Property Address or at such other address as Borrower may designate by notice to Lender
as provided herein, and (b) any notice to Lender shall be given by certified mail to Lender, in care of Lender's Servicing
Agent (` Agent"), DeI Toro Loan Servicing, Inc. PO Box 211000 Chula Vista CA 91921 or to such other address as Lender
or Agent may designate by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall be
deemed to have been given to Borrower or Lender when given in the manner designated herein.
15. This Deed of Trust shall be governed by the Laws of the State of California. In the event that any provision or
clause of this Deed of Trust or the Note conflicts with applicable law, such conflict shall not effect other provisions of this
Deed of Trust or the Note which can be given effect without the conflicting provision, and to this end the provisions of the
Deed of Trust are declared to be severable.
16. Lender's Right to Require The Loan to be Paid Off Immediately. If the Borrower shall sell, enter into a
contract of sale, lease for a term of more than 6-years (including options to renew), lease with an option to purchase for
any term, or transfer all or any part of the Property or an interest therein, excluding (a) the creation of a lien or
encumbrance subordinate to this Deed of Trust, (b) or a transfer by devise, descent, or by operation of law upon the death
of a jomt tenant the Lender may at its option declare the Note and any other obligations secured by this Deed of Trust,
together with accrued interest thereon, immediately due and payable, in full No waiver or the Lender's right to accelerate
shall be effective unless it is in writing.
If Lender exercises such option to accelerate Lender shall mail Borrower notice of acceleration in accordance with
paragraph 14 hereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within
which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period,
Lender may, without further notice or demand on Borrower, invoke any remedies permitted by paragraph 17 hereof
BORROWER AND LENDER FURTHER COVENANT AND AGREE AS FOLLOWS:
17. Assignment of Rents; Appomtment of Receiver; Lender in Possession. As additional security hereunder, and
without regard to the adequacy of any security for the indebtedness hereby secured, Borrower hereby assigns to Lender
the rents of the Property, provided that Borrower shall, prior to acceleration under paragraph 18 hereof or abandonment of
the Property, have the right to collect and retain such rents as they become due and payable.
Upon acceleration under paragraph 18 hereof or abandonment of the Property, Lender, in person, by Agent or by
judicially appointed receiver shall be entitled to enter upon, take possession of and manage the Property and to collect the
rents of the Property including those past due All rents collected by Lender or the receiver shall be applied first to
payment of the costs of management of the Property and collection of rents, including, but not limited to, receiver s fees,
premiums on receiver s bonds and reasonable attorney's fees and then to the sums secured by this Deed of Trust. Lender
and the receiver shall be hable to account only for those rents actually received.
18. Upon default by Borrower in payment of any indebtedness secured hereby or in performance of any agreement
hereunder Lender may declare all sums secured hereby immediately due and payable by delivery to Trustee of written
declaration of default and demand for sale and of written Notice of Default and of election to cause to be sold said
property, which notice Trustee shall cause to be filed for record. Trustee shall be entitled to rely upon the correctness of
Applied Business Software, Inc. (800) 833-3343 225041/MMBS, LLC
DTLS Deed of Trust
Page 4 of 9
such notice. Lender also shall deposit with Trustee this Deed, said Note and all documents evidencing expenditures
secured hereby.
After the lapse of such time_as then may be required by law following the recordation of said Notice of Default and
Notice of Sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at
the time and place fixed by it in said Notice of Sale, either as a whole or m separate parcels and in such order as it may
determine (but subject to any statutory right of Trustor to direct the order in which said property, if consistmg of several
lots or parcels, shall be sold), at public auction to the highest bidder for cash in lawful money of the United States, payable
at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and
place of sale and from time to time thereafter may postpone such sale by public announcement at the time fixed by the
preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property to sold but without any
covenant or warranty, expressed or implied. The recitals in such deed of any matters or facts shall be conclusive proof of
the truthfulness thereof. Any person including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at
such sale.
After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in
connection with sale, Trustee shall apply the proceeds of sale to payment of all sums expended under the terms hereof,
not then repaid, with accrued mterest at the rate prescribed in the Note; all other sums then secured thereby; and the
remainder, if any, to the person or persons legally entitled thereto.
19. Future Advances. Upon request of Borrower, Lender, at Lender's option prior to full reconveyance of the
Property by Trustee to Borrower, may make Future Advances to Borrower. Such advances with interest thereon, shall be
secured by this Deed of Trust when evidenced by promissory notes stating that said notes are secured hereby.
20. Reconveyance. Upon written request of Lender stating that all sums secured hereby have been paid, and upon
surrender of this Deed and said Note to Trustee for cancellation and retention and upon payment of its fees, Trustee shall
reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts
shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or
persons legally entitled thereto.'
21. Substitution of Trustee. Lender, at Lender's option, may from time to time remove Trustee and appoint a
successor trustee to any Trustee appointed hereunder. Without conveyance of the Property, the successor trustee shall
succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law.
22. Request for Notices. Borrower requests that copies of the notice of sale and notice of default be sent to
Borrower's address which is the Property Address.
23. Statement of Obligation. Lender may collect a fee, not to exceed the maximum amount permitted by law, for
furnishing the statement of obligations as provided by Section 2943 of the Civil Code of California
MISCELLANEOUS PROVISIONS
24. Construction or Home Improvement Loan. If the loan secured by this Deed of Trust is a construction of home
improvement loan, Borrower is required to perform according to the terns and conditions of each agreement contained in
any building, home improvement or similar agreement between the Borrower and Lender.
25. Acceptance by Lender of a Partial Payment After Notice of Default. By accepting partial payment (payments
which do not satisfy a default or delinquency in full) of any sums secured by this Deed of Trust after a Notice of Default
has been recorded or by accepting late performance of any obligation secured by this Deed. of Trust, or by addmg any
payment so made to the loan secured by this Deed of Trust, whether or not such payments are made pursuant to a court
order, the Lender does not waive its right either to require prompt payment when due of all other sums so secured or to
declare default for failure to make any such prompt payment or to perform any such act No exercise of any right or
remedy of the Lender or Trustee under this Deed of Trust shall constitute a waiver of any other right or remedy contained
in this Deed of Trust or provided by law
This Section Intentionally Left Blank
Applied Business Software, Inc. (800) 833-3343
DTLS Deed of Trust
225041/MMBS, LLC
Page5of9
IN WITNESS 'WHEREOF, BORROWER HAS EXECUTED THIS DEED OF TRUST
bility Company
7--7 7--
Borrower (lobed J.S. Fowler, Managing Date Borrower
Member
A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA .
COUNTY of S*M LU IS o(c SP }SS.
Date
On — Z02-2- before me L.4 • /3 tQ-7 ietkA ,Notary Public,
personally appeared RoLevt T. S rocii [et who proved to me on the basis of satisfactory evidence to be
the person(s) whose name(s) is/are subscribed to the withm instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on. the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
and and of
Notary Signature
•
cial seal
(Notary Stamp or Seal)
L.A. BERTRAND
Notary Public • Ca:ifornia
San Luis Obispc County
Commissicn 4 2371626
My Corr, Expires Sep 16, 2025
Applied Business Software, Inc, (800) 833-3343 225041/MMBS, LLC
Page 6 of 9
DTLS Deed of Trust
REQUEST FOR FULL RECONVEYANCE
The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes, together with all
other indebtedness secured by this Deed of Trust, have been paid in full. You are hereby directed to cancel said
note or notes and this Deed of Trust, which are delivered hereby and to reconvey, without warranty, all the estate now
held by you under this Deed of Trust to the person or persons legally entitled thereto.
Signature of Beneficiary (the "LENDER") Date Signature of Beneficiary (the "LENDER") Date
When recorded, mail to
Att:
Applied Business Software, Inc, (800) 833-3343
DTLS Deed of Trust
225041/MMBS, LLC
Pagel of 9
Exhibit A - LENDER IDENTIFICATION
- Loan Number. 22-5041
Borrowers:. MAIDS, LLC
Beneficiary vesting
Loan Furids
Deposited
Beneficial Interest
- Date Funds Deposited
Provident
undivided
Trust
33.333%
Group,
interest
FBO
John
A
Turnbull
Jr. SEP
IRA
,
as
to an
$400,000.00
33.333%
James
successors
October
D. Winegardner
in
6, 2004,
trust),
as
to
and
Trustees
an undivided
Donna
of
the
K. Winegardner
Winegardner
29.167%
interest
Living
(and
their
.
Trust dated
$350,000.00
29.167%
Benjamin
Successors
2016
undivided
and
any
12.500%
William
in
trust
amendments
interest
the
thereto
and
Delgadillo
Lydia
successors
Family
Delgadillo,
in
Trust
trust,
Trustees
dated
as
to
an
March
or
8,
$150,000.00
.
12.50%
Delgadillo
under
James
2010
Revocable
R.
Miller
and
Trust,
Jonelle
to
K.
an
Miller,
undivided
Trustees
12.500%
of
the
interest
Miller
Family
$150,000.00
12.50%
as
James C.
Yates 2005
12.500%
Yates,
interest
Surviving
Revocable
'
Trust
Trustee
DTD
of
09/26/05,
the
James
as
C. Yates
to an undivided
and
Mary
J.
$150,000.00
12.50%
•
Applied Business Software, Inc. (800) 833-3343 225041/MMBS, LLC
Page 8 of 9
OTLS Deed of Trust
Exhibit B
Property Information for Loan Number: 22-5041
Real property in the City of Morro Bay, County of San Luis Obispo, State of California;
•
Commonly known as Lease Site 124-128/124W-128W and 113W
Legal Description: Lease sites 113W, 124W, 124 through 128 inclusive, and 128W as delineated on Parcel Map No.
68-30, in the city of Morro Bay, county of San Luis Obispo, state of California, according to map recorded October 10,
1968 in Book 3 Page 10 of Parcel Maps , in the office of the county recorder of said county.
APN: portion 066-351-040 and 940-000-146
•
•
Applied Business Software, Inc, (800) 8333343 22-5041/MMBS, LLC
Page 9 of 9
DTLS Deed of Trust
ASSIGNMENT OF RENTS
RIDER TO DEED OF TRUST
The following provisions are a part of and incorporated into that certain Deed of Trust and Assignment of Rents dated as of 15th
of April 2022, by and between MMBS, LLC a California Limited Liability Company (Trustor"), Del Toro Loan Servicing, Inc.
(` Trustee") and Provident Trust Group, FBO John A Turnbull Jr. SEP IRA , as to an undivided 33.333% interest and James
D. Winegardner and Donna K. Winegardner (and their successors in trust), Trustees of the Winegardner Living Trust dated
October 6, 2004, as to an undivided 29.167% interest and Benjamin William Delgadillo and Lydia Delgadillo, Trustees or
Successors in trust under the Delgadillo Family Trust dated March 8, 2016 and any amendments thereto successors in trust, as
to an undivided 12.500% interest and James R. Miller and Jonelle K. Miller, Trustees of the Miller Family 2010 Revocable
Trust, as to an undivided 12.500% interest and James C. Yates, Surviving Trustee of the James C. Yates and Mary J. Yates
2005 Revocable Trust DTD 09/26/05, as to an undivided 12.500% interest ("Beneficiary").
Assignment of Rents and Profits
(a) Present Assignment. All of Trustor's interest in any Ieases or other occupancy agreements pertaining to the property now
existing or hereafter entered into, and all of the rents, royalties, issues, profits, revenue, income and other benefits of the Property
arising from the use of enjoyment of all or any portion thereof or from any lease or agreement pertainmg to occupancy of any portion
of the Property now existing or hereafter entered into whether now due, past due, or to become due, and mcluding all prepaid rents and
security deposits (the `Rents and Profits"), are hereby absolutely, presently and unconditionally assigned transferred and conveyed to
Beneficiary to be applied to Beneficiary in payment of the principal and interest and all other sums payable on the Note and under this
Deed of Trust subject to the rights of residential tenants under California Civil Code Section 1950.5(d). Beneficiary waives the right
to exercise the rights and powers assigned to Beneficiary herein and agrees not to revoke such waiver until and unless an event of
acceleration (as set forth m Section 18 of the Deed of Trust) occurs. It is understood and agreed that neither the foregoing assignment
of Rents and Profits to Beneficiary nor the exercise by Beneficiary of any of its rights or remedies hereunder shall be deemed to make
Beneficiary a "mortgagee -in -possession or otherwise responsible or liable in any manner with respect to the Property or the use,
occupancy, enjoyment or operation of all or any portion thereof, unless and until Beneficiary, in person or by agent, assumes actual
possession thereof. Nor shall appointment of a receiver for the Property by any court at the request of Beneficiary or by agreement
with Trustor, or the entering into possession of the Property or any part thereof by such receiver, be deemed to make Beneficiary a
"mortgagee -in -possession' or otherwise responsible or liable in any manner with respect to the Property. Upon the occurrence of any
event of default, this shall constitute a direction to and full authority to each lessee under any lease to pay all Rents and Profits to
Beneficiary without proof of the default. Truster hereby irrevocably authorizes each lessee to rely on and compy with any notice or
demand by Beneficiary for the payment to Beneficiary of any Rents and Profits due or to become due.
(b) Application of Rents. Trustor shall apply the Rents and Profits to the payment of all necessary and reasonable operating
costs and expenses of the Property, and debt service on the indebtedness secured hereby, before using the Rents and Profits for
Trustor's personal use or any other purpose not for the direct benefit of the Property.
(c) Notice to Tenants. Trustor shall at all times perform the obligations of lessor under all such leasees. Trustor shall at any
time or from time to time, upon request of Beneficiary, transfer and assign to Beneficiary m such form as may be satisfactory to
Beneficiary, Trustor's interest in any lease, subject to and upon the condition, however, that prior to the occurrence of any event of
default hereunder Truster shall have a license to collect and receive all Rents and Profits under such lease upon accrual, but not prior
thereto, as set forth in paragraph (a) above. Whenever requested by Beneficiary Trustor shall furnish to Beneficiary a certificate of
Trustor setting forth the names of all lessees under any leases, the terms of their respective leases the space occupied, the rents
payable thereeunder, and the dates through which any and all rents have been paid.
(d) Attornment. Each lease for any part of the Property shall make provision for the attornment of the lessee thereunder to any
person succeeding to the interest of Trustor as the result of any foreclosure or transfer in lieu of foreclosure hereunder.
(e) Direct Creditor. Beneficiary shall be deemed to be the creditor of each lessee in respect of any assignments for the benefit
of creditors and any bankruptcy, arrangement, reorganization, insolvency, dissolution, receivership or other debtor -relief proceedings
affecting such lessee (without obligation on the part of Beneficiary, however, to file timely claims in such proceedings or otherwise
pursue creditor's rights therein). Beneficiary shall have the right to assign Trustor's right, title and interest in any Ieases•to any
subsequent holder of this Deed of Trust or any participating interest therein or to any person acquiring title to all or any part of the
Property through foreclosure or otherwise Any subsequent assignee shall have all the rights and powers herein provided to
Beneficiary. Beneficiary shall have the authority, as Trustor's attomey-in-fact such authority being coupled with an mterest and
irrevocable, to sign the name of Trustor and to bind Trustor on all papers and documents relating to the operation, leasing and
maintenance of the Property.
Signature to follow on next page.
Applied Business Sottware, Inc. (800) 833.3343 22-5041/MMBS, LLC
Assignment of Rents Rider to Deed of Trust OLD Page 1 of 2
IN WITNESS WHEREOF, BORROWER HAS EXECUTED THIS ADDENDUM TO DEED OF TRUST
ted 6;1311ity Company
Ro rt J.S. Fowler, er, Managing
M mber
•
Date Borrower Date
A notary public or other officer completing this certificate verifies
only the identity of the individual who signed the document to
which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF }SS.
•
On before me ,Notary Public,
personally appeared who proved to me on the basis of satisfactory evidence to be
the person(s) whose name(s) is/are subscribed to the withm instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
(Notary Stamp or Seal)
WITNESS my hand and official seal
Notary Signature
Applied Business Software, Inc. (800) 833-3343 225041/MMBS. LLC
Assignment of Rents Rider to Deed of Trust - OLD Page 2 of 2
IN WITNESS WHEREOF, BORROWER HAS EXECUTED THIS ADDENDUM TO DEED OF TRUST
ility Company
Bbrrower Ro rt J.S. Fowler, Managing
M mber
Date
•
Borrower
A notary public or other officer completing this certificate verifies
only the identity of the individual who signed the document to
which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF S14N wfs 06 (sPD }ss.
Date
On 4-27-- %7�Z before me L-.N . g6Z 1i 4-AJP ,Notary Public,
nn� r- •
personally appeared i� >°v+ J. S, FoAeiQ who proved to me on the basis of satisfactory evidence to be
the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
SS hand and ifficial seal
1
Notary Signature
(Notary Stamp or Seal)
L. A. BERTRAND
Notary Public - California
San Luis Obispo County
Commission # 2371626
My Comm. Expires Sep 16, 2025
Applied Business Software, Inc (800) 833-3343 225041/MMBS, LLC
Assignment of Rents Rider to Deed of Trust - OLD Page 2 of 2
BA1T i 4 4 N PAYMENT DISCLOSURE
Notice: Read Before Signing Your Loan Documents
Loan No. 22 5O41
TES BALLOON PAYMENT DISCLOSURE is made this c.Sta. day of April 202, and is incorporated into and shall be deemed to
amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the
undersigned IMEMBS, LLC, a California Limited Liability Company ("Borrower") to secure Borrower's Note (the "Note") to
Provident Trust Group, FEt John A Turnbull' Jr. SE? IRA , as to On undivided 33.333% interest and James D. Winegardner
and Donna Winegardu er (and their successors an to si)9 Trustees of the Wineganker Living Trust dated October 69 20049
as to an undivided 29J67% interest and. Benjamin William Dcigadi to and Lydia DeBgadlilio, Tirustees or Successors in trust
under the Delgadillo Family Trust dated March 8, 21116 and any amendments them() successors in trust, as to an undivided
12.500% ur:terest and James R. Miller and Jonellhle K. Miller, Trustees of the Waller 2O10 Revoeable Trust, as to an
undivided 12.5Ot?% interest and James Ca Yates, Surviving Trustee of the James (a 'Yates and Mary at 'Yates 2O(5 Revocable
Trust TD 09/26/05, as to am undivided 12.5 60% interest ("the Lender") of the same date and covering the property described in
the Security instrument and located at:
1215 Ea ubarcadero9 Lease site 124-128fi 24 28 J and 113W Morro- Bzy CA 93442 [Property A.ddress3
ADDITIONAL COVENANTS. In addition to the covenants and agreements in the Security Instrument, Borrower and Lender
further covenant and agree as follows (despite anything to the contrary contained An the Security Instrument or the Note):
THIS LOAN IS PAYABLE IN FULL AT MATIJIITYP YOU MUST REPAY THE IENTER.E PBUNC P'AL BALANCE
OF 'DIE LOAN AND UN.PAID TNTEREST THEN DUE. THE LENDER IS BANDER NO OBLIGATION TO REFINANCE
TIDE L AN t AT I T TIME. YOU "WELL, T E '{ . $RE9 BE REQU IIR lei TO MAKE PAYMENT OUT 07 OTHER
ASSETS THAT YOU MAY OWN, OR b oU WILL HAVE TO FIND A LENDER, WHICH MAY ILE THE LEN IER
YOU HAVE THIS LOAN WT-II, WILLING T t 1147,193 YOU T1FW MONEY. IF YOU REFlltiANCE TWS LOAN AT
MATU a ITY, YOU MAY HAVE TO ?AY SONOR ALL OF THE CLOSING. COSTS O MMJLY ASSOCIATE])
WITH A NEW I, PAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME LENDER
This loan provides for monthly payments of: (check one)
RI Interest Only El Fully Amortized C Other in the amount of 58,25C.62 each.
Assuming that all of e monthly payments have been paid exactly on tae date that each is due, a final balloon payment of the
then outstanding principall balance plus all earned interest remaining unpaid estimated to be in the amount of S1,208,250S0 shall
become due and payable on 05/M/2026 the "Maturity Date".
DO NOT SIGN ANY LOAN DOCUMENTS IF YOU HAVE ANY QUESTIONS k in UT YOUR LOAN P A YMENTS. Unless
otherwise expressly disclosed in the Note, or in an Addendum or a Rider to the Note, THE LEND. ? IN TIMIS TRANSACTION INS
U NWflR Nt OBLIGATION TO REFINANCE THE OUTSTANDING PRINCIPAL BALANCE OF MIS LOAN DUE ON
_HE MATURITY DATE. You may be required to payoff tile entire principal balance, plus any unpaid interest due thereon, on the
Maturity Date using personal assets_ If this Lender, or any other Lender, agrees to refinance the outstanding balance due on the
Maturity Date, you may be required to pay the then prevailing interest rate, which may 'be higher or lower than the interest rate
specified in the Note, plus loan origination costs and fees as are typically incurred when creating a new loan.
ALL BORROWERS MUST SIGN AND DATE
I "e hereby acknowledge receipt of the above notice concerning the balloon payment provisions of this loan. IfWe further
acknowledge that these provisions have also been orally explained to me/us.
BY SIG ► .y t , B ;;� ,� er ac is and agrees to the terms and covenants contained in this Balloon Rider,
fl21 r a LLc, ►aiif ompany
P
Borrower Robert J;j. Fowler, Managh ig
Rtieu�rf,
Date Borrower Date
Applied Business Software, inc. (800) 833-3343 22-60411MMDS, i_LC
DTLS Balloon Rider
Page 1 of 1
NOTE SECURED BY A DEED OF TRUST
Loan Number: 22-5041
Date: 04/15/2022 San Diego, California
1215 Embarcadero, Lease site 124W-127W, Ptn 128 & 128W Morro Bay CA 93442
Property Address
1. BORROWER'S PROMISE TO PAY
In return for a loan that I have received, I promise to pay U.S. $1,200,000 00 (this amount will be called "principal"), plus interest,
to the order of See attached `Lender Identzfication" (who will be called "Lender"). I understand that the Lender may transfer this Note.
The Lender or anyone else who takes this Note by transfer and who is entitled to receive payments under this Note will be called the
Note Holder(s)."
2. INTEREST
I will pay interest at a yearly rate as described in paragraph 3 below.
Interest commences on the date of funding, estimated to be 04/28/2022, and, if paragraph 3 reflects more than one interest rate
during the loan term, the rate will change on the date which is one (1) calendar month before each Payment Start Date
Interest will be charged on unpaid principal until the full amount of principal has been paid Interest shall be computed based on a
360- day year and the actual number of days elapsed. Interest computed based on a 360- day year is greater than interest computed based
on a 365- day year.
Interest will be charged on unpaid principal until the full amount of principal has been paid.
I also agree to pay interest at the rate described in paragraph 3 below on the prepaid finance charges which are a part of the principal.
3. PAYMENTS
My payments are Q Interest Only 0 Fully Amortized 0 Other
I will make my payments each month as follows:
Number
Payments
of
Payment
Start
Dates
Interest
Payment
Rates
Amounts
47
Monthly
beginning June
8.25%
$8,250.00
1, 2022
1
May
1, 2026
8.25%
$1,208,250.00
I will make these payments until I have paid all of the principal and interest and any other charges that I may owe under this Note.
If on 05/01/2026 (the Due Date) I still owe amounts under this Note (balloon balance), I will pay all those amounts, in full, on that date.
I will make my payments payable to Del Toro Loan Servicing Inc., PO Box 211000 Chula Vista CA 91921, or at a different
place if I am notified by the Note Holder or the Agent for the Note Holder.
4. BORROWER'S FAILURE TO PAY AS REQUIRED
(A) Late Charge For Overdue Payments. If I do not pay the full amount of each payment by the end of 10 calendar days after
the date it is due I will pay a late charge to the Note Holder. The amount of the charge will be 10.000% of my overdue payment or U.S.
, whichever is more. I will pay this late charge only once on any late payment.
If I do not pay the full amount of each monthly payment due under this Note by the date stated in section 3 above, I will be in
default and the Note Holder may demand that I pay immediately all amounts that I owe under this Note.
Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note
Holder will still have the right to do so if I am in default at a later time.
Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note
Holder will still have the right to do so if I am in default at a later time In the event a balloon payment is delinquent more than 10 days
after the date it is due I agree to pay a late charge in an amount equal to the maximum late charge that could have been assessed with
respect to the largest single monthly installment previously due, other than the balloon payment, multiplied by the sum of one plus the
number of months occumng since the late payment charge began to accrue.
(B) Default Interest. Upon the occurrence of an Event of Default, either by formal notice or filing of a Notice of Default, the
entire balance of principal, together with all accrued interest thereon, shall, at the option of Lender, without demand or notice,
immediately become due and payable Upon the occurrence of an Event of Default as described herein (and for a period of no less than
6 months after such Event of Default may be remedied), the interest rate applied to the entire balance of principal, together with all
accrued interest thereon, shall increase above the Note rate by 1.75% (the "Default Rate"). No delay or omission on the part of Lender
in exercising any right under this Note or under any of the Loan Documents shall operate as a waiver of such right.
The occurrence of (but not limited to) any of the following shall be deemed to be an event of default ("Event of Default") hereunder:
a. Default in the payment of principal or interest when due pursuant to the terms hereof; or
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
NOTE SECURED BY A DEED OF TRUST Page 1 of 5
b. The occurrence of an Event of Default under the Deed of Trust or other agreement (including any amendment,
modification or extension thereof) now or hereafter evidencing or secunng this Note (all such documents, together
with this Note, constituting the "Loan Documents").
A violation of any Deed of Trust or other agreement (including any amendment, modification or extension thereof) now or hereafter
evidencing or securing ANY Note (all such documents, together with this Note, constituting the "Loan Documents") on ANY property
secured by this Lender
Default interest at lender's discretion, may be enforced in addition to other Default penalties, including but not limited to Late
Fees as mentioned above.
(C) Payment of Note Holder s Costs and Expenses. If the Note Holder has required me to pay immediately in full as described
above, the Note Holder will have the right to be paid back for all its costs and expenses to the extent not prohibited by applicable law
Those expenses include, for example, reasonable attorney's fees A default upon any interest of any Note Holder shall be a default upon
all interests.
(D) Compounding Interest THE FOLLOWING PROVISIONS MAY RESULT IN THE COMPOUNDING OF
INTEREST ON YOUR LOAN. At the option of the Beneficiary, if any payment should be insufficient to pay the interest then due,
the balance of interest remaining shall be added to principal and will bear interest at the Note rate as the principal. At the option of the
Beneficiary, if any principal and/or interest installments, late charges advances and/or costs should be repaid through or by any
forbearance, bankruptcy plan or similar repayment plan or foreclosure, the total sum of these amounts will bear interest at the Note
rate from the date due or advanced until the date repaid.
5. BORROWER S PAYMENTS BEFORE THEY ARE DUE - PREPAYMENT PENALTIES
I have the right to make payments of principal at any time before they are due A payment of principal only is known as
"prepayment " If I pay all or part of the loan principal before it is due, whether such payment is made voluntarily or involuntarily, I
agree to pay a prepayment penalty computed as follows: Option to repay up to $200,000.00 within 0-90 days without penalty and
the remaining $1,000,000.00 would have a 6 month prepayment penalty, before the entire loan could be paid in full
6. PARTIAL PAYMENT/PREPAYMENT
If Lender at any time receives or accepts payment from or for the account of Borrower of less than the full amount when due on
this Note, such receipt or acceptance shall unless Lender expressly agrees otherwise in writing be deemed a payment on account only,
and shall not cure any default existing by reason of failure to pay the full amount when due, nor preclude the exercise of any remedy of
Lender including, but not limited to, acceleration of any un-matured portion hereof, or foreclosure on any security. In the case of a
Partial Payment or Prepayment, no changes in the due date or amount of each monthly interest and or principal payment will be made
unless Lender agrees in writing to those changes.
7. BORROWER'S WAIVERS
I waive my rights to require the Note Holder to do certain things. Those things are: (a) to demand payment of amounts due (known
as "presentment"); (b) to give notice that amounts due have not been paid (known as "notice of dishonor' ); (c) to obtain an official
certification of nonpayment (known as "protest") Anyone else who agrees to keep the promises made in this Note, or who agrees to
make payments to the Note Holder if I fail to keep my promises under this Note, or who signs this Note to transfer it to someone else,
also waives these nghts. These persons are known as "guarantors, sureties and endorsers."
8. RESPONSIBILITIES OF PERSONS UNDER THIS NOTE
If more than one person signs this Note, each of us is fully and personally obligated to keep all of the promises made in this Note,
including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to
do these things. Any person who takes over these obligations, including the obligations of the guarantor, surety, or endorser of this Note,
is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each
person individually or against all of us together. This means that anyone of us may be required to pay all of the amounts owed under
this Note.
9. THIS NOTE IS SECURED BY A DEED OF TRUST
In addition to the protection given to the Note Holder under this Note a Deed of Trust (the "Security Instrument") with a Due -on -
Transfer Clause dated the same date of this Note, protects the Note Holder from possible losses which might result if I do not keep the
promises which I make in the Note. That Security Instrument describes how and under what conditions I may be required to make
immediate payment in full of all amounts that I owe under this Note.
Some of those conditions are described as follows:
`Lender's Right to Require The Loan to be Paid Off Immediately. If the borrower shall sell, enter into a contract of sale, lease
for a term of more than 6-years (including options to renew), lease with an option to purchase for any term, or transfer all or
any part of the Property or an interest therein, excluding (a) the creation of a lien or encumbrance subordinate to this Deed of
Trust, (b) or a transfer by devise, descent, or by operation of law upon the death of a joint tenant, the Lender may, at its option
declare the Note and any other obligations secured by this Deed of Trust, together with accrued interest thereon, immediately
due and payable, in full. No waiver of the Lender's right to accelerate shall be effective unless it is in writing."
10 ADDITIONAL EXPENSES INCURRED OR FEES CHARGED BY SERVICING AGENT
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
NOTE SECURED BY A DEED OF TRUST Page 2 of 5
Unless otherwise specified, ordinary costs associated with servicing your loan will be paid by lender. Any increase due to borrower's
failure to pay, adverse actions by borrower or any extraordinary circumstances may be billed to borrower and accrue at current note
rate. Fees associated with the payoff and closing of this loan, including but not limited to Demand Fees, Reconveyance Fees and
Closing Fees are deferred fees owed by borrower, that may or may not be billed by Lender, Broker or Servicing Agent, and are not
calculated into your loan s APR. A complete list of services and fees provided by Servicing Agent, are available at borrower's
request.
11. WAIVER
Borrower, endorsers, and all other persons liable or to become liable of this Note waive, diligence, presentment, protest and demand,
and also notice of protest, demand, nonpayment, dishonor and maturity and consents to any extension of the time or terms of payment
hereof, any and all renewals or extensions of the terms hereof, any release of all or any part of the security given for this Promissory
Note, any acceptance of additional security of any kind and any release of any party liable under this Promissory Note Any such
renewals or extensions may be made without notice to Borrower.
12 IN THE EVENT OF ANY ACTION OR SUIT TO ENFORCE OR INTERPRET THE TERMS OF THIS NOTE
In the event of any action or suit to enforce or interpret the terms of this Note, the prevailing party shall be entitled to recover such sum
as the court may adjudge reasonable as attorney fees at trial or any appeal. Whether or not any court action is involved, all reasonable
expenses incurred by the Note Holder or Servicing Agent ( `Parties"), which in either parry's opinion are necessary at the time for the
protection of its interest or the enforcement of its rights, shall become a part of the indebtedness payable on demand and shall bear
interest at the Note rate from the date of expenditure until repaid Expenses covered by this paragraph include, without limitation,
however subject to any limits under applicable law, Party's attorney fees, for bankruptcy proceedings (including efforts to modify or
vacate any other automatic stay or injunction) appeals and any anticipated post judgement collection services, the cost of searching
records, obtaining title reports (including foreclosure reports, surveyor's reports, appraisal fees, title insurance, and fees for the trustee)
to the extent permitted by applicable law. The fees and expenses are secured by the Deed of Trust and recoverable from the property. In
addition, I will be responsible for all Attorney fees and costs in connection with preparing and, or reviewing all loan documentation in
connection with this loan.
13. CORRESPONDENCE
Any correspondence or notices to Note Holder shall be addressed to:
Del Toro Loan Servicing, Inc., PO Box 211000 Chula Vista CA 91921
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Applied Business Software, Inc. (800) 833-3343
NOTE SECURED BY A DEED OF TRUST
Date Borrower Date
22-5041/MMBS, LLC
Page 3 of 5
Date:
ASSIGNMENT OF NOTE
SECURED BY A DEED OF TRUST
FOR VALUE RECEIVED, the undersigned hereby grants, assigns and transfers to:
all beneficial interest under the within Note, without recourse, and Deed of Trust securing same
DO NOT DES 1'ROY THIS NOTE: When paid it must be surrendered to the Trustee, together with the Deed of Trust securing same
for cancellation, before reconveyance will be made.
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
NOTE SECURED BY A DEED OF TRUST Page 4 of 5
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
LENDER IDENTIFICATION
Loan Number: 22-5041
Borrowers: MMBS, LLC
Beneficiary Names) and Vesting
Loan Funds
Deposited
Beneficial Interest
Date Funds Deposited
Provident
Provident
undivided
Honolulu
Trust
Trust
33
Group,
Group,
333% interest
Avenue,
FBO
FBO
Suite
John
John
200,
A
A
Montrose,
Turnbull
Turnbull
Jr
Jr.
SEP
SEP
CA
IRA
, as to an
$400,000.00
33.333%
91020
IRA
2609
James
Donna
James
D. Winegardner,
K. Winegardner,
D. Winegardner
in trust)
6, 2004,
Erwin Street,
as
Trustees
Woodland
Trustee
and
an
Trustee
undivided
Donna
of
the
Hills,
K.
Winegardner
CA
91367
(and
Living
their
Trust
dated
$350,000.00
29.167%
successors
October
23201
to
Winegardner
29.167%
interest
Benjamin
Lydia
Benjamin
Successors
2016
undivided
24225
and
Delgadillo,
Nottingham
any
William
William
in
trust
amendments
Delgadillo,
Trustee
Delgadillo
under
Court
interest
the
Valencia
thereto
and
Delgadillo
Trustee
Lydia
successors
CA
91355
Family
Delgadillo,
in
Trust
trust,
Trustees
dated
as
to
an
March
or
8,
$150,000.00
12.50%
12.500%
Revocable
R
R.
K
Moorpark
Miller,
Miller
and
Trustee
Trustee
Jonelle
as
Unit
to
K.
an
Miller,
undivided
Studio
Trustees
12.500%
City,
of
CA
the
interest
91604
Miller
Family
$150,000.00
12.50%
James
Jonelle
James
2010
12633
Miller,
Trust,
Street,
305,
James
James
Yates
12.500%
11448
C
C
2005
interest
Autumn
Yates
Yates
Revocable
Surviving
Glen
Trustee
Court,
Trust
Trustee
Northridge,
DTD
of
09/26/05,
the
CA
James
as
91326
C. Yates
to an undivided
and
Mary
J.
$150,000.00
12.50%
Applied Business Software, Inc. (800) 833-3343
NOTE SECURED BY A DEED OF TRUST
22-5041/MMBS, LLC
Page 5 of 5
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 22-5041
LIMITED POWER OF ATTORNEY AND COMPLIANCE AGREEMENT
AND RELEASE OF INFORMATION
The undersigned Borrower(s), (hereinafter collectively referred to as "Borrower"), in consideration of Lender disbursing loan
proceeds for the purchase or refinance of, or construction of improvements on the aforementioned property agree(s), if requested by
the Lender (including assignees and persons acting on behalf of said Lender) or Settlement Agent to fully cooperate in correcting
clerical errors in all loan closing documentation so that Lender may sell, convey its interest in, seek guaranty of, or market said loan
to other entities.
Additionally Borrower agrees that if a Document is lost, misplaced, misstated, inaccurately reflects the true and correct terms and
conditions of the Loan, or otherwise contain any errors or omissions, Borrower shall upon request by Lender or Settlement Agent
execute, acknowledge, initial, and deliver to Lender any documentation Lender deems necessary to replace or correct the lost,
misplaced, misstated, inaccurate or otherwise missing Document. If Borrower fails or refuses to execute, acknowledge, initial,
and/or deliver the Document to Lender within five (5) days after being requested to do so by Lender, Borrower agrees to indemnify
Lender for any and all loss or damage which Lender sustains by reason of Borrower's failure or refusal to cooperate, includmg but
not limited to attorney's fees and costs incurred by Lender. Borrower also understands and acknowledges that Lender may in its
discretion pursue equitable relief against Borrower for Borrower's failure to cooperate or comply with the terms of this agreement,
and Lender may recover from Borrower its costs, including reasonable attorney's fees, incurred in doing so.
In order to assure that the loan documentation executed this date will conform and be acceptable in the market place in the instance
of transfer, sale, or the conveyance by Lender of its interest in and to the above mentioned property evidenced by said loan
documentation, the undersigned Borrower does hereby agree and covenant as aforesaid herein
IN WITNESS WHEREOF, BORROWER HAS EXECU LED THIS DOCUMENT
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Limited Power of Attorney Page 1 of 2
A notary public or other officer completing this certificate erifies
only the identity of the individual who signed the document to
which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
STA I OF CALIFORNIA
COUNTY OF
}SS.
On before me ,Notary Public,
personally appeared who proved to me on the basis of satisfactory evidence to be
the person(s) whose name(s) is/are subscribed to the withm instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
(Notary Stamp or Seal)
WITNESS my hand and official seal
Notary Signature
Applied Business Software, Inc. (800) 833-3343 22-50411MMBS, LLC
Limited Power of Attorney Page 2 of 2
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 22-5041
OCCUPANCY AND FINANCIAL STATUS AFFIDAVIT
Who upon being duly sworn on oath, certified as follows:
1. Material Inducement: Borrower understands and agrees that the statements contained herein are given
as a material inducement to Lender, and Lender is relying upon such statements to make a mortgage loans
(the "Loan") to Borrower, repayment of which is secured by a Deed of Trust with Assignment of Rents and
Fixture Filing or other instrument of security (the "Security Instrument") on the above referenced Property.
2. Occupancy: [PLEASE INITIAL ONE]
Principal Residence. Borrower either currently occupies and
uses the Property as Borrower's principal residence or Borrower will occupy and use the Property
as Borrower s principal residence within 60 days after Borrower signs the Security Instrument.
Notwithstanding the foregoing, Borrower represents and warrants that the proceeds of the Loan
will be used solely for business, commercial or agricultural purposes and not primarily for
personal, family or household use.
Second Home. Borrower will occupy and will use, the Property as
Borrower's second home. Borrower will keep the Property available for Borrower's exclusive use
and enjoyment at all times, and will not subject the Property to any timesharing or other
shared ownership arrangement or to any rental pool or agreement that requires Borrower either to
rent the property or give a management firm or any other person any control over the occupancy or
use the Property. Notwithstanding the foregoing, Borrower represents and warrants that the
proceeds of the Loan will be used solely for business, commercial or agricultural purposes and not
primarily for personal, family or household use.
Investment. The Property is owned and held by Borrower as an
investment property. Borrower does not now occupy and has no present intention to occupy or use
the Property in the future, either as Borrower's principal residence or second home Borrower
now occupies and uses other property or properties as Borrower's principal residence and/or
second home
3. Financial Status: Borrower understands that Lender is making the loan based upon statement and
representations contained in or made in connection with, the loan application given by Borrower to Lender
(the "Loan Application"). Borrower hereby certifies that the information provided by Borrower contained
m, or made in connection with, the Loan Application related to Borrower's financial status (such as
Borrower's employment, income available cash, debts, expenses, credit obligations, and the like), has
not changed significantly and that the such information accurately reflects Borrower's current financial
status Borrower certifies further that Borrower has not received a layoff notice or otherwise have
knowledge of a pending layoff, and Borrower, to the best of Borrower's knowledge and belief, is unaware
of any events or circumstances in the foreseeable future that would impair or have an adverse
effect on Borrower's ability to fulfill Borrower's Loan obligations including but not limited to
Borrower's obligation to make required periodic payments. Borrower's ability to fulfill Borrower s Loan
obligations, including but not limited to Borrower's obligation to make required periodic payments.
4. False, Misleading or Inaccurate Statements: Borrower understands that Borrower will be in default under the terms of
the Security Instrument if, during the application process for the Loan Borrower or any persons or entities acting at the
direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading or inaccurate
information or statements to Lender (or failed to provide Lender with material information) in connection with the
Loan, including but not limited to, representations concerning Borrower's occupancy of the Property and Borrower's
financial status. Borrower understands further that any intentional or negligent misrepresentation (s) of the information
contained in, or made in connection with, the Loan Application may result in severe civil and/or criminal penalties,
including, but not limited to fine or imprisonment or both under the provisions of Title 18, United States Code, Section
1001, et seq and liability for monetary damages to the Lender its agents, successors and assigns, insurers and any other
person who may suffer any loss due to reliance upon any misrepresentation (s) which Borrower has made on or in
connection with the Loan Application.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
This Document was prepared by:
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached, and not the truthfulness,accuracy, or
validity of that document.
STA1'r, OF CALIFORNIA
COUNTY OF
On before me
}SS.
,Notary Public,
Date
personally appeared who proved to me on the basis of satisfactory evidence to be
the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
(Notary Stamp or Seal)
WITNESS my hand and official seal
Notary Signature
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Occupancy and Financial Status Affidavit Page 2 of 2
STATE OF CALIFORNIA
DEPARTMENT OF REAL ESTATE
Serving Californians Since 1917
MORTGAGE LOAN DISCLOSURE STATEMENT/GOOD FAITH ESTIMATE
NONTRADITIONAL MORTGAGE PRODUCT (ONE TO FOUR RESIDENTIAL UNITS)
RE 885 (REV. 8/08)
Borrower's Name(s): MMBS, LLC
Real Property Collateral: The intended security for this proposed loan will be a Deed of Trust on (street address or legal description):
1215 Embarcadero, Lease site 124W-127W, Ptn 128 & 128W Morro Bay CA 93442
This joint Mortgage Loan Disclosure Statement/Good Faith Estimate is being provided by , a real estate broker acting as a mortgage broker, pursuant to the Federal
Real Estate Settlement Procedures Act (RESPA) and similar California law. In a transaction subject to RESPA, a lender will provide you with an additional Good Faith
Estimate within three business days of the receipt of your loan application. You will also be informed of material changes before settlement/close of escrow. The name
of the intended lender to whom your loan application will be delivered is:
DUnknown Q Provident Trust Group, FBO John A Turnbull Jr. SEP IRA (Name oflender, if known)
GOOD FAITH ESTIMATE OF CLOSING COSTS
The information provided below reflects estimates of the charges you are likely to incur at the settlement of your loan. The fees, commissions, costs and expenses listed
are estimates; the actual charges may be more or less Your transaction may not involve a charge for every item listed and any additional items charged will be listed.
The numbers listed beside the estimate generally correspond to the numbered lines contained in the HUD-1 Settlement Statement which you will receive at settlement if
this transaction is subject to RESPA. The HUD-1 Settlement Statement contains the actual costs for the items paid at settlement. When this transaction is subject to
RESPA, by signing page two of this form you are also acknowledging receipt of the HUD Guide to Settlement Costs.
HUD-1
800
801
802
803
804
805
808
809
810
811
812
813
900
901
902
903
904
905
906
1000
1001
1002
1004
1005
Item
Items Payable in Connection with Loan
Lender's Loan Origination Fee
Lender's Loan Discount Fee
Appraisal Fee
Credit Report
Lender's Inspection Fee
Mortgage Broker Commission/Fee
Tax Service Fee
Processing Fee
Underwriting Fee
Wire Transfer Fee
<See Addendum Attached>
Items Required by Lender to be Paid in Advance
Interest for 3 days at $275.00 per day
Mortgage Insurance Premiums
Hazard Insurance Premiums
County Property Taxes
VA Funding Fee
Prepaid Payments
Reserves Deposited with Lender
Hazard Insurance:
Mortgage Insurance: months at /month
Co. Property Taxes: months at /month
months at /month
1100 Title Chases
1101 Settlement or Closing/Escrow Fee
1105 Document Preparation Fee
1106 Notary Fee
1108 Title Insurance
1109 <See Addendum Attached>
1200
1201
1202
1203
1300
1302
1303
Government Recording and Transfer Charges
Recording Fees
City/County Tax/Stamps
State tar/stamps
Additional Settlement Charges
Pest Inspection
Beneficiary statement fees
Subtotal of Initial Fees, Commissions, Costs and Expenses:
Total of Initial Fees, Commissions, Costs and Expenses
Compensation to Broker (Not Paid Out of Loan Proceeds):
Mortgage Broker Commission/Fee
Any Additional Compensation from Lender
(Approximate Yield Spread Premium or Other Rebate)
C�1 No ■ Yes
Paid to Others Paid to Broker
$0.00
$625.00
$995.00
$90.00
$850.00
$825.00
$1,751.08
$1,207.83
$0.00
$0.00
$0.00
$0.00
$1,000.00
$200.00
$1,552.00
$715.00
$396.00
$10,206.91
$22,500.00
$0.00
$0.00
$22,500.00
$32,706.91
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
MLDS RE 885 Page 1 of 5
ADDITIONAL REQUIRED CALIFORNIA DISCLOSURES
I. Proposed Loan Amount:
Initial Commissions, Fees, Costs & Expenses Summarized on Page 1
Payment of Other Obligations (List):
Credit Life and/or Disability Insurance (see V below)
Discharge of existing liens
Subtotals of All Deductions:
Estimated Cash at Closing El To You
II Proposed Loan Term: 48 ■ Years 21Months
$1,200,000.00
$32,706.91
$0.00
$0.00
$32,706.91
❑ That you must pay $1,167,293 09
III. Proposed Interest Rate: 8.250 % L(Fixed Rate ■ Initial Adjustable Rate
If the Fixed Rate Box is checked in Section III immediately above, proceed to section X. Do not complete sections IV through IX.
IV. Initial Adjustable Rate in effect for N/A Months
V. Fully Indexed Interest Rate N/A %
VI. Maximum Interest Rate N/A %
VII Proposed Initial (Minimum) Loan Payment $ N/A Monthly
VIII. Interest Rate can Increase N/A % each N/A Months
IX. Payment Options end after N/A Months or N/A % of Original Balance, whichever comes first.
X. After N/A months you will not have the option to make minimum or interest only payments and negative amortization (increases in your principal balance), if
any, will no longer be allowed. Assuming you have made minimum payments, you may then have to make principal and interest payments of N/A at the
maximum interest rate in effect for the remaining N/A months of the loan. These payments will be signfcantly higher than the minimum or interest only
payments.
XI If your loan contains negative amortization, at the time no additional negative amortization will accrue, your loan balance will be N/A assuming minimum
payments are made.
XII. The loan is subject to a balloon payment. 0 No E1 Yes. If Yes, the following paragraph applies and a final balloon payment of$1,208,250.00 will be due on
5/1/2026 [estimated date (day/month/year)]
NOTICE TO BORROWER: IF YOU DO NOT HAVE THE FUNDS TO PAY THE BALLOON PAYMENT WHEN IT COMES DUE, YOU MAY HAVE TO
OBTAIN A NEW LOAN AGAINST YOUR PROPERTY TO MAKE THE BALLOON PAYMENT. IN THAT CASE, YOU MAY AGAIN HAVE TO PAY
COMMISSIONS, FEES AND EXPENSES FOR THE ARRANGING OF THE NEW LOAN. IN ADDITION, IF YOU ARE UNABLE TO MAKE THE
MONTHLY PAYMENTS OR THE BALLOON PAYMENT, YOU MAY LOSE THE PROPERTY AND ALL OF YOUR EQUITY 17iROUGH
FORECLOSURE. KEEP THLS IN MIND IN DECIDING UPON THE AMOUNT AND TERMS OF THIS LOAN.
XIII. Prepayments: The proposed loan has the following prepayment provisions:
❑ No prepayment penalty (you will not be charged a penalty to pay off or refinance the loan before maturity)
❑ You will have to pay a prepayment penalty if the loan is paid off or refinanced in the first years Any prepayment of principal in excess of 20% of the
original loan balance or
0 unpaid balance
for the firstyears will include a penalty not to exceed months interest at the note interest rate but not more than the interest you would be charged if the loan
were paid to maturity.
E1 Other —you will have to pay a prepayment penalty if the loan is paid off or refinanced as follows:
Option to repay up to $200 000.00 within 0-90 days withoutpenalty and the remaining $1 000 000.00 would have a 6 month prepayment penalty, before the
entire loan could bepaid in full. The prepayment penalty could be as much as $200,000 00.
XIV. Taxes and Insurance:
❑ There will be an impound (escrow) account which will collect approximately 0 a month in addition to your principal and interest payments for the payment of
county property taxes* ❑ hazard insurance 0 mortgage insurance 0 flood insurance 0 other .
Q If there is no impound (escrow) account or if your escrow (impound) account does not include one or more of the payments described above, you will have to
plan for the payment of Q county property taxes** Q hazard insurance • mortgage insurance El flood insurance
❑ other of approximately per year.
* In a purchase transaction, county property taxes are calculated based on the sales price of the property and may require the payment of an additional
(supplemental) tax bill from the county tax authority by your lender (if escrowed) or you if not escrowed.
XV. Credit Life and/or Disability Insurance: The purchase of credit life and/or disability insurance by a borrower is NOT required as a condition of making this
proposed loan.
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
MLDS RE 885 Page 2 of 5
XVI. Other Liens: Are there liens currently on this property for which the borrower is obligated? No ❑Yes. If Yes, describe below:
Lienholder's Name
Amount Owing
Priority
Liens that will remain or are anticipated on this property after the proposed loan for which you are applying is made or arranged (including the proposed than for
which you are aoplyina):
Lienholder's Name -
Provident Trust Group, FBO John A Turnbull Jr. SEP IRA
Amount Owing
$1,200,000.00
Priority
1st
NOTICE TO BORROWER: Be sure that you state the amount of all liens as accurately as possible. If you contract with the broker to arrange this loan, but it
cannot be arranged because you did not state these Liens correctly, you may be liable to pay commissions, fees and expenses even though you do not obtain the
loan.
XVII Article 7 Compliance: If this proposed loan is secured by a first deed of trust in a principal amount of less than $30,000 or secured by ajunior lien in a principal
amount of less than $20,000, the undersigned licensee certifies that the loan will be made in compliance with Article 7 of Chapter 3 of the Real Estate Law.
A. This loan 0 may ■ will Q will not be made wholly or in part from broker -controlled funds as defined in Section 10241(1) of the Business and
Professions Code.
B. If the broker indicates in the above statement that the loan "may" be made out of broker -controlled funds, the broker must inform the borrower prior to the
close of escrow if the funds to be received by the borrower are in fact broker -controlled funds.
XVIII. This loan is based on limited or no documentation of your income and/or assets and may have a higher interest rate, or more points or fees than other products
requiring documentation: 0 No Q Yes.
NOTICE TO BROKER
If any of the columns in section XIX, Comparison of Sample Mortgage Features, on page 4 of this RE 885 form, are not completed, you must certify to the
following:
CER 11Y ICATION
I, hereby certify (or declare) that the failure to complete the information in any or all of the columns (with the
exception of the last column "Proposed Loan" in the Typical Mortgage Transactions portion of this RE 885) is either because (1) after a diligent search, I have
determined that the product specified in that column is not available to consumers from mortgage lenders, or (2) the borrower to whom this form applies does not
qualify for that particular product.
I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Signature of Broker Date
Applied Business Software, Inc. (800) 833-3343 22-5041(MMBS, LLC
WILDS RE 885 Page 3 of 5
XIX Comparison of Sample Mortgage Features (One to Four Residential Units)
TYPICAL MORTGAGE TRANSACTIONS
PROPOSED
LOAN AMOUNT
$1,200,000.00
4-YEAR TERM
Payment Scenarios
Principal
and
Interest
Interest
Only
5/1
ARM
Interest Only
Option Payment
Proposed
Loan
Type of Loan:
Interest Only
Fully Amortizing
Fully
Amortizing
Offered*
Fully Amortizing
E1 Not Offered*
Fully Amortizing
Fully
Amortizing
Offered*
Type of
Amortization:
Interest Only
Er Not
El Not Offered*
El Not
El Not Offered*
Fixed Rate
(%)
Fixed Rate
0Each
Interest Only for First
5 Years
Fixed Rate for
Years; Adjustable
Year After
5 Years
(Initial rate
is ; Maximum
First 5
First
for 1 to 5
Rate is)
Interest Only
Fixed Rate
years; Adjustable
Rate Each Year
First 5
(Initial rate
is ; Maximum
off)
and
for First 5
After
Years
for 1 to 5
Rate is
Adjustable Rate for
Entire Term of the
Mortgage (Rate in
month 1 is ; Rate in
month 2 through year
5 is ; Maximum Rate
is )
Explanation of
Type of Proposed
Loan Product:
Minimum Monthly
Payment Years 1-5
except as noted
$25,000.00**
$0.00
$25,000.00
$0.00
$25,000.00 ****
(Pt year only)
$8,250.00
Monthly Payment
Year 6 with no change
in
***
in rates
Monthly Payment in
Year 6 with a 2% rise
in rates
Minimum Monthly
Payment
$25,000.00
$0.00
$25
000.00
$0.00
$25,000.00
$8,250.00
Your Gross Income
$20,457.75
$20 457.75
$20
457.75
$20,457.75
$20 457.75
$20,457.75
Difference
$-4 542
25
$20,457.75
$-4
542.25
$20,457.75
$-4,542.25
$12,207.75
Maximum Monthly
Payment in Year 6
with a 5% rise in rates
Your Gross Income
$20,457.75
$20,457.75
$20,457.75
$20,457.75
$20,457.75
$20,457.75
Difference
Loan Balance Scenarios
How much will
owed after 5 years?
be
Has the loan balance
been reduced after 5
years of payments?
Yes
The loan balance was
reduced by
No
The loan balance was
not reduced
Yes
The loan balance was
reduced by
No
The loan balance was
not reduced
No
The loan balance
increased by
No
The loan balance:
by
"Not offered' indicates the broker does not offer the comparison loan product.
The information provided for the products not offered was obtained from sources deemed reliable. Q Yes • No
This illustrates an interest rate and payments that are fixed for Life of the loan.
This illustrates payments that are fixed after the first five years of the loan at a higher amount because they include both principal and interest.
This illustrates minimum monthly payments that are based on an interest rate that is in effect during the first month only. The payments required
during the first year will not be sufficient to cover all of the interest that is due when the rate increases in the second month of the loan. Any unpa'd
interest amount will be added to the loan balance. Minimum payments for years 2-5 are based on the higher interest rate in effect at the time, subject
to any contract limits on payment increases. Minimum payments will be recast (recalculated) after 5 years, or when the loan balance reaches a certain
limit to cover both principal and interest at the applicable rate.
IMPORTANT NOTE: Please use this chart to discuss possible loans with Your broker or lender
If a mortgage loan broker licensed by the California Department of Real Estate is acting as your agent in connection with your home loan/mortgage, the agent
owes you certain fiduciary duties, and California statutory law imposes other duties.
XX. NOTICE TO BORROWER THIS IS NOT A LOAN COMMITMENT. Do not sign this statement until you have read and understood all of the information in it.
All parts of the form must be completed before you sign. Borrower hereby acknowledges the receipt of a copy of this statement.
John Arthur Turnbull Jr. 01165847
Name of Broker
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Broker's Address
License #
OR
Broker's Representative License #
Signature of Broker Date Signature of Representative Date
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Department of Real Estate license information telephone number: (916) 227-0931, or check license status at www.dre.ca.gov
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Page 4 of 5
MLDS RE 885
Additional Charges and Disbursements Addendum
HUD Description
813 Doc Prep to Del Toro Loan Servicing, Inc.
1109 Endorsement
1110 eRecording
1111 Misc Fee
Applied Business Software, Inc. (800) 833-3343
MLDS RE 885
Total
Total
Paid to Others
$850_00_
$850.00
$200.00
$15.00
$500.00
$715.00
Paid to Broker
$0.00
$0.00
$0.00
$0.00
$0.00
22-5041/IAMBS, LLC
Page 5 of 5
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 4009-6816873
This disclosure provides information that is contained in our anti -predatory lending policy. The section or sections
where a box is marked are applicable to your transaction. Please read this information carefully. Your signature on
document certifies that you have read and understand the implications of obtaining this loan.
NO INCOME AND/OR ASSETS VERIFICATION LOAN DISCLOSURE
Er You have applied for a mortgage or loan where the lender has not verified your income and/or assets by traditional
verification methods, or where your income and/or assets may not have been disclosed on your loan application.
Our loan approval decision, including our assessment or your ability to repay the loan, was based on your credit history and any
proposed change in your monthly mortgage payment. The source of your income may or may not have been considered. We did not
specifically consider the amount of your monthly income in our decision to approve this loan. The value of your assets may or may
not have been considered In exchange for not having to disclose and/or document your income and/or asset information, you may be
required to pay a higher interest rate on the loan and/or additional fees.
Your initial monthly payment will be $8,250.00
Without verification of your income and/or asset value, it may be difficult to fully assess the additional risk that may be associated
with this mortgage If you cannot afford to make this payment or you fail to meet the other obligations in your loan documents, you
could lose your property, and any money you have put into it.
DO NOT SIGN YOUR LOAN DOCUMENTS IF YOU BELIEVE YOU WILL BE UNABLE TO MEET YOUR PAYMENT
AND OTHER FINANCIAL OBLIGATIONS.
CASH OUT REFINANCE DISCLOSURE
APPLIES ONLY TO A REFINANCE - PLEASE READ CAREFULLY
You have indicated that you are obtaining a loan for purposes of taking cash out which may reduce the equity in your property. This
loan may increase your payments which you may in the future, be unable to pay due to future unforeseen circumstances. While this
new loan may reduce your total monthly payments by paying off other debt with the equity maintained your current debt structure.
Also, if you incur more debt through new installment loans or by using your credit cards, you may find yourself in a worsened
position as now you have a greater mortgage payment and the same or more debt than you had before.
You have the right and Del Toro Loan Servicing encourages you to seek credit counseling before becoming obligated to this
mortgage loan, to help you understand the risks and benefits of the transaction you are contemplating If you are interested in such
counseling, please call the National Foundation for Credit Counseling at (800) 388-2227.
DO NOT TAKE THIS LOAN IF YOU BELIEVE YOU WILL BE UNABLE TO MEET YOUR PAYMENT AND OTHER
FINANCIAL OBLIGATIONS.
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Anti -Predatory Disclosure Page 1 of 2
PREPAYMENT PENALTY DISCLOSURE
Cf Option to repay up to $200,000.00 within 0-90 days without penalty and the
remaining $1,000,000.00 would have a 6 month prepayment penalty, before the
entire loan could be paid in full.
You have applied for a loan. One important aspect of your loan is deciding whether you wish to have a "prepayment penalty" on your
loan. A prepayment penalty is a charge for paying off your loan early or makmg more than the required monthly scheduled payments.
Typically, prepayment penalties can be charged any time between the closing of the loan and 3 years and can cost thousands of dollars
(it is typically a percentage of the amount being paid early) You have the right to select the period of time for which the prepayment
penalty is in force, within the prepayment penalty options presented by the lender for your particular loan program. Some loan
programs may not allow for a prepayment penalty
The charging of the prepayment penalty may be beneficial to you because the lender will typically lower the interest rate of the loan.
Typically, a longer prepayment penalty term will result in a lower interest rate. Prepayment penalties can be costly, depending on the
length of the prepayment penalty and the calculation used.
We encourage you to discuss your prepayment options with your Lender/Broker to determine if a loan with a prepayment penalty
feature makes economic sense for you. YOU SHOULD REQUIRE THAT YOUR LENDER/BROKER PROVIDE YOU RA1''S
AND PERMS WITH AND WITHOUT A PREPAYMENT PENALTY TO MAKE THAT ASSESMENT
If your loan contains a prepayment penalty, there will be an "Addendum to a Fixed Rate, Balloon or Arm Note" as part of your closing
documents.
DO NOT TAKE THIS LOAN IF YOU DO NOT WANT TO BE BOUND BY THE PROVISIONS OF THE PREPAYMENT
PENALTY.
I/We hereby certify that Uwe have read the Disclosures set forth above and fully understand all of the above as provided to us by:
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Anti -Predatory Disclosure Page 2 of 2
ARBITRATION AGREEMENT
MUTUAL AGREEMENT TO ARBITRATE DISPUTES: Borrower has or will obtain a mortgage loan (the "Loan") made or
arranged by the undersigned company (the "Company"). Borrower, Company and any lender making the Loan
(collectively, the "Lender") agree that any Dispute involving the Loan, including, but not limited to claims arising from
the origination, documentation, disclosure servicing, collection or any other aspect of the Loan transaction or the
coverage or enforceability of this Agreement, shall be resolved exclusively by binding arbitration under the terms of this
Agreement. This Agreement shall also be binding on the agents, successors and assigns of the parties and the Loan.
"Dispute" shall include, but not be limited, to:
1. Any claimed wrongdoing, such as misrepresentation, negligence, breach of contract, breach of fiduciary duty,
unconscionability, fraud in the inducement, rescission, breach of the covenant of good faith and fair dealing and unfair
business practices.
2. Any claimed violation of state or federal laws, including, but not limited to consumer credit, truth -in -lending, civil
rights, equal opportunity, real estate settlement, housing discrimination laws, fair lending acts, licensing, loan regulation
and unfair business practices acts.
"Dispute" shall not include:
1. Actions by the lender to judicially or non judicially foreclose on the note and deed of trust (or mortgage) for the Loan,
to enjoin waste, to collect rents, interpleader actions or actions for a receiver, to recover possession, ejectment or relief
from the automatic stay in bankruptcy or to obtain relief through governmental agencies.
2. Actions for provisional remedies such as a temporary restraining order or preliminary injunction or for a permanent
injunction based upon an arbitration award
ARBITRATION OF DISPUTES Arbitration shall be conducted under the rules of the American Arbitration Association
("AAA"). Arbitration shall be filed at the office of the AAA nearest to the real property securing the Loan. Reasonable
discovery shall be pexuntted pursuant to a written discovery plan detenumed by the arbitrator(s). The arbitrator shall be a
retired Judge of the Superior Court, Court of Appeal or Supreme Court with at least ten years of being a Judge The
arbitrator shall only receive evidence which is admissible under California law including, but not limited to the California
Evidence Code. The arbitrator shall only apply the statutory and decisional law of the State of California; and The
arbitrator shall issue a reasoned award based only on evidence which is admissible under California law and which is
based upon the application of the substantive law of the State of California. Each party shall bear their own attorneys fees,
unless a specific claims statute applies. The arbitrator(s) shall render a statement of the reasons for the award Judgment
on the award may be entered in any court of competent jurisdiction
WAIVERS:
THE PARTIES HEREBY FREELY WAIVE THE RIGHT TO TRIAL BY JUDGE OR JURY, THE RIGHT TO
APPEAL, FULL PRETRIAL DISCOVERY AND APPLICATION OF THE RULES OF EVIDENCE.
We have read, fully understand and agree to the above:
BORROWER:
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
COMPANY: John Arthur Turnbull Jr.
Date Borrower Date
By
Title Date
LENDER(S):
Lender Provident Trust Group, FBO John A Turnbull Date Lender Date
Jr. SEP IRA
Applied Business Soft‘ are, Inc. (800) 833-3343
Arbitration Agreement
225041/MMBS, LLC
Page 1 of 1
ARBITRATION AGREEMENT
MUTUAL AGREEMENT TO ARBITRATE DISPUTES: Borrower has or will obtain a mortgage loan (the "Loan") made or
arranged by the undersigned company (the "Company"). Borrower, Company and any lender making the Loan
(collectively, the "Lender") agree that any Dispute involving the Loan, including, but not limited to claims arising from
the origination, documentation, disclosure servicing, collection or any other aspect of the Loan transaction or the
coverage or enforceability of this Agreement, shall be resolved exclusively by binding arbitration under the terms of this
Agreement. This Agreement shall also be binding on the agents, successors and assigns of the parties and the Loan.
"Dispute" shall include, but not be limited, to:
1. Any claimed wrongdoing, such as misrepresentation, negligence, breach of contract, breach of fiduciary duty,
unconscionability, fraud in the inducement, rescission, breach of the covenant of good faith and fair dealing and unfair
business practices.
2. Any claimed violation of state or federal laws, including, but not limited to consumer credit, truth -in -lending, civil
rights, equal opportunity, real estate settlement, housing discrimination laws, fair lending acts, licensing, loan regulation
and unfair business practices acts.
"Dispute" shall not include:
1. Actions by the lender to judicially or non judicially foreclose on the note and deed of trust (or mortgage) for the Loan,
to enjoin waste to collect rents, interpleader actions or actions for a receiver, to recover possession, ejectment or relief
from the automatic stay in bankruptcy or to obtain relief through governmental agencies.
2. Actions for provisional remedies such as a temporary restraining order or preliminary injunction or for a peuuanent
injunction based upon an arbitration award
ARBITRATION OF DISPUTES: Arbitration shall be conducted under the rules of the American Arbitration Association
( `AAA"). Arbitration shall be filed at the office of the AAA nearest to the real property securing the Loan. Reasonable
discovery shall be peiuiitted pursuant to a written discovery plan determined by the arbitrator(s). The arbitrator shall be a
retired Judge of the Superior Court, Court of Appeal or Supreme Court with at least ten years of being a Judge The
arbitrator shall only receive evidence which is admissible under California law including, but not limited to the California
Evidence Code. The arbitrator shall only apply the statutory and decisional law of the State of California, and, The
arbitrator shall issue a reasoned award based only on evidence which is admissible under California law and which is
based upon the application of the substantive law of the State of California. Each party shall bear their own attorneys fees
unless a specific claims statute applies. The arbitrator(s) shall render a statement of the reasons for the award Judgment
on the award may be entered in any court of competent jurisdiction
WAIVERS:
THE PARTIES HEREBY FREELY WAIVE THE RIGHT TO TRIAL BY JUDGE OR JURY, THE RIGHT TO
APPEAL, FULL PRETRIAL DISCOVERY AND APPLICATION OF THE RULES OF EVIDENCE.
We have read, fully understand and agree to the above:
BORROWER:
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
COMPANY: John Arthur Turnbull Jr.
Date Borrower Date
By
Title Date
LENDER(S):
Lender James D. Winegardner, Trustee
Date
Lender Donna K. Winegardner, Trustee Date
Applied Business Software, Inc. (800) 833-3343 225041/MMBS, LLC
Arbitration Agreement Page 1 of 1
ARBITRATION AGREEMENT
MUTUAL AGREEMENT TO ARBITRATE DISPUTES: Borrower has or will obtain a mortgage loan (the "Loan") made or
arranged by the undersigned company (the "Company"). Borrower, Company and any lender making the Loan
(collectively, the "Lender' ) agree that any Dispute involving the Loan, including, but not limited to claims arising from
the origination, documentation, disclosure servicing, collection or any other aspect of the Loan transaction or the
coverage or enforceability of this Agreement, shall be resolved exclusively by binding arbitration under the terms of this
Agreement. This Agreement shall also be binding on the agents, successors and assigns of the parties and the Loan.
"Dispute" shall include, but not be limited, to:
1. Any claimed wrongdoing, such as misrepresentation, negligence, breach of contract, breach of fiduciary duty,
unconscionability, fraud in the inducement, rescission, breach of the covenant of good faith and fair dealing and unfair
business practices.
2. Any claimed violation of state or federal laws, including, but not limited to consumer credit, truth -in -lending, civil
rights, equal opportunity, real estate settlement, housing discrimination laws, fair lending acts, licensing, loan regulation
and unfair business practices acts.
"Dispute" shall not include:
1. Actions by the lender to judicially or non judicially foreclose on the note and deed of trust (or mortgage) for the Loan,
to enjoin waste, to collect rents, interpleader actions or actions for a receiver, to recover possession, ejectment or relief
from the automatic stay in bankruptcy or to obtain relief through governmental agencies.
2. Actions for provisional remedies such as a temporary restraining order or preliminary injunction or for a permanent
injunction based upon an arbitration award
ARBITRATION OF DISPUTES' Arbitration shall be conducted under the rules of the American Arbitration Association
( `AAA") Arbitration shall be filed at the office of the AAA nearest to the real property securing the Loan. Reasonable
discovery shall be permitted pursuant to a written discovery plan determined by the arbitrator(s). The arbitrator shall be a
retired Judge of the Superior Court, Court of Appeal or Supreme Court with at least ten years of being a Judge The
arbitrator shall only receive evidence which is admissible under California law including, but not limited to the California
Evidence Code. The arbitrator shall only apply the statutory and decisional law of the State of California; and, The
arbitrator shall issue a reasoned award based only on evidence which is admissible under California law and which is
based upon the application of the substantive law of the State of California Each party shall bear their own attorneys fees,
unless a specific claims statute applies. The arbitrator(s) shall render a statement of the reasons for the award Judgment
on the award may be entered in any court of competent jurisdiction
WAIVERS:
THE PARTIES HEREBY FREELY WAIVE THE RIGHT TO TRIAL BY JUDGE OR JURY, THE RIGHT TO
APPEAL, FULL PRETRIAL DISCOVERY AND APPLICATION OF THE RULES OF EVIDENCE
We have read, fully understand and agree to the above:
BORROWER:
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
COMPANY: John Arthur Turnbull Jr.
Date Borrower Date
By
Title Date
LENDER(S):
Lender Benjamin William Delgadillo, Trustee Date Lender Date
Lydia Delgadillo, Trustee
Applied Business Software, Inc. (800) 833-3343
Arbitration Agreement
22-5041/MMBS, LLC
Page 1 of 1
ARBITRATION AGREEMENT
MUTUAL AGREEMENT TO ARBITRATE DISPUTES: Borrower has or will obtain a mortgage loan (the "Loan") made or
arranged by the undersigned company (the "Company"). Borrower, Company and any lender making the Loan
(collectively, the "Lender") agree that any Dispute involving the Loan, including, but not limited to claims arising from
the origination, documentation, disclosure servicing, collection or any other aspect of the Loan transaction or the
coverage or enforceability of this Agreement, shall be resolved exclusively by binding arbitration under the teams of this
Agreement. This Agreement shall also be binding on the agents, successors and assigns of the parties and the Loan.
"Dispute" shall include, but not be limited, to:
1. Any claimed wrongdoing, such as misrepresentation, negligence, breach of contract, breach of fiduciary duty,
unconscionability, fraud in the inducement, rescission, breach of the covenant of good faith and fair dealing and unfair
business practices.
2. Any claimed violation of state or federal laws, including, but not limited to consumer credit, truth -in -lending, civil
rights, equal opportunity, real estate settlement, housing discrimination laws, fair lending acts, licensing, loan regulation
and unfair business practices acts.
"Dispute" shall not include:
1. Actions by the lender to judicially or non judicially foreclose on the note and deed of trust (or mortgage) for the Loan,
to enjoin waste, to collect rents, interpleader actions or actions for a receiver, to recover possession, ejectment or relief
from the automatic stay in bankruptcy or to obtain relief through governmental agencies.
2. Actions for provisional remedies such as a temporary restraining order or preliminary injunction or for a permanent
injunction based upon an arbitration award
ARBITRATION OF DISPUTES* Arbitration shall be conducted under the rules of the American Arbitration Association
( `AAA"). Arbitration shall be filed at the office of the AAA nearest to the real property securing the Loan. Reasonable
discovery shall be permitted pursuant to a written discovery plan determined by the arbitrator(s). The arbitrator shall be a
retired Judge of the Superior Court, Court of Appeal or Supreme Court with at least ten years of being a Judge The
arbitrator shall only receive evidence which is admissible under California law including, but not limited to the California
Evidence Code. The arbitrator shall only apply the statutory and decisional law of the State of California; and, The
arbitrator shall issue a reasoned award based only on evidence which is admissible under California law and which is
based upon the application of the substantive law of the State of Califorma. Each party shall bear their own attorneys fees,
unless a specific claims statute applies. The arbitrator(s) shall render a statement of the reasons for the award Judgment
on the award may be entered in any court of competent jurisdiction
WAIVERS:
THE PARTIES HEREBY FREELY WAIVE THE RIGHT TO TRIAL BY JUDGE OR JURY, THE RIGHT TO
APPEAL, FULL PRETRIAL DISCOVERY AND APPLICATION OF THE RULES OF EVIDENCE.
We have read, fully understand and agree to the above:
BORROWER:
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
COMPANY: John Arthur Turnbull Jr.
Date Borrower Date
By
Title Date
LENDER(S):
Lender James R. Miller, Trustee
Date
Lender Jonelle K. Miller, Trustee Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Arbitration Agreement Page 1 of 1
ARBITRATION AGREEMENT
MUTUAL AGREEMENT TO ARBITRATE DISPUTES: Borrower has or will obtain a mortgage loan (the "Loan") made or
arranged by the undersigned company (the "Company") Borrower, Company and any lender making the Loan
(collectively, the "Lender') agree that any Dispute involving the Loan, including, but not limited to claims arising from
the origination, documentation, disclosure servicing, collection or any other aspect of the Loan transaction or the
coverage or enforceability of this Agreement, shall be resolved exclusively by binding arbitration under the terms of this
Agreement. This Agreement shall also be binding on the agents, successors and assigns of the parties and the Loan.
"Dispute" shall include, but not be limited, to:
1. Any claimed wrongdoing, such as misrepresentation, negligence, breach of contract, breach of fiduciary duty,
unconscionability, fraud in the inducement, rescission, breach of the covenant of good faith and fair dealing and unfair
business practices.
2. Any claimed violation of state or federal laws, including, but not limited to consumer credit, truth -in -lending, civil
rights, equal opportunity, real estate settlement, housing discrimination laws, fair lending acts, licensing, loan regulation
and unfair business practices acts.
"Dispute" shall not include:
1. Actions by the lender to judicially or non judicially foreclose on the note and deed of trust (or mortgage) for the Loan,
to enjoin waste to collect rents, interpleader actions or actions for a receiver, to recover possession, ejectment or relief
from the automatic stay in bankruptcy or to obtain relief through governmental agencies.
2. Actions for provisional remedies such as a temporary restraining order or preliminary injunction or for a permanent
injunction based upon an arbitration award
ARBITRATION OF DISPUTES* Arbitration shall be conducted under the rules of the American Arbitration Association
( `AAA"). Arbitration shall be filed at the office of the AAA nearest to the real property securing the Loan. Reasonable
discovery shall be permitted pursuant to a written discovery plan determined by the arbitrator(s). The arbitrator shall be a
retired Judge of the Superior Court, Court of Appeal or Supreme Court with at least ten years of being a Judge The
arbitrator shall only receive evidence which is admissible under California law including, but not limited to the California
Evidence Code. The arbitrator shall only apply the statutory and decisional law of the State of California; and, The
arbitrator shall issue a reasoned award based only on evidence which is admissible under California law and which is
based upon the application of the substantive law of the State of California. Each party shall bear their own attorneys fees,
unless a specific claims statute applies. The arbitrator(s) shall render a statement of the reasons for the award Judgment
on the award may be entered in any court of competent jurisdiction
WAIVERS:
THE PARTIES HEREBY FREELY WAIVE THE RIGHT TO TRIAL BY JUDGE OR JURY, THE RIGHT TO
APPEAL, FULL PRETRIAL DISCOVERY AND APPLICATION OF THE RULES OF EVIDENCE
We have read, fully understand and agree to the above:
BORROWER:
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
COMPANY: John Arthur Turnbull Jr.
Date Borrower Date
By
Title Date
LENDER(S):
Lender James C. Yates, Trustee
Applied Business Software, Inc. (800) 833-3343
Arbitration Agreement
Date
Lender Date
22-5041/MMBS, LLC
Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 22-5041
BORROWER'S CERTIFICATION
The undersigned declare(s) under penalty of perjury under the laws of the State
of California that the following is true and correct:
1. Borrower is a United States citizen and resident with full legal capacity to enter into the loan documents for the Loan.
Borrower has all requisite power and authority to enter into all documents required in connection with the above
described transaction (hereinafter together referred to as the "Loan Documents") and to carry out the obligations of
borrower contemplated by the Loan Document and to own all of the Mortgaged Property
2. That Borrower has all necessary power and authority to execute and deliver the Loan Documents. In the event that
Borrower is comprised of two or more entities who hold title as tenants in common, joint tenancy community
property, or other co -tenancy, each Borrower agrees, and shall be estopped to deny, that (i) each Borrower is jointly
and severally liable for all obligations of Borrower under the Loan Documents and not merely for an allocated portion
thereof, and (ii) the Loan Documents are intended to grant to Lender a mortgage lien and security interest in and to the
entire Mortgaged Property and the proceeds thereof, and not merely a lien and security interest in and to a tenant in
common or other co -tenancy interest.
3. As of the date hereof, there are no setoffs, defenses or counterclaims to the payment of the indebtedness evidenced by
the Note, and Borrower hereby agrees that if any such defense to the payment of such mdebtedness should hereafter
exist against Lender, except to the extent such defense is permitted or provided by the usury laws of the State of
California, the same will not be raised against Lender.
4. Borrower owns (or will own, prior to the closing of the subject loan) fee simple title to all of the Mortgaged Property;
the Mortgage creates the lien and security it purports to create and is a valid and bindmg obligation of Borrower
enforceable against Borrower and the Mortgaged Property in accordance with its terms and the Note represents a valid
and bindmg obligation of the Borrower enforceable in accordance with its terms.
5. There is not pending against Borrower any petition in bankruptcy, whether voluntary or otherwise, any assignment for
the benefit of creditors, any petition seeking reorganization, liquidation or arrangement under the bankruptcy laws of
the United States or of any state thereof, or any other action brought under the aforesaid bankruptcy laws; there are no
law suits or legal proceedings ending or to the best of the Borrower's knowledge threatened m any court or before any
governmental agency involving Borrower or the Mortgaged Property, nor are there any judgments outstanding against
Borrower and the financial condition of Borrower as of the date of hereof has not adversely changed from the financial
condition as indicated by the financial statements furnished to Lender and said financial statements are substantially
true and accurate as of the date hereof.
6. Borrower is not engaged and has not been engaged at any time since Borrower's acquisition of the Mortgaged Property
in a "pattern of racketeering activity' within the meaning of 18 U.S.0 1961, as amended, nor has Borrower committed
any other act or engaged in any other pattern of actions, the potential results of which might include forfeiture of
Borrower's interest in the Mortgaged Property.
7. Borrower is acting in this loan for its own account for commercial purposes and will receive and apply the loan
proceeds for its own account and not as an agent or trustee for others.
8. No part of the Mortgaged Property or the improvements located thereon have been damaged and not repaired to
Lender s satisfaction, nor taken in any condemnation or other similar proceeding, nor is any such proceeding pending
or to the best of Borrower'. s knowledge threatened.
9. The Mortgaged Property is not subject to any leases other than the leases described in the rent roll provided to Lender,
such rent roll is true, accurate, complete and correct in all material respects, including the description of the rent, term,
and pay through date. All other information submitted by or on behalf of Borrower to Lender in connection with the
loan including but not limited to financial statement(s), tax retum(s), operating statement(s), bank statements(s) and
management agreement(s) are true accurate complete and correct in all material respects.
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Borrower Certification Page 1 of 2
10. The improvements located on the Mortgaged Property have been completed in accordance with the plans and
specifications and all recommendations of the soils engineer including any grading, seeding, landscaping and all other
off —site improvements relating to the operation of the Mortgaged Property; direct connection has been made from the
Mortgaged Property to abutting public water, sewer gas, electric, telephone and all other facilities necessary to serve
the Mortgaged Property for its intended use; the improvements are ready for occupancy; and the original building
permit, unconditional certificates of occupancy and all other consents and approvals of all governmental authorities
having jurisdiction over the Mortgaged Property have been issued, evidencing compliance with all zoning, building
and other laws and regulations applicable to the Mortgaged Property and the improvements located thereon. Borrower
affirms that all invoices for any and all labor performed or materials installed or integrated into the property were paid
and satisfied in full prior to the making of this loan.
11. This certificate is given by Borrower to induce Lender to make a loan to Borrower evidenced by the Note and secured
by the Mortgage and other Loan Documents, with the knowledge that Lender will rely upon the truth of the statements
made herein.
12. The Mortgaged Property is not in violation of any federal, state or local law ordinance or regulation relating to
industrial hygiene or to environmental conditions in, on, under or about the Mortgaged Property including but not
limited to soil and groundwater conditions. Neither Borrower nor, to the best of Borrower's knowledge, any third
party has used, generated manufactured, stored or disposed of in, on, under or about the Mortgaged Property or
transported to or from the Mortgaged Property any hazardous materials.
13. The improvements located on the Mortgaged Property are either exempt from the accessibility requirements of the
Americans with Disabilities Act, 42 U S.C.A. 121.01 et seq. (hereinafter called the "ADA') or if not exempt, said
improvements are accessible to and usable by persons with disabilities and complies (and shall, at all times durmg the
term of the subject loan be maintained in compliance) with the ADA, and the regulations thereunder promulgated by he
U.S. Architectural and Transportation Barriers Compliance Board (36 C.F R 1191 et Seq) and by the U.S. Department
of Justice (28 C F.R Part 36) including without limitation the ADA Accessibility Guidelines for Buildings and
Facilities attached as an Appendix to said regulations. The Mortgaged Property is in compliance with the Fair Housing
Amendments Act of 1998 as amended, as well as any other state or local laws and ordinances related to handicapped
access.
14. This Certificate may be executed in any number of counterparts each of which shall be deemed an original, but all such
counterparts together shall constitute but on Certificate.
BORROWER:
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Borrower Certification Page 2 of 2
HoUSING
DISCRIMINATION
ACT
OF
1977
THE
FINANCIAL
T CE
FAIR
LENDING
it
is
illegal
to discriminate
in
the
provision
of
or in
the
availability
of
financial
assistance
because of
the
consideration
of:
1.
Trends,
characteristics
or conditions
in
the
neighborhood
or
geographic
area surrounding
a
housing
accommodation,
consideration
unless
is required
the
to
financial
avoid
an
institution
unsafe
and
can demonstrate
unsound
business
practice:
the
particular
or
case
that
such
in
2.
Race, color,
religion,
sex,
status,
domestic
partnership,
national
origin
or ancestry.
marital
It is illegal
to
consider
the
racial,
ethnic,
religious
or
national
origin
composition
of
a neighborhood
or
geographic
area surrounding
a
housing accommodation
or whether
or not
such
composition
is
undergoing
change,
or is expected
to
undergo
change,
in appraising
a
housing accommodation
or in determining
whether
or not,
or
under
what
terms
and
conditions,
to
provide
financial
assistance.
These
provisions
govern
financial
assistance
for the
purpose
of
the
purchase,
construction,
rehabilitation
or
refinancing
of
one-
to
four -unit
family
residences
occupied
by the
owner and
for
the
purpose
of
the
home
improvement
of
any one-
to
four -unit
family
residence
If you
have
any questions about your rights, or if you wish to file a complaint, contact the management of this
financial institution or the Department of Real Estate at one of the following locations:
2550
Mariposa
Mall,
Suite
3070
1651
Exposition
Boulevard
Fresno, CA 93721-2273
Sacramento, CA 95815
P.O.
Box
137000
(mailing
address)
320 W
4th
Street,
Suite
350 Sacramento,
CA 95813-7000
Los Angeles,
CA 90013-1105
1350
Front
Street,
Suite
3064
1515
Clay
Street,
Suite
702
San
Diego,
CA 92101-3687
Oakland,
CA 94612
1462
Bureau of
Real
Estate
-
Mortgage
Loan Activities
RE
867A
(Rev.
10/13)
Applied Business
Software, Inc. (800)
833-3343
22-5041/MMBS, LLC
Fair Lending Notice DRE Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 22-5041
FEDERAL EQUAL CREDIT OPPORTUNITY ACT NOTICE
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color,
religion national origin, sex, marital status age (provided the applicant has the capacity to enter into a binding contract); because all
or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any
right under the Consumer Credit Protection Act.
The Federal Agency that administers compliance with this law concerning this creditor is
Federal Trade Commission
Equal Credit Opportunity
Washington, DC 20580
(202) 724-1140
1/We acknowledge that I/We have received a copy of this notice from.
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Federal Equal Credit Opportunity Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date. 4/15/2022
To• MMBS, LLC
File: 22-5041
HAZARD INSURANCE DISCLOSURE
(CAL. CIVIL CODE 2955.5)
No lender shall require a borrower, as a condition of receiving or maintaining a loan secured by real
property, to provide hazard insurance coverage against risks to the improvements on that real property in
an amount exceeding the replacement value of the improvements on the property.
' Hazard insurance coverage" means insurance against losses caused by perils which are commonly
covered m policies described as a "Commercial Policy," Homeowner s Policy," "General Property
Form, ' ` Guaranteed Replacement Cost Insurance, ' ` Special Building Form, ' Standard Fire,'
`Standard Fire with Extended Coverage, ' "Standard Fire with Special Form Endorsement," or
comparable insurance coverage to protect the real property against loss or damage from fire and other
perils covered within the scope of a standard extended coverage endorsement. "Improvements" means
buildings or structures attached to the real property."
Acknowledgment of Receipt by Borrower(s)
Each of the undersigned prospective borrowers acknowledge(s) that he/she has received and read a copy of this
Hazard Insurance Disclosure (Cal Civil Code 2955.5)
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Insurance Disclosure
Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 22-5041
LOAN INSURANCE DISCLOSURE
Uwe understand that I/We must have fire insurance m order for my/our loan to fund. I/we authorize the
lender to arrange for Limited Excess Coverage so that my/our loan can fund in the event I/we do not
provide fire and hazard insurance prior to the close of escrow.
In the event I/we allow our insurance to lapse/expire at any time during the term of the loan, I/we
authorize Lender or their Agent to arrange for Limited Excess Coverage on a dwelling form
Uwe understand that if Limited Excess Coverage is arranged I/we may cancel this Limited Excess
Coverage at any time and receive a refund for the unearned premium once I/we are able to provide the
lender with my/our own fire insurance policy The amount of the limited excess coverage is in
accordance with the insurance company s rates and the cost of the limited excess coverage is in
accordance with the insurance company's rates.
I/we understand that the LIMITED EXCESS INSURANCE PROVIDED ON DWELLING FORM
WHICH COVERS ONLY STRUCTURES THE INSURANCE MAY NOT BE ADEQUATE AND,
AMONG OTHER THINGS DOES NOT PROVIDE PERSONAL PROPERTY, LIABILITY,
WORKERS' COMPENSATION EARTHQUAKE FLOOD OR LANDSLIDE COVERAGE PLEASE
NOTE THAT THIS IS EXCESS COVERAGE OVER ANY OTHER VALID AND/OR COLLECTIBLE
INSURANCE ON THIS BUILDING.
I/we understand that the cost of this coverage ordered by me/us may be HIGHER than that which is
available to me/us in the standard insurance market. I/WE UNDERSTAND THAT I/WE AM
ENCOURAGED TO PROVIDE THE LENDER WITH MY/OUR OWN FIRE INSURANCE POLICY
AS SOON AS POSSIBLE
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Insurance Placement Disclosure Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To• MMBS, LLC
File: 22-5041
IMPORTANT INFORMATION ABOUT
YOUR LOAN PRICING
Your Broker or Loan Representative uses a "loan pricing system" to determine the interest rate and loan fees of your specific
loan This means that borrowers with comparable financial characteristics or who have similar loan characteristics will receive
comparable interest rates and terms under similar market conditions with the same broker. Your interest rate and terms are not
detexuiined or influenced by prohibited factors such as race, color, religion, national origin, gender, marital status, age, disability
or familial status
A market -based pricing system will establish an interest rate (which includes a note rate, discount points and fees and if the
loan is an adjustable rate mortgage a margin) for each loan. There are four basic factors that determine your interest rate under
a market -based pricing system.
1. Applicant's Property Information and Financial Characteristics
Information regarding the property you are mortgaging as well as your financial characteristics, affect the interest rate
and terms of your loan. Specific factors that affect your interest rate and terms include, but are not limited to: (1) your
credit scores and histories, employment, income, debts, assets, and (2) the appraised value of the property as well as the
type (single family residence, condominium, etc.).
2. Characteristics of Loan
Your interest rate and terms are affected by the loan characteristics you choose, such as your choice:
•
In selecting a loan program, loan amount, occupancy (whether you intend to reside at the
property, use it as a second home or as a rental), loan purpose (purchase rate/term refinance, or
cash -out refinance) and loan documentation type (whether you choose to fully document your
income and assets or provide less documentation or no documentation). Typically, the more
documentation you are willing to provide about your employment, mcome and assets, the more
likely you will receive a lower interest rate on any loan for which you would qualify.
To reduce or increase your note rate or margin by paying or financing loan fees; and or to reduce
your note rate, margin, discount pomts or fees by adding a prepayment penalty to your loan. A
prepayment penalty imposes a substantial charge if your pay off your loan early — in whole or in
part Typically, prepayment charges apply from one to three years after origination.
3. Conditions of Market
Your Broker or Loan Representative reviews, on a daily basis, the interest rates for each comparable loan product that its
competitors offer. This information is evaluated in conjunction with Your Broker or Loan Representative's internal
minimum rate of return requirements, which include the cost of originating a loan, to determine an interest rate and terms
that Your Broker or Loan Representative is willing to offer
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Loan Pricing Disclosure Page 1 of 2
Current mortgage market pricing is influenced by:
• The ease with which loans bearing the characteristics identified above might be sold to an mvestor; and
• The market's perception of where interest rates may be in the future, and the consequent effect upon the
probabihties of prepayment and loan default and other factors.
4. Using the Services of a Mortgage Broker
If you use the services of a mortgage broker, you have authorized the broker to identify and provide you with loan
programs offered by lenders to meet your financial circumstances. You have also hired the broker to negotiate programs
offered by lenders to meet your financial circumstances. You have also hired the broker to negotiate, on your behalf the
terms of Your Broker or Loan Representative's retail rates) as consideration for the work they perform because brokers
cover the costs of marketing, selling and processing the loan, which results in lowering our costs as the lender As a result,
the broker charges fees you may pay at closing and/or you may incur a higher interest rate or margin for which the lender
compensates the broker through a premium built into the loan's interest rate (the "Yield Spread Premium '). You should
talk to your mortgage broker about how the broker has negotiated or set the interest rate, terms and the broker's fees.
Your Broker or Loan Representative offers fair and competitive rates based upon factors of the market and individual financial
circumstances; however the enclosed disclosures must be read to fully understand the terms for the loan which you have applied
for. For most people, a mortgage loan is one the important financial transactions; and for that reason you should compare
multiple interest rate quotes and terms to find the best program that fits your needs.
Your Broker or Loan Representative strives to provide you with the best information needed to make an informed
decision about your interest rate and the terms of the loan, it is your ultimate responsibility to fully understand and
determine if the loan is right for you. If you are unsure of the terms of your loan or you are unsure if this financial
decision is best for your circumstances, we urge you to seek advice from a financial consultant before you complete the
transaction.
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Loan Pricing Disclosure Page 2 of 2
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 22-5041
NOTICE CONCERNING THE FURNISHING
OF NEGATIVE INFORMATION TO
CONSUMER REPORTING AGENCY
WE MAY REPORT INFORMATION ABOUT YOUR ACCOUNT TO CREDIT BUREAUS.
LATE PAYMENTS, MISSED PAYMENTS, OR OTHER DEFAULTS ON YOUR ACCOUNT MAY BE REFLECTED IN
YOUR CREDIT REPORT.
Please acknowledge receipt of this notice.
Return the executed letter to:
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Applied Business Software, Inc. (800) 833-3343
Notice Concerning Furnishing Negative Reporting
Date Borrower
Date
22-5041/MMBS, LLC
Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 22-5041
MORTGAGE FRAUD IS
INVESTIGATED BY THE FBI
Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in
federal prison or 1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income,
assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit
application for the purpose of influencing in any way the action of a financial institution.
Some of the applicable Federal criminal statutes which may be charged in connection with
Mortgage Fraud include:
18 U.S.C. § 1001 - Statements or entries generally
18 U.S.C. § 1010 - HUD and Federal Housing Administration Transactions
18 U.S.C. § 1014 - Loan and credit applications generally
18 U.S.C. § 1028 - Fraud and related activity in connection with identification documents
18 U.S.C. § 1341 - Frauds and swindles by Mail
18 U.S.C. § 1342 - Fictitious name or address
18 U.S.C. § 1343 - Fraud by wire
18 U.S.C. § 1344 - Bank Fraud
42 U.S.C. § 408(a) - False Social Security Number
Unauthorized use of the FBI sea4 name, and initials is subject to prosecution under Sections 701, 709, and 712 of Title 18
of the United States Code. This advisement may not be changed or altered without the specific written consent of the
Federal Bureau of Investigation, and is not an endorsement of any product or service.
Please review your documents for accuracy and contact us immediately if you have any matters of concern.
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Mortgage Fraud Disclosure Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
DECLARATION OF ORAL DISCLOSURE
Loan Number: 22-5041 Date: 4/15/2022
Each item checked below has been explained to:
MMBS, LLC
and they have been asked to initial each such item, only if they fully understand the item explained.
Initial
■
■
8.250% IN 1EREST RA lE
$8,250.00 REGULAR (PERIODIC) PAYMENT
8.901% ANNUAL PERCENTAGE RAZE (APR)
❑ Q Interest Only ■ Fully Amortized ■ Other CHOICE OF REGULAR PAYMENT (Interest only,
amortized, partially amortized)
48 Months PERM OF LOAN
■
■
$1,208,250.00 BALLOON PAYMENT
10 % after 10 Days LATE CHARGES AND WHEN ASSESSED
$200,000.00 - Option to repay up to $200,000.00 within PREPAYMENT PENALTY AND PRIVILEGE
0-90 days without penalty and the remaining $1,000,000.00
would have a 6 month prepayment penalty, before the entire
loan could be paid in full.
$423,085.00 TOTAL INTEREST FOR THE'ERM OF THE LOAN
❑ $22,500.00 COMMISSION OR LOAN ORIGINATION TEES
■
$1,000.00 ESCROW AND LOAN PROCESSING CHARGES
❑ Yes DUE ON SALE CLAUSE
■
■
■
None ACCRUED INTEREST, IF ANY, ON FIRST PAYMENT
N/A RIGHT TO CANCEL, PURSUANT TO REGULATION
z
Yes ARBITRATION OF DISPUTES
NOTICE TO COSIGNER
OTHER
On , commencing at (AM/PM) and concludmg at (AM/PM) I,
John Turnbull, acting under a license issued by the Bureau of Real Estate, hereby declare, under penalty of perjury, that I have orally called to
the attention of and explained the items checked above to:
Executed at , California.
Licensee's Signature
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Oral Disclosure Page 1 of 2
THE UNDERSIGNED AGREES TO PAY COMPANY THE SUM OF $22,500.00 AS BROKERAGE COMMISSION FOR OBTAINING
A LENDER FOR THIS LOAN AND IS AWARE THAT STA IE LAW REGULA IES SUCH COMMISSION AS FOLLOWS:
ON LOANS UNDER $30,000 00, SECURED BY FIRST TRUST DEEDS 5% OF THE PRINCIPAL AMOUNT OF THE LOAN IF THE
LOAN 1'hRM IS LESS THAN 3 YEARS AND 10% IF THE LOAN 1 hRM IS MORE THAN 3 YEARS ON LOANS UNDER $20,000.00
SECURED BY JUNIOR LIINS, 5% OF THE PRINCIPAL AMOUNT OF THE LOAN IF THE LOAN 1bRM IS LESS THAN 2 YEARS,
10% IF MORE THAN 2 YEARS BUT LESS THAN 3 YEARS AND 15% It 3 YEARS OR MORE COMMISSIONS AND COSTS ARE
NOT REGULAthD ON LOANS SECURED BY FIRST IRUST DEEDS WHERE THE PRINCIPAL AMOUNT OF THE LOAN IS
$30,000 00 OR MORE, OR ON LOANS SECURED BY OTHER THAN FIRST TRUST DEEDS WHERE THE PRINCIPAL AMOUNT
OF THE LOAN IS $20,000.00 OR MORE, OR ON ANY LOAN REGARDLESS OF AMOUNT WHICH IS NOT SECURED BY A DEED
OF TRUST ON A SINGLE FAMILY HOME OR 1-4 UNITS.
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower
Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Oral Disclosure Page 2 of 2
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 22-5041
PATRIOT ACT INFORMATION DISCLOSURE
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial
mstitutions to obtain, verify, and record information that identifies each person who opens an account. Furthermore, The USA
Patriot Act requires. all financial institutions to obtain, verify and record information that identifies every customer. Completion
of this documentation is required in order to comply with the USA Patriot Act. A completed copy of this information must be
retained with the loan file.
Please complete the following:
Borrower's Name.
Co- Borrower's Name.
Property Address:
Organization or Entity Identification Documentation
•
Document Type Other Document Type
Document Number
Issue Date
Issued by
Tax Identification Number
Expiration Date
Discrepancies and Resolution:
Borrower hereby certifies, warrants, and represents that the above information is true and accurate:
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Patriot Act Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
File: 22-5041
PER DIEM INTEREST DISCLOSURE
California Civil Code, Section 2948.5 provides that lenders shall not require borrowers to pay interest on
a mortgage loan for a period in excess of one day prior to the disbursement of loan proceeds from the
escrow/title company, unless the following disclosure is made in writing to the borrower:
1) The amount of additional per diem (per day) interest charged to accommodate
disbursement on Monday or the day following a holiday, as the case may be, and
2) That it maybe possible to avoid the additional per diem interest charge by disbursing the
loan proceeds on a day immediately following a business day.
If your loan proceeds are disbursed on a Monday or a day following a holiday, you will be charged
interest beginning on the preceding business day.
The per diem (per day) interest amount on your loan is $275.00
You may avoid the additional per diem interest charge if the date for loan -proceeds disbursement is
changed to a day immediately following a business day as defined in the Government Code.
I/We, the undersigned, acknowledge that I/we have read and understand the above, and have received a
copy of this Disclosure
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Per Diem Interest Disclosure Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Date: 4/15/2022
To: MMBS, LLC
CERTIFICATE OF BUSINESS PURPOSE OF LOAN
Borrower certifies to John Arthur Turnbull Jr. ("Originator") as follows:
1. I have applied to Originator for a trust deed loan of $1,200,000.00 secured by real property.
2. Originator has stressed to me the importance of knowing the primary purpose of the Loan. I know that the
legal responsibilities of Originator vary considerably depending upon whether the Loan is a consumer loan (for
personal household or family purposes), or a business loan.
3. I have represented to Originator and again represent that the purpose(s) of The Loan, exclusive of
commissions and loan expenses incurred to obtain the Loan are as follows:
Amount:$
Purpose:
4. The primary beneficiary of The Loan funds:
that is in the business of doing:
5. No part of the Loan proceeds are intended to be used for a non -business (i.e., consumer)
purpose except:
Amount: $
Purpose:
The lender, broker assignees and successors of the Originator rely upon this certificate. I declare under penalty of perjury under the
laws of the State of California that the foregoing Certificate is true and correct.
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Date Borrower Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Purpose of Loan Proceeds Page 1 of 1
John Arthur Turnbull Jr.
2609 Honolulu Ave., Suite 200 Montrose CA 91020
Important Loan Information
To: MMBS, LLC
Regarding file number: 22-5041
You are not required to complete this agreement merely because you have received these disclosures or have signed a loan
application. If you obtain this loan, the lender will have a mortgage on your home You could Iose your home, and any money
you have put into it, if you do not meet your obligations under the loan.
You are borrowing $1,200,000.00 (optional credit insurance 0 is Q is not included in this amount).
The annual percentage rate on your loan will be 8.901%
Your loan payments will be as follows:
Number of Payments
47
1
When Payments Are Due
Monthly beginning June 1, 2022
May 1 2026
MMBS, LLC, a California Limited Liability Company
Borrower Robert J.S. Fowler, Managing
Member
Payment Amounts
$8,250.00
$1,208,250.00
Date Borrower
Date
Applied Business Software, Inc. (800) 833-3343 22-5041/MMBS, LLC
Stage 1 HOEPA Disclosure Page 1 of 1
Identification
» Go
to www.irs.gov/FormW9
Request
for
Number
for instructions
Taxpayer
and
and
Certification
the latest
information.
Give
requester.
send
Form
to the
to
Do
IRS.
the
not
Foy
(Rev. October2018)
Department
Internal
of the Treasury
Revenue Service
page 3.
1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank.
2 Business
name/disregarded entity name, if different from above
3 Check appropriate box for federal fax classification of the whose name is entered on line 1. Check only one the
4 Exemptions (codes apply to
person of
following seven boxes.
only
certain entities, not individuals; see
instructions on page 3):
o
s
Individual/sole proprietor or
❑
C Corporation
n
S Corporation
E
Partnership
I.
Trust/estate
to
single -member LLC
Exempt payee code (if any)
a.o
,i;+ *;
.
Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=Partnership) ►
Print or 1
Note: Check the appropriate box in the line above for the tax classification of the single -member owner. Do not check
Exemption from FATCA reporting
LLC if the LLC is classified as a single -member LLC that is disregarded from the owner unless the owner of the LLC is
another LLC that is not disregarded from the owner for U.S. federal tax purposes. Otherwise, a single -member LLC that
code (f any)
is disregarded from the owner should check the appropriate box for the tax classification of its owner.
Spec
IIII
Other (see instructions) ►
(Applies to accounts maintained outside the U.S.)
5 Address (number, street, and apt. or suite no.) See instructions.
Requester's
name and address (optional)
6 City, state, and ZIP code
7 List account number(s) here (optional)
Part I ;
Taxpayer
Identification
Number
(TIN)
Enter your TIN
in the appropriate
box. The TIN
provided must match
the
name given on line 1 to avoid
Social security number
backup withholding. For individuals, this is generally your social secunty number (SSN). However, for a
resident
antities,
alien,
it
sole
is
employer
proprietor,
or disregarded
identification
number
entity,
see
(EIN).
the instructions
If do
for Part I,
have
later. For other
How to
—
—
your
you
not a number, see get a
TIN, later.
Note: If the account is in more than one name, see the instructions for line 1. Also see What Name and
Number To Give the Requester for guidelines on whose number to enter.
Part 1
or
Employer identification number
Certification
Under penalties of perjury, I certify that:
1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and
2. 1 am not subject to backup withholding because. (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue
Service (IRS) that I am subject to backup withholding as a result of a failure to report au interest or dividends, or (c) the IRS has notified me that I am
no longer subject to backup withholding; and
3. 1 am a U.S. citizen or other U.S. person (defined below); and
4. The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct.
Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because
you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid,
acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments
other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part 11, later.
Sign
Here
Signature of
U.S. person ►
Date to-
General Instructions
Section references are to the Internal Revenue Code unless otherwise
noted.
Future developments. For the latest information about developments
related to Form W-9 and its instructions, such as legislation enacted
after they were published, go to www.irs.gov/FormW9.
Purpose of Form
An individual or entity (Form W-9 requester) who is required to file an
information return with the IRS must obtain your correct taxpayer
identification number (TIN) which may be your social security number
(SSN), individual taxpayer identification number (ITIN), adoption
taxpayer identification number (ATIN), or employer identification number
(EIN), to report on an information return the amount paid to you, or other
amount reportable on an information return. Examples of information
returns include, but are not limited to, the following.
• Form 1099-INT (interest earned or paid)
• Form 1099-DIV (dividends, including those from stocks or mutual
funds)
• Form 1099-MISC (various types of income, prizes, awards, or gross
proceeds)
• Form 1099-B (stock or mutual fund sales and certain other
transactions by brokers)
• Form 1099-S (proceeds from real estate transactions)
• Form 1099-K (merchant card and third party network transactions)
• Form 1098 (home mortgage interest), 1098-E (student loan interest),
1098-T (tuition)
• Form 1099-0 (canceled debt)
• Form 1099-A (acquisition or abandonment of secured property)
Use Form W-9 only if you are a U.S. person (including a resident
alien), to provide your correct TIN.
If you do not return Form W-9 to the requester with a TIN you might
be subject to backup withholding. See What is backup withholding,
later.
Cat. No. 10231X
Form W-9 (Rev. 10-2018)
Form W-9 (Rev. 10-2018)
Page 2
By signing the filled -out form, you:
1. Certify that the TIN you are giving is correct (or you are waiting for a
number to be issued),
2. Certify that you are not subject to backup withholding, or
3. Claim exemption from backup withholding if you are a U.S. exempt
payee. If applicable, you are also certifying that as a U.S. person, your
allocable share of any partnership income from a U.S. trade or business
is not subject to the withholding tax on foreign partners' share of
effectively connected income, and
4. Certify that FATCA code(s) entered on this form (if any) indicating
that you are exempt from the FATCA reporting, is correct. See What is
FATCA reporting, later, for further information.
Note: If you are a U.S. person and a requester gives you a form other
than Form W-9 to request your TIN, you must use the requester's form if
it is substantially similar to this Form W-9.
Definition of a U.S. person. For federal tax purposes, you are
considered a U.S. person if you are:
• An individual who is a U.S. citizen or U.S. resident alien;
• A partnership, corporation, company, or association created or
organized in the United States or under the laws of the United States;
• An estate (other than a foreign estate); or
• A domestic trust (as defined in Regulations section 301.7701-7).
Special rules for partnerships. Partnerships that conduct a trade or
business in the United States are generally required to pay a withholding
tax under section 1446 on any foreign partners' share of effectively
connected taxable income from such business. Further, in certain cases
where a Form W-9 has not been received, the rules under section 1446
require a partnership to presume that a partner is a foreign person, and
pay the section 1446 withholding tax. Therefore, if you are a U.S. person
that is a partner in a partnership conducting a trade or business in the
U nited States, provide Form W-9 to the partnership to establish your
U .S. status and avoid section 1446 withholding on your share of
partnership income.
In the cases below, the following person must give Form W-9 to the
partnership for purposes of establishing its U.S. status and avoiding
withholding on its allocable share of net income from the partnership
conducting a trade or business in the United States.
• In the case of a disregarded entity with a U.S. owner, the U.S. owner
of the disregarded entity and not the entity;
• In the case of a grantor trust with a U.S. grantor or other U.S. owner,
generally, the U.S. grantor or other U.S. owner of the grantor trust and
not the trust; and
• In the case of a U.S. trust (other than a grantor trust), the U.S. trust
(other than a grantor trust) and not the beneficiaries of the trust.
Foreign person. If you are a foreign person or the U.S. branch of a
foreign bank that has elected to be treated as a U.S. person, do not use
Form W-9. Instead, use the appropriate Form W-8 or Form 8233 (see
Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign
Entities).
Nonresident alien who becomes a resident alien. Generally, only a
nonresident alien individual may use the terms of a tax treaty to reduce
or eliminate U.S. tax on certain types of income. However, most tax
treaties contain a provision known as a "saving clause." Exceptions
specified in the saving clause may permit an exemption from tax to
continue for certain types of income even after the payee has otherwise
become a U.S. resident alien for tax purposes.
If you are a U.S. resident alien who is relying on an exception
contained in the saving clause of a tax treaty to claim an exemption
from U.S. tax on certain types of income, you must attach a statement
to Form W-9 that specifies the following five items.
1. The treaty country. Generally, this must be the same treaty under
which you claimed exemption from tax as a nonresident alien.
2. The treaty article addressing the income.
3. The article number (or location) in the tax treaty that contains the
saving clause and its exceptions.
4. The type and amount of income that qualifies for the exemption
from tax.
5. Sufficient facts to justify the exemption from tax under the terms of
the treaty article.
Example. Article 20 of the U.S.-China income tax treaty allows an
exemption from tax for scholarship income received by a Chinese
student temporarily present in the United States. Under U.S. law, this
student will become a resident alien for tax purposes if his or her stay in
the United States exceeds 5 calendar years However, paragraph 2 of
the first Protocol to the U.S.-China treaty (dated April 30, 1984) allows
the provisions of Article 20 to continue to apply even after the Chinese
student becomes a resident alien of the United States. A Chinese
student who qualifies for this exception (under paragraph 2 of the first
protocol) and is relying on this exception to claim an exemption from tax
on his or her scholarship or fellowship income would attach to Form
W-9 a statement that includes the information described above to
support that exemption.
If you are a nonresident alien or a foreign entity, give the requester the
appropriate completed Form W-8 or Form 8233.
Backup Withholding
What is backup withholding? Persons making certain payments to you
must under certain conditions withhold and pay to the IRS 24% of such
payments. This is called "backup withholding." Payments that may be
subject to backup withholding include interest, tax-exempt interest,
dividends, broker and barter exchange transactions, rents, royalties,
nonemployee pay, payments made in settlement of payment card and
third party network transactions, and certain payments from fishing boat
operators. Real estate transactions are not subject to backup
withholding.
You will not be subject to backup withholding on payments you
receive if you give the requester your correct TIN, make the proper
certifications, and report all your taxable interest and dividends on your
tax return.
Payments you receive will be subject to backup withholding if:
1. You do not furnish your TIN to the requester,
2. You do not certify your TIN when required (see the instructions for
Part II for details),
3. The IRS tells the requester that you furnished an incorrect TIN,
4. The IRS tells you that you are subject to backup withholding
because you did not report all your interest and dividends on your tax
return (for reportable interest and dividends only), or
5. You do not certify to the requester that you are not subject to
backup withholding under 4 above (for reportable interest and dividend
accounts opened after 1983 only).
Certain payees and payments are exempt from backup withholding.
See Exempt payee code, later, and the separate Instructions for the
Requester of Form W-9 for more information.
Also see Special rules for partnerships, earlier.
What is FATCA Reporting?
The Foreign Account Tax Compliance Act (FATCA) requires a
participating foreign financial institution to report all United States
account holders that are specified United States persons. Certain
payees are exempt from FATCA reporting. See Exemption from FATCA
reporting code, later, and the Instructions for the Requester of Form
W-9 for more information
Updating Your Information
You must provide updated information to any person to whom you
claimed to be an exempt payee if you are no longer an exempt payee
and anticipate receiving reportable payments in the future from this
person. For example, you may need to provide updated information if
you are a C corporation that elects to be an S corporation, or if you no
longer are tax exempt. In addition, you must furnish a new Form W-9 if
the name or TIN changes for the account; for example, if the grantor of a
grantor trust dies.
Penalties
Failure to furnish TIN If you fail to fumish your correct TIN to a
requester, you are subject to a penalty of $50 for each such failure
unless your failure is due to reasonable cause and not to willful neglect.
Civil penalty for false information with respect to withholding. if you
make a false statement with no reasonable basis that results in no
backup withholding, you are subject to a $500 penalty.
Form W-9 (Rev. 10-2018)
Page 3
Criminal penalty for falsifying information. Willfully falsifying
certifications or affirmations may subject you to criminal penalties
including fines and/or imprisonment.
Misuse of TINs. If the requester discloses or uses TINs in violation of
federal law, the requester may be subject to civil and criminal penalties.
Specific Instructions
Line 1
You must enter one of the following on this line; do not leave this line
blank. The name should match the name on your tax return.
If this Form W-9 is for a joint account (other than an account
maintained by a foreign financial institution (FFI)), list first, and then
circle, the name of the person or entity whose number you entered in
Part I of Form W-9. If you are providing Form W-9 to an FFI to document
a joint account, each holder of the account that is a U.S. person must
provide a Form W-9.
a. Individual. Generally, enter the name shown on your tax return. If
you have changed your last name without informing the Social Security
Administration (SSA) of the name change, enter your first name, the last
name as shown on your social security card, and your new last name
Note: ITIN applicant Enter your individual name as it was entered on
your Form W-7 application, line 1 a. This should also be the same as the
name you entered on the Form 1040/1040A/1040EZ you filed with your
application.
b. Sole proprietor or single -member LLC. Enter your individual
name as shown on your 1040/1040A/1040EZ on line 1. You may enter
your business, trade, or "doing business as" (DBA) name on line 2
c. Partnership, LLC that is not a single -member LLC, C
corporation, or S corporation. Enter the entity's name as shown on the
entity's tax return on line 1 and any business, trade, or DBA name on
line 2.
d. Other entities. Enter your name as shown on required U.S. federal
tax documents on line 1. This name should match the name shown on the
charter or other legal document creating the entity. You may enter any
business, trade, or DBA name on line 2.
e. Disregarded entity. For U.S. federal tax purposes, an entity that is
disregarded as an entity separate from its owner is treated as a
"disregarded entity." See Regulations section 301.7701-2(c)(2)(iii). Enter
the owner's name on line 1. The name of the entity entered on line 1
should never be a disregarded entity. The name on line 1 should be the
name shown on the income tax return on which the income should be
reported. For example, if a foreign LLC that is treated as a disregarded
entity for U.S. federal tax purposes has a single owner that is a U.S.
person, the U.S. owner's name is required to be provided on line 1. If
the direct owner of the entity is also a disregarded entity, enter the first
owner that is not disregarded for federal tax purposes. Enter the
disregarded entity's name on line 2, "Business name/disregarded entity
name " If the owner of the disregarded entity is a foreign person, the
owner must complete an appropriate Form W-8 instead of a Form W-9.
This is the case even if the foreign person has a U.S. TIN.
Line 2
If you have a business name, trade name, DBA name, or disregarded
entity name, you may enter it on line 2.
Line 3
Check the appropriate box on line 3 for the U.S. federal tax
classification of the person whose name is entered on line 1. Check only
one box on line 3.
IF
a(n)
the
entity/person on line 1 is
..
THEN check the box for ...
• Corporation
Corporation
• Individual
• Sole
• Single
company
individual
federal
proprietorship,
-member
(LLC)
and
tax purposes.
owned
disregarded
limited
or
by
liability
an
for
U.S.
Individual/sole
member
LLC
proprietor or single-
•
U.S.
•
2553
or
•
entity
the
not
purposes.
LLC
LLC
LLC
treated
federal
that
to
that
separate
owner
disregarded
has
be taxed
is
is
tax
disregarded
another
as a
purposes,
filed
as
from
for
partnership
Form
a corporation,
its owner
LLC
U.S.
federal
8832
as an
but
that is
for
or
tax
Limited
liability
appropriate
Partnership;
S corporation)
company
tax
C=
and enter
classification.
C corporation;
the
(P=
or S=
• Partnership
Partnership
• Trust/estate
Trust/estate
Line 4, Exemptions
If you are exempt from backup withholding and/or FATCA reporting,
enter in the appropriate space on line 4 any code(s) that may apply to
you.
Exempt payee code.
• Generally, individuals (including sole proprietors) are not exempt from
backup withholding.
• Except as provided below, corporations are exempt from backup
withholding for certain payments, including interest and dividends.
• Corporations are not exempt from backup withholding for payments
made in settlement of payment card or third party network transactions.
• Corporations are not exempt from backup withholding with respect to
attorneys' fees or gross proceeds paid to attorneys, and corporations
that provide medical or health care services are not exempt with respect
to payments reportable on Form 1099-MISC.
The following codes identify payees that are exempt from backup
withholding. Enter the appropriate code in the space in line 4.
1—An organization exempt from tax under section 501(a), any IRA, or
a custodial account under section 403(b)(7) if the account satisfies the
requirements of section 401(f)(2)
2—The United States or any of its agencies or instrumentalities
3—A state, the District of Columbia, a U.S. commonwealth or
possession, or any of their political subdivisions or instrumentalities
4—A foreign government or any of its political subdivisions, agencies,
or instrumentalities
5—A corporation
6—A dealer in securities or commodities required to register in the
United States, the District of Columbia, or a U.S. commonwealth or
possession
7—A futures commission merchant registered with the Commodity
Futures Trading Commission
8—A real estate investment trust
9—An entity registered at all times during the tax year under the
Investment Company Act of 1940
10—A common trust fund operated by a bank under section 584(a)
11—A financial institution
12—A middleman known in the investment community as a nominee or
custodian
13—A trust exempt from tax under section 664 or described in section
4947
Form W-9 (Rev. 10-2018)
Page 4
The following chart shows types of payments that may be exempt
from backup withholding. The chart applies to the exempt payees listed
above, 1 through 13.
IF the payment is for ...
THEN the payment is exempt
for...
Interest and dividend payments
All exempt payees except
for 7
Broker
transactions
Exempt
through
S corporations
exempt
are exempt
noncovered
prior
payees
11
payee
to 2012.
1 through
and all C corporations.
4 and 6
enter an
they
of
must not
code because
only for sales
securities acquired
Barter
patronage
exchange transactions
and
Exempt payees 1 through 4
dividends
Payments
reported
$5,0001
over $600 required
and direct sales
to be
over
Generally,
1 through
exempt payees
52
Payments made in settlement
payment card or third party
transactions
Exempt payees 1 through 4
of
network
1 See Form 1099-MISC, Miscellaneous Income, and its instructions.
2 However, the following payments made to a corporation and
reportable on Form 1099-MISC are not exempt from backup
withholding: medical and health care payments, attorneys' fees, gross
proceeds paid to an attorney reportable under section 6045(f), and
payments for services paid by a federal executive agency.
Exemption from FATCA reporting code. The following codes identify
payees that are exempt from reporting under FATCA. These codes
apply to persons submitting this form for accounts maintained outside
of the United States by certain foreign financial institutions. Therefore, if
you are only submitting this form for an account you hold in the United
States, you may leave this field blank. Consult with the person
requesting this form if you are uncertain if the financial institution is
subject to these requirements. A requester may indicate that a code is
not required by providing you with a Form W-9 with "Not Applicable" (or
any similar indication) written or printed on the line for a FATCA
exemption code.
A —An organization exempt from tax under section 501(a) or any
individual retirement plan as defined in section 7701(a)(37)
B—The United States or any of its agencies or instrumentalities
C—A state, the District of Columbia, a U.S. commonwealth or
possession, or any of their political subdivisions or instrumentalities
D—A corporation the stock of which is regularly traded on one or
more established securities markets, as described in Regulations
section 1.1472-1(c)(1)(i)
E—A corporation that is a member of the same expanded affiliated
group as a corporation described in Regulations section 1.1472-1(c)(1)(i)
F—A dealer in securities, commodities, or derivative financial
instruments (including notional principal contracts, futures, forwards,
and options) that is registered as such under the laws of the United
States or any state
G—A real estate investment trust
H—A regulated investment company as defined in section 851 or an
entity registered at all times during the tax year under the Investment
Company Act of 1940
I —A common trust fund as defined in section 584(a)
J—A bank as defined in section 581
K—A broker
L—A trust exempt from tax under section 664 or described in section
4947(a)(1)
M—A tax exempt trust under a section 403(b) plan or section 457(g)
plan
Note: You may wish to consult with the financial institution requesting
this form to determine whether the FATCA code and/or exempt payee
code should be completed.
Line 5
Enter your address (number, street, and apartment or suite number).
This is where the requester of this Form W-9 will mail your information
returns. If this address differs from the one the requester already has on
file, write NEW at the top. If a new address is provided, there is still a
chance the old address will be used until the payor changes your
address in their records.
Line 6
Enter your city, state, and ZIP code.
Part I. Taxpayer Identification Number (TIN)
Enter your TIN in the appropnate box. If you are a resident alien and
you do not have and are not eligible to get an SSN, your TIN is your IRS
individual taxpayer identification number (ITIN). Enter it in the social
security number box. If you do not have an ITIN, see How to get a TIN
below.
If you are a sole proprietor and you have an EIN, you may enter either
your SSN or EIN
If you are a single -member LLC that is disregarded as an entity
separate from its owner, enter the owner's SSN (or EN, if the owner has
one). Do not enter the disregarded entity's EIN If the LLC is classified as
a corporation or partnership, enter the entity's EIN
Note: See What Name and Number To Give the Requester, later, for
further clarification of name and TIN combinations.
How to get a TIN. If you do not have a TIN, apply for one immediately.
To apply for an SSN, get Form SS-5, Application for a Social Security
Card, from your local SSA office or get this form online at
www.SSA.gov. You may also get this form by calling 1-800-772-1213.
Use Form W-7, Application for IRS Individual Taxpayer Identification
Number, to apply for an ITIN, or Form SS-4, Application for Employer
Identification Number, to apply for an EIN You can apply for an EIN
online by accessing the IRS website at www.irs.gov/Businesses and
clicking on Employer Identification Number (EIN) under Starting a
Business. Go to www.irs.gov/Forms to view, download, or print Form
W-7 and/or Form SS-4. Or, you can go to www.irs.gov/OrderForms to
place an order and have Form W-7 and/or SS 4 mailed to you within 10
business days.
If you are asked to complete Form W-9 but do not have a TIN, apply
for a TIN and write "Applied For" in the space for the TIN, sign and date
the form, and give it to the requester. For interest and dividend
payments, and certain payments made with respect to readily tradable
instruments, generally you will have 60 days to get a TIN and give it to
the requester before you are subject to backup withholding on
payments. The 60-day rule does not apply to other types of payments.
You will be subject to backup withholding on all such payments until
you provide your TIN to the requester.
Note: Entering "Applied For" means that you have already applied for a
TIN or that you intend to apply for one soon.
Caution: A disregarded U.S. entity that has a foreign owner must use
the appropriate Form W-8.
Part II. Certification
To establish to the withholding agent that you are a U.S. person, or
resident alien, sign Form W-9. You may be requested to sign by the
withholding agent even if item 1, 4, or 5 below indicates otherwise
For a joint account, only the person whose TIN is shown in Part I
should sign (when required). In the case of a disregarded entity, the
person identified on line 1 must sign. Exempt payees, see Exempt payee
code, earlier.
Signature requirements. Complete the certification as indicated in
items 1 through 5 below.
Form W-9 (Rev. 10-2018)
Page 5
1. Interest, dividend, and barter exchange accounts opened
before 1984 and broker accounts considered active during 1983.
You must give your correct TIN, but you do not have to sign the
certification.
2. Interest, dividend, broker, and barter exchange accounts
opened after 1983 and broker accounts considered inactive during
1983. You must sign the certification or backup withholding will apply. If
you are subject to backup withholding and you are merely providing
your correct TIN to the requester, you must cross out item 2 in the
certification before signing the form.
3. Real estate transactions. You must sign the certification. You may
cross out item 2 of the certification.
4. Other payments. You must give your correct TIN, but you do not
have to sign the certification unless you have been notified that you
have previously given an incorrect TIN. "Other payments" include
payments made in the course of the requester's trade or business for
rents, royalties, goods (other than bills for merchandise), medical and
health care services (including payments to corporations), payments to
a nonemployee for services, payments made in settlement of payment
card and third party network transactions, payments to certain fishing
boat crew members and fishermen, and gross proceeds paid to
attorneys (including payments to corporations).
5. Mortgage interest paid by you, acquisition or abandonment of
secured property, cancellation of debt, qualified tuition program
payments (under section 529), ABLE accounts (under section 529A),
IRA, Coverdell ESA, Archer MSA or RSA contributions or
distributions, and pension distributions. You must give your correct
TIN, but you do not have to sign the certification.
What Name and Number To Give the Requester
For this type of account Give name and SSN of:
1. Individual
2. Two or more individuals (joint
account) other than an account
maintained by an FFI
3. Two or more U.S. persons
Qoint account maintained by an FFI)
4. Custodial account of a minor
(Uniform Gift to Minors Act)
5. a. The usual revocable savings trust
(grantor is also trustee)
b. So-called trust account that is not
a legal or valid trust under state law
6. Sole proprietorship or disregarded
entity owned by an individual
7. Grantor trust filing under Optional
Form 1099 Filing Method 1 (see
Regulations section 1.671-4(b)(2)(i)
(A))
The individual
The actual owner of the account or, if
combined funds, the first individual on
the account.'
Each holder of the account
The minor2
The grantor -trustee
The actual owner
The owners
The grantor*
For this type of account:
Give name and EIN of:
8. Disregarded entity not owned by an
individual
9. A valid trust, estate, or pension trust
10. Corporation or LLC electing
corporate status on Form 8832 or
Form 2553
11. Association, club, religious,
charitable, educational, or other tax-
exempt organization
12. Partnership or multi -member LLC
13. A broker or registered nominee
The owner
Legal entity4
The corporation
The organization
The partnership
The broker or nominee
For this type of account:
Give name and EIN of:
14. Account with the Department of The public entity
Agriculture in the name of a public
entity (such as a state or local
govemment, school district, or
prison) that receives agricultural
program payments
15. Grantor trust filing under the Form The trust
1041 Filing Method or the Optional
Form 1099 Filing Method 2 (see
Regulations section 1.671-4(b)(2)()(B))
1 List first and circle the name of the person whose number you furnish.
If only one person on a joint account has an SSN, that person's number
must be furnished.
2 Circle the minor's name and fumish the minor's SSN.
3 You must show your individual name and you may also enter your
business or DBA name on the "Business name/disregarded entity"
name line. You may use either your SSN or EIN (if you have one), but the
IRS encourages you to use your SSN.
4 List first and circle the name of the trust, estate, or pension trust. (Do
not furnish the TIN of the personal representative or trustee unless the
legal entity itself is not designated in the account title.) Also see Special
rules for partnerships, earlier.
*Note: The grantor also must provide a Form W-9 to trustee of trust.
Note: If no name is circled when more than one name is listed, the
number will be considered to be that of the first name listed.
Secure Your Tax Records From Identity Theft
Identity theft occurs when someone uses your personal information
such as your name, SSN, or other identifying information, without your
permission, to commit fraud or other crimes. An identity thief may use
your SSN to get a job or may file a tax return using your SSN to receive
a refund.
To reduce your risk:
• Protect your SSN,
• Ensure your employer is protecting your SSN, and
• Be careful when choosing a tax preparer.
If your tax records are affected by identity theft and you receive a
notice from the IRS, respond right away to the name and phone number
printed on the IRS notice or letter.
If your tax records are not currently affected by identity theft but you
think you are at risk due to a lost or stolen purse or wallet, questionable
credit card activity or credit report, contact the IRS Identity Theft Hotline
at 1-800 908-4490 or submit Form 14039.
For more information, see Pub. 5027, Identity Theft Information for
Taxpayers.
Victims of identity theft who are experiencing economic harm or a
systemic problem, or are seeking help in resolving tax problems that
have not been resolved through normal channels, may be eligible for
Taxpayer Advocate Service (TAS) assistance. You can reach TAS by
calling the TAS toll -free case intake line at 1-877-777-4778 or TTY/TDD
1-800-829-4059.
Protect yourself from suspicious emails or phishing schemes.
Phishing is the creation and use of email and websites designed to
mimic legitimate business emails and websites. The most common act
is sending an email to a user falsely claiming to be an established
legitimate enterprise in an attempt to scam the user into surrendering
private information that will be used for identity theft.
Form W-9 (Rev. 10-2018)
Page 6
The IRS does not initiate contacts with taxpayers via emails. Also, the
IRS does not request personal detailed information through email or ask
taxpayers for the PIN numbers, passwords, or similar secret access
information for their credit card, bank, or other financial accounts.
If you receive an unsolicited email claiming to be from the IRS,
forward this message to phishing@irs.gov. You may also report misuse
of the IRS name, logo, or other IRS property to the Treasury Inspector
General for Tax Administration (fIGTA) at 1-800-366-4484. You can
forward suspicious emails to the Federal Trade Commission at
spam@uce.gov or report them at www.ftc.gov/complaint. You can
contact the FTC at wwwftc.gov/idtheft or 877-IDTHEFT (877-438 4338).
If you have been the victim of identity theft, see www.IdentityTheft.gov
and Pub. 5027.
Visit wwwirs.govlldentityTheft to learn more about identity theft and
how to reduce your risk.
Privacy Act Notice
Section 6109 of the internal Revenue Code requires you to provide your
correct TIN to persons (including federal agencies) who are required to
file information returns with the IRS to report interest, dividends, or
certain other income paid to you; mortgage interest you paid; the
acquisition or abandonment of secured property; the cancellation of
debt; or contributions you made to an IRA, Archer MSA, or HSA. The
person collecting this form uses the information on the form to file
information returns with the IRS, reporting the above information.
Routine uses of this information include giving it to the Department of
Justice for civil and criminal litigation and to cities, states, the District of
Columbia, and U.S. commonwealths and possessions for use in
administering their laws. The information also may be disclosed to other
countries under a treaty, to federal and state agencies to enforce civil
and criminal laws, or to federal law enforcement and intelligence
agencies to combat terrorism You must provide your TIN whether or
not you are required to file a tax return. Under section 3406, payers
must generally withhold a percentage of taxable interest, dividend, and
certain other payments to a payee who does not give a TIN to the payer.
Certain penalties may also apply for providing false or fraudulent
information.