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R13-0711 21 3! 41 U 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 RESOLUTION R13 -071 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, ACCEPTING THE OFFER OF $6,000 AS SETTLEMENT OF THE CITY'S SECOND MORTGAGE AS A RESULT OF A PROPOSED SHORT SALE FOR DIANE DOLPHIN BASED ON THE CITY'S SHORT SALE POLICY FOR FIRST TIME HOMEBUYER ASSISTANCE PROGRAM; WAIVER OF RIGHT OF FIRST REFUSAL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, with the assistance of the City of Boynton Beach's first time homebuyer assistance program Diane Dolphin purchased her home at 318 Glen Arbor Terrace, Boynton Beach, Florida for $183,000 in January of 2007; and WHEREAS, the City of Boynton Beach's second mortgage in the amount of $75,190 is a zero interest (0 %) lien that runs concurrent with the first mortgage; and WHEREAS, rather than be foreclosed upon, the homeowner was able to secure a buyer for the property and their bank has agreed to a short sale in the amount of $50,000; and WHEREAS, the proposed settlement offer is in accordance with the City's Short Sale Policy for the City's First Time Homebuyer Assistance Program; and WHEREAS, the City Commission of the City of Boynton Beach upon recommendation of staff, deems it to be in the best interest of the citizens and residents of the City of Boynton Beach to accept the offer of $6,000 as settlement of the City's second Mortgage as a result of the proposed short sale for Diane Dolphin and to authorize the Mayor to execute the Waiver of Right of First Refusal. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Resolution upon adoption. Section 2. The City Commission of the City of Boynton Beach, Florida hereby accepts the offer of $6,000 as settlement of the City's Second Mortgage as a result of the proposed short sale for Diane Dolphin. Section 3. The Mayor is authorized to execute the Waiver of Right of First Refusal, a copy of which is attached hereto as Exhibit "A ". Section 4. This Resolution will become effective immediately upon passage. PASSED AND ADOPTED this 6`" day of August, 2013. CITY OF BOYNTON BEACH, FLORIDA CormissiorXer,— Mri &ael M. ATTEST: `M A (g e t M. Prainito, MMC y Clerk (Corporate Seal) S \CA\PESO\Reso - Accept Dolphun Short Sale doc — Joe Casello r a or — Woodrow L. Hay Commissioner Tavi f h T. ker / Prepared by and return to: City of Boynton Beach Community Improvement Division Post Office Box 310 The CITY OF BOYNTON BEACH, FLORIDA (the "CITY"), a Florida municipal corporation, being the owner, holder and beneficiary • a right of first refusal on any sale • resale • transfer of that it has been offered the following described land pursuant to its right of first refusal, on the - ILAP FOH�AVRMA 0-NMOTAKSUMITANIF WITNESS my hand and seal this /A dayof A"4U6T 2013. U in the presence •f �M tq��-rm/ ,f JERRYTfYLOR A Community Improvement Division File Memorandum DATE: June 26, 2013 TO: Case File #4 -05 -028 Diane Dolphin purchased her home for $183,000 at 318 Glen Arbor Terrace on January 2, 2007. Her first mortgage is with Fifth Third Mortgage Company in the amount of $111,000, and the City of Boynton Beach holds a second mortgage in the amount of $75,190.00. Ms. Dolphin mentioned in her hardship letter that her financial situation changed in 2009 when her employer let her go. She was able to secure another job, but had to work an additional part -time job to compensate for the lost wages. She has struggled between part -time jobs and working for herself since that time, and has never been able to bounce back with secure, full time employment. She stated that she could not afford the mortgage, and care for both herself and her daughter. Based on her personal documentation that accompanied this request, I would have to concur that she is no longer able to sustain her mortgage. Ms. Dolphin is living in the property, but has not made a mortgage payment since August 2011. In February of this year she was served with a Notice of Lis Pendens. If the property is sold by short sale the City could receive approximately $6,000 from the sale; if not, the property will be foreclosed upon and the City would have to sue for judgment on a property that appears to have negative equity. I recommend the approval of the short sale based on this information. BJC:dar S \Community Improvement \memos \Memos To File \2013 \ShortSales \Dolphin.doc IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT OF THE STATE OF FLORIDA, IN AND FOR PALM BEACH COUNTY CIVIL DIVISION H THIRD MORTGAGE COMPANY Plaintiff, vs. o 60 2013 CA 0 44 215 XXXXNB CASE NO. AW DIANE DOLKiIN UNKNOWN SPOUSE OF DIANE D; LIVING, INCLUDING ANY UNKNOWN OLPHIN SPOUSE OF S'DEFENDANT(S), IF REMARRIED, AND IF DECE ; THE RESPECTIVE UNKNOWN HEIRS, DEVISE ES, ASSIGNEES, CREDITORS, LIE AND TRUSTEES, AND ALL o OTHER PERSONS NG BY, THROUGH, UNDER OR AGAINST THE N DEFENDANT(S); THE CITY OF BOYNTON BEAC DISSOLVED OR PRESENTLY EXISTING, H WITH ANY GRANTEES, ASSIGNEES, ORS, LIENORS, OR TRUSTEES OF SAID DEFE (S) AND ALL OTHER PERSONS CLAIMING BY, T MGH, UNDER, OR ca AGAINST DEFENDANT(S); UTT7 TENANT # 1; UNKNOWN TENANT # 2; Defendant(s) NOTICE OF LIS PENDENS TO DEFENDANT(S) DIANE DOLPHIN; UNKNOWN SPOUSE OF DIANE DOLPHIN; IF LIVING, INCLUDING ANY UNKNOWN SPOUSE OF SAID DEFENDANT(S), IF REMARRIED, AND IF DECEASED, THE RESPECTIVE UNKNOWN HEIRS, DEVISEES, GRANTEES, ASSIGNEES, CREDITORS, LIENORS, AND TRUSTEES, AND ALL OTHER PERSONS CLAIMING BY, THROUGH, UNDER OR AGAINST THE NAMED DEFENDANT(S); THE CITY OF BOYNTON BEACH, WHETHER DISSOLVED OR PRESENTLY EXISTING, TOGETHER WITH ANY GRANTEES, ASSIGNEES, CREDITORS, LIENORS, OR TRUSTEES OF SAID DEFENDANT(S) AND ALL OTHER PERSONS CLAIMING BY, THROUGH, UNDER, OR AGAINST DEFENDANT(S); UNKNOWN TENANT # 1; UNKNOWN TENANT # 2; AND ALL OTHERS WHOM IT MAY CONCERN: YOU ARE HEREBY NOTIFIED OF THE FOLLOWING: File No. 147118/nl CFN 20130110 OR BK 25855 PG 1041,RECORDED 03/08/2013 17:47:19 Sharon R. Bock,CLERK & COMPTROLLER. Palm Beach County, NUM OF PAGES 2 (a) The plaintiff has instituted this action against you seeking to foreclose a � purchase money mortgage with respect to the property described below; r ; (b) The plaintiff in this action is: � 0 �, \!' ; — n\ ( c) The case number of the action is as shown in the caption ci r, The property that is the subject matter of this action is in Palm Beach unty, Florida, and is described as follows: GLEN ARBOR ADDITION NO. 1, according to the plat thereof, as recorded In Plat Book 25, to W, o f the Public Records of Palm Hach County, Florida. �v DATED �'} DAY OF a 0 P o-r C . 2013. ^�} Nathan A Kelvy /Florida Bar # 96815 Law Offices of Daniel C. Consuegra, P.L. 9204 King Palm Dr., Tampa, FL 33619 r Phone: (813) 915 -8660 /Fax: (813) 915-0559 attomeynotice@consuegralaw.com 47118/nl 25855 PAGE 1042, 2 OF 2 Classic Valuations, Inc (954) 297.3167 Uniform Residential Appraisal Report Re# Dolnhin The purpte of tits swzwy cep wftt rep it is to pirrift the lender(clud with an acarase, arrd adpiatelf supparted, option of the mulwt velue at the prop". ProllettY Address 316 glen Arbor Ter City Bovinton ftech Smte FL ZIP Code Borrow Dokohin Diane Oww of Public Recce Dolphin, Diane Counly Pal Le I Da n W Z4,GhenArbor Addl Assessor's Parcel rf 0a -4346- 0 -13-0 40 Tat Year 2012 RE Tales S Neighb orhood Name Glen Arbor Map Reference 48424 Census Tract OW0 Occww NOwner ElTinant ElVacant Swial Assessments $ None PUD HOA $ per p month Pri R tits A ed ®Fee Leasdidd Ot describe Ale meat Type El Purchase Traosadoni El Reference Transaction Other describe Market valu LOWKClknt Dolphin, Diane Address 318 Glen Arbor Ter Boynton e ch FL 334 Is the su pro offered for sale or has it been offered for sale in the twelve months prior to the effec l dale of this a aiser? Yes ff7N, Report data sources used, uffedrig prIce(a), and dales N! Y 1 0 did ❑ old not ana*a the contract for sale for the suaect purchase transaction E>glahb the results of the analyas of the contract Jar sale or why the analysis was not p erformed Ni Contact Price $ Dam of Catred N/A Is the property seller the owner of pdk record? Yes 1lo Data Sources Reelaue Is there any ?ambit assistance Iloan charges, sale concessions, grit or dowMayment assistance, etc) to be paid by any patly on behalf tithe borrower? ❑ Yes ® No N Yes, reiport tie total dollar amood and describe the Items to be pald NIA W. Rave and the radii ooraposlgert et the neighbodhood are nab &W Nwl factors. _ ._ ne- tin &Nprlitap'Ihndr - �'it�Un liowlttg+•. ,,_, iandWe% Location Ej Urban Suburban Rural Property Values Ej Incrcaang Stable Declining PRICE AGE One -Ung 85% B l Ilp X Oren 75% 2575% Under 25% DemanNS Shortage In Balance Over 5u S M 2.4 Unit 0% Growth F3 Rapid Stable Slow Matka'hg Time tinder 3 mths 3.6 mths Over 6 mlhs 50 Low 15 bWN -Fain % Neighborhood Bomdarfes subjeois loc@tp ngrth of Old BQvnton Road. south of the canal of 240 11011 55 Commeroal 10% _ N Con Tess Ave 155 Pred Other % Neighborhood De3crOlon The subiect is located in a nWmhloorhood of mostly oider single There Is commercial located along Rte,95 a nd N Congress Aye conalsiting of services, mufti-family t Afarka Candidons (including support for the above conckbalons) The market is presently stabilized with some increasirip valims within ciffoo ame Ther are in lei and su on thin the grea. At this time there are few fistings and sales within the area Dimensions Sublect to a Survey Nn 5,509 SF / 13 acm SNP Recizinaular Vmw A elReMclen i I SlIeftZonli0ililftlitim RIAA Zonsp m Sinale Family Reside Zorvn Compiance CK Legal Ej Legid Nonconforming Grandatkred Use No Zonlng 0 li describe N the highest and best use of sub pr as i avert o es pr oposed per Oarts andspecifications) the prmffd use? X Yes No 9 No describe then Public O6wrk"Witia) Public otherWswrl6e) Wetter -Type IRdtfe Pdvata Ekwcky x El Water Street halt Gas IN El Sanitary Sewer Alley None FEMA Special ('god Hazard Area Yes I& No FEMA Flood Zone C FEMkM4# 112011960004C FEMA M Date 09/3071 2 A tar uafiues and off -she kr9rownerb typical for the market areal Yes No B No, describe NIA Are there any adverse she conditions or eammal factors eaaempda, encroachments, enturinental cwndNuns, land uses, ale 1 Yes X No 9 Yes, describe There were no adverse site con shuns or any extemal d Qenefei n Foundfdlon- 9*rWDW*ft 7 _ asWWovAW. - - �airNlt/oanc tbn fdeFlof m Units H One 0 One wM Accesses UnB Concrete SW Croat Space Foundation Ways P Con air Rooe 1 very e 9 d Stories On Fdl Bas merit Partial Basement Eidedor Walls C8 walls PI er a Type Dot All. El S- DetfEnd Unit Basement Area Non IL Roof Suface I 7ftfflrdsh VV00djFaI Eidstng M Pr used Under Const Basement Finish A % GuBers b Downs oum None Balk Floor Til alaveria e D e Ra / v Outside Ent at Pump Window T V s /Aar Bath Wa 40d a6/a veracie Year Bull 19 Evidence d kwtaton StamSeahhahYated A S e Nona Effective a rs 35 ess ®SetlemenI Ddvevra N of Cars Attic None N f'NA HW88 aid W s ¥ Surface pncrete Oro Star Sinks Other Fuel rone Fence # d Cars Floor Scuttle Cadh Central Air Condition Porch C rt d Cars on HnWmd FMated Indlviduai Other Other Aft Dot M Budff4n Apillocec CK Rfffilgeraw R Ran en OlehwasMr Di Iitcrawave Cg Washer7Dryw C3 Other dtscribe Rdsh aria above grade contains. 5 Rooms Bedrooms 1 Baths 952 Square Feet of Gross Lwq Arse Above Grade Additional features (speck! energy dkmnt terns, etc.. Concrate Slab Pati Describe the condition d the firoperly (Including riesdad re Irs, deter{orauon, renovation, remaddn , etc SgE ATTACHED AD Are there any physical deWenaes or adverse con dhions thel affect the BvahBty, soundness, or struchiral Intepity tithe propery+ ® Yes ❑ No NYes, describe Refer to Corifton of Improvemenj§ Section Does the piopo generally conform to the neighborhood tuncdonal Wity, slyle, cand ion, use, construction, etc)? Yes ❑ No ff No, describe Freddie Mac Form 70 March 2005 Page 1 of 6 Fannie Mae Form 1004 March 2005 Form 1004 - "TOTAL appraisal software by a la mode, mc, - 1- 800 -AL AMME Uniform Residential Appraisal Report Flk# Dolphin Freddie Mac Form 70 March 2005 Pape 2 of 6 Fannie Mae Form 1004 March 2005 Farm 1004 - 'TOTAL' appraisal saftwafe by a to mode, une. -1- BOO- ALAMGDE ianemry odwed for ask I Ina subject ndgibafiood ranpirq I prise ham S 99.800 to : 1 c ble sales in the n orhoe e4tin the past twelve mertlra rangYht In sale a from S 000 to S 40 000 RE SUBJECT COMPARABLE BALE 01 COMPARABLE BALE # 2 COMPARABLE SALE # 3 r cp[aptbes Glen Arbor Ter 714 NW 7th Street 1026 NW 7th Sthet 1215 NW 8th Street n e ch L 334 6 Be FL 33426 B n 8 B n n 33426 d ' ' 3 mf 0 m NE 0 38 mi S / ' S 100 ~ sq S 1 S 92,50 Sate I' he yGress Uv. Area S It S sell $ t $ 76,76 sq IL ' Data Sourcei IMLSIResiguest ML&Realquest MILS/Rasslau Verification Sources r n i r Insoacti; in VALUE AOJUSTMERTS DESCRIPTION OESCRPTION + • S klpmtmsrd DESCRIPTION + - S Adjusanant OESCFWMON t(•) S Ad(ustment Sales or financing Cesh Cash Cash Concessions None None None Date of SaklTme 1 W1 12012 OW 1011 Ot Location Averaw Averaw Avei Avers LeasehoWee Spiole Fee Simple Fee 6imple _ Fee Sample Fee Simpl Site 5,599 St! 13 AC 10454 SF /.24 A -5.000 001 Sf! 23A - 4 000 View v Reshdent/Av Av n le v rMCh/ Av of Construction _ B Av f82M7Sf/.j9AC CBS/Av Actual AV 9M 1972 Condition Aver. 2 Good/ -30.000 Above Grade Total Bdmms Bales Taal Bdnns B*s Told Brims I Bathe Taal Bbne BAS Room Cow 5 1 6 10 000 6 1 3 1 1 5 1 2 1 2 -5.000 Gross Uving Area 952 30L. 1.006 SOL 900 sq ft +11.0 1,221 89 h -2,0 SawrertBFinished None None None None Rooms Below Grade N/A NIA N/A W Fundhonal 1.1111ky Averacle Averse Averatie A verage Hea odhg Centrei ntrai MT MT Central ACMT Energy Efficient Items Gas HW Hester None _ None N one GarageOrport K 1 e 1-Carport 1 Porch(PabolOeck Open Patio Scr.Porch -2.00 0 Fncl.Ft Roam -5 OQO Open P atio VVrk$ hQo[At)t I -1 + Nd Ad stment Trial ; -55 000 ❑ + x - $ -42 000 + S i 00 Adusted Sale Price Net ft 550% Net Ad. 40 4 % Net Adl 44.3 % of Ciamp dea y t " Gmaa AdJ. 0 76 $ 45 ASS Ad1 42 3 % S 62 000 ASS Ad( 4 3 % S 51,500 I I X dal Ej rid not resea the $ob or transfer history of the sublad properly and comparable Saks If not, Wolin NIA My research dial X did not reveal any prior sales or transfers of the subject property far the t years prior to the elkdtve date of Ws appraisal. Disk Sow s E&Atmiaijest M research Udd DO rid not revel any prior asks or bansfers of the comparahle sales for the year prior to the date of" of the comparatife sale. r Dale Soar a t Report the resoles of the research and araya(a of the a sale a trarhafu kale d the sub d pro ery and cam a sales ireporl additional prior sake on page 3). REM SUBJECT COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3 Date of Prior Sahw7ransfer 01/16=07 1 1 =09 OWI/1997 t Itmool Price of Prior Sale(Iransfa S183,M $136,000 $83,000 $1 2G.000 Dale source(s) t PAPA PAPA PAPA Effective Date of Data Source (s) 04/19)2013 0411912013 04119/2013 04/19 1 An Is of r sale or irensler M all the sublact and comparable Saks There has tranefers of the subiect or the I hin the last three rs Summary of Saks CETarlson ach Sale 1 was ad usted for wiesicandifion as the subject is Inferior in condirtion and to brinu it up to averaue conditio would be estimated to 5.000-120.0W. ho new kitchen with s*nle33 steel appliances, in bedro and MMgdeliecl bethMms, which is the interior Photos in the M S kii Sale 3 has a now kl n with stainless steel fiances remodeled bathrooms and floors This is evident Interior Photos r fisthy. Allof the sales have d'u supe rior tots 1 was sedlusted for a pool. and a isecarete buildino workshop or apartment screened h and IfIs 2 gin enclosed Flonde room, Sale 1 has e superior bedroom and bathroom count Sate I has a superior n bedr roes would sell for more In this rkeL Over 15% not adiustment and over 25% gross adrustment were necessary due to the subilect condition Indicated Value by Sales CompAw Approach S fndkated Value by-. Saks Comparison Approach; 50 Cat Approach (N d ve4W); Income Approach (If dweloped); N/A The a et opproagn is the Wet Indicator r action to th is m adSot Due to the age of the subject and the ve one the co st 1poroach Is not applicable Due to the lack k of rentals of sinalse family homs within the area the mco Is not le. This appraisal is made ®'as Is', ❑ sd4ed to complheon per plans and specifications on the basis of a hypothetical condbon that the Improvements have been cwmplated, ❑ M)ed m the tdtovvang raii or ateratbns on the basis of a hypothetical condition that ft repairs or aterabons have been completed, or E) sthpd to the • follo required Inspection bas ed an the extra h a Ihet the conAbuh or does nd rMUm alteratbrh w r nd I ins are sle Based on a somploba visual Inspection of the kdesbr and eafarlor ova of the sub)ad property defined amps of work, dd n W of aaumptloU and OmBing eendtons, end appraiser's GrtAatton, my (our) epinlan Of the market value, as dellned of the nd property that Is the aubjact of this report is $ as of WZW2013 which Is the date o f inspection and the sflisoft Meta of into soorallal. Freddie Mac Form 70 March 2005 Pape 2 of 6 Fannie Mae Form 1004 March 2005 Farm 1004 - 'TOTAL' appraisal saftwafe by a to mode, une. -1- BOO- ALAMGDE City of Boynton Beach Loan # DATE: 03/0812013 Diane Dolphin 318 Glen Arbor Terrace nton Beach, Fl. 33426 561 - 3704954 10/10/12 To Whom it May Concern: i started working at Pets of Perfection In 1999 and was making about $1,000 a week from 2006 till I was let go in 2009.1 then went to work for Chateau Poochle as a Manager and was making 50% commission which was about $600 a week. Needless to say, I needed a second job. I found another grooming shop to work at part time to cover the rest of my bills. i wonted both jobs for about 6 months then my part time job went out of business and I couldn't find another one. I was struWIrW however, making just enough money to get by. By summer 2010, business became too slow and I was offered a full time job at a business that had just opened in October 2010.1 felt like it was meant to be plus it was now busy season. I ended up only making $100 - $300 a week. I did all that I could to generate more business to survive, by handing out flyers at various dog events but that didn't help much. 1 found a full time job at Pets Smart a few weeks Into it starting the new business job and I juggled both jobs while trying to also maintain my house and daughter. Pets Smarts rule was that you couldn't work at any other salons while working there. I made It work for about 2 months then they found out and I was let go. I looked everywhere for another job but had no luck. I was stuck with only the one job now making around $400 a week. I started borrowing money from my church and then from family and friends when I wasn't able to make enough on my own. I was skipping whatever bills l could so i would have enough to pay the mortgage. Christmas came around and I wasn`t able to buy my daughter or family anything. I had not been able to buy groceries or school necessities for my daughter. I can no loner borrow money from my church and my mother lost her job and can't help me. I had to cancel my health insurance. The month of September, I skipped as many bills as possible so I could come up with the money to pay the mortgage of which I was short and had to make the choke of food or mortgage. I obviously chose food and electric. I was not able to pay the gas or water bill. With the little extra money we were forced to ration our food and are hungry and miserable. I just couldn't come up with enough and there's nothing else I can do. I do not make enough money to live and I haven't In the past 2 years. I have continually tried to find another job but have had no luck as the grooming business Is really slow. I tried as hard as I could and I can't five this way anymore. I'm notable to provide for myself or my daughter. I have no choice but to move out and live with family. DOLPHIN /318 Glen Arbor Terrace Loan # 20/30 City of Boynton Beach Loan # DATE: 03/08/2013 I even went back to the courts to tight and get child support for quite some time but the courts were not able to successfully force him to pay me. I was not able to hire an attorney as I had no money to pay one. My daughter's father was arrested and Is sentenced to 4 years in prison which now makes It impossible to receive any child support. I have tried my best to hold up my commitment and obligation to both the bank and the City of Boynton Itch. Unfortunately, I have to make the decision to feed and clothe my daughter and myself. 1 am prepared to assist in the sale of the home and try to get as much money for It as the market will bring. I am totally broke and am focused on surviving from one day to the next. 1 appreciate any and all assistance you may provide to my daughter and me. Sincerely, Diane Dolphin 61- &— DOLPHIN /318 Glen Arbor Terrace Loan # 21/30 May 20, 2013 Diane Dolphin 318 Glen Arbor Terrace Boynton Beach, Florida 33426 To whom it may concern, e013 I was working at "Dee's Sanctuary" since October of 2010, On January 30th the owner decided to permanently close the shop because she was not making enough to pay the rent and gave me no warning or time to look around for another job. I found another job at "Heavenly Puppies" the next day, which is about a mite down the street from "Dee's Sanctuary." It's a puppy store so they do not handle grooming but the owner has given me a space to groom my customers and the puppies. Most of my clients found me but I'm still not earning enough money since "Dee's Sanctuary" had not been open that long and I was still trying to generate clientele there. i get paid 50% commission of each dog 1 groom and get paid weekly, averaging about $400 -$600 per week. Summer is the slow season since the snow birds have all left. I just cannot keep up with the mortgage making this kind of money along with all my other bills and provide for all of my daughter's needs. I wish I could get a second job but my daughter is not old enough to leave home alone. Her father is in prison therefore cannot provide any kind of financial help. Please understand that I did not want it to come to this and did the best I can to try to make ends meet. I apologize for not being able to up hold my end of our agreement. Sincerely, Diane Dolphin Settlement Statement R. Tvoa of Loan 1 FHA 2. RHS 3. Conv. Unins 6 File Number: 7. Loan Number 8 Mortgage Insurance Case Number: 4. VA 5. Conv. Ins 403 C Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked .o.c. "were paid outside the closing; they are shown here for informational purposes and are not included In the totals. D. Name & Address of Borrower E. Name & Address of Seller F. Name & Address of Lender: Brien Feldman Diane S. DOLPHIN 407. County Taxes to 318 Glen Arbor Terrace 409. Boynton Beach, FL 33426 410. <on. H. Settlement Agent I. S ettlement Data Terrace Title Guaranty of South Florida 09/3=013 Place of Settlement 500. Reductions In Amount Due to sager 7318GLAr.b FL 33426 4430 Weston Road, Davie, FL 33331 5,566.25 K. Summary of Seller's Transaction 400. Gross Amount Due to Seller 401. Contract sales price 50,000.00 402. Personal property 403 404. 405. Ad uatment for Items paid by seller In advance 406. City /town taxes to 407. County Taxes to 408. Assessments to 409. 410. 411. 412. 420. Gross Amount Due to Seller 50,000.00 500. Reductions In Amount Due to sager 501 Excess deposit (see Instructions) 502 Settlement charges to seller (line 1400) 5,566.25 503. Exlstrng loan(s) taken subject to 504. Fifth Third Bank 37,378.12 505 City of Boynton Beach 6,000.00 506. 507. 508. 509 Adjustments tot items unpaid by seller 510 City flown taxes to 51 i. County taxes 01101 /13 to 06/302013 1,055.63 512. Assessments to 513. 514, 515, 516. 517. 518. 519. 520. Total Reduction Amount Due Seller 50,000.00 600. Cash at Settlement to/from Seller 601. Gross amount due to seller (line 420) 50,000.00 602. Less reductions in amounts due seller (line 520) 50,000.00 603. Cash ./ To From Seller 0.00 Page 1 of 2 J. summary of Borrower's Transaction L. Settlanent Charges 700. Total Real Estate Broker Fess Paid From Borrower's Funds at Settlement Paid From Seller's Funds at Settlement Division of commission line 7001 as follows : 701 $ To 702.$ To 703. Commission paid at settlement 3,000.00 704, 705. 800. Items Payable In Connection with Loan 801. Our origination charge $ (from GFE #1) 802. Your credit or charge (points) for the specific Interest rate chosen $ (from GFE #2) 803. Your ad)usted originatbn charges (from GFE #A) 804. Appraisal fee to (from GFE 113) 805. Credit report to (from GFE t3) 806. Tax service to (from GFE #3) 807 Flood certification to (from GFE 03) 808. 809. 810. 811 900. Items Required by Lander to be Paid In Advance 901, Deity Interest charges from to @ $ /day (from GFE #10) 902, Mortgage insurance premium for months to (from GFE #3) 903. Homeowner's Insurance for years to (from GFE #11) 9134. 905. 1000. Reserves Deposited with tender 1001 Initial deposit for your escrow account (lrom GFE #g) 1002. Homeowner's Insurance 0 months @ $ per month $ 1003. Mortgage insurance 0 months @ $ per month $ 1 D04. Property Taxes 0 months ® $ per month $ 1 D05 0 months ® $ per month $ 1006 o months ® $ per month $ 1007. Aggregate Adjustment - $ 1100. Title Charges 1101. Title services and lender's title insurance (from GFE #4) 1102. Settlement or closing fee $ 750.00 1103 Owner's title Insurance (from GFE #5) 1104 Lender's this Insurance $ 36625 1105. Lender's title polcy Itmlt $ 1106. Owner's title polcy lima $ 1107, Agent's portion of the total etle insurance premium to $ 11 D8. Underwriter's portion of the total tide Insurance premium to $ 1109 1110. 1111. Merril A. Bookstein, PA 76000 1112. AbstracMle Search 35000 1113 1200. Govemmsnt Recording and Transfer Charges 1201. Government recording charges (tram GFE #7) 1202 Deed $ Mortgage $ Release $ 1203 Transfer taxes (from GFE #8) 1204. City /County tax /stamps Deed $ Mortgage $ 12D5 State tax /stamps Deed $ Mortgage $ 350.00 1206, 1207. 1208 1300. Additional Settlement Charges 1301 Required services that you can shop for (fromGFE #6) 1302. $ 1303 $ 13D4 1305 1400. Total Settlement Charges (e on lines 10 S J a nd 602, Sec K) ----- 5.566 25 PaMe2of2 Metum to. tendose salt- addressed stamped erwelope) CFN 20070238377 OR H){ 21736 FG 1116 RECORDED 05/15/2007 16:19:51 Paler Beach County, Florida Sharon R. Back,CLERft $ COMPTROLLER Pga 1416 - 1426; (ilpga) This instrument was prepared by. The City Of Boynton Beach Post Office Box 310 Boynton Beach, Fiorida 33425 -0310 Return to: Community Improvement THIS CORRECTIVE MORTGAGE IS BEING EXECUTED AND RECORDED IN ORDER TO CORRECT THE AMOUNT IN THAT CERTAIN MORTGAGE FROM THE BORROWER TO THE LENDER DATED JANUARY 2, 2007 AND RECORDED JANUARY 16, 2007 IN OFFICIAL RECORDS BOOK 21307, PAGE 1857, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA. DOCUMENTARY TAXES WERE PAID ON SAID ORIGINAL MORTGAGE. CORRECTIVE SECOND MORTGAGE AND SECURITY AGREEMENT THIS SECOND MORTGAGE AND SECURITY AGREEMENT ( "Mortgage "), made this Second day of January, 2007 between Diane Dolphin, a single woman, whose post office address is: 1512 N.E. 2 — Court, Boynton Beach, Florida 33435 (hereinafter called "Mortgagor") and THE CITY OF BOYNTON BEACH, a Florida municipal corporation, as Mortgagee and Secured Party, whose post office address is: 100 East Boynton Beach, Florida 33435 (hereinafter called the "Mortgagee "). WITNESSETH: WHEREAS, Diane Dolphin, a single woman, is justly Indebted to the Mortgagee in the principal sum of Seventy Five Thousand One Hundred Ninety and 001100 Dollars ($75.190.00) as evidenced by a certain Promissory Note ("Note ") of even date herewith, executed by and delivered to Mortgagee, payable according to the terns therein provided, and by reference being a part hereof to the same extent as though set out in full herein; and WHEREAS, this second mortgage is an interest -free deferred payment loan instituted under the City of Boynton Beach SHIP Program in which the Mortgagor holds the note and mortgage, and the loan will be paid upon the sale of the property if sold short of the teml of the first mortgage or upon Mortgagor's default NOW THIS INDENTURE WITNESSETH, to secure the performance and observance by Diane Dolphin of all the covenants, conditions and agreements in the Note, this Second Mortgage, and any other instrument, agreement or document collateral to or executed or delivered in connection with the loan transaction, (collectively the "Loan Documents "), and in order to charge the properties, interest and rights hereinafter described with such payment, performance and observance, and for and in consideration of the sum of TEN ($10.00) DOLLARS paid by _ Diane Dolphin and for other valuable considerations, the receipt and sufficiency of which is hereby acknowledged, the Mortgagor does hereby grant, bargain, sell, alien, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, deliver, set over, warranty and confirm unto the Mortgagee, its successors and assigns forever; ALL that certain piece, parcel or tract of land in which the Mortgagor has a fee simple interest situate in the County of Palm Beach, State of Florida (hereinafter called the "Land "), more particularly described as follows: Lot 124 of GLEN ARBOR ADDITION NO. 1, according to the Plat thereof as recorded in Plat Book 25, Page 182, of the Public Records of Palm Beach County, Florida. Property address: 318 Glen Arbor Terrace, Boynton Beach, Florida 33426 PCN: 08- 43- 45- 20 -13- 000 -0240 TOGETHER WITH all lands, buildings, structures and improvements of every nature whatsoever now or hereafter situated on the Land, and all fixtures, machinery, equipment, furniture and other personal property of every nature whatsoever now or hereafter owned by the Mortgagor and located in, on, or used or intended to be used in connection with the operation of the Land, building, structures or other improvements, betterments, renewals, and replacements to any of the foregoing; and all of the right, title and interest of the Mortgagor in any such personal property or fixtures subject to a conditional sales contract, chattel mortgage or similar lien or claim together with the benefit of any deposits or payments now or hereafter made by the Mortgagor or on Mortgagor's behalf; TOGETHER WITH a security interest in (i) all property, equipment and fixtures affixed to or located on the Mortgaged Property, which, to the fullest extent permitted by law, shall be deemed fixtures and a part of the real property, (ii) all articles of personal property and all materials delivered to the Mortgaged Property for the use and operation of said property or for use in any construction being conducted thereon, and owned by Mortgagor, (iii) all contract rights, including construction contracts, service contracts, advertising contracts, purchase orders, equipment leases, all other contract rights associated with the Mortgaged Property, general intangibles, actions and rights of action, all deposits prepaid expenses, permits, licenses, including all rights to insurance proceeds, (iv) all right, title and interest of the Mortgagor in all trade names and trademarks hereinafter used in connection with the use of the Mortgaged Property, and (v) all proceeds, products, replacements, additions, substitutions, renewals and accessions of any of the foregoing. Mortgagor hereby grants to Mortgagee, as a secured party, a security interest in all fixtures, rights in action and personal property described herein. This Mortgage is a self - operative security agreement with respect to such property, but Mortgagor agrees to execute and deliver on demand such other security agreements, financing statements and other instruments as Mortgagee may request in order to perfect its security interest or to impose the lien hereof more specifically upon any of such property. In addition to those specified herein Mortgagee shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Page 2 of 11 ARTICLE ONE PARTICULAR COVENANTS OF MORTGAGE 1.01 Performance of Note and Mortgage. The Mortgagor will perform, observe and comply with all provisions hereof, of the Promissory Note (hereinafter referred to as "Note ") secured hereby and any of the other Loan Documents, and will promptly pay to the Mortgagee the sum of money expressed in the Promissory Note with interest thereof and all other sums required to be paid by the Mortgagor pursuant to the provisions of the Amended and Restated Note and the Mortgage on the day or days when payment shall become due, all without deduction or credit for taxes or other similar charges paid by the Mortgagor, time being of the essence for such payments. The Loan secured by this mortgage shall be paid to the Mortgagee without interest upon sale of the property and shall be for the term of the first mortgage. If the property is not sold prior to the expiration of the first mortgage, then the loan shall be fully forgiven and nothing shall be owed. 1.02 Warranty of Title. The Mortgagor covenants that it is indefeasibly seized of the Land in fee simple, has good, marketable and absolute title to the Mortgaged Property and has full power and lawful right to convey and mortgage the same in the manner and form aforesaid. That the Mortgaged Property is free from all encumbrances except taxes for the current year a first mortgage in favor of Fifth Third Bank and its successors, and any other permitted encumbrances. The Mortgage hereby makes further assurance to perfect fee simple title to the Land in the Mortgagee as may be reasonably required. The Mortgagor does hereby fully warranty the title to the Mortgaged Property against claims of all persons whomsoever. 1.03 Insurance. Mortgagor shall keep the improvements now existing or hereafter erected on the Mortgaged Property, insured against loss by fire or other hazards, casualties, and contingencies, including but not limited to flood, in such amounts and for such periods as may be required by Mortgagee, and to pay promptly when due, all premiums on such insurance policies or renewals. 1.04 Condemnation. If all or any part of the Mortgaged Property shall be damaged or taken through condemnation (which term when used in this Mortgage shall include any damage or taking by any governmental authority, and any transfer by private sale in lieu thereof, either temporarily or permanently), the entire indebtedness secured hereby shall at the option of the Mortgagee become immediately due and payable if the Mortgagee in its sole discretion determines that its security under this Mortgage is impaired. The Mortgagee shall be entitled to all compensation, awards, and any other payments of relief therefore and is hereby authorized, at its option to commence, appear in and prosecute, in its own or the Mortgagor's name, any action or proceeding relating to any condemnation, and to settle or compromise any claim in connection therewith. All such compensation, awards, damages, claims, rights of action and proceeds and the rights thereto are hereby assigned by the Mortgagor to the Mortgagee, who after deducting therefrom all its expenses including attorneys' fees, may release any monies so received by it without affecting the lien of this Mortgage or may apply the same in such manner as the Mortgagee shall determine, to the reduction of the sums secured hereby, and any balance of such monies then remaining shall be paid to the Mortgagor. The Mortgagor agrees to execute such further assignments of any compensations, awards, damages, claims, rights of action and proceeds as the Mortgagee may require. Page 3 of 11 1.05 Expenses. Mortgagor shall pay, or reimburse Mortgagee for all costs, charges and expenses, including reasonable attorneys fees, including appellate proceedings, and disbursements, and costs of abstracts of title incurred or paid by Mortgagee in any action, proceeding or dispute in which Mortgagee is made a part or appears as a party plaintiff or party defendant because of the failure of the Mortgagor promptly and fully to perform and comply with all conditions and covenants of this Mortgage and the Note secured hereby, including but not limited to, the foreclosure of this Mortgage, condemnation of all or part of the Mortgaged Property, or any action to protect the security thereof. All costs, charges and expenses so incurred by Mortgagee shall become due and payable whether or not there be notice, demand, attempt to collect or suit pending. The amounts so paid or incurred by Mortgagee, together with interest thereon at the default rate as hereinafter defined from the date incurred until paid by Mortgagor, shall be secured by the lien of this Mortgage. ARTICLE TWO DEFAULTS 2.01 Event of Default. The term "Event of Default' wherever used in the Mortgage, shall mean any one or more of the following events: (a) Failure by Mortgagor to pay, within fifteen (15) days of its due date any deposits for taxes and assessments or insurance premiums due hereunder, or any other sums to be paid by Mortgagor hereunder or under any other instrument securing the Note. (b) Failure by Mortgagor to duly keep, perform and observe any other covenant, condition or agreement in the Note, this Mortgage or any of the other Loan Documents for a period of ten (10) days after the Mortgagee gives written notice specifying the breach. If the default cannot be cured within such ten days, the commencement of such action to cure the default and the diligent and continuing effort to cure same shall be acceptable. (c) If Mortgagor or any endorser or guarantor of this Note shall file a voluntary petition in bankruptcy or shall be adjudicated a bankrupt or insolvent, or shall file any petition or answer seeking any reorganization, arrangement, composition, readjustment, liquidation wage earner's plan, assignment for the benefit of creditors, receivership, dissolution, or similar relief under any present or future Federal Bankruptcy Act or any other present or future applicable federal, state or other statute or law, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of Mortgagor for all or any part of the properties of Mortgagor or of any guarantor or endorser of the Note; or if within thirty (30) days after commencement of any proceeding against Mortgagor or any guarantor or endorser of the Note, seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, debtor relief or similar relief under any present or future federal, state or other statute or law, such proceeding shall not have been dismissed or stayed on appeal; or if, within the thirty days after appointment without the consent or acquiescence of Mortgagor or of any endorser or guarantor of the Note, of any trustee, receiver, or liquidator of Mortgagor or any endorser or guarantor of the Note, or of all or any portion of the Mortgaged Property, such appointment shall not have been vacated or stayed on appeal or otherwise; or if within ten (10) days after the expiration of any such stay, such appointment shall not have been vacated. Page 4 of 11 (d) The entry by any court of last resort of a decision that an undertaking by the Mortgagor as herein provided to pay taxes, assessments, levies, liabilities, obligations or encumbrances is legally inoperative or cannot be enforced, or in the event of the passage of any law changing in any way or respect the laws now in force for the taxation of mortgages or debts secured thereby for any purpose or the manner of collection of any such taxes, so as to effect adversely this Mortgage or the debt secured hereby unless the Mortgagor can and does in a proper and legal manner, pay any and all sums of whatever kind which may be incurred or charged under such new or modified law. (e) If foreclosure proceedings should be instituted on any mortgage inferior or superior to the Mortgage, or if any foreclosure proceeding is instituted on any lien of any kind which is not dismissed or transferred to bond within thirty (30) days of the service of foreclosure proceedings on the Mortgagor. (f) Any default under any mortgage superior or inferior to the Mortgage. (g) Any modification of any mortgage superior or inferior to the Mortgage, increase in the amount outstanding under any superior or inferior mortgage, whether pursuant to a future advance agreement or otherwise, or waiver of any principal or interest payments on any note or mortgage superior or inferior to this Mortgage, or release of any guarantor or modification of any guaranty affecting any superior or inferior mortgage. (h) Any breach of any warranty or material untruth of any representation of Mortgagor contained in the Note, this Mortgage or any of the other Loan Documents. (i) Any action prohibited by paragraph 3.01 infra. 0) If the mortgaged property is sold, transferred or refinanced prior to the expiration of the first mortgage or any prior mortgage the entire amount of the loan shall be returned forthwith to Mortgagor, the City of Boynton Beach SHIP Program. (k) Upon the homeowner(s) death, provided that the new owner is not income eligible under SHIP Guidelines and /or the dwelling on the mortgaged property is not the primary residence of the new owner. For the new owner to be eligible, he or she must set up primary residence in the dwelling within a reasonable time and be income eligible under SHIP guidelines. if the new owner is not eligible, the loan shall be due and payable to the Mortgagor. (1) Lease of any portion of the mortgaged property to a third party. 2.02 Acceleration of Maturity. If an Event of Default shall have occurred and be continuing, the Mortgagee may, at its sole option, declare the entire principal amount of the Note then unpaid, and the interest accrued thereon to be due and payable immediately, and upon such declaration such principal and interest shall forthwith become and be due and payable, as fully and to the same effect as if the date of such declaration were the date originally specified for the maturity of the unpaid balance of the Note. Page 5 of 11 2.03 Mortgagee's Power of Enforcement. If an Event of Default shall have occurred and be continuing the Mortgagee may proceed by suit at law or in equity or by any other appropriate proceeding or remedy (a) to enforce payment of the Note or the performance of any term hereof or any other right (b) to foreclose this Mortgage and to sell, as an entirety or in separate lots or parcels, the Mortgaged Property, under the judgment or decree of a court or courts of competent jurisdiction, and (c) to pursue any other remedy available to it, all as the Mortgagee shall deem most effectual for such purposes. The Mortgagee shall take action either by proceedings or by the exercise of its powers with respect to entry or taking possession, as the Mortgagee may determine. 2.04 Leases. The Mortgagee, at the Mortgagee's option, is authorized to foreclose this Mortgage subject to the rights of any tenants of the Mortgaged Property, and the failure to make any such tenants parties defendant to any such foreclosure proceedings and to foreclose their rights will not be, nor be asserted to by the Mortgagor, a defense to any proceedings instituted by the Mortgagor to collect the sums secured thereby, or any deficiency remaining unpaid after the foreclosure sale of the Mortgaged Property. 2.05 Principal and Interest Become Due on Foreclosure. Upon commencement of suit or foreclosure of this Mortgage, the unpaid principal of the Note, if not previously declared due, and the interest accrued thereon, shall at once become and be immediately due and payable. 2.06 Waiver of Appraisement, Valuation, Stay, Extension and Redemption Laws. The Mortgagor agrees to the full extent permitted by law, that in case of default on its part hereunder, neither the Mortgagor nor anyone claiming through or under it shall or will set up, claim or seek to take advantage of any appraisement, valuation, stay, extension, or redemption laws now or hereafter in force, in order to prevent or hinder the enforcement or foreclosure of this Mortgage, or the absolute sale of the Property being conveyed, to the final and absolute putting into possession thereof, immediately after such sale; the purchasers thereof, and the Mortgagor, for itself and all who may at any time claim through or under it, hereby waive to the full extent that it may lawfully do so, the benefit of all such laws, and any and all right to have the assets comprised in the security intended to be created hereby marshaled upon any foreclosure of the lien hereof and agrees that the Mortgagee or any court having jurisdiction to foreclose such lien may sell the Mortgaged Property as an entirety. 2.07 Acceleration; Application of Monies by Mortgagee. (a) If default shall be made in the payment of any amount due under the Mortgage or the Note secured hereby, then, upon demand of the Mortgagee, the Mortgagor will pay to the Mortgagee the entire amount due and payable under the Note. If Mortgagor shall fail to pay the same forthwith upon such demand, the Mortgagee shall be entitled to sue for and to recover a judgment for the whole amount so due and unpaid together with costs, which shall include the reasonable compensation, expenses and disbursements of the Mortgagee's agents and attorneys either before, after or during the pendency of any proceedings for the enforcement of the Mortgage including appellate proceedings. The right of the Mortgagee to recover such judgment shall not be affected by any taking, possession, or foreclosure sale hereunder, or by the exercise of any other right, power or remedy for the enforcement of the terms of this Mortgage, or the foreclosure of the lien hereof. Page 6 of 11 (b) In case of a foreclosure sale of any of the Mortgaged Property and of the application of the proceeds of sale to the payment of the debt hereby secured, the Mortgagee shall be entitled to enforce payment of and to receive all amounts then remaining due and unpaid upon the Note, and the Mortgagee shall be entitled to recover a Judgment for any portion of the debt remaining unpaid, with interest. (c) The Mortgagor agrees to the full extent that it may lawfully so agree, that no recovery of any such judgment by the Mortgagee and no attachment or levy of any execution upon any such judgment upon any of the Mortgaged Property or upon any other property shall in any manner or to any extent release the lien of the mortgage upon the Mortgaged Property or any part thereto for any liens, rights, powers or remedies of the Mortgagee hereunder, but such lien, rights, powers and remedies shall continue unimpaired as before. (d) Any monies thus collected by the Mortgagee or received by the Mortgagee under this paragraph 2.07 shall be applied as follows: "First, to the payment of the reasonable attorneys fees and expenses incurred by Mortgagee, its agents and attorneys, including but not limited to taxes paid, insurance premiums paid receivers fees, etc. Second toward payment of the amounts due and unpaid upon the Note." 2.08 Delay or Omission No Waiver. No delay or omission of the Mortgage or of any holder of the Note to exercise any right, power, or remedy accruing upon any default shall exhaust or impair any such right, power or remedy nor shall same be construed to be a waiver of any such default, or acquiescence, herein; and every right, power and remedy given by this Mortgage to the Mortgagee may be exercised by Mortgagee from time to time and as often as may be deemed expedient by the Mortgagee. 2.09 No Waiver of One Default to Affect Another. No waiver of any default hereunder shall extend to or shall affect any subsequent or any other existing default or shall impair any rights, powers or remedies consequent thereon. If the Mortgagee (a) grants forbearance or an extension of time for the payment of any sums secured hereby, (b) takes other or additional security for the payment thereof; (c) waives or does not exercise any right granted herein or in the Note, (d) releases any part of the Mortgaged Property from the Note or Mortgage; (e) consents to the filing of any map, plat or replat thereof, (f) consents to the granting of any easement thereon, or (g) makes or consents to any agreement subordinating the lien hereof, any such act or omission shall not release, discharge, modify, change or affect the original liability under the Note or otherwise of the Mortgagor or any subsequent purchaser of the Mortgaged Property or any part thereof, or any maker, co-signer, endorser, surety or guarantor; nor shall any such act or omission preclude the Mortgagee from exercising any right, power or privilege herein granted or intended to be granted in the event of any other default then made or of any subsequent default nor, except as otherwise expressly provided in an instrument or instruments executed by the Mortgagee, shall the lien of this Mortgage be altered thereby. in the event of the sale or transfer by operation of law or otherwise of all or any part of the Mortgaged Property, the Mortgagee, without notice to any person or corporation, is hereby authorized and empowered to deal with any such vendee or transferee with reference to the Mortgaged Property or the indebtedness secured hereby, as fully and to the same extent as it might deal with the original parties hereto and without in any way releasing or discharging any of the liabilities or undertakings hereunder. Page 7 of 11 2.10 Discontinuance of Proceedings - Position of Parties Restored. In case the Mortgagee shall have proceeded to enforce any right or remedy under this Mortgage by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Mortgagee, then in every such case, the Mortgagor and the Mortgagee shall be restored to their former positions and rights hereunder, and all rights, powers and remedies of the Mortgagee shall continue as if no such proceeding has been taken. 2.11 Remedies Cumulative. No right, power or remedy conferred upon or reserved by the Mortgagee by this Mortgage, is intended to be exclusive of any other right, power or remedy, but each and every such right, power and remedy shall be cumulative and current and shall be in addition to any other right, power and remedy given hereunder or nor or hereafter existing at law or in equity or by statute. 2.12 Subrogation. The Mortgagee hereby is subrogated to the claims and liens of all parties whose claim or liens are discharged or paid with the proceeds of the indebtedness secured by this Mortgage. ARTICLE THREE MISCELLANEOUS PROVISIONS 3.01 No Transfer. It is understood and agreed by Mortgagor that as part of the inducement to Mortgagee to make the loan evidenced by the Note, Mortgagee has considered and relied upon the credit worthiness and reliability of Mortgagor. Mortgagor covenants and agrees not to assign, sell, convey, transfer, lease, enter into any management agreement, or further encumber any interest in or any part of the Mortgaged Property without the prior written consent of the Mortgagee, and any such sale, conveyance, transfer, lease, or encumbrance made without Mortgagee's prior written consent shall constitute an event of default hereunder. If the Mortgagor is not an individual, it is further understood and agreed that any assignment, sale, conveyance, transfer, encumbrance or pledge of any ownership interest of the Mortgagor without the Mortgagee's prior written consent shall be deemed a transfer of the Mortgaged Property and prohibited herein. 3.02 Uniform Commercial Code. The parties agree that this Mortgage is a security agreement under the Uniform Commercial Code for the purpose of creating a lien on the Mortgaged Property. 3.03 Maximum Rate of Interest. Nothing herein contained nor in the Note secured hereby or any instrument or transaction related thereto, shall be construed or so operate as to require the Mortgagor, Maker, or any person liable for the payment of the loan made pursuant to said Note, to pay interest in an amount or at a rate greater than the maximum allowed by law. Should any interest or other charges in the nature of interest paid by the Mortgagor, Maker or any parties liable for the payment of the loan of interest in excess of the maximum rate of interest allowed by applicable law, then any and all such excess shall be and the same is hereby waived by the holder hereof, and all such excess shall be automatically credited against and in reduction of the principal balance, and any portion of said excess which exceeds the principal, balance shall be paid by the holder hereof to the Mortgagor, Maker or any parties liable for the payment of the loan made pursuant to said Note, it being the intent of the parties hereto that under no circumstances shall the Mortgagor, Maker or any parties liable for the payment of the loan hereunder, be required to pay interest in excess of the maximum rate allowed by law. Page 8 of 11 3.04 Default Rate. The Default Rate of interest shall be applicable subsequent to an Event of Default as defined in Paragraph 2.01 and where elsewhere provided for in this Mortgage. The Default Rate shall be the maximum interest rate per annum permissible under Florida Law, or Federal Law in the event Federal Law pre -empts Florida law or is otherwise applicable 3.05 Attorneys Fees and Expenses. Wherever provision is made herein from payment for reasonable attorneys fees or counsel fees or expenses incurred by the Mortgagee, said provision shall include, but not limited to, reasonable attorneys' or counsels fees or expenses incurred in any and all judicial, bankruptcy, reorganization, administrative, or other proceedings, including appellate proceedings, whether such proceedings arise before or after entry of a final judgment. 3.06 Notice. (a) Mortgagor. Any notice, demand or instrument authorized by this Mortgage to be served on or given to the Mortgagor may be served on or given to the Mortgagor at: 318 Glen Arbor Terrace Boynton Beach, FL 33426 or at such other address as may have been furnished in writing to the Mortgagee by the Mortgagor. (b) Mortgagee. Any notice demand or instrument authorized by this Mortgage to be served on or give to the Mortgagor may be served on or given to the Mortgagor at: CITY OF BOYNTON BEACH ATTN: CITY ATTORNEY'S OFFICE 100 EAST BOYNTON BEACH BOULEVARD BOYNTON BEACH, FLORIDA 33433 or at such other address as may have been furnished in writing to the Mortgagor by the Mortgagee. 3.07 Headings. The headings of the articles, sections, paragraphs and subdivisions of this Mortgage are for convenience of reference only, and are not to be considered a part hereof, and shall not limit or otherwise affect any of the terms hereof. 3.08 Invalid Provisions to Affect No Others. In case any one or more of the covenants, agreements, terms or provisions contained in this Mortgage, the Note or any of the other Loan Documents, shall be invalid, illegal or unenforceable in any respect, the validity of the remaining covenants, agreements, terms or provisions contained herein and in the Note shall be in no way affected, prejudiced or disturbed thereby. Page 9 of 11 ARTICLE FOUR ADDITIONAL PROVISIONS 4.01 Guarantors. As part of the inducement to the Mortgagee to make the loan evidenced by the obligation secured hereby, the Mortgagor has caused certain other persons to enter into continuing and unconditional guarantees of payment of any and all indebtedness and agreed by the Mortgagor that such representations and agreements by such other persons shall constitute for the purpose of its obligations hereunder, covenants on behalf of the Mortgagor. Page 10 of 11 IN WITNESS WHEREOF, Borrower and Lender have caused this Second Mortgage and Security Agreement to be executed in their names, all by authority duly given as of the day and year first above written. Signed, sealed and delivered in the presence of: WITNE 5 WITNESS WITNESS WITNESS STATE OF FLORIDA ) ) SS.: COUNTY OF PALM BEACH) •- •- Diane Dolphin PRINT NAME MORTGAGOR PRINT NAME 1 hereby certify that on this day, before me, a Notary Public duly authorized in the State and County named ab ve to � take acknowledgements, personally appeared He /she is personally known to me for has produced t LA 1) - IS Z - -- 1 3`' as identification) to be the person(s) described as Mortgagors in and who executed the foregoing mortgage and acknowledged before me that said persons executed that mortgage. Witness my hand and official seal in the County and State named above this Second day of January, 2007 Signed: NOTARY PUB C De Deft • Print Name: Git �5tt�C -\ My CoaxnUNbn 00496610 a P EON Page 11 of 11