Fillable Form Re 629 - Set-Aside Letter - 1997 (Page 2 of 2) in pdf

RE 629 — Reverse

liens and claims.

This set-aside letter, shall be delivered to the Escrow Holder for the benefit of the Association.

This set-aside letter shall not be released or exonerated unless and until the first of the following has occurred: (i) the As-

sociation has issued a certified copy of a resolution by the governing body of the Association stating that this set-aside letter

is released and exonerated; (ii) the Limitation Period, as defined below, has expired without any suit or action having been

filed; (iii) a judgment of liability on this set-aside letter that exhausts the amount of the Funds is satisfied; or (iv) entry of a

final judgment or order by a court of competent jurisdiction determining that this set-aside letter is released and exonerated.

We shall pay to Escrow Holder an amount up to but not in excess of the funds then available for disbursement pursuant

to this letter, if Escrow Holder makes a request for such funds accompanied by a statement, purportedly signed by one of the

officers of the Escrow Holder, as follows:

“I certify that I am an officer of the Escrow Holder and that remittance to the Escrow Holder in the amount of

$__________________________ is hereby requested on the Set Aside Letter issued ________________________ , _____

by ________________________________________________________________________________________ (Issuer).

This request is made in compliance with escrow instructions to Escrow Holder heretofore duly executed and delivered to

Escrow Holder Escrow, pursuant to the provisions of Business and Professions Code Section 11018.5(a)(2) by Subdivider

___________________________________________________________________________________ and Association __

_____________________________________________________________________________________________.”

In case of a judgment or an arbitration award issued in an action or proceeding conducted between Subdivider and the

Association, which directs that the Association shall be paid all or some of the Funds, then, upon receipt by us of a certified

copy of the judgment or award, that portion of the Funds specified in the judgment or the award, to the extent the funds have

not previously been disbursed pursuant to this set-aside letter, shall be paid to the Association or to its order for the purpose

of satisfying the judgment or award.

We shall be fully protected in making payments: (a) in reliance upon certificates of work completion from the Subdivider

or from contractors engaged by Subdivider, (b) in reliance upon requests therefor from the Escrow Holder, or (c) in reliance

upon a judgment or an arbitration award, and we are not responsible for the proper use of the Funds so disbursed.

In no case will the Escrow Holder or the Association be obligated to repay to us Funds disbursed to the Escrow Holder

or the Association pursuant to the provisions of this set-aside letter.

This set-aside letter and the rights and duties of the parties shall be binding upon and shall inure to the benefit of the

successors in interest, assigns, and personal representatives of the respective parties.

A suit or action on this set-aside letter must be filed within two (2) years after the latest completion date specified in the

Planned Construction Statement, or an extension thereof given in writing by the Association to the Subdivider and assented

to in writing by us (“Limitation Period”).

Our obligations under this set-aside letter are unconditional and shall not be abrogated or otherwise affected by the bank-

ruptcy of the Subdivider, by any stop notice (except a bonded stop notice), tax assessment or levy, attachment, execution or

other legal process against Subdivider nor by the breach by Subdivider of any obligations to us.

Dated:

___________________

___________________________________________

Issuer’s Name

___________________________________________

Name of Person Signing

___________________________________________

Title of Person Signing

___________________________________________

Address

___________________________________________

City, State, & Zip Code

Form Re 629 - Set-Aside Letter - 1997 Page 2

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