Fillable Form Re 629 - Set-Aside Letter - 1997 printable pdf download

tate of

alifornia

ureau of

eal

State

uBdiviSionS

-A

Side

etter

[§11018.5(a)(2)]

RE 629 (Rev. 1/97)

TO — “ESCROW HOLDER”

NAME OF ESCROW-HOLDER

ADDRESS, CITY, STATE, ZIP CODE

ON BEHALF OF — “ASSOCIATION”

NAME OF OWNERS ASSOCIATION

ADDRESS, CITY, STATE, ZIP CODE

SUBDIVISION — “SUBDIVISION”

NAME OF SUBDIVISION

COUNTY

TYPE OF SUBDIVISION

BRE FILE NUMBER

BORROWERS — “SUBDIVIDER”

NAME OF SUBDIVIDER

ADDRESS, CITY, STATE, ZIP CODE

For value received, we hereby agree that the amount of _________________________________________________ __

______________________________________________________ Dollars ($________________) (“Funds”) is irrevocably

committed and set aside by us in a separate account (No. ____________ ), under our control, to secure the timely comple-

tion of certain common area improvements listed on the Planned Construction Statement attached to this set-aside letter as

Exhibit “A” (“Improvements”) free of all liens and claims. We acknowledge that the Subdivider has granted the Association

a security interest in the Funds to secure the Subdivider’s obligations to the Association to complete the Improvements, as

is more specifically set forth in Part One of the “Common Area Completion Security Agreement and Instructions to Escrow

Depository” attached hereto as Exhibit “B.” Issuer further acknowledges and agrees that the Funds cannot be used or offset

to satisfy the Subdivider’s obligations to the Issuer, if any. This set aside letter is issued for the purpose of compliance by

the Subdivider with the provisions of Business and Professions Code §11018.5(a)(2).

We assume no obligation and give no assurance with respect to: (i) proper completion of the Improvements, including

without limitation, workmanship and timeliness; or (ii) the amount set aside as being sufficient to complete the Improve-

ments.

The Funds shall be disbursed to the Subdivider, or to the order of the Subdivider, in progress payments when the im-

provement work has reached stages of completion specified in the Construction Disbursement Schedule attached hereto and

marked Exhibit “C”. However, no progress payment shall be so disbursed to the Subdivider or to the order of the Subdivider

until the Subdivider has provided us with:

(i) executed lien releases substantially in the form set forth in Civil Code §3262(d)(2) covering all previous progress pay-

ments for labor and materials performed or used in the construction of the Improvements, or title insurance, in an amount

not less than the cost of the completed Improvements, insuring us and the Association that the Improvements are free of

all liens and claims to the date of the requested disbursement; and

(ii) a certificate executed by the Subdivider stating that the executed lien releases accompanying the certificate cover all

previous progress payments for labor or materials actually performed or used in the construction of the Improvements.

Ten percent (10%) or more of each progress payment or ten percent (10%) or more of the Funds (“retention”) shall be

retained by us. No portion of the retention shall be disbursed to the Subdivider or to the order of the Subdivider unless and

until this set-aside letter is released and exonerated or we receive a certificate executed by the Subdivider stating that all of

the Improvements have been completed, free of all liens and claims, and (i) the statutory period for recording mechanics

lien claims for the Improvements has expired, or (ii) the Association has been provided with a policy of title insurance, in

an amount not less than the cost of the completed Improvements, insuring that the Improvements as completed are free of

Form Re 629 - Set-Aside Letter - 1997

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