ESCROW HOLD þeE RNAME OF þEE SCROW-HOLDER þ þAA DDRESS, þCC ITY, þSS TATE, ZIP þCC ODE þEE SCROW þAA CCOU þnN T NUMBER þSS UBDIVISIONNAME OF þSS UBDIVISIO þnNþCC OU þnN TY þT T YPE OF þSS UBDIVISIO þnDREN DRE þFF ILE NUMBER þSS UBDIVID þeE RNAME OF þSS UBDIVIDER þAA DDRESS, þCC ITY, þSS TATE, ZIP þCC ODEASSOCI þaA TIONNAME OF þOO W þnN ERS þAA SSOCIATIO þnNþAA DDRESS, þCC ITY, þSS TATE, ZIP þCC ODE P þaA RT þOO N þeE 227 ASS þeE SSM þeE NT þSeSE CURITY AGR þeeEE M þeE NT1. þ This Assessment Security Agreement (223Agreement224) is made this day of , 2. þ Recitals.A. þ Property to Which Agreement Applies. (Interests to be covered by the Public Report). Subdivider is the owner of certain real property described as: Records of County, California (herein 223the Subdivision224).B. þ Public Report. Subdivider has applied for a California Department of Real Estate Public Report (223Public Report224) covering the Subdivision. Prior to obtaining the Public Report, the Subdivider is required pursuant to the provisions of Section 2792.9 of Chapter 6, Title 10, California Code of Regulations to make and retain in full force and effect arrangements securing Subdivider222s obligations as an owner of separate interests covered by the public report to pay regular and special assessments.3. þ Secured Obligation. Subdivider shall pay, as and when due, all regular and special assessments which are levied by the Association against separate interests owned by the Subdivider in the Subdivision from the date hereof. The secured obligation to be in full force and effect until title to 80% of the separate interests in the Subdivision have been conveyed or leased with a term of one year or more.4. þ Security. To secure the performance of the obligation described in Part One, Paragraph 3, above, the Subdivider has procured the issuance of the: þ Surety bond in the sum of Dollars ($), STATE OF CALIFORNIADEPARTMENT OF þRREAL þEEþsSTATEASSESSMENT þSSECURITY AGREEMENT þaAND þIINSTRUCTIONS TO þEESCROW þDDEPOSITORY - þRREG. 2792.9 RE 643 (Rev. 8/10) American LegalNet, Inc. www.FormsWorkFlow.com RE 643 þ Page 2 of 5to the Association, as obligee, þ Letter of credit in the sum of Dollars ($), þ Set-aside letter in the sum of Dollars ($) þ a copy of which instrument is attached to this Agreement as an Exhibit, or þ cash deposit in the sum of Dollars ($) þ The term 223Security224 as used in this Agreement refers to the cash deposit, surety bond, letter of credit, or set-aside letter 5. þ Set-Aside Letter.obligations under Part One, Paragraph 3 of this Agreement, or until disbursed in accordance with the terms of the set-the obligation described in Part One, Paragraph 3, above.6. þ Enforcement and Release of the Security. If the Subdivider fails to perform the Subdivider222s obligation under Part One, Paragraph 3 of this Agreement, the Association shall have the right, whether through enforcement of the Security, demand upon funds drawn thereunder held by the Escrow Holder, or otherwise, to receive such sums as may be required to satisfy the obligation of the Subdivider under Part One, Paragraph 3 of this Agreement, and the Subdivider shall, without regard to any other disputes or negotiations then existing, immediately take any and all actions and execute any and all documents as may be required to cause such sums to be paid to the Association. Any amount received by the Association directly from the Subdivider or from proceeds of the Security shall be credited against any claim by the Association arising out of the Subdivider222s failure to perform the Subdivider222s obligations under this Agreement. Upon regard to any other disputes or negotiations then existing, immediately take any and all actions and execute any and all documents reasonably necessary to cause the Security to be released and exonerated.7. þ In the event there is a dispute between the Subdivider and the Association with respect to this Agreement, or the enforcement, exoneration, or release of the Security, the issue or issues shall, at the request of either Subdivider or Association, be submitted to arbitration, in accordance with the Commercial Arbitration Rules of the American Arbitration Association (223AAA224) before an arbitrator selected from the panels of the arbitrators of said AAA. In the event of referral to arbitration, Subdivider will remit the fee to initiate the arbitration. The parties agree, however, that the costs of arbitration shall ultimately be borne as determined by the arbitrator. The parties further agree to abide by the determination of the arbitrator with respect to the enforcement, exoneration or release of the Security and with respect to payment of the costs of arbitration.8. þ Attorney222s Fees. In any action or proceeding arising out this Agreement, the prevailing party or parties shall be entitled to reasonable attorney222s fees.9. þ Obligations of Parties; Assignment. This Agreement and the rights and obligations of each of the parties are personal to such parties and may not be transferred or assigned without the prior written consent of the other, except that Subdivider may assign its rights under this Agreement to a successor in interest as part of a transfer of the Subdivision in its entirety. Subdivider may also assign its rights under this Agreement to the Issuer of the Security. Such assignment does not make the assignee liable for any of Subdivider222s obligations pursuant to this Agreement, unless such obligations have been 10. þ Binding Upon Successors. This Agreement and the rights and duties of the parties shall be binding upon and shall inure 11. þ Laws of California. This Agreement shall be construed and governed by the laws of the State of California. American LegalNet, Inc. www.FormsWorkFlow.com RE 643 þ Page 3 of 512. þ Delivery of Agreement. Subdivider shall furnish the Association with an executed copy of this Agreement and the Instructions to Escrow Depository along with evidence of the Security deposited with Escrow no later than ten (10) days 13. þ Complete Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter covered in this Agreement.P þaA RT þTT WO 227 þII NSTRUCTIONS TO ESCROW þDepDEP OSITORYThis constitutes joint escrow instructions of the Subdivider and the Association, which instructions are irrevocable except Association are the only principals in this escrow.Escrow Holder hereby acknowledges receipt of the cash deposit, surety bond, letter of credit, or set-aside letter described capitalized terms in these instructions shall have the same meaning as set forth in the foregoing Agreement.Nothing contained in these instructions imposes any duty on the Escrow Holder to interpret Section 2792.9 of Chapter 6, Title 10, California Code of Regulations, to audit in any way the Subdivider222s discharge of its duties or obligations thereunder, or to verify the truth of the statements made in any notices given to the Escrow Holder by the Subdivider or the Association. Except as otherwise provided by law, the duties of the Escrow Holder are to receive, hold, release, or draw upon the Security of the principals. Escrow Holder hereby agrees to comply with the terms and provisions of these instructions.1. þ Return Of The Security To The Subdivider.A. þ If the Escrow Holder receives a written demand from the Subdivider for the return of the Security, which demand is accompanied by Subdivider222s written statement that (1) the Subdivider has paid as and when due all regular and special assessments which have been levied by the Association against separate interests owned by the Subdivider in the Subdivision, and (2) title to 80% of the separate interests in the Subdivision have been conveyed or leased with statement, the Escrow Holder shall deliver a copy of the demand and statement to the Association, or its authorized agent, together with a written notice to the Association that the Association222s written objection to return of the Security to the Subdivider must be received by the Escrow Holder within forty (40) days after delivery of the demand and statement to the Association.B. þ If within forty