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DEC-01-96 17:05 FROM-STOEL RIVES T-972 P 03/04 F-595 S7'~E~.. RiWES ~.~ r ~ Mr. Richard Ray December 2, 1948 Page 2 [he form of "bonowing" and therefore will not involve a lien against the project, but I do nnt kn~w whe~her the Transic Disuict intends to obtain owner's titie ir~surazue.} 3. Condominium Ph~se: The condominium will b~ created upon completion of improvem~nts. Upon recordation of [he condominium declaration> all condominium units and the condort~inium land will momentarily continue co be owned by the uruc owners as co[enants. To tertninate the co[enancy ownership (except wirh respect to a"Y-earing room" unit, discussed below}, each cotenanc will execu~e a deed in favar of the other whereby each will canvey and release all right, tide and interest in and to the condominium unirs to br owned in fee by the other, together wirh the appurt~nani undivideci interesc in rhe land associaced with such unics pursuant to the cond~minium dacumencs_ This will r~su2t in rhe t~vo unit owners (i.e., the Caunry and the Transit Disirict) each owning ics respeecive unics in fee, plus an apgurcenanc undivided interest in The land which will be a genera! common elemenc of ch~ condflmuuum. No part of the condaminium properry is ~o be owned by an owner's associa[ian, as all mal properry cQmprising the condominium will be owned directly by the Two unit owners as described. Howev~r, there will b~ ac least three differences in the legal descriptions of the Counry's "construction-geriod monga~e" and the "condominium-period mortgaae": {i} first, the aggregace percenrage ownership in[erest of each unit owuer in the condortiiniutn reai gropeny (buiiding and land) will be based upon their respective shar~s of actual co~cruction costs, whieh ownership percentages are expected to differ, though ne~ligibly, from their res}?ective pre-condominium cotenancy percenia~~ interes[s (which were based upon estimated costs); {ii) seconci, while the County's consuuction-period. mongage wiil describe solely an undivided cotenancy interest in the land ansi improvemen~s comprising th~ projecc> i~s condominium-periad mongage will describe a fee interest in ~.he Counry's units and an associated undivided interest in the condomi.nium land, plus a cotcnancy interest in che "hearing room" unit {described below) in a percentage interes~ equal to rhe County's percentage share of actual co~struccion costs; and (iii) one of the condomuuum units (a "heazing Toom" unit) is [o be owned by the two unit awners as cotenants, together wirh ihe appurtenant undivided land in~rest pursuant to [he condominium documents. Thesr differences raise ihe question whether, for tide insurance purposes wi[h respect to the County's interesc, a single poiicy, supplemented with modification, conciominium and/ar other endorsemencs, may be used, or wherh~r more rhan one p~licy wil! be required. And, if the latter, whe~r and what prrmium crediu are available ro reduce overall ticle insuranc~ costs. P DX 1 A• 1~ 3:,33 1 28229~I)(? 1