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Mn M M MMJV#yMC MVMMH8MMMMlMM",%&M&M<'M')c,s.R(/1$3R&4*P6R6R6RF7R7QWPC " "2  I  .3  "DE 5"2  I  .3  "C 4"2  I  .3  "  "2  I  .3  " "2  I  .3   2  I  .3   2  I  .3    2  I  .3    2  I  .3     2  I  .3    2  I  .3    2  I  .3   2  I  .3   2  I  .3   2  I  .3    2  I  .3    2  I  .3    2  I  .3   2  I  .3  ! 02  I  .3   2  I  .3   2  I  .3   2  I  .3   2  I  .3  ! 12  I  .3   2  I  .3  -# -2  I  .3  WhydidntRussellsimplysellthepropertyandpayoffthecontract?..2  A  .3  No(orveryshort)graceperiodafterdefault..2  A  .3  Illnessormentaldistress..2  A  .3  Temporaryslackmarketforrealestate 2  I  .3   2  I  .3   2  I  .3  1'   12  I  .3  WhatremediesfordefaultingpurchasersarerecognizedinCalifornia?..2  A  .3  Specificperformance(redemption)..2  A  .3  RestitutionofpaymentsinexcessofVsdamages..2  A  .3  Judicialsale1' "! 12  I  .3  Arethefollowingfactsrelevant̀tothegrantingoftheseremedies?..2  A  .3  Whetherthedefaultwaswillful?..2  A  .3  Whetherthepurchaseractedingoodfaith?..2  A  .3  Howmuchthepurchaserhaspaid?# 2  I  .3  $ 2  I  .3  'A 2'2  I  .3  TypicalInvestment(e.g.,acorporatebond):'B 3'2  I  .3  TypicalInvestment(e.g.,acorporatebond): ((2  I  .3  Intheinstallmentcontract,aVendorwhoforfeitsthepropertymaysufferdamagesfortwodistinctreasons:..2  A  .3  (1)becauseVhaslostthe usevalueofthepropertyduringthecontractterm(analogoustounpaidinterest),or..2  A  .3  (2)becausethepropertyhasdeclinedincapitalvalue(analogoustofailuretoreturnprincipal)( @(2  I  .3  Honeyv.HenrysFranchiseLeasing(CaliforniaSupremeCourt1966):VmustgiverestitutionoftheamountbywhichpaymentsreceivedexceedVsdamages...measuredasfollows:..2  A  .3  1.Vendormay enforcethecontract,andmeasuredamagesby differencevalue...2  A  .3  2.Vendormay rescindthecontractandmeasuredamagesby rentalvalue.-# %?-2  I  .3  Vendorsdamages:..2  A  .3  Lossofuseorincomefromthepropertywhilethepurchaserhadpossessioǹplus......2  A  .3  Anyreductioninpropertysvaluewhilepurchaserhadpossession...2  A  .3  Honeyiswrongissuggestingthattheseshouldbealternativestoeachother.& 2  I  .3  ' 2  I  .3  ( 2  I  .3  ! :2  I  .3  H 82  I  .3  !I 92  I  .3  )  2  I  .3  * !2  I  .3  + "2  I  .3  "  6"2  I  .3  ..2  A  .3  Whydoesthisapproachyieldsuchalargeamountofrestitutiontothepurchaser?Becauseit..2  A  .3  1.failstotakethevendorstimevalueofmoneyintoaccount;and..2  A  .3  2.disregardsthevendorslossofusevalueduringthecontractterm...2  A  .3  ..2  A  .3  The differencevaluemeasureofdamagesisaccurateonlywhen:..2  A  .3  1.thetimebetweencontractingandbreachisshort,and..2  A  .3  2.thevendorkeepspossessionandcanmakeuseoftheassetuntilbreach., #2  I  .3  ! 2  I  .3  ..2  A  .3  Thisapproachusesrentasaproxyforinterestonthevendorsout-of-possessionasset.Thatsnotsuchabadapproach.But.....2  A  .3  ..2  A  .3  0h..whynotuseactualinterestinsteadofaproxylikerent?..2  A  .3  ..2  A  .3  0h..whynotalsotakeintoaccountanylossofcapitalvalueintheassetwhenitisreturnedtothevendor?-# -=-2  I  .3  Shouldthevendorbeallowedfurtherdamagesfor:..2  A  .3  Thecostofresellingtheland?..2  A  .3  Thecostofforfeitingorrepossessingtheland?..2  A  .3  Damageorwastetotheland?..2  A  .3  Unpaidpropertytaxes,insurance,etc.?-# .>-2  I  .3  Shouldthevendorbeaccountable(bywayofrestitution)for:..2  A  .3  Increasedvalueresultingfrominflation?..2  A  .3  Increasedvalueresultingfromimprovementsbuiltbythepurchaser?/ $2  I  .3  0 %2  I  .3  1 (2  I  .3  1' 32 &12  I  .3  Relievingforfeiture:Asummary..2  A  .3  Vendortakeslandbutmustgiverestitution...2  A  .3  Graceperiod(redemption)..2  A  .3  Waiverofstrictperformance..2  A  .3  Treatasamortgage,foreclosejudicially1' 4<  '12  I  .3  Vendorsalternativestoforfeiture:..2  A  .3  Foreclosure(judicially-orderedsale)..2  A  .3  ԀSuitfor(full?)price[specificper-form  ance][iftheresanaccelerationclause]....2  1  .3  ( Barredbyone-actionruleinafewstates) ff..2  A  .3  Suitfordamagesafterforfeiture[adeficiency]# #2  I  .3  Afterforefeiture,isaVendorssuitforadditionaldamagesbarredbythe electionofremediesdoctrine? ..2  A  .3  Yes,inmanystates..2  A  .3  Shoulditbebarredonlyinstates(e.g.,California)thatbardeficiencyjudgments?..2  A  .3  Orisbarringadeficiencythe goodnewsthatoffsetsforfeitures badnewstothepurchaser?"G 7"2  I  .3  ##2  I  .3  SummitHousev.Gershman ..2  A  .3  Summitdefaultedonthecontract...2  A  .3  Gershmanssuedforspecificperformance(thecontractbalance);theygotajudgment...2  A  .3  TheysatisfiedthejudgmentbylevyingexecutiononSummitsinterestinthecontract...2  A  .3  DotheGershmansstillhavetodeliverthetitletotheland?(F(2  I  .3  SummitHousev.Gershman ..2  A  .3  CantheGershmansalsorecovertherestoftheirjudgmentoutofSummitsotherassets?..2  A  .3  Doesthisviolatethe electionofremediesdoctrine?..2  A  .3  Doesthecourtallowthemtodoin2stepswhattheycouldnotdoinone?"5 )"2  I  .3  ,"6   *,2  I  .3  TitleIssues..2  A  .3  WhenmustVhavemarketabletitle?..2  A  .3  WhenshouldPgetatitleexamination/insurance?..2  A  .3  ShouldPrecordthecontract?..2  A  .3  Whatifthecontractwrapsanexistingmortgageloan?"7 +"2  I  .3  "8 ,"2  I  .3  "9 -"2  I  .3  ": ."2  I  .3  "; /"2  I  .3  Fh0 ,A!9c:KBackground TitleBullet ChartTextOrg ChartData ChartCombinationWPCXX81%ddH-`H H A"Arial Regular +ffC`H H A"Arial Regular +ffC`H H A"Arial Regular +ffC`H H A"Arial Regular +ff)? 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M! .%3 K "0 O, \AZ"Arial RegularORRR        @  2ndQtr.%3 % % .%3 E$K &0 O, \AZ"Arial RegularORRR        @  3rdQtr.%3 ) ) .%3 (K +0 O, \AZ"Arial RegularORRR        @  4thQtr.%3  q .%3 j 7O O, \AZ"Arial RegularORRR        @  0.%3  q .%3 8^ 7C O, \AZ"Arial RegularORRR        @  20.%3 q.%3 8R77O, \AZ"Arial RegularORRR        @  40.%3 q.%3 8E7*O, \AZ"Arial RegularORRR        @  60.%3 q.%3 897O, \AZ"Arial RegularORRR        @  80.%3 q.%3 -7O, \AZ"Arial RegularORRR        @  100JVgy&7HYj{&7HYj|'8IZk|'8IZl~+#8M^((((((('o'qdd<<d FL_ U +9F2 @BRYkVGo} 3]A6e B3 "?m ~  S/!V07WPCDXX81%XX81%&3'XXXXKK?K?9"#0`$20`$C ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$  #0`$%f'1 !.#O, \AZ"Arial RegularO` ` `      f   @  Q QO, \AZ"Arial RegularO` ` ` WhydidntRussellsimplysellthepropertyandpayoffthecontract?.+%1 `"00ppWPC] XX81%XX81%&3'XXXXKK?K?9"%dV 0B 0C , \AZ"Arial Regular +C , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC yy, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC 99, \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f " dddddd$   % 0+%13 $@ . +O, \AZ"Arial RegularO999        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0&..No(orveryshort)graceperiodafterdefaultO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0&..IllnessormentaldistressO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0&..TemporaryslackmarketforrealestateWPCXX81%XX81%3'XXXX,,,,9j"(0b$$0b$C ` ` \AZ"Arial Regular +fC ` ` \AZ"Arial Regular +fC ` ` \AZ"Arial Regular +fC ` ` \AZ"Arial Regular +fC ` ` \AZ"Arial Regular +fC ` ` \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd  0b$.)*+%f'153 .#mO, \AZ"Arial RegularO` ` `         @  Q QO, \AZ"Arial RegularO` ` `      f   @WhatremediesfordefaultingpurchasersarerecognizedinCalifornia?WPC XX81%XX81%3'XXXXKK?K?9"E 0B 0C 44, \AZ"Arial Regular +C xx, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC GG, \AZ"Arial Regular +ffC kk, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f L" dddddd$    0-.)*+%'153 @ .WO, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO444        @        @    O, \AZ"Arial RegularO444        @0 ..Specificperformance(redemption)LO, \AZ"Arial RegularO444        @    O, \AZ"Arial RegularO444        @0 ..RestitutionofpaymentsinexcessofVsdamagesLO, \AZ"Arial RegularO444        @    O, \AZ"Arial RegularO444        @0 ..JudicialsaleWPC7XX81%XX81%3'XXXX,,,,9j"f0`$2f0`$C ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$   f0`$.)*+%f'153 f.#O, \AZ"Arial RegularO` ` `      f   @  Q QO, \AZ"Arial RegularO` ` ` Arethefollowingfactsrelevant̀tothegrantingoftheseremedies?WPC XX81%XX81%3'XXXXKK?K?9" 0B 0C , \AZ"Arial Regular +C FF, \AZ"Arial Regular +ffC ~~, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC RR, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f 3" dddddd$    0-.)*+%'153 @ .`O, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0..Whetherthedefaultwaswillful?3O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Whetherthepurchaseractedingoodfaith?3O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Howmuchthepurchaserhaspaid?WPCXX81%XX81%3'XXXX,,,,9j"0`$ 0`$  0`$.)*+%f'153 .#O, \AZ"Arial RegularOT T T      f   @  Q QO, \AZ"Arial RegularOT T T Relievingforfeiture:AsummaryWPCXX81%XX81%3'XXXXKK?K?9"0B0C , \AZ"Arial Regular +C FF, \AZ"Arial Regular +ffC ~~, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC RR, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f 3" dddddd$   0-.)*+%'153 @. O, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0..Vendortakeslandbutmustgiverestitution.3O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Graceperiod(redemption)3O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Waiverofstrictperformance3O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Treatasamortgage,foreclosejudiciallyWPCXX81%XX81%33'XXXX,,,,9". 0`$20`$C ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$   .0`$%f'1 -.#O, \AZ"Arial RegularO` ` `      f   @  Q QO, \AZ"Arial RegularO` ` `  Vendorsalternativestoforfeiture:WPCXX81%XX81%33'XXXX,,,,9"2_0B_0C , \AZ"Arial Regular +C , \AZ"Arial Regular +ffC ~~, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC RR, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f f" dddddd$   2_0.%13 16_/ O, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0..Foreclosure(judicially-orderedsale)fO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Suitfor(full?)price[specificper-form  ance][iftheresanaccelerationclause]O, \AZ"Arial RegularO     f   @f..        @f    O, \AZ"Arial RegularO     f   @f0..(        @Barredbyone-actionruleinafewstates)     f   @ffO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0..Suitfordamagesafterforfeiture[adeficiency]WPCTXX81%XX81%3'XXXX,,,,9j"~0b$ 0`$  ~0b$.)*+%f'153 @~.#4O, \AZ"Arial RegularOT T T         @  Q QO, \AZ"Arial RegularOT T T      f   @TitleIssuesWPCXX81%XX81%3'XXXX,,,,9j"0B0C , \AZ"Arial Regular +C , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC yy, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC 99, \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f " dddddd$   0+%13 @. v O, \AZ"Arial RegularO999        @a aO, \AZ"Arial RegularO    O, \AZ"Arial RegularO        @0&..WhenmustVhavemarketabletitle?O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0&..WhenshouldPgetatitleexamination/insurance?O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0&..ShouldPrecordthecontract?O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0&..Whatifthecontractwrapsanexistingmortgageloan?WPC XX81%XX81%'3'XXXXKK?K?9"&w!2J#2!2J#C @@, \AZ"Arial Regular +C 77, \AZ"Arial Regular +C , \AZ"Arial Regular +C )), \AZ"Arial Regular +C MM, \AZ"Arial Regular +C , \AZ"Arial Regular +)   4ffffffff @f @f @f @f @f @f " dddddd$   &!2J#' %M1"O, \AZ"Arial RegularO        @Q QO, \AZ"Arial RegularO@@@0..Whydoesthisapproachyieldsuchalargeamountofrestitutiontothepurchaser?Becauseit  O, \AZ"Arial RegularO@@@0..1.failstotakethevendorstimevalueofmoneyintoaccount;and  O, \AZ"Arial RegularO@@@0..2.disregardsthevendorslossofusevalueduringthecontractterm.  O, \AZ"Arial RegularO@@@0..  O, \AZ"Arial RegularO@@@0..The differencevaluemeasureofdamagesisaccurateonlywhen:  O, \AZ"Arial RegularO@@@0..1.thetimebetweencontractingandbreachisshort,and  O, \AZ"Arial RegularO@@@0..2.thevendorkeepspossessionandcanmakeuseoftheassetuntilbreach.WPCXX81%XX81%'3'XXXXKKKK9"&/^ /^  &/^' %8.2OA"Arial RegularO        @Q QOA"Arial RegularOlll0,..Thisapproachusesrentasaproxyforinterestonthevendorsout-of-possessionasset.Thatsnotsuchabadapproach.But...  OA"Arial RegularOlll0,..  OA"Arial RegularOlll0,..0..whynotuseactualinterestinsteadofaproxylikerent?  OA"Arial RegularOlll0,..  OA"Arial RegularOlll0,..0..whynotalsotakeintoaccountanylossofcapitalvalueintheassetwhenitisreturnedtothevendor?WPCXX81%XX81%/3'XXXXKK?K?9"*0b$20b$C T T , \AZ"Arial Regular +fC T T , \AZ"Arial Regular +fC T T , \AZ"Arial Regular +fC T T , \AZ"Arial Regular +fC T T , \AZ"Arial Regular +fC T T , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$   *0b$%f' (.#O, \AZ"Arial RegularOT T T      f   @  Q QO, \AZ"Arial RegularOT T T Vendorsdamages:.+% `)0088WPC1XX81%XX81%/3'XXXXKK?K?9".^0lB0lC , \AZ"Arial Regular +C 22, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC >>, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f f" dddddd$   .0l+%13 -D.O, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0..Lossofuseorincomefromthepropertywhilethepurchaserhadpossessioǹplus....fO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Anyreductioninpropertysvaluewhilepurchaserhadpossession.fO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Honeyiswrongissuggestingthattheseshouldbealternativestoeachother.WPC[XX81%XX81%3'XXXX,,,,9j"k,0b$4,0b$C ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$   ,0b$)*+%f'153 .#O, \AZ"Arial RegularO` ` `      f   @  Q QO, \AZ"Arial RegularO` ` ` Shouldthevendorbeallowedfurtherdamagesfor:.+%1 `-0-0WPCXX81%XX81%3'XXXXKK?K?9"9j0B0C , \AZ"Arial Regular +C , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC ~~, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC RR, \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f 3" dddddd$   0-.+%'153 e@.  O, \AZ"Arial RegularORRR        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @06..Thecostofresellingtheland?3O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @06..Thecostofforfeitingorrepossessingtheland?3O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @06..Damageorwastetotheland?3O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @06..Unpaidpropertytaxes,insurance,etc.?WPCcXX81%XX81%3'XXXX,,,,9j"0b$40b$C ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$   0b$)*+%f'153 e.#O, \AZ"Arial RegularO` ` `      f   @  Q QO, \AZ"Arial RegularO` ` ` Shouldthevendorbeaccountable(bywayofrestitution)for:.+%1 `f00__WPC XX81%XX81%3'XXXXKK?K      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}?9"+3 0B3 0C , \AZ"Arial Regular +C @@, \AZ"Arial Regular +ffC xx, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f 3" dddddd$   3 0-.)*+%'153 e@3 . HO, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0X..Increasedvalueresultingfrominflation?3O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0X..Increasedvalueresultingfromimprovementsbuiltbythepurchaser?WPCXX81%XX81%3'XXXXKK?K?9"/\$2/\$C , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$   /\$-.)*+%f'153 s.#fO, \AZ"Arial RegularO     f   @  Q QO, \AZ"Arial RegularOHoneyv.HenrysFranchiseLeasing(CaliforniaSupremeCourt1966):VmustgiverestitutionoftheamountbywhichpaymentsreceivedexceedVsdamages...measuredasfollows:.+%1 `//@@WPC XX81%XX81%3'XXXXKK?K?9"?*"02B*"02C , \AZ"Arial Regular +C , \AZ"Arial Regular +ffC  , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f f" dddddd$   *"02+%13 9*".2O, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0..1.Vendormay enforcethecontract,andmeasuredamagesby differencevalue.fO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..2.Vendormay rescindthecontractandmeasuredamagesby rentalvalue.WPCXX81%XX81%3'XXXX,,,,9j" 0`$20`$C ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$   0`$)*+%f'153 .#O, \AZ"Arial RegularO` ` `      f   @  Q QO, \AZ"Arial RegularO` ` `  TypicalInvestment(e.g.,acorporatebond):WPC XX81%XX81%,3'XXXX,,,,9j" 0`$20`$C ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$    0`$)*+%f'153 .#O, \AZ"Arial RegularO` ` `      f   @  Q QO, \AZ"Arial RegularO` ` `  TypicalInvestment(e.g.,acorporatebond): WPCkXX81%XX81%(3'XXXXKK?K?9"#%0b$20b$C , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$  #0b$%f'1 !CN/#O, \AZ"Arial RegularO     f   @  Q QO, \AZ"Arial RegularO Intheinstallmentcontract,aVendorwhoforfeitsthepropertymaysufferdamagesfortwodistinctreasons:.+%1 `"00WWWPC XX81%XX81%(3'XXXXKK?K?9"'2= 0B 0C , \AZ"Arial Regular +C , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f " dddddd$   ' 0+%13 &@ .(O, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0..(1)becauseVhaslostthe usevalueofthepropertyduringthecontractterm(analogoustounpaidinterest),orO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..(2)becausethepropertyhasdeclinedincapitalvalue(analogoustofailuretoreturnprincipal)WPC|XX81%XX81%,3'XXXXKK?K?9")(W/[$2/[$C , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +fC , \AZ"Arial Regular +f)?   4 @ @ @ @ @ @ " dddddd$  )/[$%f'1 '.#*O, \AZ"Arial RegularO     f   @  Q QO, \AZ"Arial RegularO Afterforefeiture,isaVendorssuitforadditionaldamagesbarredbythe electionofremediesdoctrine? .+%1 `(//PPWPC XX81%XX81%,3'XXXXKK?K?9"+j0B0C , \AZ"Arial Regular +C 77, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC CC, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f " dddddd$   +0+%13 *@.O, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0..Yes,inmanystatesO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Shoulditbebarredonlyinstates(e.g.,California)thatbardeficiencyjudgments?O, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0..Orisbarringadeficiencythe goodnewsthatoffsetsforfeitures badnewstothepurchaser?WPCQXX81%XX81%3'XXXX,,,,9j"Ԅ0b$20b$C ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +f)?  S 4 @ @ @ @ @ @ " dddddd$   Ԅ0b$-.)*+%f'153 X .#O, \AZ"Arial RegularO` ` `      f   @  Q QO, \AZ"Arial RegularO` ` `  SummitHousev.Gershman .+%1S `00  WPCTXX81%XX81%e3'XXXX,,,,9 j"(w/B(w/C , \AZ"Arial Regular +C , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC oo, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC 44, \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f f" dddddd$   (w/.'13 (f.^ O, \AZ"Arial RegularO444        @a aO, \AZ"Arial RegularO    O, \AZ"Arial RegularO        @0"..Summitdefaultedonthecontract.fO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0"..Gershmanssuedforspecificperformance(thecontractbalance);theygotajudgment.fO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0"..TheysatisfiedthejudgmentbylevyingexecutiononSummitsinterestinthecontract.fO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0"..DotheGershmansstillhavetodeliverthetitletotheland?WPCXX81%XX81%33'XXXXKK?K?9".w0b$2w0b$C ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +fC ` ` , \AZ"Arial Regular +f)?  S 4 @ @ @ @ @ @ " dddddd$  .w0b$%f'1 ,L .#O, \AZ"Arial RegularO` ` `      f   @  Q QO, \AZ"Arial RegularO` ` `  SummitHousev.Gershman .+%1S `-x0x0  WPC XX81%XX81%33'XXXXKK?K?9"2X0B0C , \AZ"Arial Regular +C @@, \AZ"Arial Regular +ffC xx, \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ffC , \AZ"Arial Regular +ff9   4fffffff @ @f @f @f @f @f f" dddddd$   20+%13 1@.O, \AZ"Arial RegularO        @a aO, \AZ"Arial RegularO        @        @    O, \AZ"Arial RegularO        @0X..CantheGershmansalsorecovertherestoftheirjudgmentoutofSummitsotherassets?fO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0X..Doesthisviolatethe electionofremediesdoctrine?fO, \AZ"Arial RegularO        @    O, \AZ"Arial RegularO        @0X..Doesthecourtallowthemtodoin2stepswhattheycouldnotdoinone?;y slMg$6*04d9_? EFVJIL-*UhcMiRlo%rkxzo~v`ւSrfhΙ3lm7}x^)*%OQV^@`e{go Pya{ #݆dAH9WPCXX81%/e#h3'XXXXKK?K?9'"e #)+O, \AZ"Arial RegularO          TheInstallmentSaleContract+<<'1"fcD+TT.+13"gy. rO, \AZ"Arial RegularO` ` `         @  Assumethatasellerofrealestateiswillingtoprovidefinancingtothepurchaser.Howcanthepartiesdocumentthefinancing?WPCwXX81%Qw1 l3'XXXX,,,,51942*+'"ePn1AO,wAZ"Arial RegularO         Purchaser..p..pX..X@..@Vendor"g)d""O,wAZ"Arial RegularO` ` `         contract-+%'1!p'/".&- "j%H "%-+$%K6/K$% "/6 "-+-+%'1"k .O,wAZ"Arial RegularO` ` `         WhatareVendorsremediesifPurchaserdefaults?WPCqXX81%)1%n3'XXXX,,,,5139|+xx%?1"ee/1"fEEX+%'1"g,L!O \AZ"Arial RegularO` ` `         Contractremedy"hz{0$O \AZ"Arial RegularO` ` `         Mortgagelawequivalent"ig O \AZ"Arial RegularO` ` `         VendorsuesPurchaserformissedinstallmentsWPCXX81%XZ81}%m3'XXXX,,,,519|+xx%?1"*g :tIe/1"*h :tIEEX+%'1 *i $$8;,L!O,wAZ"Arial RegularO` ` `         Contractremedy *j eck{0$O,wAZ"Arial RegularO` ` `         Mortgagelawequivalent *k  2/O,wAZ"Arial RegularO` ` `         VendorsuesPurchaserforspecificperformance(paymentofentireprice). lP/O,wAZ"Arial RegularO` ` `         MortgageebringsactiononthenoteafteracceleratingWPCXX81%XZ81}%m3'XXXX,,,,519|+xx%?1"*g :tIe/1"*h :tIEEX+%'1 *i $$8;,L!O,wAZ"Arial RegularO` ` `         Contractremedy *j eck{0$O,wAZ"Arial RegularO` ` `         Mortgagelawequivalent lIO,wAZ"Arial RegularO` ` `         Vendorsuestorecoverlandtitle(e.g.,forquiettitleoradecreeofforfeitureofthecontract)WPCXX81%XZ81}%m3'XXXX,,,,519|+xx%?1"*g :tIe/1"*h :tIEEX+%'1 *i $$8;,L!O,wAZ"Arial RegularO` ` `         Contractremedy *j eck{0$O,wAZ"Arial RegularO` ` `         Mortgagelawequivalent kIO,wAZ"Arial RegularO` ` `         Vendorsuestorecoverlandtitle(e.g.,forquiettitleoradecreeofforfeitureofthecontract) l/ O,wAZ"Arial RegularO` ` `         MortgageesuesforstrictforeclosureWPCXX81%XZ81}%m3'XXXX,,,,519|+xx%?1"*g :tIe/1"*h :tIEEX+%'1 *i $$8;,L!O,wAZ"Arial RegularO` ` `         Contractremedy *j eck{0$O,wAZ"Arial RegularO` ` `         Mortgagelawequivalent l5#O,wAZ"Arial RegularO` ` `         Vendorretakesland,suesfordamagesforbreachofcontract.WPCXX81%XZ81}%m3'XXXX,,,,519|+xx%?1"*g :tIe/1"*h :tIEEX+%'1 *i $$8;,L!O,wAZ"Arial RegularO` ` `         Contractremedy *j eck{0$O,wAZ"Arial RegularO` ` `         Mortgagelawequivalent ke#O,wAZ"Arial RegularO` ` `         Vendorretakesland,suesfordamagesforbreachofcontract. l30*O,wAZ"Arial RegularO` ` `         Mortgageeobtainsstrictforeclosure,andalsosuesforadeficiencyWPCXX81%DZ%1%q3'XXXX,,,,5139|+xx%?1"*kp&@jIe/1"*lp&@jIEEX+%'1 *m&;,L!O \AZ"Arial RegularO` ` `         Contractremedy *n`{0$O \AZ"Arial RegularO` ` `         Mortgagelawequivalent *op&@jIg O \AZ"Arial RegularO` ` `         VendorsuesPurchaserformissedinstallments"p* Z/O \AZ"Arial RegularO` ` `         MortgageebringsactiononthenotewithoutaccelerationWPCXX81%WY81}%m3'XXXX,,,,519|+xx%?1"*gp9@jHe/1"*hp9@jHEEX+%'1 *i&:,L!O,wAZ"Arial RegularO` ` `         Contractremedy *j`{0$O,wAZ"Arial RegularO` ` `         Mortgagelawequivalent l/O,wAZ"Arial RegularO` ` `         VendorsuesPurchaserforspecificperformance(paymentofentireprice).WPCXX81%XZ81}%j3'XXXX,,,,519|+xx%?1"*e :tIe/1"*f :tIEEX+%'1 *g $$8;,L!O,wAZ"Arial RegularO` ` `         Contractremedy *h eck{0$O,wAZ"Arial RegularO` ` `         Mortgagelawequivalent iLO,wAZ"Arial RegularO` ` `         Vendorre-takesland,butisorderedtopayrestitutiontoPurchaserofsomeofthepaymentsrcvdWPCXX81%XZ81}%k3'XXXX,,,,519+xx%?1"*e :tIe/1"*f :tIEEX+%'1 *g $$8;,L!O,wAZ"Arial RegularO` ` `         Contractremedy *h eck{0$O,wAZ"Arial RegularO` ` `         Mortgagelawequivalent iLO,wAZ"Arial RegularO` ` `         Vendorre-takesland,butisorderedtopayrestitutiontoPurchaserofsomeofthepaymentsrcvd j0-O,wAZ"Arial RegularO` ` `         Mortgageeobtainsstrictforeclosure,butwithpaymentofsurplustoMRWPCXX81%XZ81}%k3'XXXX,,,,519+xx%?1"*e :tIe/1"*f :tIEEX+%'1 *g $$8;,L!O,wAZ"Arial RegularO` ` `         Contractremedy *h eck{0$O,wAZ"Arial RegularO` ` `         Mortgagelawequivalent i O,wAZ"Arial RegularO` ` `         Vendorpetitionsforajudicialsaleoftheland jx /RO,wAZ"Arial RegularO` ` `         MortgageepetitionsforjudicialforeclosureWPCXX81%f-"f3'XXXX,,,,51942*+'"e{I. +O,wAZ"Arial RegularO` ` `         Whatsthevendorsobjectiveinusinganinstallmentcontract?WPCTXX81%c-"f3'XXXXKK?K?9D'"esI- O, \AZ"Arial RegularO` ` `         Whatsthevendorsobjectiveinusinganinstallmentcontract?Tohaveacheap,quickwayofretakingthelandupondefault...inotherwords,togetthepropertywithouthavingtoforeclose!WPCXX81%J.H#f3'XXXX,,,,513942*'"eD."O \AZ"Arial RegularO         Ifthereisonethingmorethananyotherwhichpublicpolicyrequires,itisthatmenoffullageandcompetentunderstandingshallhavetheutmostlibertyofcontracting,andthatcontracts,whenenteredintofreelyandvoluntarily,shallbeheldgoodandshallbeenforcedbycourtsofjustice.O \AZ"Arial RegularO@@@-WisconsinSupremeCourtQuotedinHurst,LawandtheConditionsofFreedomintheNineteenthCenturyU.S.WPC+XX81%* 1u$n3'XXXXKKKK51391r"f'1"gCew"!O, \AZ"Arial RegularO        Install.contract'1r"h`$$$")")")#(#(####$$$%%%%%(%(&'&'&''1"iU&\0O, \AZ"Arial RegularO        assign-ment"j8 1@O, \AZ"Arial RegularO` ` `         Purchaser........John& .. @..@` ..`  .. ........BethRichardsMaryRussell'1r"kMM.+ 3Z l"""$`$`$`"#"#""`ww& I <L!L!` ` ` .+13"m! .O, \AZ"Arial RegularO` ` `         @  PmtsWPCfXX81%ua2$x3'XXXX,,,,519+dd1**eY8%h"O-h"O- % )6"fP$1 V"  t\$l([+- 1E)+'1"g j c"O,wAZ"Arial RegularO        40,000)+(('1"h "i  "jy y "kU g )+'1"llK- O,wAZ"Arial RegularO        37,938"m^t0y O,wAZ"Arial RegularO        26,504"n=[!/1#O,wAZ"Arial RegularO        Russellbuys"o xl/O,wAZ"Arial RegularO        Russelldefaults-+'1!q( "-  p"w*\  " -+1q(  ~q(-+1!m 6#-  q<#j \ 6#t!-+1m N!!H"m -+1-+'1"rwjO,wAZ"Arial RegularO          6years-+dd'1!  -  sz z \ { { -+1{ - { - { -+dd1!  -  tz  z \ { { -+1 {  {   { -+dd1-+'1 uU uPO,wAZ"Arial RegularO        Years-+dd'1!S,-M-  v+-\ ,-+1,-+S ,+M,--+dd1-+'1,:wY<<Q2~lp s}O,wAZ"Arial RegularO        KBalanceWPCXX81%U /!n3'XXXX,,,,519-+dd1 e:!.!.:-+'1"f$.O,wAZ"Arial RegularO        Kbalance .. ..=..=..37,938D..D26,504Cashinvestmt=..=..11,188D..DAddlKreductn=..=..s..s....D..D10,782FMV..l ..l  .. ..=..=..49,989D..D82,735 g:.j >O,wAZ"Arial RegularO        Timeofl ..l  .. TimeofPurchase .. Default+dd'1 h:. iN#!N#`#"jl kL. l(+.+ m( . WPCPXX81%?C0;$h3'XXXXKKKK5139'"e("E0"-O, \AZ"Arial RegularO        WhatisMaryRussellslossfromtheforfeiture?0..$82,735FairMarketValue-..$26,504ContractBalance..$56,231 .. NetlossHowdoesthisdifferfromtheprobableresultofamortgageforeclosure?(Assumetheforeclosuresalebroughtfairmarketvalue.)+$$'1"fww+dd%"g=# l/# WPCXX81%c|i/h3'XXXXKKKK5139R+dd%1"f0q*b-+%'1"g /"O, \AZ"Arial RegularO        Isthecourtcorrectinsaying...0..MaryRussellsinitialpaymenttotheoriginalpurchasersshouldnotbeconsidered?0..TheincreasedmarketvalueofthepropertywhileRussellhaditshouldnotbeconsidered?WPCXX81%LQ/s!f3'XXXXKK?K?5139'"eq ?."O, \AZ"Arial RegularO        WhatremedydidRussellseek?.. Damagesof$56,700.(WasthisagoodtermforRusselltouse?Seebottomofp.286.)IftheRichardshadbeenforcedtopaythissum,wouldtheystillhavebeenmadewhole?WPCiXX81%P /$!l3'XXXX,,,,519+'"e2.O,wAZ"Arial RegularO         Petersons..p..pX..XGaspar.... .. ....p..pX..XHartell'1r"f28@;C>@+_+_+_*O*OFSSSCCC333&(/(/'''r"g $C$C$C###333333CCCSSSSSScccr"h$$$ # # #####K#K#K$K$K$K%K%K%K%%%&&&'1"i2y&W0(O,wAZ"Arial RegularO        death'1""j2r=-r=-'1"k6W"J$O,wAZ"Arial RegularO        Install.contractWPCXX81% .h"f3'XXXX,,,,519+' e .!?O,wAZ"Arial RegularO` ` `         WhatremedyarePetersensseeking?Whatistheequivalentrightundermortgagelaw?WPCmXX81%0W0q"f3'XXXXKKKK5139D'"e)O0!O, \AZ"Arial RegularO` ` `         WhatremedyarePetersensseeking?     G   Specificperformance(forthepurchaser).          Whatistheequivalentrightundermortgagelaw? ..           Theequityofredemption          WPCXX81%WC/3'XXXXKK?K?9+%1 "l/~/WPCXX81%B/ 3'XXXXKK?K?9+%1("cc/c/c/c/cWPC^XX81%/ #f3'XXXX,,,,519+'G"e(H/^!O,wAZ"Arial RegularO` ` `      G   GiventheextensivesetofremediesavailabletodefaultingpurchasersinCalifornia,whynotjustcallthecontractamortgage?Woulddoingsogivethepurchaseranyadditionalrights?WPCXX81%i.u#f3'XXXXKK?K?5139'G"en."O, \AZ"Arial RegularO444     G   Considerthe restitutionremedy:Thepurchasershouldreceiveareturnofpaymentsmade,totheextentthattheyexceedthevendorsdamages.(Somecourtswouldadd:ifourconsciencewouldotherwisebeshocked.)0..Butwhatarethevendorsdamages?WPC XX81%0$g3'XXXXKK?K?5139'G"eq LQ1"O, \AZ"Arial RegularO` ` `      G   Example: .. SalesPrice:.... .. $30,000 .. Downpayment:.. .. $2,000 .. Contractamt:.. .. $28,000 .. Interestrate:.... .. 8% .. Payments:...... .. $@..@`"..`"216/moPurchaserpaysfor5years,andthendefaults.+%'1 f^dhdWPCXX81%<p.n$g3'XXXXKK?K?5139'G"e>2V/"O, \AZ"Arial RegularO     G   Purchaserdefaultsafterfiveyears...FMVofproperty:..$25,000..BalanceonK:....$25,837Howshouldrestitutiontopurchaserbecalculated?Use futurevalues,calculatedattheagreedinterestrateof8%.+%'1"fL.LWPCQXX81%'> 0,"h3'XXXXKKKK5139D'G"e;7T E0"\O, \AZ"Arial RegularO     G   CarryallamountsreceivedbyVendortotheirFutureValues(asofdateofdefault):F.V.of$216x60mo:0..$15,879Valueoftherealestateupon..forfeiture:.... .. ......$25,000TotalreceivedbyV:....$40,879+%'1 fm//WPCpXX81%/#g3'XXXXKK?K?5139D'"eCb0"O, \AZ"Arial RegularO        Howdoesthisresultcomparewithamortgageforeclosure?(AssumingasaleatFMV.)..Balanceowingon....contractattimeof....default...................$25,837..LessFMVofland.....$25,000..Deficiencyowed....tomortgagee........$837+%'1 f-WPCXX81%}0"g3'XXXXKKKK5139D'"ei0=$$O, \AZ"Arial RegularO        Other(dumber)waysofcalculatingtherestitutionowedbythevendor:Requirethevendortoreturnallpaymentsreceivedinexcessofthevendorsdamages,measuredas:..(1)The differencevalue:..(2)The rentalvalue..(3)ThesumoftheaboveWPCfXX81%  0#g3'XXXXKK?K?5139'"eu0 #iO, \AZ"Arial RegularO        PaymentsreceivedbyVendor:Downpayment.............$2,000Monthlypayments........$12,960Totalreceived..............$14,960(1)The differencevalue:0..FMVattimeofK....$30,000-..FMVatforfeiture...$25,000..DamagestoV........$5,000..Restitution..............$9,960+%'1"fl/lWPC1XX81% g0"g3'XXXXKKKK5139R'"e0 #4O, \AZ"Arial RegularO        PaymentsreceivedbyVendor:Downpayment.............$2,000Monthlypayments........$12,960Totalreceived..............$14,960(2)The rentalvalue:0..Monthlyrentalvalue.$250..DamagestoV........$15,000..Restitution..............$zero+%'1"fl/lWPCjXX81%.#f3'XXXXKK?K?5139D'"e Z/H"O, \AZ"Arial RegularO` ` `           Sebastianv.FloydIstheresocialutilityinthelawsrecognitionofaveryquick,cheapforfeitureprocessevenifitsometimesresultsinsubstantialwindfallstovendors?WPCXX81%Z/"n3'XXXX,,,,519+1r"eZ8@;C>@+_+_+_*O*OFSSSCCC333&(/(/'''r"fH$C$C$C###333333CCCSSSSSSccc'1"hZ/!.O,wAZ"Arial RegularO         Purchaser..p..pX..XVendor'1r"j"""!!!a 5a 5c | |   \ \ p1u{{SSS'1"k %O,wAZ"Arial RegularO` ` `         LatePaymentsacceptedwithoutobjection."l/O,wAZ"Arial RegularO` ` `         $"mo+ \$ $O,wAZ"Arial RegularO` ` `         contractWPCXX81%b.3'XXXXKK?K?9+%1"߄[1.1WPCXX81%,M3'XXXXKKKK9R+%1 "mn{,,WPCXX81%CZ/"r3'XXXX,,,,519D+1r"eZ8@;C>@+_+_+_*O*OFSSSCCC333&(/(/'''r"fH$C$C$C###333333CCCSSSSSSccc'1"gyZ/!.O,wAZ"Arial RegularO         Purchaser..p..pX..XVendor'1r"h"""!!!a 5a 5c | |   \ \ p1u{{SSS'1"j/|O,wAZ"Arial RegularO` ` `         $"ko+ \$ $O,wAZ"Arial RegularO` ` `         contract'5 l^P^PCC'5"m'y O,wAZ"Arial RegularO@@@          NomoreMr.NiceGuy+'5 nR'@'-!.sD' &- "o@' ) nD'  -+5$. z K  z . -+5- pR R R -! &- "qR nW C-+5$ 7-+5WPCxXX81%Y-|"g3'XXXXKK?K?9R'"ev ]^dJHIL=;BA~DFGL~M^'#PJCDa"#!&EV~%' _JLHJDL -C WCJBKMIKIK FM!LJLGMG~LGFMCLDGBI,  KGDFDCDIB2&!Q 9HB N~EJFNsLFE#GMFCD3 BCM& MHKzHBN~C 05FY  JFBCEJD3E8LB?  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TimberHillsAdditionNo.2 @C ..CityofRoy,Utah+'1**hh|y0E*g##g##E***hh|y0_*t#t# * +xx'10:Ē899ZWM, "4X !c 6Times New Roman Regularc    xx    @TimberHillsAdd'nNo.1$*hh|y0c 6Times New Roman Regularc    xx    @Scale:1"=20' *hh|y0k 0 c 6Times New Roman Regularc    xx    @Approved:RoyCityCouncil0,..25Jan.1984򀀀Approved:RoyCityPlanningComm.0,..14Oct.1983򀀀RecordedPlatBook24Page134OfficeoftheRecorder,DavisCo.,Utah+'1*hh|y0 % 9%k S%7 9% % % % $ 9% % % %7 %7 &Q &k % % % %Q m%7 m% m% % "& <&7 &7 &7 &7 &7 & & & & & & & *hh|y0 & &Q & Y'k Y'k ' ' r' 'k ' Y' ' (( 'Q 'Q 'Q '7 ?'7 ?'7 ?' ?' ?' Y' ( ( (7 (7 (7 (7 )7 *hh|y0( (k (7 +) ) x)Q x)Q )Q ) ) ) )7 )7 ) * * a* M, M, M, , .* + - - - j- j- P- 6- 6- - -7 -7 - - - - - - - - - - - - 9.Q 9. 9. S. .7 .7 . . . . . *hh|y0&:%Jm%%%|9%|9%b9%b9%b"&"&"&V&V&V&"&"&<&[([(((Y'Y' '&&&&&&'''''())+)+)+)+)))))))*.*1G*G*bG*bG*|(|(|[(u(u((G*G*a***+d+,+~+~+++1+1+,1,13,,,,.------.K.K.K.1.1.1S.1S.1S.1.........m.-.m...//"/O, \AZ"Arial RegularO        Timeofl ..l  .. TimeofPurchase .. Default+dd'1 h:. iN#!N#`#"jl kL. l(+.+ m( . WPCXX81%E\/o!f3'XXXXKK?K?9'"e<."O, \AZ"Arial RegularO        WhatremedydidRussellseek?WPCXX81% -T3'XXXXKKKK9(H$"wTy y %'1"wTO, \AZ"Arial RegularO` ` `         @BlackBox%'1t"u| 444444444| rrrt"+++(((((%%(((((t"w`+++(((((%         %((((('1"w"71O, \AZ"Arial RegularO        @Principal(asset)givenup"= j.vO, \AZ"Arial RegularO        @Principal̀returned"# / .;O, \AZ"Arial RegularO        @Interestreturned'$"y y %'1"O, \AZ"Arial RegularO` ` `         @BlackBoxWPC XX81%/R-3'XXXXKK?K?9R$"!uTy y %'1""uT)O, \AZ"Arial RegularO` ` `         @BlackBox%'1t"#u| 444444444| rrrt"$+++(((((%%(((((t"%u^+++(((((%         %((((('1"&u"<1O, \AZ"Arial RegularO        @Principal(asset)givenup"(@ .;O, \AZ"Arial RegularO        @Interestpaid'$")y y %'1"*)O, \AZ"Arial RegularO` ` `         @BlackBox%'13"+;Rw~j/ TO, \AZ"Arial RegularO        @Theinvestormaysufferdamageseitherif(1)fullinterestisnotpaid,or(2)fullprincipalisnotreturned'3",= z.vO, \AZ"Arial RegularO        @Principal̀returnedWPCXX81%.h"f3'XXXX,,,,51942*+' e.!]O,wAZ"Arial RegularO         Doestheinstallmentcontractprovideanyadvantageoverthemortgageintermsofthetransactionsbasicstructure?WPC XX81%fw1$r3'XXXXKK?K?5139  oQF40$'"eON1AO, \AZ"Arial RegularO         Purchaser..p..pX..X@..@Vendor"f(c""O, \AZ"Arial RegularO` ` `         contract-+%'1! gi-  gm."p -.+i}i4"}4"-.+-+%'1 m R$ O, \AZ"Arial RegularO             @(Notereversalofpositionsindiagram)-+dd'1! n X-  n Tf  ~ zE-.+1X 9mRX-.+dd1-+1  qfw1 pw1' h w1AO, \AZ"Arial RegularO         Purchaser..p..pX..X@..@Vendor'1f iQSU333CCCg!Cg!Cg!Cg!Sg!Sg!Sg!c g!c g!c c c c s s s f j%K %K %K o#,o#,o#,# # `  Y] Y] Y] ( ( eT 4" 4" ! ! ! 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