Document:

exhibit10_2toamend2.htm

    Exhibit
10.2

    

    LOAN
SERVICING AGREEMENT

    AND
AUTHORIZATION TO COLLECT

    

    

    This Agreement is entered into as of
the date set forth below by and between Redwood Mortgage Corp., a California
corporation (“Broker”) and the undersigned beneficiary (“Beneficiary”) for the
purpose of establishing the terms, conditions and authority for the servicing of
a loan evidenced by a promissory note (the “Note”) and deed of trust (the “Deed
of Trust”), described as follows:

    

    
      	
              Borrower:

            	 
      

    

    

    
      	
              Loan
      Amount:

            	
              $

            	 
      	
              Term:

            	 
      	 
      	
              Interest
      Rate:

            	 
      	
              %

            

    

    

    
      	
              Late
      Charge:

            	
              $

            	 
      	
              Prepayment
      Bonus:

            	 
      	
              Yes

            	 
      	
              No

            	
              X

            

    

    

    
      	
              Deed
      of Trust Recorded: Series #

            	 
      	 
      	
              County

            	 
      	
              ,
      CA

            

    

    

    
      	
              Beneficiary’s
      Investment:

            	
              $

            	 
      	
              Percentage
      of Ownership:

            	 
      	
              %

            

    

    

    It is understood that the Beneficiary’s
interest in said Note may be a fractional undivided ownership interest, and that
other lenders (“partial beneficiaries”) also may own fractional undivided
interests in said Note.  Beneficiary and the other partial
beneficiaries (collectively “Beneficiaries”) are not engaged in a partnership or
joint venture, but their relationship is specifically agreed to be that of
tenants in common.  This Agreement shall be executed in counterpart by
all Beneficiaries, each of which shall be deemed an original and all of which
together shall constitute one agreement, and the terms hereof shall be uniformly
binding upon and enforceable by Beneficiary and all other partial beneficiaries,
against Broker and as between themselves.  If Broker has previously
originated and funded the Note and Deed of Trust in Broker’s own name or the
interest in the Note and Deed of Trust covered herby were previously held by
another investor, Broker agrees to cause the Note to be duly endorsed or
assigned to Beneficiary and to cause an assignment of the Deed of Trust to be
recorded in favor of Beneficiary in the official records of the county where the
security property is located within ten (10) business days after Broker receives
any funds from Beneficiary or after close of escrow.

    

    Beneficiary hereby appoints Broker to
service the Note on his behalf from and after the close of escrow, to hold the
original Note and the original Deed of Trust as Beneficiary’s agent, and to
deliver copies of all other documents as provided in Beneficiary’s escrow
instructions executed in connection with this loan transaction to Beneficiary at
the address indicated below.  Such servicing activities shall include
all activities reasonably and customarily required to collect, disburse and
account for payment of principal, interest, late charges and prepayment bonuses
under the Note and to enforce all the terms and provisions of the Note and Deed
of Trust including, without limitation, the commencement of foreclosure
proceedings.  Broker accepts such appointment and agrees to use
diligence in the performance of its duties hereunder.

    

    Broker further agrees as
follows:  (1) All loan payments received by Broker hereunder shall be
deposited immediately into Broker’s trust account, which trust account shall be
maintained in accordance with the provisions of law and regulations applicable
to trust accounts of licensed real estate Brokers and in accordance with the
provisions of subsection 10238(k) of the California Real Estate Law; (2) Such
loan payments shall not be commingled with the other assets of Broker or any
affiliate, or used for any transaction other than the transaction for which such
funds are received by Broker; (3) All loan payments received on the Note (less
service fees as described below and other costs, charges, and anticipated
foreclosure expenses) shall be transmitted to Beneficiary and the other partial
beneficiaries pro rata according to their respective percentage ownership
interests in the Note within 25 days after receipt thereof by Broker; (4) Broker
shall provide Beneficiary  with a monthly and annual accounting of
Beneficiary’s interest in the Note in conformance with Section 10233(b) of the
California Real Estate Law; (5) Broker shall use diligence and care to assure
that proper  casualty insurance  is  maintained
on  the  real property covered  by  the
Deed  of
Trust  or  Deeds  of  Trust

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    securing
the Note; (6) Broker shall issue demands for payment and otherwise enforce the
terms of the Note in accordance with its established policies; (7) Broker shall
file a request for Notices of Default on prior encumbrances unless Broker will
receive such notices pursuant to California Civil Code Section 2924(b), and
Broker will promptly notify Beneficiary of any such defaults or on the Note
covered hereby; and (8) To the extent required by subsection 10238(k)(3) of the
California Real Estate Law, Broker will arrange for the inspection of Broker’s
trust account by an independent certified public accountant and forward the
report of such accountant to the California Commissioner of Real Estate if and
to the extent, in the manner, required by law.

    

    In the event of any default by the
obligor or obligors under the Note, Broker shall perform all acts and execute
all documents necessary to exercise the power of sale contained in the Deed of
Trust or Deeds of Trust securing same, including without limitation the
following:  Substitute trustees, select a foreclosure agent, give
demands, accept reinstatements, commence litigation to enforce the collection of
the Note, obtain relief from any court-ordered stay of foreclosure proceedings,
defend any litigation which may seek to restrain said foreclosure, receive a
trustee’s deed for the benefit of Beneficiaries, as tenants-in-common, and
otherwise to do all things reasonably necessary or appropriate to enforce
Beneficiary’s rights under the Note and Deed of Trust or Deeds of
Trust.  Beneficiary hereby authorizes Broker to initiate, maintain
and/or defend any such legal actions or proceedings in the name of Beneficiary,
and to employ attorneys therefor at Beneficiary’s expense.  Broker
agrees to notify Beneficiary in writing within fifteen (15) days after the
occurrence of any of the following events:  (1) the recording of a
notice of default on behalf of Beneficiary; (2) the recording of a notice of
trustee’s sale on behalf of Beneficiary together with a copy of such notice;
(3) the receipt of any payment constituting an amount equal to or greater
than five monthly installment payments together with a request for partial or
full reconveyance of the real property covered by the Deed of Trust, with any
necessary or appropriate transfer or delivery instructions; (4) receipt by
Broker on behalf of Beneficiary of any request for reconveyance of the Deed of
Trust together with a copy of such request; or (5) delinquency of any
installment or other obligation under the Note for more than 30
days.

    

    Beneficiary agrees that Broker shall
not be liable for any costs, expenses or damages that may arise from or in
connection with any acts or omissions of Broker or its agents or employees
hereunder, so long as any such act or omission shall have been undertaken in
good faith, notwithstanding any active or passive negligence (whether sole or
contributory) of Broker or its agents or employees, and Beneficiary shall hold
Broker harmless therefrom.

    

    In consideration for the services to be
rendered hereunder, Broker shall be entitled to receive an annual service fee
equal to one quarter of one percent (0.25%), or such lesser amount as may be
agreed to by Broker and Beneficiary from time to time, of the outstanding
principal balance of the Note, payable in equal monthly installments, or in
other periodic payments if payments by obligor are made other than monthly.
Broker is hereby authorized to deduct and retain all such service fees from the
collected monthly loan payments or be paid by beneficiary monthly.

    

    In the event of default in payment of
any sum due under the Note, Broker shall be authorized to advance such payments
to Beneficiary, but shall have no obligation whatsoever to do so.  In
the event the source for any payment to Beneficiary is not the obligor under the
Note, then Broker shall inform Beneficiary of the actual source of such
payment.  Broker shall also be authorized to advance monthly payments
or other sums to any senior lien holder, to pay insurance and taxes and to pay
any other expenses reasonably incurred in connection with the enforcement of the
Note and the protection of the security of the Deed of Trust securing same, but
shall have no obligation whatsoever to do so.  In the event of such
advance by Broker, Broker shall, not later than 10 days after making any such
payment, notify Beneficiary in writing of the date and amount of payment, the
name of the payee, the source of funds and the reason for the
payment.

    

    In the event of a default under the
Note or Deed of Trust, or any foreclosure action, legal action, sale or any
other event in which payments are advanced to Beneficiary or any other person or
expenses are incurred to protect the rights of Beneficiary under the Note and
Deed of Trust, then Beneficiary agrees to pay (or reimburse Broker for) his pro
rata share of such advances and expenses upon demand therefor by Broker,
according to his respective ownership interest in the Note.  In the
event Beneficiary fails to pay such sums upon demand, then the following
provisions shall apply:  (1) interest shall accrue on such sums at the
same rate as is provided in the Note, and (2) Broker and the other
partial  beneficiaries shall  have the option, but not the
obligation,  to advance such sums  for the
benefit  of Beneficiary.

    
      
         

      

      
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    All sums
thereafter collected by Broker hereunder shall be applied in the following
priority; (1) first, to the reinstatement of any senior liens or encumbrances;
(2) Second, to reimburse Broker for any advances made by Broker hereunder; (3)
Third, to reimburse all Beneficiaries for any advances made to enforce the Note
or protect the security of the Deed of Trust or Deeds of Trust securing same, in
the same order as such advances were made; (4) Fourth, to the payment of
interest under the Note; (5) Fifth, to the payment of accrued but unpaid
principal under the
Note (such principal and interest to be allocated among all Beneficiaries; and
(6) Thereafter, any remaining sums shall be allocated to all Beneficiaries in
accordance with their respective undivided interests in the Note.

    

    In the event Beneficiary assigns his
interest in the Note to any person, such assignment shall be evidenced by
execution and delivery to Broker of an assignment or endorsement of the Note and
a recordable assignment of the Deed of Trust, and the assignee shall be required
to execute a counterpart of this Agreement.

    

    Beneficiaries holding more than 50% of
the unpaid dollar amount of the Note may determine and direct the actions by
Broker on behalf of all partial Beneficiaries in the event of default or with
respect to other matters requiring the direction or approval of the
Beneficiaries under this Agreement.

    

    Beneficiary is hereby notified of his,
her or its right to receive a copy of the appraisal or Broker’s evaluation of
the real property covered by the Deed of Trust that was prepared in connection
with the origination of the Note and Deed of Trust.

    

    Upon any default under the Note or Deed
of Trust Beneficiary shall have the right to (1) direct the Trustee under the
Deed of Trust to exercise the power of sale contained therein, or (2) to bring
an action of judicial foreclosure, in which event all other partial
Beneficiaries shall be joined therein.  Beneficiary understands and
acknowledges that, if the power of sale under the Deed of Trust securing the
Note is exercised, all Beneficiaries may acquire fee title to the security
property as tenants-in-common.  In such event, reasonable cooperation
between all Beneficiaries will be essential for the protection of this
investment, and Beneficiary therefore agrees to execute in favor of Broker a
special power of attorney authorizing Broker on behalf of Beneficiary to list
and market, the security property and to negotiate the sale of such property,
execute sales contracts as agent for Beneficiary and consummate such sale in
Beneficiary’s name, place and stead and on Beneficiary’s behalf, all on such
terms and conditions as Broker may deem proper and reasonable; provided, that
any sale that will generate net sales proceeds to Beneficiary, after payment of
all selling expenses, in an amount less than the outstanding principal balance
of the Note as of the date of the foreclosure sale, shall be subject to approval
by more than 50% of the partial Beneficiaries under the Note and Deed of
Trust.

    

    Beneficiary hereby authorizes Broker,
as Beneficiary’s agent, to receive and act upon any Notice of Rescission
delivered by any borrower under the Truth in Lending Simplification and Reform
Act (the “Act”) with respect to the Note or any refinancing
thereof.  In the event that Beneficiary is a creditor as defined in
the Act, Beneficiary hereby agrees that Broker shall comply with all
requirements of the Act and regulations issued thereunder , and to give all
written disclosures required thereby.

    

    In the event at the time of maturity of
this Note, the borrower is in the process of refinancing the loan with the
assistance of Broker, the Beneficiary agrees to extend the term of this loan for
an additional period not to exceed (90) days or such other period of time to
which the Broker and Beneficiary agree.  All other terms and
conditions of the original Promissory Note shall continue in full force and
effect during said extension period.

    

    This Agreement may be terminated by the
parties as follows:  (1) by Broker, at any time, upon 30 days written
notice to Beneficiary; provided, however, if there are multiple Beneficiaries
and the Note and Deed of Trust were sold by Broker pursuant to the exemption
contained in Section 10238 of the California Real Estate Law, then Broker shall
not have the right to terminate this Agreement without the approval of
Beneficiaries holding more than 50% of the outstanding ownership interests in
the Note; or (2) by Beneficiary and/or other partial Beneficiaries holding more
than 50% of the outstanding ownership interests in the Note, upon 30 days
written notice to Broker.  Beneficiary understands that this Agreement
may not be terminated by Beneficiary alone without the written consent of such
majority interest of all owners of the Note, and further that other partial
Beneficiaries have the right to terminate this Agreement as to all Beneficiaries
including the undersigned Beneficiary, without Beneficiary’s consent, if such
other partial BENEFICIARIES constitute more than 50% of the interests of all
owners of the Note.  In such event, Beneficiary agrees to accept the
substitution of any servicing agent chosen by such majority interest so long as
the compensation to be paid shall not exceed the amounts set forth
herein.

    

    
      
         

      

      
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    By signing below, Beneficiary hereby
acknowledges receipt of a copy of this Agreement.

    

    IN WITNESS WHEREOF, the parties hereto
have executed this Agreement on the respective dates set forth
below.

    

    Broker:                 REDWOOD
MORTGAGE CORP., a

    California corporation

    

    By:
____________________________________________

    Michael Burwell,
President

    

    
      	
              Date:

            	 
      

    

    

    Beneficiary:         REDWOOD
MORTGAGE INVESTORS IX, LLC a

    Delaware limited liability
company

    

    By:
____________________________________________

    Gymno Corporation, Managing
Member

    

    
      	
              Date:

            	 
      

    

    

    

    

    
      
         

      

      
        4exhibit10_3atoamend2.htm

    Exhibit 10.3
(a)

    

    

    PROMISSORY
NOTE

    

    
      	
              Loan
      No.: _____________

            	
              ____________,
      2008

            
	 
      	
              Redwood
      City, California

            

    

    

    

    FOR VALUABLE CONSIDERATION,
_________________________, (herein "Maker"), hereby promises to pay to REDWOOD
MORTGAGE INVESTORS IX, LLC a Delaware limited liability company  or
order (herein "Payee"), at the address set forth below, or at such other address
as the holder hereof may, from time to time designate, the sum of
___________________________ DOLLARS AND NO/100 ($___________) with interest on
the unpaid balance of the principal sum disbursed by Payee to or for the account
of Maker at the interest rate specified below.

    

    1.           Interest and
Payments.

    

    (a)           Fixed
Rate Interest.  Maker agrees that
fixed interest earned by and payable to Payee hereunder (“Interest”) shall be
equal to ____ percent (__%) per year of the outstanding principal amount
disbursed beginning on the date of disbursement of funds by
Payee.  Interest shall be calculated for actual days elapsed on the
basis of a 360-day year, which results in higher interest payments than if a
365-day were used.

    

    (b)           Payments.  Interest only
shall be payable by Maker from the date of disbursement of funds by Payee, with
the Interest for the period through ______, 2008, due and payable upon execution
and delivery of this Note.  Beginning on _____, 2008, and on the first
day of each consecutive month thereafter until the Maturity Date (as defined
below), Maker shall make monthly payments of Interest only.  All
payments received shall be credited first to costs, then to Interest, and last
to principal due hereunder.

    

    2.           Maturity
Date.  The outstanding principal balance of this Note and all
accrued but unpaid Interest shall be due and payable in full on __________
(“Maturity Date”).

    

    3.           Prepayment.  The right is
reserved by Maker to prepay the outstanding principal amount in whole or in part
together with accrued Interest thereon.  All prepayments shall be
applied to the most remote principal installments then unpaid under this
Note.

    

    4.           Late
Charge.  If Payee fails to
receive any payments of Interest or principal within ten (10) days after the
date the same is due and payable, a late charge to compensate Payee for damages
Payee will suffer as a result shall be immediately due and
payable.  Maker recognizes that a default by Maker in making the
payments agreed to be paid when due will result in Payee's incurring additional
expenses in servicing the loan, including, but not limited to, sending out
notices of delinquency, computing interest and segregating the delinquent sums
from not delinquent sums on all accounting, loan and data processing records, in
loss to Payee of the use of the money due, and in frustration to Payee in
meeting its other financial commitments.  Maker agrees that, if for
any reason Maker fails to pay any amounts due under this Note so that Payee
fails to receive such payments within ten (10) days after the same are due and
payable, Payee shall be entitled to damages for the detriment caused thereby,
but that it is extremely difficult and impractical to ascertain the extent of
such damages.  Maker therefore agrees that a sum equal to $.06 for
each $1.00 of each payment that becomes delinquent ten (10) days after its due
date, is a reasonable estimate of the fair average compensation for the loss and
damages Payee will suffer, that such amount shall be presumed to be the amount
of damages sustained by Payee in such case, and that Maker agrees to pay Payee
this sum on demand.

    

    5.           Default.  If there exists
any Event of Default, as defined below, under the terms of this Note or under
the terms of the Construction Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Fixture Filing ("Deed of Trust"), or any other document
executed in connection with this Note (herein called "Loan Documents"), Payee or
the holder hereof is expressly authorized without notice or demand of any kind
to make all sums of Interest and principal and any other sums owing under this
Note immediately due and payable and to apply all payments made on this Note or
any of the Loan Documents to the payment of any such part of any Event of
Default as it may elect.

    

    
      
         

      

      
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    An Event of Default shall be either (1)
a default in the payment of the whole or in any part of the several installments
of this Note when due, or (2) any of the Events of Default contained in any of
the Loan Documents.  At any time after an Event of Default the entire
unpaid balance of principal, together with Interest accrued thereon, shall, at
the option of the legal holder hereof and without notice (except as specified in
any Loan Documents) and without demand or presentment, become due and payable at
the place of payment.  Anything contained herein or in any of the Loan
Documents to the contrary notwithstanding, the principal balance together with
accrued Interest thereon so accelerated and declared due as aforesaid shall
continue to bear Interest and shall include compensation for late payments on
any and all overdue installments as described above.

    

    If an Event of Default has occurred,
the failure of Payee or the holder hereof to promptly exercise its rights to
declare the indebtedness remaining unpaid hereunder to be immediately due and
payable shall not constitute a waiver of such rights while such Event of Default
continues nor a waiver of such right in connection with any future Event of
Default.

    

    Maker hereby waives presentment for
payment, protest and demand, and notice of protest, demand, dishonor, nonpayment
and nonperformance including notice of dishonor with respect to any check or
draft used in payment of any sum due hereunder.

    

    6.           Legal
Limits.  All agreements
between Maker and Payee are hereby expressly limited so that in no event
whatsoever, whether by reason of deferment in accordance with this Note or under
any agreement or by virtue of the advancement of the loan proceeds, acceleration
or maturity of the loan, or otherwise, shall the amount paid or agreed to be
paid to the Payee for the loan, use, forbearance or detention of the money to be
loaned hereunder or to compensate Payee for damages to be suffered by reason of
a late payment hereof, exceed the maximum permissible under applicable
law.  If, from any circumstances whatsoever, fulfillment of any
provision hereof, or of any provision in any of the Loan Documents at the time
performance of such provision shall be due, shall involve transcending the limit
of validity prescribed by law, ipso facto the obligations
to be fulfilled shall be reduced to the limit of such validity.  This
provision shall never be superseded or waived and shall control every other
provision of all agreements between Maker and Payee.

    

    7.           Attorneys'
Fees.  If an action is
instituted on this Note, or if any other judicial or non-judicial action is
instituted by the holder hereof or by any other person, and an attorney is
employed by the holder hereof to appear in any such action or proceeding or to
reclaim, sequester, protect, preserve or enforce the holder's interest in the
real property security or any other security for this Note, including, but not
limited to, proceedings to foreclose the loan evidenced hereby, proceedings
under the United States Bankruptcy Code, or in eminent domain, or under the
probate code, or in connection with any state or federal tax lien, or to enforce
an assignment of rents, or for the appointment of a receiver, or disputes
regarding the proper disbursement of construction loan funds, the Maker and
every endorser and guarantor hereof and every person who assumes the obligations
evidenced by this Note and the Loan Documents, jointly and severally promise to
pay reasonable attorney's fees for services performed by the holder's attorneys,
and all costs and expenses incurred incident to such employment.  If
Maker is the prevailing party in any action by Maker pursuant to this Note,
Payee shall pay such attorneys fees as the court may direct.

    

    8.           Interest
After Expiration or Acceleration.  If the entire
balance of principal and accrued Interest is not paid in full on the Maturity
Date, or upon acceleration of this Note as provided in paragraphs 5 above or 10
below, without waiving or modifying in any way any of the rights, remedies or
recourse, Payee may have under this Note or under any of the Loan Documents by
virtue of this default, the entire unpaid balance of principal and accrued
interest shall bear interest from the Maturity Date or the date of acceleration
until paid in full a the higher of:  (a) eighteen percent (18%) per
annum; or (b) a fluctuating rate per annum at all times equal to the Discount
Rate established by the Federal Reserve Bank of San Francisco (“Discount Rate”)
plus _____ percent (___%) (“Maturity Interest Rate”).  If at any time
the Discount Rate (or any previously substituted alternative index) is no longer
available, is unverifiable, or is no longer calculated in substantially the same
manner as before, then Payee may, in its sole and absolute discretion, select
and substitute an alternative index over which Payee has no
control.  In addition, the holder hereof shall have any and all other
rights and remedies available at law or in equity or under the Deed of
Trust.

    

    
      
         

      

      
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    9.           Security.  This Note is
secured by and is entitled to the benefits of the Deed of Trust dated on or
about the date of this Note executed by Maker to PLM LENDER SERVICES, INC., a
California corporation, as Trustee, for the use and benefit of Payee covering
and relating to the interest of Maker in the property particularly described in
Exhibit A to the
Deed of Trust (“Property”).  The provisions of the Deed of Trust are
incorporated herein by reference as if set forth in full, and this Note is
subject to all of the covenants and conditions therein contained.

    

    10.           Acceleration.  Without limiting
the obligations of Maker or the rights and remedies of Payee or the holder
hereof under the terms and covenants of this Note and the Deed of Trust, Maker
agrees that Payee shall have the right, at its sole option, to declare any
indebtedness and obligations hereunder or under the Deed of Trust, irrespective
of the Maturity Date specified herein, due and payable in full
if:  (1) Maker or any one or more of the tenants-in-common, joint
tenants, or other persons comprising Maker sells, enters into a contract of
sale, conveys, alienates or encumbers the Property or any portion thereof or any
fractional undivided interest therein, or suffers Maker's title or any interest
therein to be divested or encumbered, whether voluntarily or involuntarily, or
leases with an option to sell, or changes or permits to be changed the character
or use of the Property, or drills or extracts or enters into a lease for the
drilling for or extracting of oil, gas or other hydrocarbon substances or any
mineral of any kind or character on the Property; (2) The interest of any
general partner of Maker (or the interest of any general partner in a
partnership that is a partner) is assigned or transferred; (3) More than
twenty-five percent (25%) of the corporate stock of Maker (or of any corporate
partner or other corporation comprising Maker) is sold, transferred or assigned;
(4) There is a change in beneficial ownership with respect to more than
twenty-five percent (25%) of Maker (if Maker is a partnership, limited liability
company, trust or other legal entity) or of any partner or tenant-in-common of
Maker which is a partnership, limited liability company, trust or other legal
entity; or (5) a default has occurred hereunder or under any Loan Document and
is continuing.  In such case, Payee or other holder of this Note may
exercise any and all of the rights and remedies and recourses set forth in the
Deed of Trust and as granted by law.  Maker and any successor who
acquires any record interest in the Property agrees to notify Payee promptly in
writing of any transaction or event described in this section.

    

    11.           Governing
Law and Severability.  This Note is made
pursuant to, and shall be construed and governed by, the laws of the State of
California.  If any paragraph, clause or provision of this Note or any
of the Loan Documents is construed or interpreted by a court of competent
jurisdiction to be void, invalid or unenforceable, such decision shall affect
only those paragraphs, clauses or provisions so construed or interpreted and
shall not affect the remaining paragraphs, clauses and provisions of this Note
or the other Loan Documents.

    

    12.           Time of
Essence.  Time is of the
essence of this Note.

    

    13.           Payment
Without Offset.  Principal and
Interest shall be paid without deduction or offset in immediately available
funds in lawful money of the United States of America.  Payments shall
be deemed received only upon actual receipt by Payee and upon Payee's
application of such payments as provided herein.

    

    14.           Notices.  All notices under
this Note shall be in writing and shall be served in person or by first class or
certified mail addressed to the following respective parties as
follows:

    

    MAKER:                      ______________________

    ______________________

    ______________________

    Attn: __________________

    

    PAYEE:                      Redwood
Mortgage Investors IX

    900 Veterans Blvd., Suite
#500

    Redwood City, California
94063-1743

    Attn:  Michael
Burwell

    

    Any such
notice or demand so served by first class or certified mail shall be deposited
in the United States mail, with postage thereon fully prepaid and addressed to
the party so to be served at its address above stated or at such other address
of which said party shall have theretofore notified in writing, as provided
above, the party giving such notice.  Service of any such notice or
demand so made shall be deemed effective on the day of actual delivery or the
expiration of three business days after the date of mailing, whichever is the
earlier in time.

    

    
      
         

      

      
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    15.            Collection.  Any remittances
by check or draft may be handled for collection in accordance with the practices
of the collecting party and any receipt issued therefor shall be void unless the
amount due is actually received by Payee.

    

    16.           Assignment.  Payee or other
holder of this Note may assign all of its rights, title and interest in this
Note to any person, firm, corporation or other entity without the consent of
Maker.

    

    17.           Relationship.  The relationship
of the parties hereto is that of Maker and Payee and it is expressly understood
and agreed that nothing contained herein or in any of the Loan Documents shall
be interpreted or construed to make the parties partners, joint venturers or
participants in any other legal relationship except for Maker and
Payee.

    

    18.           Remedies.  No right, power
or remedy given Payee by the terms of this Note, or in the Loan Documents is
intended to be exclusive of any right, power or remedy, and each and every such
right, power or remedy shall be cumulative and in addition to every other right,
power or remedy given to Payee by the terms of any of the Loan Documents or by
any statute against Maker or any other person.  Every right, power and
remedy of Payee shall continue in full force and effect until such right, power
or remedy is specifically waived by an instrument in writing, executed by
Payee.

    

    19. Headings.  The subject
headings of the paragraphs of this Note are included for purposes of convenience
only, and shall not affect the construction or interpretation of any of its
provisions.

    

    

    Maker:                      _________________________________

    

    

    _________________________________

    

    

    

    
      
         

      

      
        4

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