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PROPOSED AMENDMENT 
TO GOLDEN RAIN FOUNDATION TRUST
**Extend Trust for Twenty Years**

 

 



At its meeting on October 22, 2013, the Board of Directors of the Golden Rain Foundation passed the enclosed resolution to place on the ballot an Amendment to the Golden Rain Foundation Trust (“Trust”), to become effective when signed by both the President and Secretary of Mutual Nos. One through Twelve, Fourteen through Seventeen, respectively; approved by more than fifty percent (50%) of the active Members in good standing of the Golden Rain Foundation; recorded with the Orange County Clerk-Recorder’s Office; and distributed to the Members (“Amendment”).  This Amendment would prevent the termination of the Trust in 2024.  

PLEASE READ THOROUGHLY 
BEFORE CASTING YOUR VOTE
The sole purpose of this Amendment is to prevent the termination of the Trust, set to expire in 2024.  The Board of Directors of the Golden Rain Foundation has resolved to extend the termination date of the Trust twenty (20) years beyond 2024.  The extension of the Trust is the ONLY change to the Trust proposed by this Amendment.     

Your YES vote on this Amendment will prevent the termination of the Trust in 2024 and will extend the term of the Trust for twenty (20) years; Your NO vote on this Amendment will result in the termination of the Trust in 2024.

TEXT OF PROPOSED AMENDMENT 
TO THE GOLDEN RAIN FOUNDATION TRUST

The following language is hereby proposed to amend the Trust to prevent the termination of the Trust in 2024:

(Used by Mutual Nos. One through Twelve, and Fourteen through Sixteen:)

GOLDEN RAIN FOUNDATION, a California corporation, (the “Trustee”) and the undersigned Trustors/Beneficiaries hereby agree as follows:

WHEREAS, the Trustee and Seal Beach Mutual No. One, a California corporation, as the original Trustor/Beneficiary, created the GOLDEN RAIN FOUNDATION TRUST (the “Trust”) under a Declaration of Trust dated as of December 21, 1961, (the “Declaration of Trust”, which was recorded on July 10, 1962, in Book 6172 at Pages 617-632, Official Records of Orange County, California; and 

WHEREAS, the Trustee received and has held IN TRUST all that certain real property described in Exhibit “A” attached hereto; and 

WHEREAS, Seal Beach Mutual Nos. Two through Twelve and Fourteen through Sixteen subsequently became additional Trustors/Beneficiaries of the Trust; and

WHEREAS, Section VI of the Declaration of Trust provides that the Trust may at any time be amended by written instrument executed unanimously by the Trustee and all the Cooperatives which have at such time become, and then remain beneficiaries of the Trust; and

WHEREAS, Section VI of the Declaration of Trust also provides that the Trust, if not earlier terminated, shall in all events terminate twenty-one (21) years after the date of death of the last to die of those living persons who were, on December 21, 1961, stockholders in or subscribers of stock in Seal Beach Mutual No. One, as recorded by its books and records, which termination date will occur in 2024; and

WHEREAS, the Trustee and the Trustors/Beneficiaries desire to extend the termination date of the Trust beyond 2024; and

WHEREAS, the Trust is subject to § 1357 of the Davis-Stirling Act (Cal. Civil Code § 1350 et seq.) which governs amendments extending the terms of declarations such as the Declaration of Trust, under which Section of the Act the term of the Trust cannot be extended more than twenty (20) years from the date upon which it would terminate under its present wording; and

WHEREAS, extending the term of the Trust for twenty (20) years from 2024 would not violate the rule against perpetuities as presently in effect in California because it would not extend the termination date of the Trust more than ninety (90) years from the date of its creation;

NOW, THEREFORE, the fifth sentence of Section VI of the Declaration of Trust is deleted in its entirety and replaced with the following:

“The Trust shall in all events terminate, if it has not earlier been terminated, forty-one (41) years after the date of death of the last to die of those living persons who were, on December 21, 1961, stockholders in or subscribers of stock in Seal Beach Mutual No. One, as recorded by the books and records of Seal Beach Mutual No. One.”

In all other respects, the Declaration of Trust and the Trust are hereby ratified, affirmed and approved.

This Amendment may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

This Amendment shall become effective when executed on behalf of each corporation named below, when it has been approved by more than 50% of the active members in good standing of the Trustee and that fact has been certified in writing, executed and acknowledged by an officer of the Trustee, and when it has been recorded in Orange County, California.

Exhibit “A”:

PARCEL 1:  Lots A, B and D of Tract No. 4337, in the city of Seal Beach, county of Orange, state of California, as per map recorded in book 150, pages 3, 4, 5, 6 and 7 of Miscellaneous Maps, in the office of the county recorder of said county.

PARCEL 2:  Golden Rain Road, Annadale Drive, Burning Tree Lane, St. Andrews Drive, Church Place, Thunderbird Drive and that portion of Tamarisk Lane lying northeasterly of the northwesterly prolongation of the southwesterly line of St. Andrews Drive having a bearing of south 33° 24’ 07” East in Tract No. 4337, in the city of Seal Beach, county of Orange, state of California, as per map recorded in book 150 pages 3 to 7 inclusive of Miscellaneous Maps, in the office of the county recorder of said county, except that portion of Thunderbird Drive lying northwesterly of the northwesterly line of Golden Rain Road prolonged across said Drive.

SUBJECT TO:  Taxes, easements, covenants, conditions, restrictions, and reservations, encumbrances, and all other matters of record.

(Used by Mutual No. Seventeen:)

GOLDEN RAIN FOUNDATION, a California corporation, (the “Trustee”) and Seal Beach Mutual No. Seventeen, a California nonprofit mutual benefit corporation, (the “Trustor/Beneficiary”) hereby agree as follows:

WHEREAS, the Trustee and the Trustor/Beneficiary entered into a Declaration of Trust entitled “Declaration of Trust for Seal Beach Mutual No. Seventeen” dated as of December 14, 1981, which was recorded as Document No. 21718 on December 16, 1981, in Book 14326, at pages 118-137, official records of Orange County, California (the “Declaration of Trust”) with respect to a trust referred to as the “GOLDEN RAIN FOUNDATION TRUST” (the “Trust”) in order to acknowledge the admission of Trustor/Beneficiary into the common interest development known as “Seal Beach Leisure World” in Seal Beach, California.

WHEREAS, Section VI of the Declaration of Trust provides that the Trust may at any time be amended by written instrument executed unanimously by the Trustee and all the Cooperatives and Condominiums which have at such time become, and then remain beneficiaries of the Trust; and

WHEREAS, Section VI of the Amended and Restated Declaration of Trust also provides that the Trust, if not earlier terminated, shall in all events terminate twenty-one (21) years after the date of death of the last to die of those living persons who were, on December 21, 1961, stockholders in or subscribers of stock of Seal Beach Mutual No. One, as recorded by its books and records, which termination date will occur in 2024; and

WHEREAS, the Trustee and the Trustor/Beneficiary desire to extend the termination date of the Trust beyond 2024; and

WHEREAS, the Trust is subject to § 1357 of the Davis-Stirling Act (Cal. Civil Code § 1350 et seq.) which governs amendments extending the terms of declarations such as the Declaration of Trust, under which Section of the Act the term of the Trust cannot be extended more than twenty (20) years from the date upon which it would terminate under its present wording; and

WHEREAS, extending the term of the Trust for twenty (20) years from 2024 would not violate the rule against perpetuities as presently in effect in California because it would not extend the termination date of the Trust more than ninety (90) years from the date of its creation;

NOW, THEREFORE, the fifth sentence of Section VI of the Declaration of Trust is deleted in its entirety and replaced with the following:

“The Trust shall in all events terminate, if it has not earlier been terminated, forty-one (41) years after the date of death of the last to die of those living persons who were, on December 21, 1961, stockholders in or subscribers of stock in Seal Beach Mutual No. One, as recorded by the books and records of Seal Beach Mutual No. One.”

In all other respects, the Declaration of Trust and the Trust are hereby ratified, affirmed and approved.
 
This Amendment may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

This Amendment shall become effective when executed on behalf of Trustor/Beneficiary, when it has been approved by more than 50% of the active members in good standing of the Trustee and that fact has been certified in writing, executed and acknowledged by an officer of the Trustee, and when it has been recorded in Orange County, California.

  

             

PLEASE CAST YOUR VOTE ON
THE OFFICIAL NON-REVOCABLE BALLOT

YOU ONLY HAVE ONE VOTE TO CAST
PLEASE CAST YOUR VOTE BY PLACING AN "X" OR A "" IN ONE BOX.

 

 


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Accurate Voting Services, Inc., 
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