Subordination Agreement SHOP Loan 2015-0594753RECORDING REQUESTED BY
STEWART -TITLE OF CALIFORNIA
y
*wl-When Recorded Mail to:
City of Poway
Attn: City Manager
13325 Civic Center Drive
Poway, CA 92064
DOC# 2015 - 0594753
Nov 16, 2015 04:00 PM
OFFICIAL RECORDS
Emest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $39.00
PAGES: 9
— ii
SUBORDINATION AGREEMENT
SHOPLOAN
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
THIS AGREEMENT (the "Agreement "), is made as of November iV, 2015, by and among
the CITY OF POWAY, a public body, corporate and politic, hereinafter referred to as "City ",
MARC W. LEDREW, an unmarried man, hereinafter referred to as "Borrower" and
MISSION FEDERAL CREDIT UNION, hereinafter described as the "Senior Lender ":
WTTNESSETH
WHEREAS, in order to provide funds to the Borrower in connection with the purchase of
a home located at 13681 Sycamore Tree Lane, Poway, California, which property is legally
described in Exhibit A attached hereto (the "Property"), the City made a loan to Borrower in the
original principal amount of $180,000 (the "Subordinate Loan "), evidenced by a Promissory
Note in favor of the City of Poway dated November 30, 2005, (the "Note ") and secured by a
Deed of Trust and Security Agreement in favor of the City of Poway (the "Subordinate Deed of
Trusty,, recorded against the Property in the Official Records of San Diego County on
December 9, 2005, as Instrument No. 2005- 1061264. In addition, in connection with the
Subordinate Loan, an Affordable Housing Resale Restrictions; Option Agreement and Option to
Designate Purchaser (the "Resale Restriction Agreement") was recorded against the Property
in the Official Records of San Diego County on December 9, 2005, as Instrument No. 2005-
1061263. The Subordinate Deed of Trust and Resale Restriction Agreement, together with any
and all amendments and modifications thereto recorded in the Official Records of San Diego
County in connection with the Subordinate Loan, are hereinafter referred to as the "Subordinate
Encumbrances." The Subordinate Encumbrances, the Note, and all other documents evidencing
or securing the Subordinate Loan are collectively referred to as the "Subordinate Loan
Documents."
WHEREAS, pursuant to a Loan Agreement dated as ofil/DV _4AtV/ 7 .2015, Mission
Federal Credit Union, (the "Senior Lender ") is making a loan to Borrower in an amount not to
exceed $139,300 (the "Senior Loan "). The Senior Loan is secured by that certain Deed of Trust,
flECORDING REQUESTED BY
STEWART TITLE OF CALIFORNIA
Rn—or y
*nd -When Recorded Mail to:
City of Poway
Attn: City Manager
13325 Civic Center Drive
Poway, CA 92064
SUBORDINATION AGREEMENT
SHOPLOAN
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
THIS AGREEMENT (the "Agreement"), is made as of November 2015, by and among
the CITY OF POWAY, a public body, corporate and politic, hereinafter referred to as "City ",
MARC W. LEDREW, an unmarried man, hereinafter referred to as "Borrower" and
MISSION FEDERAL CREDIT UNION, hereinafter described as the "Senior Lender ":
WITNESSETH
WHEREAS, in order to provide funds to the Borrower in connection with the purchase of
a home located at 13681 Sycamore Tree Lane, Poway, California, which property is legally
described in Exhibit A attached hereto (the "Property "), the City made a loan to Borrower in the
original principal amount of $180,000 (the "Subordinate Loan "), evidenced by a Promissory
Note in favor of the City of Poway dated November 30, 2005, (the "Note ") and secured by a
Deed of Trust and Security Agreement in favor of the City of Poway (the "Subordinate Deed of
Trust "), recorded against the Property in the Official Records of San Diego County on
December 9, 2005, as Instrument No. 2005 - 1061264. In addition, in connection with the
Subordinate Loan, an Affordable Housing Resale Restrictions; Option Agreement and Option to
Designate Purchaser (the "Resale Restriction Agreement ") was recorded against the Property
in the Official Records of San Diego County on December 9, 2005, as Instrument No. 2005-
1061263. The Subordinate Deed of Trust and Resale Restriction Agreement, together with any
and all amendments and modifications thereto recorded in the Official Records of San Diego
County in connection with the Subordinate Loan, are hereinafter referred to as the "Subordinate
Encumbrances." The Subordinate Encumbrances, the Note, and all other documents evidencing
or securing the Subordinate Loan are collectively referred to as the "Subordinate Loan
Documents."
WHEREAS, pursuant to a Loan Agreement dated as ofAlAga 46/ 7 ,2015, Mission
Federal Credit Union, (the "Senior Lender") is making a loan to Borrower in an amount not to
exceed $139,300 (the "Senior Loan "). The Senior Loan is secured by that certain Deed of Trust,
1
Assignment of Leases and Rents, Security Agreement and Fixture Filing dated as of
//, --A ' . 2015, which will be recorded concurrently herewith (the "Senior Loan. Deed of
Trust"). The Senior Loan Deed of Trust and any other instruments or documents which are
recorded in connection with the Senior Loan shall be referred to collectively as the "Senior
Loan Encumbrances." The Senior Loan Encumbrances and any and all notes, loan agreements,
and other documents and instruments executed by Borrower in connection with the Senior Loan
shall be collectively referred to as the "Senior Loan Documents."
WHEREAS, it is a condition precedent to the Senior Lender providing the Senior Loan
that the Senior Encumbrances be unconditionally and at all times remain a lien or charge upon
the Property prior and superior to all the rights of the holder of the Subordinate Encumbrances
and that the City specifically and unconditionally acknowledge that the Subordinate
Encumbrances are and shall remain subordinate to the lien or charge of the Senior
Encumbrances.
WHEREAS, it is to the benefit of all the parties herein that the Senior Loan be made to
the Borrower; and the City is willing that the Senior Encumbrances shall, when recorded,
constitute a lien or charge upon the Property which is unconditionally prior and superior to the
lien or charge of the Subordinate Encumbrances.
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties
hereto and other valuable consideration, the receipt and sufficiency of which consideration is
hereby acknowledged, and in order to induce the Senior Lender to provide the Senior Loan, it is
hereby declared, understood and agreed as follows:
(1) That Senior Encumbrances, and any renewals, modifications or extensions thereof, shall
unconditionally be and remain at all times a lien or charge on the Property described,
prior and superior to the lien or charge of the Subordinate Encumbrances;
(2) That the Senior Lender would not provide the Senior Loan without this Agreement; and,
(3) That with regard to the priority of the Subordinate Encumbrances, this Agreement shall
be the sole and only agreement with regard to the subordination of the lien or charge of
the Subordinate Encumbrances to the lien or charge of the Senior Encumbrances and
shall supersede and cancel any prior agreements as to such subordination including, but
not limited to, those provisions, if any, contained in the Subordinate Deed of Trust, which
provide for the subordination of the lien or charge thereof to another deed or deeds of
trust, another mortgage or mortgages, or any other property use restrictions or covenants.
THE CITY hereby declares, agrees and acknowledges that:
(a) It consents to all provisions of the Senior Documents and of any and all other agreements,
including but not limited to any escrow instructions or agreements, relating to the
disbursement of the proceeds of Senior Loan that have been submitted to City for its
review (collectively, "Disbursement Provisions ");
(b) The Senior Lender, in approving any disbursements pursuant to any such Disbursement
Provisions, is under no obligation or duty to, nor has the Senior Lender represented that it
will, see to the application of such proceeds by the person or persons to whom the
proceeds are disbursed and any application or use of such proceeds for purposes other
than those provided for in the Senior Documents shall not defeat the subordination herein
made in whole or in part; and,
(c) It intentionally and unconditionally subordinates the lien or charge of the Subordinate
Encumbrances in favor of the lien or charge upon the Property of the Senior
Encumbrances and understands that in reliance upon, and in consideration of, this
subordination, specific loans and advances are being and will be made and, as part and
parcel thereof, specific monetary and other obligations are being entered into which
would not be made or entered into but for said reliance upon this subordination.
(d) Upon any event of foreclosure of the Subordinate Deed of Trust, whether by power of
sale or by court action, or upon a transfer of the Property in lieu of foreclosure, such
foreclosure shall not be deemed an event of default under any of the Senior Loan
Documents provided that the City or any assignee of its rights or transferee of the
Property agrees to assume all of Borrower's obligations under the Senior Loan
Documents within ninety (90) days of such foreclosure and thereafter complies with all
terms of the Senior Loan Documents.
(e) Notwithstanding anything to the contrary contained in the Subordinate Loan Documents,
prior to the City declaring any default or taking any remedy permitted against the
Borrower under the Subordinate Loan Documents or applicable law based upon an
alleged default under the Subordinate Loan Documents, the City shall give notice to the
Senior Lender of such alleged default, and the Senior Lender shall have a period of not
less than ninety (90) days to cure such alleged default. Notwithstanding the foregoing,
other than the appointment of a receiver to collect monies owing from the Borrower, the
City may take any reasonable action it deems necessary or appropriate in good faith to
protect its security. Notices of any default by the Borrower under the Subordinate Loan
Documents shall be given to the Senior Lender at the following address:
Mission Federal Credit Union
5785 Oberlin Drive, Suite #108
San Diego, CA 92121
(f) Concurrently with a notice from the Senior Lender to the Borrower that a default or
breach exists under the terms of any of the Senior Documents, Senior Lender shall send a
copy of such notice to the City and the City shall have thirty (30) days to cure such
default. The Senior Lender will not exercise any of its remedies against Borrower or the
Property during any applicable cure period set forth herein beginning after the date such
notice is given to Senior Lender, except that Senior Lender may take any reasonable
action it deems necessary or appropriate in good faith to protect its security.
Notwithstanding anything to the contrary in this Agreement, any indebtedness and any
other amounts secured by the Senior Encumbrances may be accelerated and become
immediately due and payable in accordance with the terms of the Senior Lender Deed of
Trust or any other Senior Documents and a notice of default may be recorded in the
applicable governmental office immediately upon the occurrence of a default and
3
expiration off' any applicable notice and cure periods set forth in the Senior Documents,
provided, however, that if the underlying default giving rise to such acceleration is a
monetary default, the City and Borrower shall be deemed to have cured the default by
tendering payment of all amounts then due as if no acceleration of any indebtedness had
occurred. Notices of any default by the Borrower under the Senior Loan Documents shall
be given to the City at the following address:
City of Poway
13325 Civic Center Drive
Poway, California 92064
Attention: Development Services, SHOP Program
(g) After a default under the Senior Documents, but prior to a foreclosure sale or deed in lieu
assignment of the Property, the City shall have the right to purchase the Property from the
Borrower and pay all amounts due and owing under the Senior Documents.
(h) The provisions of the foregoing paragraph are intended to supplement, and not to limit,
waive, modify or replace, those provisions of law pertaining to notice and cure rights of
Subordinate lenders including, without limitation, those set forth in California Civil Code
§§ 2924b and 2924c.
E
IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
CITY OF POWAY:
By:
Daniel Singer, City Mandjer
MISSION FEDERAL CREDIT UNION
By: /lJ cw% A
Diana Clegg, RE Originations OpegtiVhs Manager
BORROWER:
By:
Marc W. L2Drew
ALL SIGNATURES MUST BE NOTARIZED
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
) ss.
COUNTY OF SAN DIEGO
�y
On ,016M, p? 3 , 2015, before me, U f%Y� 44personally appeared
YyAA,eC Gj . L.'-- -L)lzaJ who proved to me on the basis of
satisfactory evidence to be the person(4whose nameog-is /o&subscribed to the within
instrument and acknowledged to me that he /oWtl,* executed the same in his/lKr /d*T
authorized capacity(W, and that by his/kDta/tlybir signature(s�,on the instrument the personA or
the entity upon behalf of which the personok acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
IqE
Notarijublic
PHYLLIS SHINN
Commission # 1956215
i Notary Public - California i
Z " " San Diego County
My Comm. Expires Nov 9, 2015+
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
) ss.
COUNTY OF SAN DIEGO
On Woytok6r ` , 2015, before me C.n. ro( S. Ua M "LA ie-, personally appeared
;4 S ut'gdr- who proved to me on the basis of
satisfactory evidence to be the person(s} whose nameW is1 wsubscribed to the within
instrument and acknowledged to me that he /she /Shey executed the same in his4aer / their
authorized capacity(isre), and that by his/her` /their signature(s) on the instrument the person(s) or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
ctt� ske
Notary Public l(
CAROLS.LEGG
Commission ♦ 2105416
ei Notary Public - California
San Diego County
My Comm. E ires A r 28, 2019
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
) ss.
COUNTY OF SAN DIEGO )
,1 �,,rcet
On ry 0V• Q 7 ac) 15 , 2015, before me,�rO`�^ personally appeared
-•0.11A G- Ct4g9 , who proved to me on the basis of
satisfactory evidence to be the person( whose nameW is /afe subscribed to the within
instrument and acknowledged to me that ke /she /tkey executed the same in his/her /thalr
authorized capacity(hw), and that by his/her /flair signature(s) on the instrument the person(s) or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
DEBORAH A.PURCELL
Commission N 2077440
a =� Notary Public - California y
i ;
San Diego County
Comm. Ez ires Aug 12.2018
NOTARY SEAL CERTIFICATION
(Government Code 27361.7)
I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL
ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED
READS AS FOLLOWS:
Name of the Notary:
(5 A9a, s'. GGGG
Commission Number: d,10 S'I (b Date Commission Expires: 4{. r 2 1 216I 1
County Where Bond is Filed:
!ll too
Manufacturer or Vendor Number: N N R
(Located on both sides of the notary seal border)
Signature:
Firm Name
Place of Execution: San Diego Date: 11 / (G / I S
EXHIBIT A
LEGAL DESCRIPTION
That certain property situated in the State of California, County of San Diego, City of Poway,
described as follows:
A CONDOMINIUM COMPOSED OF
PARCEL 1:
AN UNDIVIDED 1 /32ND FRACTIONAL INTEREST AS TENANT IN COMMON IN AND TO LOT 6 OF CITY
OF POWAY TRACT 3926 -4, IN THE CITY OF POWAY, IN THE COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, ACCORDING TO MAP THEREOF NO. 10347, FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON FEBRUARY 26, 1982;
EXCEPTING THEREFROM THE FOLLOWING:
ALL LIVING UNITS AS SHOWN UPON COUNTRY VIEW PHASE III FIRST SUPERCEDI14G CONDOMINIUM
PLAN RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA,
ON OCTOBER 11, 1984, AS DOCUMENT NO. 84- 385555;
FURTHER EXCEPTING THEREFROM:
THE RIGHT TO POSSESSION OF ALL THOSE AREAS DESIGNATED AS EXCLUSIVE USE ARRAS AS
SHOWN UPON THE CONDOMINIUM PLAN REFERRED TO ABOVE;
PARCEL 2:
LIVING UNIT NO. 94, AS SHOWN UPON THE CONDOMINIUM PLAN REFERRED TO ABOVE.
PARCEL 3:
THE EXCLUSIVE RIGHT TO USE, POSSESSION AND OCCUPANCY OF THOSE PORTIONS OF PARCEL 1
DESCRIBED ABOVE, SHOWN AS EXCLUSIVE USE AREAS WHICH BEAR THE SAME NUMBER AS THE
LIVING UNIT DESCRIBED IN PARCEL 2 ABOVE AS SHOWN ON THE CONDOMINIUM PLAN REFERRED TO
ABOVE, WHICH RIGHT IS APPURTENANT TO PARCELS 1 AND 2 ABOVE DESCRIBED.
PARCEL 4:
A NON - EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS OVER THE COMMON AREA OF PHASES 1, 2
AND 4 THROUGH 12 DESCRIBED IN THE DECLARATION OF RESTRICTIONS, WHICH EASEMENT IS
APPURTENANT TO PARCELS 1, 2 AND 3 DESCRIBED ABOVE. THE COMMON AREA REFERRED TO
HEREIN AS TO EACH OF SUCH PHASES SHALL BE AS SHOWN AND DESCRIBED ON THE CONDOMINIUM
PLAN COVERING EACH SUCH PHASE RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN
DIEGO COUNTY, CALIFORNIA, EXCEPTING THEREFROM ANY RESIDENTIAL BUILDINGS THEREON AND
ANY PORTION THEREOF WHICH MAY BE DESIGNATED AS AN EXCLUSIVE USE AREA.
PARCEL 5:
A NON - EXCLUSIVE EASEMENT FOR INGRESS, EGRESS AND UTILITY PURPOSES ON AND ACROSS THAT
CERTAIN REAL PROPERTY DESCRIBED ON EXHIBIT "C" TO THE DECLARATION OF RESTRICTIONS,
SUBJECT TO THE DECLARATION OF RESTRICTIONS AND IRREVOCABLE OFFERS TO DEDICATE REAL
PROPERTY FOR PUBLIC HIGHWAY PURPOSES, RECORDED AUGUST 12, 1981 AT PILE /PAGE NO.
81- 256847 AND OCTOBER 26, 1981, AT PILE /PAGE NO. 81- 337989, OFFICIAL RECORDS OF SAN
7
DIEGO COUNTY, CALIFORNIA. THIS EASEMENT IS APPURTENANT TO PARCELS 1 AND 2 ABOVE
DESCRIBED.
PARCEL 6:
A NON- EXCLUSIVE EASEMENT ON AND OVER LOT 5 OF CITY OF POWAY TRACT NO. 3926 -3,
ACCORDING TO MAP THEREOF NO. 10346, FILED IN THE OFFICE OF THE COUNTY RECORDER OF
SAN DIEGO COUNTY, CALIFORNIA ON FEBRUARY 26, 1982 AND DEFINED AS RECREATION AREA IN
RECITAL F OF THE DECLARATION OF RESTRICTIONS, FOR ACCESS, USE, ENJOYMENT, INGRESS
AND EGRESS OF THE AMENITIES LOCATED THEREON SUBJECT TO THE TERMS AND PROVISIONS OF
THE DECLARATION OF RESTRICTIONS. THIS EASEMENT IS APPURTENANT TO PARCELS 1 AND 2
ABOVE DESCRIBED. THE RECREATION AREA IS FOR THE USE OF OWNERS OF CONDOMINIUMS WHICH
ARE SUBJECT TO THE DECLARATION OF RESTRICTIONS, AND IS NOT FOR THE USE OF THE
GENERAL PUBLIC. THIS EASEMENT SHALL BECOME EFFECTIVE UPON THE CONVEYANCE OF LOT 5
OF THE COUNTRY VIEW CONDOMINIUM ASSOCIATION.
N