Subordination Agreement HELP Loan 2015-0594754RECORDING REQUESTED BY
STEWART TITLE OF CALIFORNIA
And When Recorded Mail to:
DOC# 2015 - 0594754
Nov 16, 2015 04:00 PM
OFFICIAL RECORDS
Emest J. Dronenburg, Jr.,
Poway Housing Authority SAN DIEGO COUNTY RECORDER
Attn: Executive Director FEES: $42.00
13325 Civic Center Drive PAGES: 10
Poway, CA 92064
SUBORDINATION AGREEMENT
HELPLOAN
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 j4 , 2015, by and among
the POWAY HOUSING AUTHORITY, a public body, corporate and politic, hereinafter
referred to as "Housing Authority", 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 Poway Redevelopment Agency (the
"Redevelopment Agency ") has made a loan to Borrower in the original principal amount of
$17,736.90 (the "Subordinate Loan'), evidenced by a Promissory Note in favor of the
Redevelopment Agency dated September 20, 2006, (the "Note'l and secured by a Deed of Trust
and Security Agreement in favor of the Redevelopment Agency (the "Subordinate Deed of
Trust "), recorded against the Property in the Official Records of San Diego County on October
10, 2006, as Instrument No. 2006 - 0718456. The Subordinate Deed of Trust, 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 Cooperation Agreement and an Assignment and Assumption
Agreement, both dated March 11, 2011, the Redevelopment Agency has assigned to the Housing
Authority, and the Housing Authority has assumed, among other things, the rights of the
Redevelopment Agency under the Subordinate Loan Documents.
RECORDING REQUESTED BY
STEWART ITTLE OF CALIFORNIA
And When Recorded Mail to:
Poway Housing Authority
Attn: Executive Director
13325 Civic Center Drive
Poway, CA 92064
SUBORDINATION AGREEMENT
HELP LOAN
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 Jr.*" ' 2015, by and among
the POWAY HOUSING AUTHORITY, a public body, corporate and politic, hereinafter
referred to as "Housing Authority", 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 Poway Redevelopment Agency (the
"Redevelopment Agency ") has made a loan to Borrower in the original principal amount of
$17,736.90 (the "Subordinate Load'), evidenced by a Promissory Note in favor of the
Redevelopment Agency dated September 20, 2006, (the "Note ") and secured by a Deed of Trust
and Security Agreement in favor of the Redevelopment Agency (the "Subordinate Deed of
Trust "), recorded against the Property in the Official Records of San Diego County on October
10, 2006, as Instrument No. 2006 - 0718456. The Subordinate Deed of Trust, 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 Cooperation Agreement and an Assignment and Assumption
Agreement, both dated March 11, 2011, the Redevelopment Agency has assigned to the Housing
Authority, and the Housing Authority has assumed, among other things, the rights of the
Redevelopment Agency under the Subordinate Loan Documents.
WHEREAS, pursuant to a Loan Agreement dated as of Nay % 2015, Mission
Federal Credit Union (the "Senior Lender ") is making a loan to Borrower in an amount not to
exceed $139,300 (the "Senior Load'). The Senior Loan is secured by that certain Multifamily
Deed of Trust. Assignment of Leases and Rents, Security Agreement and Fixture Filing dated as
of 4Aaftl ' 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 Housing Authority 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 Housing Authority 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 HOUSING AUTHORITY 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 Housing
Authority for its review (collectively, "Disbursement Provisions ");
`A
(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 Housing Authority 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 Housing Authority 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 Housing Authority
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 Housing Authority 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 Housing Authority and the Housing Authority 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
3
accelerated and become immediately due and payable in accordance with the terns 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 expiration of 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 Housing Authority 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 Housing Authority at the
following address:
Poway Housing Authority
13325 Civic Center Drive
Poway, California 92064
Attention: Development Services, HELP Program
(g) After a default under the Senior Documents, but prior to a foreclosure sale or deed in lieu
assignment of the Property, the Housing Authority 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.
4
IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
POWAY HOUSING AUTHORITY:
By:
Daniel Singer, Executive Director
MISSION FEDERAL CREDIT UNION:
By:
Diana Clegg, RE Originations Operatt anager
BORROWER:
By: K 0"�.r . :
Marc W. Le rew
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.
CO7yy4c Y OF SAN DIEGO )
On A2&x 3 2015, before me, i V Z �W/ 14Py,&i.1 c , personally appeared
M Ak (2 W • LE D,ecu) who proved to me on the basis of
satisfactory evidence to be the personN whose named l) is/*e subscribed to the within
instrument and acknowledged to me that he /Ske /tW executed the same in hiS/* /tb4r
authorized capacity(*), and that by hisUr /tlj}afr signatureA on the instrument the person(A or
the entity upon behalf of which the personKacted, 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.
Not lic
PHYLLIS SHINN
.'� Commission * 1956215
Notar
_ :�, y Public - California i
X °' San Diego County x•
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
N l
On o bcr 2015, before me, o S . f"' personally appeared
J)aAj�j ",g r wh oved to me on the basis of
satisfactory evidend to be the person(o whose namej(e} is /owsubscribed to the within
instrument and acknowledged to me that he /shc /lborexecuted the same in his/IwAheir
authorized capacity(jao, and that by his/Jier /!,heir signature(sj on the instrument the persotV*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 seat.
CAROLS. LEGG
Commission s 2105416
-.• Notary Public - Caldornia :
San Diego County '
Comm. Miss Z 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 eiiav t t '�jd}ac��vlc�'ic.
On *i O> - f11 0—w o , 2015, before me,��� �' , personally appeared
13%. G IQ- 99 , who proved to me on the basis of
satisfactory evidence to be the person(*) whose name(sr) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in hiss/her /their
authorized capacity(teQ, and that by Ws/her /their signature($) on the instrument the person(sj 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 r
��v��L_.
. i
0
DEBORAH A.PURCELL
Commissions 2077440
=i Notary Public - California z
Z San Diego County '
M Comm. Ex pires 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: D 6,a,k A . Ptt►ce -(
Commission Number: ��`�`�� Date Commission Expires: Am Y
County Where Bond is Filed:
Sar �1)ie,r
Manufacturer or Vendor Number: P N A 1-
(Located on both sides of the notary seal border)
Signature:
Firm Name (if
Place of Execution: San Diego Date: I I / I �-, / ( 5--
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:
C'ARoL S. LGGG
Commission Number: eta OS 'H iL Date Commission Expires: 4pe 2 1611
I
County Where Bond is Filed: CAh
Manufacturer or Vendor Number: 1 N A L
(Located on both sides of the notary seal border)
Signature:
Firm Name
Place of Execution: San Diego Date: t 1 / 16 / ( 7
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 It
AN UNDIVIDED 1 /32ND FRACTIONAL INTEREST AS TENANT IN COMMON IN AND TO Wr 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 SUPERCEDING 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 THEREPROM:
THE RIGHT TO POSSESSION OF ALL THOSE AREAS DESIGNATED AS EXCLUSIVE USE AREAS 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 FILE /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.
rl