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Subordination Agreement BEGIN Loan 2015-0305801RECORDING REQUESTED BY DOC# 2015 - 0305801 STEWART TITLE OF CALIFORNIA 0 �D - Jun 12, 2015 12:35 PM OFFICIAL RECORDS A" When Recorded Mail to: Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER City of Poway FEES: $45.00 13325 Civic Center Drive PAGES: 11 Poway, CA 92064 Attn: City Clerk ----------- SUBORDINATION AGREEMENT BEGIN 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 IA IZ 2015, by and among the CITY OF POWAY, a municipal corporation, hereinafter referred to as "City", TONY VINCENT BOYLE and EBONY C BOYLE, Husband and Wife as Joint Tenants, hereinafter referred to as "Borrower" and PROSPECT MORTGAGE, LLC, a California Corporation, hereinafter described as the "Lender ": WITNESSETH WHEREAS, in order to provide funds to the Borrower in connection with the purchase of a home located at 12976 Metate Lane, Poway, California, which property is legally described in Exhibit A attached hereto (the "Property"), the City has made a loan to Borrower in the original principal amount of $54,266 (the "Subordinate Begin Load'), evidenced by a Promissory Note in favor of the City dated February 14, 2010, (the "Begin Note ") and secured by a Deed of Trust and Security Agreement in favor of the City (the "Subordinate Begin Deed of Trust'), recorded against the Property in the Official Records of San Diego County on February 18, 2010, as Instrument No. 2010 - 0080617. 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 Begin Loan Encumbrances." The Subordinate Encumbrances, the Note, and all other documents evidencing or securing the Subordinate Begin Loan are collectively referred to as the "Subordinate Begin Loan Documents." WHEREAS, pursuant to a Loan Agreement dated as of 05 2015, (the "Senior Lender ") is making a loan to Borrower in the amount of $258,000 (the "Senior Load'). The Senior Loan is secured by that certain Deed of Trust dated as of - LL4ir 2015, which will be recorded in the Official Records of San Diego County concurren) 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 RECORDING REQUESTED BY STEWART TITLE OF CALIFORNIA of 1 q 0 - t.sSOKZ- Aad When Recorded Mail to: City of Poway 13325 Civic Center Drive Poway, CA 92064 Attn: City Clerk t Si ! htl ih SUBORDINATION AGREEMENT („unir.Pr Y BEGIN 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 IZ , 2015, by and among the CITY OF POWAY, a municipal corporation, hereinafter referred to as "City ", TONY VINCENT BOYLE and EBONY C BOYLE, Husband and Wife as Joint Tenants, hereinafter referred to as "Borrower" and PROSPECT MORTGAGE, LLC, a California Corporation, hereinafter described as the "Lender ": WITNESSETH WHEREAS, in order to provide funds to the Borrower in connection with the purchase of a home located at 12976 Metate Lane, Poway, California, which property is legally described in Exhibit A attached hereto (the "Property "), the City has made a loan to Borrower in the original principal amount of $54,266 (the "Subordinate Begin Loan "), evidenced by a Promissory Note in favor of the City dated February 14, 2010, (the "Begin Note ") and secured by a Deed of Trust and Security Agreement in favor of the City (the "Subordinate Begin Deed of Trust'), recorded against the Property in the Official Records of San Diego County on February 18, 2010, as Instrument No. 2010 - 0080617. 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 Begin Loan Encumbrances." The Subordinate Encumbrances, the Note, and all other documents evidencing or securing the Subordinate Begin Loan are collectively referred to as the "Subordinate Begin Loan Documents." WHEREAS, pursuant to a Loan Agreement dated as of (c'2 2015, (the "Senior Lender ") is making a loan to Borrower in the amount of $258,000 (the "Senior Loan "). The Senior Loan is secured by that certain Deed of Trust dated as of 2015, which will be recorded in the Official Records of San Diego County concurrent) 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 Begin Loan Encumbrances and that the City specifically and unconditionally acknowledge that the Subordinate Begin Loan 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 Begin Loan 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 Begin Loan 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 Begin Loan Encumbrances, this Agreement shall be the sole and only agreement with regard to the subordination of the lien or charge of the Subordinate Begin Loan 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 Begin 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 Begin Loan 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 Begin 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 Begin Loan Documents, prior to the City declaring any default or taking any remedy permitted against the Borrower under the Subordinate Begin Loan Documents or applicable law based upon an alleged default under the Subordinate Begin 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 Begin Loan Documents shall be given to the Senior Lender at the following address: Prospect Mortgage, LLC 15301 Ventura Blvd. Suite D300 Sherman Oaks, CA 91403 (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 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 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, Begin 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. IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and year first above written. CITY OF POWAY: BORROWER(S): By: By: Daniel Singer, City Managitf PROSPECT Vice President 0 C ALL SIGNATURES MIDST BE NOTARIZED STATE OF C ORNIA ) ss. COUNTY OF SAN D ) On 015, before me, ese't Y az , Notary Public, personally appeared I o ^ t + o en C e who proved to me on the basis of satisfactory evidence to be the perso (s ose namo& 90subscribed to the within instrument and acknowledged to we that -heM ee xecuted th ame in jbi to authorized capaciVA to and that by e'v ignaturc &on the instrument the perso s r the entity upon behalf of which the perso () ted, executed the instrument I certify under PENALTY OF PERJURY under the laws paragraph is true and correct Witness my hand and official seal. L JEREMY BROWN Commission # 1971221 Ir N Public LOMYNotary Public - California San Diego County COMM. Expires Mar 4, 2016' State of California that the foregoing State of Texas County of Dallas On June 11, 2015, before me, Margaret M. Slattery, Shapiro subscribed to the within instrument and acknowledged to me appeared Emily se name is she executed the same in her authorized capacity, and that by her signature on the instrument, the person or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the state of Texas that the foregoing paragraph is true and correct. Witness my hand and official seal. r���� M• SLATl�ay� 2 � ; ? Notary Pub -c State of Texas Sr F *•••• AE%? y6 �P IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and year first above written. CITY OF POWAY: BO By: By: Daniel Singer, City Manag an PROSPECT MORTGAGE, LLC: ri On �� 2015, before me, ¢f 2µ^y r Notary Public, personally appeared o ^ c )� , r CP�i �� Q& Lbw tr l e who proved to me on the basis of satisfactory evidence to be the perso (s whose nam©1 rosubscribed to the within instrument and acknowledged to me that -e xecuted the same in ' q authorized capaci re ' and that by h etr ignature(gon the instrument the perso s) r the entity upon behalf of which the perso O cted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct. Witness my hand and official seal. JEREMY BROWN • Commission # 1971221 Ir i ='m Notary Public - California z Z Z San Diego County s My Comm. Expires Mar 4, 2016 Emily Shapiro, Senior Vice President Loan Administration public or other officer eompbbn9 cate verifies only the identity of dual who signed the document rwhich his certificate is attached and not lness, accuracy, a validity of ment STATE OF CALIFORNIA ss. COUNTY OF SAN DIEGO ) ri On �� 2015, before me, ¢f 2µ^y r Notary Public, personally appeared o ^ c )� , r CP�i �� Q& Lbw tr l e who proved to me on the basis of satisfactory evidence to be the perso (s whose nam©1 rosubscribed to the within instrument and acknowledged to me that -e xecuted the same in ' q authorized capaci re ' and that by h etr ignature(gon the instrument the perso s) r the entity upon behalf of which the perso O cted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct. Witness my hand and official seal. JEREMY BROWN • Commission # 1971221 Ir i ='m Notary Public - California z Z Z San Diego County s My Comm. Expires Mar 4, 2016 TRUE COPY CER i irlCA i i0N (Govemrrment Code 27361.7) an Place of Execution I certify under penalty of perjury that this material is a true copy of the original material contained in this document. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document co•which this certificate is attached, and not to the cruthfulness, accuracy, or validity of that document. Date Re Form NR9(&t]97) g�'� Signature of Declarant Type or Print Name California All- Purpose Acknowledgment CIVIL CODE § 1189 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 COUNTY OF SAN DIEGO on/" 1? JOIE before me, Carol S. Legg, Notary Public, personally appeared Daniel Singer, who proved to me on the basis of satisfactory evidence to be the personf4 whose name4 is /are subscribed to the within instrument and acknowledged to me that he /sbe /*ey executed the same in his /her-/Eke* authorized capacity(ies), and that by his /her-/heir- signature{4 on the instrument the personf4, or the entity upon behalf of which the person44 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. CAROL S. LIN Commission • 2105418 Aso �- CGM„anla Comm. :g28,2019 OPTIONAL Carol S. Legg, Notary Public Title or type of document: Subordination Agreement — BEGIN Loan. City of Poway, Tony Boyle and Ebony Boyle, 12976 Metate Lane, Poway. Document Date: not dated Number of Pages: four Signers Other Than Named Above: Not yet signed: Borrowers Tony Boyle and Ebony Boyle. Also not yet signed by Emily Shapiro for Prospect Mortgage. 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: Le 11 Commission Number: Z S t (° Date Commission Expires:AZ °I q County Where Bond is Manufacturer or Vendor Number: Sum !�ie�to N O- ( (Located on both sides of the notary seal border) Firm Name (if applicable) Place of Execution: San Die-go Date: Rec. F� sRio i (Rev. 6mm) I EXHIBIT A LEGAL DESCRIPTION APN 317 - 350-65 That certain property situated in the State of California, County of San Diego, City of Poway, described as follows: LOT 26 OF CITY OF POWAY TRACT NO. 06 -06 THE MEADOWS, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15743 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY MARCH 5, 2009. END OF LEGAL DESCRIPTION