Subordination Agreement BEGIN Loan 2016-0260495LAWYERS TITLE
Recording Requested by
And When Recorded Mail to:
City of Poway
13325 Civic Center Drive
Poway, CA 92064
Attn: City Clerk
DOC# 2016 - 0260495
May 27, 2016 09:45 AM
OFFICIAL RECORDS
Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $39.00
PAGES: 9
SUBORDINATION AGREEMENT
BEGIN LOAN
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECt MING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
THIS AGREEMENT (the "Agreement "), is made as of I-T, 2-01 b , by and among the
City of Poway, a municipal corporation, hereinafter referred to as "City ", Nicole N. Lieu Mai
and Tuan T. Mai, Wife and Husband as Joint Tenants, hereinafter referred to as "Borrower"
and Mission Federal Credit Union, 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 12934 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 December 16, 2009, (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 December 16,
2009 as Instrument No. 2009- 0694358 and subordinated on August 6, 2012 as Instrument No.
2012 - 0459308. 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."
Begin Subordination A
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SAWYERS TITLE
Recording Requested by
And When Recorded Mail to:
City of Poway
13325 Civic Center Drive
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 by and among the
City of Poway, a municipal corporation, hereinafter referred to as "City ", Nicole N. Lieu Mai
and Tuan T. Mai, Wife and Husband as Joint Tenants, hereinafter referred to as "Borrower"
and Mission Federal Credit Union, 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 12934 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 December 16, 2009, (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 December 16,
2009 as Instrument No. 2009 - 0694358 and subordinated on August 6, 2012 as Instrument No.
2012 - 0459308. 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."
Begin Subordination A
12 -5 -11
$179,300 (the "Senior Loan "). The Senior Loan is secured by that certain Deed of Trust,
Assignment of Leases and Rents, Security Agreement and Fixture Filing dated as of
MA 21 Z0 , which will be recorded in the Official Records of San Diego County
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 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 ");
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12 -5 -11
(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:
Mission Federal Credit Union
10393 Spring Canyon Road, Suite A
San Diego, CA 92131
(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. During such
cure period the Housing Authority and the Senior Lender shall have the right to negotiate
Begin Subordination A 3
12 -5 -11
with the party giving the notice of default, provided that, notwithstanding (a) any
discussions or negotiations between the parties, (b) any other provisions of this
Agreement, or (c) any claim of any party to the contrary, Senior Lender has not waived,
and does not waive, any of its rights or remedies under the Senior Documents and Senior
Lender expressly reserves all of its rights and remedies under the Senior Documents
whether or not any such negotiations or discussions are taking place. 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.
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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 Mana
MISSION FEDERAL CREDIT UNION:
By:�, L
Diana Clegg, Vice Pre 'dent of Real Estate Operations
Loan Administration
BORROWER(S):
By:
Nicole N. Lieu Mai
By: `
Tuan T. Mai
ALL SIGNATURES MUST BE NOTARIZED
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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 ^�! �(� before me, Carol S. Legg, Notary Public, personally appeared
Daniel Singer, who proved to me on the basis of satisfactory evidence to be the person{4
whose names} is /afe subscribed to the within instrument and acknowledged to me that
he /s4e /t4ey executed the same in his /#e+ /tom authorized capacity(+es), and that by
his /#ef /#w# signatures} on the instrument the person{s?, or the entity upon behalf of which
the persons} 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. LEGG
Commission #t 2105416
i ,-: Notary Public - California
Z San Diego County
My Comm. E ices A r 28, 2019
OPTIONAL
&v,(. X1 ' /"-,
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Carol S. Legg, Notary Pu
Title or type of document: Subordination Agreement BEGIN Loan
Document Date: Not dated
Number of Pages: Six, including Exhibit A
Signers Other Than Named Above: To be signed by borrowers — Nicole N. Lieu Mai and Tuan T.
Mai, and also by Diana Clegg of Mission Federal Credit Union.
I•
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A notary public or other officer completingg this certificate verifies only
the identity OT the
individual who signed the document to which this certificate is attached, and not the
, .,n -mrrV nr validity of that document.
State of California ���e96 �
County of (5a-^ (5a-^ VV ��/ ,,(
On 02 %r before me �/ l/ /(/' C a
Notary Public, personallY appcarui
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who
p -,Ovcd to me on the basis of satisfactory --'d--- lA be the Per ULS�whase names is/_re shishor/t to
at and acknowledged to me dial he /siic^thcY cxecut� same in his/her /their
the within iusirum° on the bstum� the P�o� or the eniity
authorized capacity ies), and that by his/her/their signatnr%s1
upon behalf of which the Person(s) acted, czccuted the imtrument-
I cam, undm PENALTY OF PEBIURY under the ;aws of the Stake of California that the foregoing
Paragraph is true and canoe.
HESS my hand and official seal.
My commission expires:
U .. • CHRISTINA ELY
COMM. # 2078053
0 y NOTARY PUBLIC - CALIFORNIA)a!
SAN DIEGO COUNTY 0
COMM. EXPIRES AUG 28, 2018 +
CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT
[�A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to
hich this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF 0,v�� % -Q-�)0 )
On "0.t. 0,2 r �0 I i'O before me , ei D i`G�� 'N <%l�ce ��Notary
Date 1 Insert Name and Title of the officer
Public, personally appeared l 01 110. C 1 °�q q
Names) of Sign er(s)
who proved to me on the basis of satisfactory evidence to be the person($) whose name($) is /ar-e subscribed to the within instrument and
acknowledged to me that lw /she /tiwy executed the same in his/her /ttwir authorized capacity(ies,), and that by his /her /their signature(d) on
the instrument the person(g), or the entity upon behalf of which the person(F) 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. DEBORAH A. PURCELL
Commission #E 2077440
< -: Notary Public - California i
Z San Diego County
MY Comm. Expires Aug 12, 2018
Signatu
t'4�� W
------------ -- OPTIONAL ----------------------------------------------------
Though this section is optional, completing this information can deter alteration of the document or fraudulent attachment of this form to
an unintended document.
Description of Attached Doc mentor 1 ; 1•i0N k� 5tee rA "-f � h L00.V�
Title or Type of Document: D �b d� V�cc ` , 1 J Document Date:
Number of Pages: Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signers Name:
❑ Corporate Officer - Title(s)
• Partner - ❑ Limited ❑ General
• Individual ❑Attorney in Fact
❑ Trustee ❑Guardian or Conservator
❑ Other:
Signer is Representing:
Signers Name:
❑ Corporate Officer - Title(s)
❑ Partner - ❑ Limited ❑ General
❑ Individual ❑Attorney in Fact
❑ Trustee ❑Guardian or Conservator
❑ Other:
Signer is Representing:
EXHIBIT A
LEGAL DESCRIPTION
APN 317 - 350 -44 -00
That certain property situated in the State of California, County of San Diego, City of Poway,
described as follows:
LOT 5 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
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