Loading...
Subordination Agreement 2024-0027900RECORDING REQUESTED BY: Lawyers Title AND WHEN RECORDED MAIL TO: City of Poway 13325 Civic Center Drive Poway, CA 92064 323318717 DOC# 2024-0027900 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII(IIIIIIIIIIIIIIIIIIIIIIIIIIII Feb 01, 2024 03-45 PM OFFICIAL RECORDS JORDAN Z. MARKS, SAN DIEGO COUNTY RECORDER FEES: $44.00 (S62 Atkins: $0.00) Subordination Agreement (Please fill in document title(s) on this line) PAGES: 11 1 ❑✓ Exempt from fee per GC27388.1 due to being recorded in connection with concurrent transfer that is subject to the imposition of documentary transfer tax, or, 2 ❑ Exempt from fee per GC27388.1 due to being recorded in connection with a transfer that was subject to documentary transfer tax which was paid on document recorded previously on (date*) as document number of Official Records, or, 3 ❑ Exempt from fee per GC27388.1 due to the maximum fees being paid on documents in this transaction, or, 4 ❑ Exempt from fee per GC27388.1 due to the maximum fees having been paid on documents in the transaction(s) recorded previously on (date*) as document number(s) of Official Records, or, 5 ❑ Exempt from fee per GC27388.1, document transfers real property that is a residential dwelling to an owner -occupier, or, document is recorded in connection with concurrent transfer that is a residential dwelling to an owner -occupier, or, 6 ❑ Exempt from fee per GC27388.1 due to it being recorded in connection with a transfer of real property that is a residential dwelling to an owner -occupier. The recorded document transferring the dwelling to the owner -occupier was recorded on (date*) as document number(s) 7 ❑ Exempt from fee per GC27388.1 due to being executed or recorded by the federal government in accordance with the Uniform Federal Lien Registration Act, by the state, or any county, municipality or other political subdivision of the state, or, 8 ❑ Exempt from the fee per GC 27388.1(a) (1); Not related to real property, or, 9 ❑ Exempt from fee under GC27388.1 for the following reasons: THIS PAGE ADDED TO PROVIDE SENATE 81LL2 EXEMP110N INFORMATION (Additional recordingfeeapplies) Rev 5/18 *The Prior Recording Reference must have been recorded within the last 60 days and is subject to review RECORDING REQUESTED BY: Lawyers Title AND WHEN RECORDED MAIL TO: City of Poway 13325 Civic Center Drive Poway, CA 92064 323318717 Subordination Agreement (Please fill in document title(s) on this line) 1 ✓0 Exempt from fee per GC27388.1 due to being recorded in connection with concurrent transfer that is subject to the imposition of documentary transfer tax, or, 2 ❑ Exempt from fee per GC27388.1 due to being recorded in connection with a transfer that was subject to documentary transfer tax which was paid on document recorded previously on (date*) as document number of Official Records, or, 3 ❑ Exempt from fee per GC27388.1 due to the maximum fees being paid on documents in this transaction, or, 4 ❑ Exempt from fee per GC27388.1 due to the maximum fees having been paid on documents in the transaction(s) recorded previously on (date*) as document number(s) of Official Records, or, 5 ❑ Exempt from fee per GC27388.1, document transfers real property that is a residential dwelling to an owner -occupier, or, document is recorded in connection with concurrent transfer that is a residential dwelling to an owner -occupier, or, 6 ❑ Exempt from fee per GC27388.1 due to it being recorded in connection with a transfer of real property that is a residential dwelling to an owner -occupier. The recorded document transferring the dwelling to the owner -occupier was recorded on (date*) as document number(s) 7 ❑ Exempt from fee per GC27388.1 due to being executed or recorded by the federal government in accordance with the Uniform Federal Lien Registration Act, by the state, or any county, municipalityor other political subdivision of the state, or, 8 ❑ Exempt from the fee per GC 27388.1 (a) (1); Not related to real property, or, 9 ❑ Exempt from fee under GC27388.1 for the following reasons: THIS PAGE ADDED TO PROVIDE SENATE BILL2 EXEMPTION INFORMATION (Additional record ingfeeapplies) Rev 5/18 *The Prior Recording Reference must have been recorded within the last 60 days and is subject to review Recording Requested by And When Recorded Mail to: City of Poway 13325 Civic Center Drive Poway, CA 92064 Attn: Poway Housing Authority SUBORDINATION AGREEMENT SHOP 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 SUBORDINATION AGREEMENT (the "Agreement"), is made as of February 1, 2024, by and among the CITY OF POWAY, a California municipal corporation hereinafter referred to as "City", ADAM RUDOLPH MATZ and DOROTHY MAY GARRETT, Husband and Wife as Joint Tenants, hereinafter referred to as `Borrower" and MISSION FEDERAL CREDIT UNION, a California Corporation, hereinafter described as the "Senior Lender": WITNESSETH WHEREAS, in order to provide funds to the Borrower's predecessor -in -interest (the "Original Buyer") in connection with the Original Buyer's purchase of a home located at 13796 Sycamore Tree Lane, Poway, California, which property is legally described in Exhibit A attached hereto (the "Property"), the City made a loan to the Original Buyer in the original principal amount of $200,000 (the "Subordinate Loan"), evidenced by a Shared Equity Promissory Note (with a Shared Equity Promissory Note Rider and Grant of Option attached thereto) in favor of the City dated August 23, 2005 (the "Note") and secured by a Deed of Trust(with a Deed of Trust Rider attached thereto) in favor of the City (the "Subordinate Deed of Trust"), recorded against the Property in the Official Records of San Diego County on August 31, 2005, as Instrument No. Instrument No. 2005-0754827. 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 August 31, 2005, as Instrument No. 2005- 0754828, The Subordinate Deed of Trust and the 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, in connection with Borrower's acquisition of the Property, Borrower has agreed to assume the Subordinate Loan and all of the Original Buyer's obligations under the 1552\03\2793302.1 Subordinate Loan Documents pursuant to an Assignment and Assumption Agreement entered into among Buyer, City and the Original Buyer and recorded against the Property concurrently herewith. WHEREAS, pursuant to a Loan Agreement dated on or about the same date hereof, the Senior Lender is making a loan to Borrower in an amount not to exceed $286,850 (the "Senior Loan"). The Senior Loan is secured by that certain Deed of Trust dated on or about the same date hereof, 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 Loan 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 Loan 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 Loan 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 Loan 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, notwithstanding the foregoing, Senior Lender may not modify any provision of the Senior Loan Encumbrances that (a) increases the Senior Loan, except for increases in the Senior Loan that result from advances made by Senior Lender to protect the security or lien priority of Senior Lender under the Senior Loan Encumbrances or to cure defaults under the Subordinate Encumbrances; (b) increase the stated interest rate, including the stated default rate, above the rates expressly provided in the Senior Loan Encumbrances, or (c) decrease the term of the Senior Loan; (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 2 1552\03\2793302.1 the Subordinate Encumbrances to the lien or charge of the Senior Loan 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) The Senior Lender, in approving any disbursements of the Senior Loan, 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 Loan Documents shall not defeat the subordination herein made in whole or in part; and, (b) 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 Loan 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. (c) 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. (d) 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 and shall be entitled to exercise and enforce all other rights and remedies available to the Subordinate Lender under the Subordinate Encumbrances and/or under applicable laws, including without limitation, rights to enforce covenants and agreements of the Borrower relating to income, rent, or affordability restrictions. Notices of any default by the Borrower under the Subordinate Loan Documents shall be given to the Senior Lender at the following address: 3 1552\03\2793302.1 Mission Federal Credit Union 10325 Meanley Drive San Diego, CA 92131 (e) 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 Loan Documents, Senior Lender shall send a copy of such notice to the City shall have sixty (60) 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 Loan 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 Loan 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 Loan 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: Poway Housing Authority (f) After a default under the Senior Loan 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 Loan Documents. (g) 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. (SIGNATURES CONTINUE ON FOLLOWING PAGE) 4 1552\03\2793302.1 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: ChrVflaz4eltine,?ecutive Director LM MISSION FEDERAL CREDIT UNION: TW document is mcuted in counterW Diana Clegg, 1" VP of Real Estate Operations DOROT T GARRETT 1552\03\2793302.1 CALIFORNIA 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 1 County of 5C%n1 D% egyp J} On O al 0 1 1 a.c>a4 before me, AS \T a - X Date Here Insert Name and Title of the O icer personally appeared C'lnr'� S Hake- \-A \ Nome(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), 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. A5HLEY R. TAPIA 0 Notary Public -California i San Diego County S_ Commission i 2475484 My Comm. Ex7ires Jec 5. ?C27 Place Notary Seal and/or Stamp Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correcj,_s----� WITNESS my hanAand Signature Signature of Not&y Public Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: 02019 National Notary Association Number of Pages: Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: CALIFORNIA 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 � I �C) On v\ 31 2,Uay before me, s \ R 1 NQ� 1:k3) G Date Her Insert Nam and Title of the Officer personally appeared Names) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), 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. ASHLEY R. TAPIA Notary Pubiic - Caiifornia *my San Diego CountyCommission # 2475484 Comm. Expires Dec 6. 2027 Place Notary Seal and/or Stamp Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and WITNESS my hard an Signatu Signature of rotary Public Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: ©2019 National Notary Association Number of Pages: Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and year first above written. "City" CITY OF POWAY, a California municipal corporation -This document is executed in counterpart Chris Hazeltine, Executive Director MISSION FEDERAL CREDIT UNION: By: Diana Clegg, 1 st VP of Real Estate Operations "Borrower" ADAM RUDOLPH MATZ and DOROTHY MAY GARRETT, Husband and Wife as Joint Tenants IC I� This document is executed in counterpart Adam R. Matz iFi s do MIM is C=Wd in counterd"d Dorothy M. Garrett 5 1552\03\2793302.1 ALL SIGNATURES MUST BE NOTARIZED ACKNOWLEDGMENT 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 SAAJ V E60 ) On J/9NU-1AGY S1 , 20 2y before me, o5. 100?"�1:4}1 (insert name and title of the officer) personally appeared Dl A N 4 CL E6G who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), 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. WITNES! Signature 1552\03\2793302.1 E. LEMOS Notary public - California (Seal) San Diego County Commission # 2402416 My Comm, Expires May 25, 2026 LEGAL DESCRIPTION APN 317-102-08-22 A CONDOMINIUM COMPRISED OF: PARCEL 1: AN UNDIVIDED 1/28TH FRACTIONAL INTEREST AS TENANTS IN COMMON IN AND TO LOT 4 OF CITY OF POWAY TRACT 3926-3, IN THE CITY OF POWAY, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 10346, 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 THE COUNTRY VIEW PHASE 1 CONDOMINIUM PLAN RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON JULY 28, 1983 AS FILE NO. 83-261311 OF OFFICIAL RECORDS AS AMENDED BY A FIRST AMENDMENT TO COUNTRY VIEW PHASE 1 CONDOMINIUM PLAN RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON DECEMBER 20, 1983; AS DOCUMENT NO. 83 464022. PARCEL 2: LIVING UNIT NO. 86, 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. PARCEL 4: A NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS OVER THE COMMON AREA OF PHASES 2 THROUGH 8 DESCRIBED IN 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 RESIDENTAIL BUILDINGS THEREON AND ANY PORTION THEREOF WHICH MAY BE DESIGNATED AS AN EXCLUSIVE USE AREA. PARCEL 5: A NON-EXCLUSIVE EASEMENT FOR INGRESS AND 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 AS FILE/PAGE NO. 81-256847 AND OCTOBER 26, 1981 AS FILE NO. 81-337989 OF OFFICIAL RECORDS OF SAN DIEGO COUNTY, CALIFORNIA. 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. END OF LEGAL DESCRIPTION 7 1552\03\2793302.1