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Subordination Agreement 2010-0601860a DOC It 2010- 0601860 IIIIYI11VIVIIIVIIIIIIIIVIIIVIIIIIAIIIYIVIIVIIIVIIIIIIIIIII 0 ' NOV 05, 2010 8:00 AM RECORDING REQUESTED BY: T OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE AND WHEN RECORDED MAIL. TO: DAVID L. BUTLER, COUNTY RECORDER FEES: 21.00 City of Poway 413 PAGES: 3 13325 Civic Center Drive Poway, CA 92064 11111111111111111111111111111111111 IN IIII Title Order No.: 23004 Escrow No.: 017 -0121 Im AGREEMENT 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, made October 25, 2010, by Jeb Bakke and Evan E. Bakke, Trustees of the Bakke Family Trust dated July 30, 1997, Owner of the land hereinafter described and hereinafter referred to as "Owner ", and City of Poway, Present owner and holder of a lien agreement first hereinafter described and hereinafter referred to as "Beneficiary"; WITNESSETH THAT WHEREAS, Jeb Bakke and Evan E. Bakke, Trustees of the Bakke Family Trust dated July 30, 1997, did execute a "Lien Agreement For Public Improvements ", dated June 28, 2005, covering: Lot 50 of Valle Verde Estates Unit No. 2 in the City of Poway, County of San Diego, State of California, according to Map thereof No. 4894, filed in the Office of the County Recorder of San Diego, January 16, 1962. to secure a Lien Agreement in favor of City of Poway, which was recorded August 18, 2005, as Instrument No. 2005 0710540, Official Records of said county; and WHEREAS, Owner has executed, a Deed of Trust and Note in the sum of $697,500.00, dated 10/20/2010 in favor of Rancho Financial, Inc., payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith, and a Modification to Deed of Trust (Line Agreement) in the sum of $142,500.00, dated 10123/2010, in favor of U.S, Bank National Association, payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith, hereinafter referred to as "Lender"; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien agreement first above mentioned; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien agreement first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien agreement first above mentioned to the lien or charge of the deed of trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien agreement first above mentioned. 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 Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows; (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien agreement first above mentioned. (2) That Lender would not make its loan above described without this subordination agreement. SUBORDINATION RECORDED DEED OF TRUST TO RECORD S� GN p� i r C�v.✓�l����� 4414 (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreements as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (li) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan. (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referrred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. City of Poway Beneficiary STATE OF CALIFORNI _ COUNTY OF ^� VI l - -� Jeb Bakke and Evan E. Bakke, Trustees of the Bakke Family Trust dated July 30, 1997 Jeb Bakke, Trustee Evan E. Bakke, Trustee On OUV . .G fi __j Before me, personally appeared Owner a Notary Public in and for said State, who proved to me on the basis of satisfactory evidence to be the person(s) whose namel -H subscribed to the within instrument and acknowledged to me that He4is /they executed the same in *s he tiw4 authorized capacity(ies.), and that by his er signature(4on the instrument the person(s}, or the entity upon behaff 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. �WUN COLLINS Signature r C 0 1767479 g - (This area ar G Cowtv (ALL SIGNATURES MUST BE ACKNOWLE MrCefnw► OwZS►7011 IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. CLTA SUBORDINATION FORM "A (:s) I mis, agreement snarl oe the whole ana only agreement wltn regara to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreements as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. t Beneficiary declares, agrees and acknowledges that 44 15 J (a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan. (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referrred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. City of Poway By Authorized Signer Jeb Bakke and Evan E. Bakke, Trustees of the Bakke Family Trust dated July 30, 1997 1 WIN , 7,,� Jeff Bakke, Trust ere Evan E. Bakke—,Trust-6e Beneficiary Owner STATE OF CALIFORNIA COUNTY OF 5*p3 - b feyU On JC [2-&I10 Before me, fflM@P" A. 4,1128 �- a Notary Public in and for said State, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/Ogubscribed to the within instrumand acknowledged to me that he /she /t a executed the same in his /her/ ei authorized capacity(ies), and that by his /her/ ei signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the ins trumen . I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing IFIQUI tr e d orre t. Klf,�T -RLY A. GINSBER COMM. # 1837866 L � iNCT.dRY PHLIC° . CALIFCRrl Signature Sari WEGO COUNTY (This area for official itd. EXPIRES FEB. 27, 201 (ALL SIGNATURES MUST BE ACKNOWLEDGED) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. LTA SUBORDINATION FORM "A