Subordination Agreement Begin Loan 2012-0198470RECORDED TITLE COMPANY COMPANY
CHICAGO D O C # 201 2 -01 98470
O ITLE COMPANY
SUBDMSION DEPT. I IIBIIII III VIII VIII VIII VIII VIII VIII VIII VIII VIII VIII IIII IIII
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And When Recorded Mail to: APR 05, 2012 8:00 AM
OFFICIAL RECORDS
City of Poway SAN DIEGO COUNTY RECORDER'S OFFICE
Box 789 ( f/ n Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES 63.00 WAYS: Z
Poway, CA 92074 718 0 PAGES: 12
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SUBORDINATION AGREEMENT
BEGIN LOAN
hereinafter described as the "Lender ": *JAYSON PATRICK PHILLIPS AND
JULIET MARIE VASEL— PHILLIPS
THIS AGREEMENT (the "Agreement "), is made as of April 2, 2012, by and among the CITY
OF TWAY, a municipal corporation, hereinafter referred to as "City ", *Jti��'711d�I15�ifi /ddd
/ddli@ V'd ;e4lPh11Ii(><s( hereinafter referred to as "Borrower" and First Nations Home Finance,
WITNESSETH
WHEREAS, in order to provide funds to the Borrower in connection with the purchase of
a home located at 12970 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 $58,856 (the "Subordinate Begin Loan "), evidenced by a Promissory Note
in favor of the City dated July 29, 2011 (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 July 29, 2011 as
Instrument No. 2011- 0387224. 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 March 29, 2012 First Nations
Home Finance (the "Senior Lender ") is making a loan to Borrower in the amount of $288,000
(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 March 29, 2012 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."
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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
Begin Subordination 2
7182
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:
First Nations Home Finance
7330 Engineer Road, Suite A
San Diego, CA 92111
(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
Begin Subordination 3
7183
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: 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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7184
IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
CITY OF POWAY
I�
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
i -1PS�S NATia r./�
H Jn.x FIiJ PJct
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STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
On Vped -, J0 « before me, Oar S- L qj , Notary Public,
personally appeared &4M 9" (L , proved to me on the basis
of satisfactory evidence to be the person(O whose name(* is /sae subscribed to the within
instrument and acknowledged to me that he /she /tltly executed the same in his /her/tksir
authorized capacity(iers), and that by lets /her /thgt signature(4on the instrument the person(a), 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 California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
CAROL S. LEGG
Commission 1 1934188
Notary Public - California
San Dispo County
M Comm. E res Apr 28, 2015+ Notary Public
7186
THE LENDER:
[SIGNATURE BLOCK OF SENIOR LENDER]
JObn M. NagofSki
ALL SIGNATURES MUST BE NOTARIZED
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CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California
County of SAN DI7r_ V
On 4 "3 - before me, Eltzc b2J L l� S�t�cfc� /ur, ��T� Y Pw61t
Date Here Insert Name antl T,tle of the icer
personally appeared J Dl N � N "CYSl4
Signers) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
11 Corporate Officer— Title(s):
i -! Individual
•
E Partner — El Limited C General Top of thumb here
'._ Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
Signer's Name:
_ I Corporate Officer— Title(s):
J Individual
J Partner — L Limited C General Tore of thumb here
Attorney in Fact
�:] Trustee
Guardian or Conservator
::1 Other:
Signer Is Representing:
b 2009 National Notary Association • NahonalNotary org • 1-800 US NOTARY If- 800 -876 -68271 Item #5901
who proved to me on the basis of satisfactory
evidence to be the personK whose named is/ay6
subscribed to the within instrument and acknowledged
to me that he Vii executed the same in
his/or/geir authorized capaI and that by
�i_ of /thg1r signaturl on the instrument the
ELIZABETH A. SHOEMAKER
person( or the entity upon behalf of which the
Cournission t 1891297
person(§If acted, executed the instrument.
Notary Public - California
San Diego County
Comm. EKpW@s Jun 25,2014�
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS han icial seal
Signatur
Place Notary Seal Above
S nature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to rsons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Document Date
Number of Pages:
Signers) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
11 Corporate Officer— Title(s):
i -! Individual
•
E Partner — El Limited C General Top of thumb here
'._ Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
Signer's Name:
_ I Corporate Officer— Title(s):
J Individual
J Partner — L Limited C General Tore of thumb here
Attorney in Fact
�:] Trustee
Guardian or Conservator
::1 Other:
Signer Is Representing:
b 2009 National Notary Association • NahonalNotary org • 1-800 US NOTARY If- 800 -876 -68271 Item #5901
THE BORROWER:
[BORROWER'S SIGNATURE BLOCK]
B lti� � %Z.-U
�ay5an pakttcic phttt;QS
By:�" ��`a1i
Juliet Made VaSC� Pt,it11p5
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
Subordination A
4 -02 -12
7189
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California
County of �.
On �T_" ,\ c _ - �LO� before me,
Oate
personally appeare
1"n)^
Here Insert Name and Title of the Officer
c, ` �� �\ •I 5
Name's) of Slgnerd,
? 'Y
Individual
who proved to me on the basis of satisfactory evidence to
::1 Corporate Officer — Title's):
be the person(s) whose name( re ubscribed to the
-1 Partner —I - 1 Limited 1-1 General _
within instrument and acknowledged to me that
CJ Attorney in Fact
+841;192i executed the same in tn&%e iG uthorized
capacity(ies), and that by on the
SHARON K. SMITH
instrument the person(s), or the entity upon behalf of
Commission # 1801468
-o Notary Public - California
& which the person(s) acted, executed the instrument.
San Diego County
>
My Comm. Expires Jun 13, 2DI21
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WITNE and and official seal.
Signat C
Place Notary Seal Above
Signature of Notary Pulc m
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Document Date:
Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer's)
Signer's Name:
Signer's Name:
Individual
❑ Individual
::1 Corporate Officer — Title's):
C Corporate Officer — Title(s):
-1 Partner —I - 1 Limited 1-1 General _
C Partner --1 Limited C General _
CJ Attorney in Fact
•
C Attorney in Fact
Ll Trustee
Top of inu`nb here
C Trustee
Top of thumb here
❑ Guardian or Conservator
❑ Guardian or Conservator
❑ Other:
Ll Other:
Signer Is Representing:
Signer Is Representing:
IN C-
02007 National Notary Aseoaatmn•9350 De Soto Aw PO Box 2402•Chatsoorth, CA 913132402• v NationalNotary org Item ir5907 Reorder Call Toll- Feet - 500.876682]
7199
EXHIBIT A
That certain property situated in the State of California, County of San Diego, City of Poway,
described as follows:
[TO BE PROVIDED]
Begin Subordination
LEGAL DESCRIPTION
7191
LOT 25 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.
(APN: 317 - 350 -64)
END OF LEGAL DESCRIPTION