Subordination Agreement 2012-01911507
°N RECORDED AT THE REQUEST OF
CHICAQO TffW COMPANY
SUBDIVMON DEPT
And When Recorded Mail to:
D C C # 201 2 -01 91150
1111111111111111111 IIIII 1 11111 111111111 1111111111111111111 111j 55,
APR 03. 2012 8:00 AM
Poway Housing Authority OFFICIAL RECORDS
BOX 789 SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
Poway, CA 92074 FEES 96.00 WAYS. 4
f V PAGES: 13
1111111 Hill Hill 1111111111111111111111111111111111111111 Hill 1111I Hill Hill IN1111
SUBORDINATION AGREEMENT
THIS AGREEMENT (the "Agreement'), is made as of March 29, 2012, by and among
the POWAY HOUSING AUTHORITY, a public body, corporate and politic, as successor in
interest to the Poway Redevelopment Agency, pursuant to Part 1.85 to Division 24 of the
California Health & Safety Code, Section 34176, hereinafter referred to as "Housing
Authority", Luan V. Quach, hereinafter referred to as "Borrower' and First Nations Home
Finance, 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 12945 Choctaw Way, Poway, California, which property is legally described
in Exhibit A attached hereto (the "Property'). the Poway Redevelopment Agency (the
"Agency ") has made a loan to Borrower in the original principal amount of $29,602 (the
"Subordinate Loan "), evidenced by a Promissory Note in favor of the Agency dated December
23, 2009 (the "Note ") and secured by a Deed of Trust and Security Agreement in favor of the
Agency (the "Subordinate Deed of Trust'), recorded against the Property in the Official
Records of San Diego County on December 23, 2009 as Instrument No. 2009 - 0708498. In
addition, in connection with the Subordinate Loan, an Occupancy, Refinancing, and Resale
Restriction Agreement with Option to Purchase (the "Resale Restriction Agreement') was
recorded against the Property in the Official Records of San Diego County on December 23,
2009 as Instrument No. 2009- 0708496, and a Notice of Affordability Restrictions on Transfer
of Property (the "Notice of Restrictions ") was recorded against the Property in the Official
Records of San Diego County on December 23, 2009 as Instrument No. 2009 - 0708499. The
Subordinate Deed of Trust, the Resale Restriction Agreement and the Notice of Restrictions,
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."
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WHEREAS, as a result of AB 1X 26, the Agency has dissolved and the Housing
Authority has succeeded to the interest of the Agency in all of its housing assets and functions,
including the Subordinate Loan Documents.
WHEREAS, pursuant to a Loan Agreement dated as of March 27, 2012, First Nations
Home Finance (the "Senior Lender ") is making a loan to Borrower in the amount of $283,300
(the "Senior Loan "). The Senior Loan is secured by that certain Multifamily Deed of Trust,
Assignment of Leases and Rents, Security Agreement and Fixture Filing dated as of March 27,
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."
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 Encumbrances
and that the Housing Authority specifically and unconditionally acknowledge that the
Subordinate 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 Housing Authority 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 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 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 Encumbrances, this Agreement shall
be the sole and only agreement with regard to the subordination of the lien or charge of
the Subordinate 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 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 HOUSING AUTHORITY hereby declares, agrees and acknowledges that:
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(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 Housing
Authority 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
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 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 Housing Authority 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 Loan Documents,
prior to the Housing Authority 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 Housing Authority
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 Housing Authority 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 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 Housing Authority and the Housing Authority shall have thirty
(30) days to cure such default or at any time that Borrower would have a right to cure it,
Subordination A 3
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7554
whichever is greater. 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, both the Housing Authority and the Lender shall have
the right to negotiate with the party giving the notice of default, provided that.
notwithstanding (a) any discussions or negotiations between the parties. (b1 any other
provisions of this Agreement. or (c) any claim of any party to the contrary, Lender has
not waived and does not waive any of its rights or remedies under the Senior Documents
d Lender expressly reserves all of its rights and remedies under the Senior Documents
whether or not any such negotiations or discussions are taking place No consent shall be
required of any Lender for the Housing Authority or any other party to exercise rights to
cure a default. 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 Housing Authority 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 Housing Authority at the
following address:
Poway Housing Authority
13325 Civic Center Drive
Poway, California 92064
Attention: SHOP Program
(g) After a default under the Senior Documents, but prior to a foreclosure sale or deed in lieu
assignment of the Property, the Housing Authority 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.
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.
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Subordination A
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7,56
IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
Subordination A
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POWAY HOUSING AUTHORITY
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
7557
On -%arcA 49 aol J- , before me, ifart) Notary Public,
personally appeared Pf.AAN proved to me on the basis
of satisfactory evidence to be the per n(o whose name(p) is /am subscribed to the within
instrument and acknowledged to me that he /she /tloy executed the same in laic /her /tllair
authorized capacity(OLs), and that by 1* /her /t4vit signature(a) on the instrument the person(, or
the entity upon behalf of which the person(g) 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.
ldanv� CAROL S. L
Cammiu 193 ion � t934186 tti LD � LV
Notary Pu01ic - California Notary Public
San Diego County
Comm. Expires Apr 28, 2015!
7558
THE BORROWER:
[BORROWER'S SIGNATURE BLOCK]
Wuv\ V.
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
Subordination A
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7559
State of California
County of San Diego
On �� 30t Ala before me, Lori L. Mahoney, a Notary Public, personally appeared
LUrin V . L1,.t U( X-, 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.
WITNESS my hand and official seal.
Signature
LORI L. MAHONEY
Commissions 1861785
i Notary Public - California i
San Diego County s
My Comm. Expires Aug 20.2013
(Seal)
C`
THE LENDER:
[SIGNATURE BLOCK OF SENIOR LENDER]
By:
/ bn� A Af4 p($4I
/✓ f] r5t �vat� �s Home � na�ce.
ALL SIGNATURES MUST BE NOTARIZED
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CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California l
County of _5" D! C6
On 2- before me, E L� 7 A. SHa� �r .e�e NarzaQ � PH-bk
tai -T Here Insert Name and Title of the officer
personally appeared �Jin M Ul orSk
Names) of Sgnerlsl
who proved to me on the basis of satisfactory
evidence to be the person(4 whose name) is/are'
subscribed to the within instrument and acknowledged
to me that he
_ "/ executed the same in
his /qr /thoir authorized capacity�a , and that by
ELIZABETH A. SHOEMAKER I 'g /hilifM1' /thi�r signature) on the instrument the
cormnission # 1891297
Notary Public • California = Persory(K) or the entity upon behalf of which the
San Diego County ' person(s7 acted, executed the instrument.
Comm. res Jun 25, 2014 /
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragr
WITNE
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Place Notary Seal Above
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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:
Signers) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
Corporate Officer— Title(s)
Individual
❑ Partner —L Limited C General Top of thumb here
LJ Attorney In Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
Number of Pages:
Signer's Name.
J Corporate Officer — Title(s):
❑ Individual
❑ Partner — J Limited -1 General
❑ Attorney in Fact
L Trustee
L Guardian or Conservator
❑ Other:
Signer Is Representing:
RIOHTTHUMBPRINT
OF SIGNER
61
c 2D09 National Notary Association • NabonalNotary org • 1- 800 -US NOTARY 11 -B00 -876 -68271 Item #5907
EXHIBIT A
7562
That certain property situated in the State of California, County of San Diego, City of Poway,
described as follows:
[TO BE PROVIDED]
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LEGAL DESCRIPTION
LOT 9 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.
7563
END OF LEGAL DESCRIPTION