Subordination Agreement Begin Loan 2012-0191149RECORDED a THE IIEOUMT OF
Cl#CAOO TITLE COMPANY
SUBDMSION DEPT.
Recording R�4uresftd+yl
And When Recorded Mail to:
City of Poway
Box 789
Poway, CA 92074
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APR 03, 2012 8:00 AM
7539
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES: 48.00
PAGES: 12
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SUBORDINATION AGREEMENT
BEGIN LOAN
THIS AGREEMENT (the "Agreement "), is made as of March 29, 2012, by and among the
CITY OF POWAY, a municipal corporation, hereinafter referred to as "City", Loan 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 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 December 23, 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 23, 2009 as Instrument No. 2009 - 0708497. 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 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 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."
D O C # 2012-0191149
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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
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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
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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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IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
CITY OF POWAY
0
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
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STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
On /M a`3 010 , before me, C. art>1 S . L4ac , Notary Public,
personally appeared jJe i2jig proved to me on the basis
of satisfactory evidence to be t@dperson42 whose name( is /axe subscribed to the within
instrument and acknowledged to me that krt she/tliiy executed the same in laWfier /their
authorized capacity(i .*, and that by his/her /tlaxir signature( on the instrument the person(K), 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
seal.
7544
Commission 1 1934186 L
tlotery e - County
Di
Son Dieg o County /
Comm. Ex fires A r 28.2015
Notary Public
7545
THE LENDER:
[SIGNATURE BLOCK OF SENIOR LENDER]
�phn M. tjclpcski
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N 0 0 nc, '0 D C�
SIGNATURES MUST BE NOTARIZED
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7546
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California l
County of :E�q� Di G� D J
On u(LVCIn 27, 2002 before me. F(12_&_&,4. A. S{tvLU. rev, f`fojw.�iti
Date Here Insert Name antl Titl of the Officer
personally appeared
ELIZABETH A. SHOEMAKE
IL9, R
commission Is 1891297
Notary puM . Callfornia s
San Diego County
Comm. Ea It Jun 25, 2014
—W III
who proved to me on the basis of satisfactory
evidence to be the person(4 whose name,()jsarW
subscribed to the within instrument and acknowledged
to me that be[s)ie /they executed the same In
his /Ver /tWr authorized capacity(), and that by
his/or/their signature(4 on the instrument the
persor)) 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 m ar�d ea fficial se a__
Signatur ✓
Place Notary OPTIONAL Seal Above Sig ture of Notary Public
Though the information below is not required by law, R may prove valuable to persons retyng 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:
Signer(s) Other Than Named Above
Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Corporate Officer —Title(s):
❑ Individual
❑ Partner — ❑Limited .I General
❑ Attorney in Fact
❑ Trustee
Guardian or Conservator
Other:
Signer Is Representing:
Number of Pages
RIGHT THUMBPRINT
OF SIGNER
Signer's Name:
❑ Corporate Officer— Title(s):
C Individual
C Partner — [I Limited ❑ General Top or thumb here
, Attorney In Fact
❑ Trustee
J Guardian or Conservator
— 1 Other:
Signer Is Representing:
P 2009 National Notary Association • National org • 1- 800 -US NOTARY (1- 800 -876 -6827) Item #5907
7547
THE BORROWER:
[BORROWER'S SIGNATURE BLOCK]
By:
611 Uc wx V . O UAe Y,
I�
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
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r
State of California
County of San Diego
On 1"4 Q OF 3�:'f 9DLD- before me, Lori L. Mahoney, a Notary Public, personally appeared
L1.LQ -) V • Ql1au -- 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
(Seal)
LORI L. MAHONEY
m Commission # 1861785
z ..m Notary Public - California z
San Diego County
My Comm Expires Aug 20, 2013
EXHIBIT A
That certain property situated in the State of California, County of San Diego, City of Poway,
described as follows:
[TO BE PROVIDED]
7549
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LEGAL DESCRIPTION
7550
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.
END OF LEGAL DESCRIPTION