Subordination Agreement Begin Loan 2012-0269179RECORDED AT THE REOUE8T Of
�r CHICAGO TMJ1 COMPANY
SUBDIVISION DEPT.
Heeor4ing Requested by
-Am* When Recorded Mail to:
City of Poway
' k Box 789
1j Poway, CA 92074
DOCtt 2012-0269179
111111111111111111111111111111111111111111111111111111111111 IN IIIII
MAY 08, 2012 8:00 AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg. Jr.. COUNTY RECORDER
FEES: 48.00
6160 PAGES: 12
- Z& 503`0 f ? SUBORDINATION AGREEMENT
BEGIN LOAN
THIS AGREEMENT (the "Agreement "), is made as of May 3, 2012, by and among the CITY
OF POWAY, a municipal corporation, hereinafter referred to as "City ", David L. and Lydia M.
Rose, 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 12984 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 11, 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 11, 2009 as Instrument No. 2009 - 0685922. 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 May 2, 2012 First Nations
Home Finance (the "Senior Lender ") is making a loan to Borrower in the amount of $282,800
(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 May 2, 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."
Begin Subordination
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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
6162
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
6163
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.
Begin Subordination 4
6164
IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
CITY OF POWAY
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
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6165
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO )
On MAY 0 ( Z , before me, -L H �f L 16 ,� /,N;'!/ , Notary Public,
personally appeared KiLey proved to me on the basis
of satisfactory evidence to be the person(y)'whose name(%) is /aA subscribed to the within
instrument and acknowledged to me thatb1LJs11e /tl* executed the same in * /her /tli6'
authorized capacity(i s), and that byhis /her /t( 'tr signature( on the instrument the personw, 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.
� n
Notary F lic
PHYLLIS LW SHINN
Commission # 1956215
Notary Public - California
San 01000 County
M Comm. E irsl Nov 9, 2015
6166
THE BORROWER:
[BORROWER'S SIGNATURE BLOCK]
v A,K.A, LVOck Rue-
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
Begin Subordination
6167
State of California ) CALIFORNIA ALL - PURPOSE
County o ) CERTIFICATE OF ACKNOWLEDGMENT
On�
before me, �L
here Insert name and title of the fficer)
personally appeared;
who proved to me on the basis of satisfactory evidence to be the person" s) hose nam�s j4 r� subscribed to
the within instrument and acknowledged to me that lye /`dhe/ executed the same in hi�iVer heir
authorized capaci ies , and that by Iis /ler/ ei signature s(�on the instrument the person so oN7e ernity
xecutecl the instrument.
I certify under PENALTY OF PERJURY under the laws of the VILLARREAL
State of California that the foregoing paragraph is true and correct. COMM. #1885141 Z S W Notary Public - California o
Z ` San Diego County
WITNESS my hand and official seal. M Comm. Ex Tres A r. 5, 2014
SignatLwe
(Seal)
OPTIONAL INFORMATION
Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this
acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document.
Description of Attached Document
The preceding Certificate of Acknowledgment is attached to a document Method of Signer Identification
titled /for the purpose of Proved to me on the basis of satisfactory evidence:
_0 form(s) of Identification 0 credible witness(es)
-- Notarial event is detailed in notary journal on:
containing pages, and dated Page # Entry #
The signer(s) capacity or authority is /are as: Notary contact.
❑ Individual(s) Other
❑ Attorney -in -Fact
❑ Additional Signer(s) ❑ Signer(s)Thumbprint(s)
❑ Corporate Officer(s)
Ttle(s) ❑
❑ Guardian /Conservator
❑ Partner - Limited /General
❑ Trustee(s)
❑ Other:
representing:
Name(s) of Person(s) or Entity(ies) Signer is Representing
0 Copyright 2007 Notary Rotary, Inc 925 29th St Des Moines, IA 50312 -3612 Form ACK03 10/07 To re- order, call toll -free 1- 877 -349 -6588 or visit us on the Internet at http 77www notaiyrotary com
• • i
THE LENDER:
[SIGNATURE BLOCK OF SENIOR LENDER]
, 6n Na$vrse-i
ALL SIGNATURES MUST BE NOTARIZED
Begin Subordination
6169
State of California ) CALIFORNIA ALL - PURPOSE
County of ) CERTIFICATE OF ACKNOWLEDGMENT
On (Y& 42/t 1 before me,T �_)I ( U
(here Insert Vie and title oft officer)
& personally appeared N L' i \
1,
who proved to me on the basis of satisfactory evidence to be the personKwhose name( is /af& subscribed to
the within instrument and acknowledged to me that he /sheA+rey executed the same in his /hefAt-he+
authorized capacity(iesr), and that by his /he*4l9tir signatlon the instrument the person(,s'J', 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 corre
RIKKI L. BAKER
Commission # 1915706
WITNES hand and official seal. i "mss Notary Public - California z
Z San Diego County
M Comm. Expires Dec 7, 2014
Signature
(Seal)
OPTIONAL INFORMATION
Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this
acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document.
Description of Attached Document
The preceding Certificate of Acknowledgment is attached to a document Method of signer Identification,
titled /for the purpose of Proved to me on the basis of satisfactory evidence:
L(D form(s) of Identification 0 credible witness(es)
-- -- - -- - Notarial event is detailed In notary journal on:
containing pages, and dated Page # Entry #
The signer(s) capacity or authority is /are as: Notary contact:
❑ Individual(s) Other
❑ Attorney -In -Fact
❑ AddrtionalSlgner(s) ❑ Signer(s)Thumbprint(s)
❑ Corporate Officer(s)
Title(s) ❑
❑ Guardian /Conservator
❑ Partner - Limited /General
❑ Trustee(s)
❑ Other:
representing: _
Name(s) of Person(s) or Ennty(ies) Signer is Representing
r7 Copyright 2007 Notary Rotary. Inc 925 29th St, Des Moines, IA 50312 -3612 Form ACK03 10707- To re- order, call toll -free 1- 877 - 349 -6588 or visit us on the Internet at http / /www notaryrotary com
6170
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
EXHIBIT "
LEGAL DESCRIPTION 6171
PARCEL 1: APN 317 - 350 -61
LOT 22 OF CITY OF POWAY TRACT NO. 06 -06 THE MEADOWS, IN THE CITY OF POWAY,
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS SHOWN BY MAP NO. 15743, FILED IN
THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON
MARCH 5, 2009.
PARCEL 2:
EASEMENTS REFERRED TO IN ARTICLE X OF THE DECLARATION RELATED TO COMMON
STRUCTURES WHICH IS RESERVED FOR THE BENEFIT OF PARCEL 1 ABOVE.
END OF LEGAL DESCRIPTION