Subordination Agreement Begin Loan 2013-0150079 J '_ .. ..,,� :t�y�y ,
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And When Recorded Mail to: MAR 08, 2013 8:00 AM
. ' OFFICIAL RECORDS
City Of'POway� SAN DIEGO COUNTY RECORDER'S OFFICE
Attrt:. Clt Mana er Emest J.Dronenburg,Ji., COUNTY RECORDER
Y F> FEES: 39.00
13325 Civic Center Drive 1 8 4 1 Pt�CrES' 9
Poway, CA 92064
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SUBORDINATION AGREEMENT
BEGIN LOAN
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTYBECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
THIS AGREEMENT (the "Agreement"), is made as of Mazch 8 , 2013, by and among the
CITY OF POWAY, a municipal corporation, hereinafter refened to as "City"., JIMMY A.
JOHNSON and MECHELLE S. JOHNSON, HUSBr1ND AND WIFE AS CONIMUNITY
PROPERTY WITH RIGHT OF !SURVIVORSHIP, hereinafter referred to as `Borrower"
and FIRST NATIONS HOME' FINANCE CORP., a California Corporation, 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 12820 Dakota Street,.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 "Sdbordinate Begin Loan''), evidenced by a Promissory Note
in favor of the City dated June 25, 2010, (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 Rewrds of San Diego County on June 25, 2010, as
Instrument No. 2010-0320651. 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 Su6ordinate 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 Dceuments."
WHEREAS, pursuant to a L,oan Qgreement dated as of March 1, 2013, (the "Senior
Lender") is making a loan to Borrower in the amount of $280,000 (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 1, 2013, which will besecorded in the Official
Records of San Diego. County concurrently herewith (the "Senior Loan Deed of TrusY'). The
� � , , . • � 18�4�2
Senior Loan Deed, of Trust and any other instcuments or documents which aze recorded in
connection with the Senior Loan shall be referred to collectively as the "Senior Loan
Encumbrances." The Senior L,oan Eucumbrances and any and all notes, loan agreements, and
other documents;and instruments executed by Borrower in connection with the Senior Loan shall
be collectivelyreferred to as the"Senior Loan Documents."
WHEREAS; it is a condition ptecedent to the Senior Lender providing the'Seniot, L;oan
that the Senior Encumbrances be unconditionally and at all times remain a lien'or cha;ge 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 aze and shall remain subordinate to the lien or charge of
the Senior Encumbrances.
WHEREAS, it is to the benefit of all the parties herein tfiaC 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 L.ender 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 [imes a lien or charge on the Property described,
prior and superiorto the.lien or charge of the Subordinate Begin Loan Encumbrances;
(2) That the Senior Lender would not provide the Senior L,oan 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 agreemenCwith regazd 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 ileed or deeds of trust, another mortgage oi mortgages, or any
other property use restrictions or covenants.
THE GITY hereby declares, agrees and acknowledges that:
(a) It consents to all provisions of the Senior pocuments 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 L,oan 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
' � . � � 1,843
proceeds are.disbursed and-,any application or use of such proceeds for purposes other
.
than those provided for,iri the.Seniorpocumerits shall not defeat the subotdination herein
' made in whole.or in part;'and,
(c) It�intentionally and unconditionally subordinates, the lien or charge of tffe Subordinate
Begin`.Loan Encumbrarices 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 par[ and
parce] thereof;, specific monetar.y and other obligations are being entered into which
would not be inade oi enteied into but for said reliance upon this subordinafi'on.
(d) Upon any event of foreclosure-of the Subordinate:Begin:Deed of Trust, whethei by power
of sale oi 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 tha[ 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
Documerits within ninety (90) days of such foreclosure"and ttiereafter complies with ail
terms of the SeniorLoan Documents.
(e) Notwithstanding anything to the contrazy contained in the ,Subordinate Begin Loan
Documents, prior 'to the. City declaring any default or.taking any remedy permitted
against.the Bonower under the Subordinate Begin,L,oan Documents or apglicable law
based upon an alleged default under the Subordinate Begin,Loan Documents, the City
shall giye notice to theSenior 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 [he appointment of.areceiver 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 Corp.,
A Califomia Corporation,
7330 Engineer Road, #A
SanDiego;CA 92111
(� Concurrendy with a notice froin the Senior Lender to the Bonower that a default or
breach exists under the teims of any of the Senior pocumenfs, Senior L:ender 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 noG exercise anyof its remedies against Borrower or the
Proper[y during any applicable cure period set forth.herein beginning aftec the:date such
notice 'is given to Senior 'L,ender, except that Senior Lender may xake any .ieasonable
action it deems necessary or appiopriate 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:paya6le in accordance with the terms of the Senior Lender Deed of
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Trust or any other"Senior pocuments and a no'tice of default- may be recorded in the
applicable govemmental, office immediately upon the occurreiice of a default and
expiration of ariy applica6le notice and cure.peciods set forth in the,Senior pocuments,
pioxided, however, ,that :if'the underlying defaulC 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
occurred..Notices of any default by the Borrower under tfie S'enior Loan Documents shall
be given to the City at tfie_foilowing address:
Cify of Poway
13325'Civic Center Drive
Poway,;Califomia 92064
Attenfion: Development Services, BEGIN Program
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(g) After a default und'er,the Senior pocuments, but prior to a foreclosure sale.or deed in lieu
assignment of the Property,,the City shall have the rigliCto purchase the Piopertyfrom the
Borcowei and p9y all amounts due and owing under the"Senior pocuments'.
(h) The provisions of the'foregoing paragraph are intended to sapplement, and.not to limit,
waive, modify oi replace, those provisions of law pertainingto notice and cure rights of
Subordinate lenders including; without limitation, those set forth in California°Civil Code
§§ 2924b and 2924c.
. � � 18 � 5
IN WITNESS"WHEREOF, parties hereto have signed this Agreemenf as of the day and
year fust above written.
CITY OF POWAY: BORROWER:
By: By:
Penny iley, City na er Ji y . Jo son
BORROWER:
By: /�/Q ��'-�_
� —�
_�i Mechelle S. Johnson
FIRST NATIO 5 OME FINANCE CORP:
By:
� Nag rski, Vice President
��
ALL SIGNATURES MUST BE NOTARIZED
STATE OF CALIFORNIA )
) SS.
COUNTY OF SAN DIEGO )
On'n�ar�/n � , 2013, before me, C.f+�� S• �.Q� , Notary Public, personally
appeared Y I�r�u �i �.Q"I.V who proved to me on the basis of
satisfac[ory evidence to be the person(� whose name(8j- is/mF� suiiscribed to the withi❑ instrument a�d
acknowledged to me that }S�/she/ttuy exewted the same in J�ys/hedth�authorized capacity(i�and that by
!�rc/I�edth�ir signamee(,4� on the instmment the person(� or[he entity upon behalf of which the person(�acted,
executed [he instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
Wimess my hand and official seal.
CAROL S.�LEGG � `��'^^ �
�� Commissian�#1934186 [Jo[ Public
.Z ,-e Notary Public•California� .z �'
'� San Diepo Caunty D
My Comm.Expires Apr 28,2015�
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STATE'OF CALIFORNIA )
� SS.
COUNTY OF SAN DIEGO )
O�" -l 'S , 2013, before me,l/T-�h 4..Yt'L�2�l�d��i1 , Notary Public, personally
appeared 1 M M� ����h n�.� who proved to me on the basis of
satisfactory evidence to be the perso�) whose name(�are subscribed to the within ins[rument and
acknowledged to•me th he she/they exewted [he same in hi er/their authorized capacityZta�, and tha[ by
his/hedtheir signatur�c) on the instrument thepersodjs,tor the entity upon behalf of which the person�acted,
executed[he instrument.
I certify under PENALTY OF PERJURY under the laws of tfie Sta[e of Califomia that the foregoing
paragraph is true and correct.
Witness my hand and official seal.
�u1 bti �
Notary Public
STATE OF CALIFORNIA )
� SS.
COUNTY'OF SAN DIEGO )
On�'�' �3 2013, before me,��UI—�4�--'e\W�� , Notary Public, personal ly
�^ �
appeared 1 1 12 C�-Q���. � J D�✓���� who proved to me on the basis of
satisfactory evidence [o be the person� whose name(�is�re subscribed to the within ins[rumen[ and.
acknowledged [o me tha[ h she hey executed the same in hi 'er their authorized capacity(lq�, and [ha[ by
his/her/their signature�on the.instrument the person�or the entiry upon behalf of which the person(s)acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the Sta[e of California that the foregoing
para�raph is true and correct.
Witness my hand and official seal.
� �
Notary Pu61ic
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� � 1847
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y State of California > �ALIFORNIA ALL-PURPOSE �
� County ofSU--w .J�1[�J ) CERTIFICATE OF ACKNOWLEDGMENT ;
on 3 - l�— I 3 before mP, � /�1✓� �-+�Z-C����(`� , N O�stru d�t�,,bl'�C: ,
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� authorized capacity(ies), and that by his/he th r signature(s) on Tie instrument the person(s), or the entity
upon behalf of which the person(s)acted,executed the instrument.
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I certify under PENALTY OF PERJURY under the laws of the
State of Califomia that the foregoing paragraph is true and correct. `
DAWN NA2ELNOOD
COMM. a1988607 z� '
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WITNE55 my hand and official seal. � r San Diego Couob
Comrn.Ex res .20.2016 _
Signature � ;
(Seal)
OPTIONAL INFORMATION
Although the informafion in this secrion is no!required by law,if could prevenf(raudulent removal pnd reatmchment of fhis -
acknowledgment to an �mnuthorized document and may prove useful ro persons relying on rhe a(tached clocumenL =
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; Description of Attached Document
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The preceding Certificate of Acknowledgment is attached to a document Mechod of siqner ideneificacion
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I certify under PENALTY OF PERJURY under the laws of the ;
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State of California that the foregoing paragraph is true and correct.
DA�IN HALELWOOD E
COMM. p1988607 i ;
WITNESS my hand and official seal. � it Notary Pubhc•Califorma o
= 6 San Diego Counry _
Corten.F� nes Au� .20.2016
Signature � �' �(� '_
(Seal)
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OPTIONAL INFORMATION
Alfhough the informption in this secfion is not requiied by law,it could pieven[(rpudulent iemovol and reatmchment o(lhis 's
aCknowledgment to an unauthorized document and mpy prove useful to peisons�elving on the uttpched documenG -
Description of Attached Document
The preceding Certificate of Acknowledgment is atcached to a document
Method�of Signer lden[ification �
Proved to me on the basis o(satisfacmry evidence:
tided/for the purpose of �
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' . � . � - � � 1849
EXHIBIT A
LEGAL DESGRIPTION
That certain ptoperty situated in the State of California, County of San Diego, City of Poway,
described as follows: �
LOT 14 OF'CITY OF POWAY TRACI'NO. 06,06 THE MEADOWS, IN THE .C1TY OF POWAY, :
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOE NO.
15743,FILED IN TFIE OFFICS OF Tf�COUNTY RECORDER°OF SAN DIEGO COUNTY 1vIARCH
5,2009.
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