Subordination Agreement 2015-0175951NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
THIS AGREEMENT (the "Agreement "), is made as of -'I.2 CJ by and among the
Poway Housing Authority, a public body, corporate and politic, hereinafter referred to as
"Housing Authority", Luan V. Quach, an unmarried man, hereinafter referred to as
"Borrower" and Mission Federal Credit Union, 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
"Redevelopment 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 Housing
Authority dated December 23, 2009 (the "Note ") and secured by a Deed of Trust and Security
Agreement in favor of the Redevelopment 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."
Quach SHOP Subordination
DOC# 2015 - 0175951
n RECORDING REQUESTED BY
STEWART TITLE OF CALIFORNIA
IIII I III IIIIIIIIII IIIIIIIIIIIIII IIIIIIIIIIIIIIII
Apr 14, 2015 08:00 AM
Recerg RecjdYSted h;' 1 A
OFFICIAL RECORDS
And When Recorded Mail to �1
Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
N1/
C
FEES: $0.00
Poway Housing Authority
City Clerk's Office
13325 Civic Center Drive
Poway, CA 92064
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
THIS AGREEMENT (the "Agreement "), is made as of -'I.2 CJ by and among the
Poway Housing Authority, a public body, corporate and politic, hereinafter referred to as
"Housing Authority", Luan V. Quach, an unmarried man, hereinafter referred to as
"Borrower" and Mission Federal Credit Union, 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
"Redevelopment 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 Housing
Authority dated December 23, 2009 (the "Note ") and secured by a Deed of Trust and Security
Agreement in favor of the Redevelopment 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."
Quach SHOP Subordination
WHEREAS, pursuant to a Cooperation Agreement and an Assignment and Assumption
Agreement, both dated March 11, 2011, the Redevelopment Agency has assigned to the Housing
Authority, and the Housing Authority has assumed, among other things, the rights of the
Redevelopment Agency under the Subordinate Loan Documents.
WHEREAS, pursuant to a Loan Agreement dated as of Mission Federal
Credit Union (the "Senior Lender ") is making a loan to Borrower in the amount of $271,000
(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
1) A , 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.
Quach SHOP Subordination 2
THE HOUSING AUTHORITY 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 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:
Mission Federal Credit Union
5785 Oberlin Drive
San Diego, CA 92121 -3749
Quach SHOP Subordination 3
(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. 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 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.
Quach SHOP Subordination 4
IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
POWAY HOUSING AUTHORITY
By:
Daniel Singer, Executiv irector
SIGNATURES MUST BE NOTARIZED
[Signatures continue on following page]
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
notary public or other officer completing
this certificate verifies only the identity of
the Individual who signed the document
to which this certificate is aBached and not
the truthfulness. accuracy, or validity of
that document.
) ss.
On A 4)r, R , 2015, before me,4n( S. LOA W-1 PLA6 -' personally appeared
haft it ir• or who proved to me on the basis of
satisfactory evicYence to be the persort(s) whose nameW is /are- subscribed to the within
instrument and acknowledged to me that he /she /tjxy executed the same in his/her /their
authorized capacity i(js), and that by his /hef /their signature(s) on the instrument the person(s) or
the entity upon behalf of which the personW 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.
Notary
Ouach SHOP Subordination
CAROL S&
Commission # 1934186
-: Notary Public - California z
= San Diego County >
My Comm. Expires Apr 28, 2015
YI(a .1���S�Z�I:iI
By:
V. Quach
SIGNATURES MUST BE NOTARIZED
[Signatures continue on following page]
STATE
) ss.
COUNTY OF SAN
On 2015, ore me, , personally appeared
who proved to me on the basis of
satisfactory evidence to be the person(s) w c names) is/are subscribed to the within
instrument and acknowledged to me that he /she ey executed the same in his/her /their
authorized capacity(ies), and that by his/her /their si s) on the instrument the person(s) or
the entity upon behalf of which the person(s) acted, exec the instrument.
I certify under PENALTY OF PERJURY under the laws of the Sta f California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Notary
Quach SHOP Subordination
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of
the individual who signed the document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document
State of California
County of S',..,✓ Q %.A n
On 2 ' G '10/3 before me, Donald J. Foeller, Notary Public
IF
L �� V Qv^�� h
personally appeared ,j
who proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s)- is /afe subscribed to the within instrument and acknowledged to me that
he /sbeMiey executed the same in his /hefAheir authorized capacity(ies), and that by
his /herftheir signature(s-yon the instrument the person($), 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 correct.
WITNESS
,. DONALD J. FOELLER
COMM.! 058426
N :E NOTARY OYBOC- QBaFOR0111 N
WiDff..'l
Qeylltl OF $AN DI[i0
Signature MY co". Etc. MM 18, 2018,
commission 0205
p
cammlaalon Eapiradon Data: March 18, 2018
Although the information in this section is not required by law, it could prevent /i-audulent removal and reattachment
to tin unauthorized docurnetit turd mae prove n<e(ul to person, retyir?(J ou the uttnched document.
This Acknowledgment is attached to a document titled:
THE LENDER:
MISSION FEDERAL CREDIT UNION
By: WUI�fA
Diana Clegg, RE Origins s Operations Manager
notary public or other officer completing
SIGNATURES MUST BE NOTARIZED this certificate verifies only the identity of
he individual who signed the document
to which this certificate is attached and not
the truthfulness, accuracy, or validity of
that document.
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO ) y�����,T�`�� �
On 2015, before me, personally appeared
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.
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.
Quach SHOP Subordination
JANET NGUYEN
Commission s 1931135/
Notary Public • Caldorrila
San Dlpo County
My Comm. Expires May 21, 2015
EXHIBIT A
That certain property situated in the State of California, County of San Diego, City of Poway,
described as follows:
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.
Quach BEGIN Subordination 8