HomeMy WebLinkAboutD-1731A 21 Santa Rosa - Parcel map # SLO 79-223 Recorded 05/07/1987! Recording Requested by
and When Recorded Mail to:
City Attorney, City of San Luis Obispo
990 Palm Street, P. 0. Box 8100
San Luis Obispo, CA 93403 -8100
P:04`;Ia�/07/674617 4
DOC..NO. 31.66
OFFICIAL RECORD
SAN LUIS OBISPO-Co., CAL
MAY 7 ]887
FRANCIS M. COONEY
County Clerk .Recorder
TIME 10: 30 AM
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 INSTRUMENT.
THIS SUBORDINATION AGREEMENT is made between SOUTHWOOD
APARTMENT PROJECT, a California Limited Partnership, hereinafter
called Trustor, and CITY OF SAN LUIS OBISPO, a charterd municipal
corporation of the State,of California, hereinafter called Bene-
ficiary.
WHEREAS, Trustor executed a Deed of Trust dated April 30 ,
1987, in favor of Beneficiary, which was recorded on / ,
1987, in Book ,M fR, Page , Official Records, in the "Office
of the County Recorder of San Luis Obispo County, California,
hereinafter called the Second Deed of Trust.
WHEREAS, the Second Deed of Trust is security for a promis-
sory note in the amount of $145,650.00 executed on the same date
of said Deed of Trust by Trustor in favor of Beneficiary;
WHEREAS, Trustor and Beneficiary also executed an Agreement
Regarding Park "In- Lieu" Fees whereby Beneficiary grants to
Trustor the right to pay a fee to the City of San Luis Obispo in
lieu of dedication of property to public use;
WHEREAS, the fee payable by Trustor to Beneficiary under the
Agreement Regarding Park "In- Lieu" Fees is evidenced by the
Second Trust Deed and promissory note described above;
WHEREAS, Trustor is the owner of the real property subject
to the Second Deed of Trust, hereinafter called "the Real Proper-
ty," which is located in the County of San Luis Obispo, State of
California, and is described in attached Exhibit A!,100
WHEREAS, Trustor desires to obtain a new loan, hereinafter
refered to as a "Take -Out .Loan," in an amoun.t'not to exceed 8.7
million dollars from a bank of Trustor's choice, hereinafter
referred to as "Lender," but said Lender requires that said loan
be secured by a deed of trust, hereinafter referrred to as the
"First Deed of Trust," which will be prior to the Second Deed of
1 VCL 2988PAGE 543 !--)n
8100 RI
_5Q�j RI
13 :00PUT1
Trust; and
WHEREAS, Beneficiary is willing to subordinate the lien of
the Second Deed of Trust, and the Agreement Regarding Park "In-
Lieu" Fees, insofar as it encumbers the Real Property, to the
First Deed of Trust in order that Trustor may obtain the Take -Out
Loan from Lender.
NOW, THEREFORE, the parties hereto agree as follows:
Terms of Subordinating.Loan
1. The terms of the Take -Out Loan secured by the First Deed
of Trust from Lender to Trustor shall be as follows:
a. The total amount of the take -out Loan shall not exceed
the sum of 8.7 million dollars;.
b. The proceeds of such take -out loan shall be used to pay
in full any construction loans on the Real Property ;
C. The interest on such take -out loan shall not be greater,
excluding late charges and penalties or fees payable on default,
than twelve percent (12 %) per annum, or no more than 2.50% over the 11th
District Cost of Funds.
d. Such take -out loan shall be payable over a period of not
.more than 45 years;
e. The total amount of such take -out loan shall not exceed
ninety percent (90 %) of the value, as determined by the lender
thereof, of said property as improved by Buyer or his successors
in interest; and
f. The term "Lender" as used in this Agreement shall mean a
bank, insurance company or correspondent thereof, building and
loan association, savings and loan association, pension fund, or
similar organization.
g. The Second Deed of Trust shall not be subordinated to
the-new loan, i.e., the First Deed of Trust, if at the time of
recordation of said First Deed of Trust an unrescinded notice of
default of the Second Deed of Trust is of record in the Office of
the County Recorder of the County of San Luis Obispo.
Subordination
2. A.s an inducement to Lender to grant the Take -Out Loan to
Trustor, Beneficiary and Trustor do hereby subordinate the Second
Deed of Trust and the Agreement Regarding Park "In- Lieu" Fees to
the First Deed of Trust to be hereafter executed by Trustor, or
its successor in interest, covering the Real Prperty, in favor of
Lender. The Beneficiary, City of San Luis Obispo, and Trustor,
Southwood Apartment Project, a California Limited Partnership,
2
VOL 21988PAGE544
m
a
m
X
I
L
m
CAT. NO. NNO0630
TO 1946 CA (7 -82)
(Partnership) AND
STATE OF CALIFORNIA 1 ATCOR COMPANY
COUNTY OF San Luis Obispo Ij SS. -P, -5..
On May 4, 1987 before me, the undersigned, a Notary Public in and for
said State, personally appeared Patrick N. Smith, General Partner
, personally known to me or
proved to me on the basis of satisfactory evidence to be
the person _ who executed the within instrument as
general partneaf zhmqnnn= of the partnership
that executed the within instrument, and acknowledged
to me that such partnership executed the same.
WITNESS my hand and official seal.
Signature
OFFICIAL SEAL
MARILYN PERRY
�
� Notary Public - California
:Principal Office In
San Luis Obispo County
My CoTin Exp. Aug. 12, 1987
VOL 2988PAGE546
(This area for official notarial seal)
z i
I
I
I
I
i
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO. ss.
On this 7th day of May , in the year 1987, before me Marilyn Perry
personally appeared M. Multari , known to me
to be Community Development Director of the City of San Luis Obispo and known to
me to be the person who executed the within instrument on behalf of said public
corporation, agency or political subdivision, and acknowledged to me that the City of
San Luis Obispo executed the same.
•
Y
Notary P blic
I
I
OFFICIAL SEAL ;
MARILYN PERRY I
Notary . Pubiic - California l
(SEAL) �� Principal Office In
San Luis Obispo County I
My Comm. Exp. Aug. 12, 1987
further declare that the lien of the Lender's First Deed of Trust
shall be and is in all respects a lien prior to and superior to
the lien of the Second Deed of Trust and the Agreement Regarding
Park "In- Lieu" Fees in favor of Beneficiary, City of San Luis
Obispo.
Inurement
3. This Subordination Agreement shall inure to the benefit
of the Lender, its legal representatives, successors, and as-
signs, and shall be binding upon Beneficiary and Trustor and
their respective heirs, legal representatives, successors, and
assigns.
DATED: $ 77 , 1987
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.
BENEFICIARY
CITY OF SAN LUIS OBISPO
'A Chartered Municipal Corporation
of the State of California
BY
TRUSTOR
SOUTHWOOD APARTMENT PROJECT,
A California Limited Partnership
Patrick V. Smith, General Partner
t
4
VOL 29 -8pPAd545
' 3 ..
LEGAL DESCRIPTION OF PROPERTY
Parcel 1 of Parcel Map No. SLO -79 -223 i
{ n the City of San Luis Obispo,
County of San Luis Obispo, State of California, recorded April 23, 1980
in Book 29, Page 25 of Parcel maps in the Office of the County Recorder
of said County.
'T'MFNT PROJECT