HomeMy WebLinkAboutD-2028 Suborndination Agreement - 803 Humbert AveRecording Requested B : J i1 � 0 2016
RECORD G REQUESTED 11:
FIlM AM R.:C.&N TITLE CO�iPANY
�1- 11({,1.3 - -Lh'D
WHEN RECORDED RETURN TO:
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attn: City Clerk
Record for the benefit of the City of San Luis Obispo
At No Fee under Section 27383 of the Government Code.
The undersigned declare that there is no documentary
Transfer tax on this matter.
APN: 004 - 952 -034
12016027622
Tommy Gong
San Luis Obispo - County Clerk- Recorder
06/15/2016 08:00 AM
Recorded at the request of:
FIRST AMERICAN TITLE COMPANY
Titles: 1 Pages: 5
Fees: $0.00
Taxes: $0.00
Total: $0.00
111191 II
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
11[. : 1`TI -LVj 1 11011 M
THIS AGREEMENT, made June 1, 2016, by Eric F. Garcia, Owner of the land hereinafter
described and hereinafter referred to as "Owner," and
City of San Luis Obispo, present owner and holder of the deed of trust and Note first hereinafter
described and hereinafter referred to as `Beneficiary";
WITNESSETH
THAT WHEREAS, Eric F. Garcia, did execute a deed of trust, dated September 23, 2014 to
Greenhead Investments, Inc., as trustee, covering property located at 803 Humbert Avenue
(Property), as more particularly described in Exhibit One; SEE EXHIBIT ONE ATTACHED
HERETO AND MADE A PART HEREOF
To secure a Note in the sum of $23,550, a deed of trust was recorded September 26, 2014, in
favor of City of San Luis Obispo, which deed of trust was recorded as instrument No.
2014039883 of Official Records of said county; and
WHEREAS, Owner has executed, or is about to execute, a deed of trust and Note in the sum of
$310,000 dated June 8, 2016 in favor of Sierra Pacific Mortgage Company, Inc.,
hereinafter referred to as "Lender," payable with interest and upon the terms and conditions
described therein, which deed of trust is to be recorded concurrently herewith; and
WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above
mentioned shall unconditionally be and remain at all times a lien or charge upon the land
hereinbefore described, prior and superior to the lien or charge of the deed of trust first above
mentioned; and
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WHEREAS, lender is willing to make said loan provided the deed of trust securing the same is a
lien or charge upon the above described property prior and superior to the lien or charge of the
deed of trust first above mentioned and provided that Beneficiary will specifically and
unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the
lien or charge of the deed of trust in favor of Lender; and
WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner;
and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute
a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of
the deed of trust first above mentioned.
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 Lender to make the loan above referred to, it is hereby
declared, understood and agreed as follows:
That said deed of trust securing said Note in favor of Lender, and any renewals or extensions
thereof, shall unconditionally be and remain at all times a lien or charge on the property
therein described, prior and superior to the lien or charge of the deed of trust above
mentioned.
2. That Lender would not make its loan above described without this subordination agreement.
That this agreement shall be the whole and only agreement with regard to the subordination
of the lien or charge of the deed of trust above mentioned to the lien or charge of the deed of
trust in favor of the lender above referred to and shall supersede and cancel, but only insofar
as would affect the priority between the deeds of trust hereinbefore specifically described,
any prior agreement as to such subordination including, but not limited, those provisions, if
any, contained in the deed of trust first above mentioned, which provide for the subordination
of the lien or charge thereof to another deed or deeds of trust or to another mortgage or
mortgages.
Beneficiary declares, agrees and acknowledges that
a. He consents to and approves (i) all provisions of the Note and deed of trust in favor of
Lender above referred to, and (ii) all agreements, including but not limited to any loan or
escrow agreements, between Owner and Lender for the disbursement of the proceeds of
Lender's loan;
b. Lender in making disbursements pursuant to any such agreement is under no obligation
or duty to, nor has Lender represented that it will, see to the application of such proceeds
but the person or persons to whom Lender disburses such proceeds and any application or
use of such proceeds for purposes other than those provided for in such agreement or
agreements shall not defeat the subordination herein made in whole or in part;
c. He intentionally and unconditionally waives, relinquishes and subordinates the lien or
charge of the deed of trust first above mentioned in favor of the lien or charge upon said
land of the deed of trust in favor of lender above referred to and understands that in
reliance upon, and in consideration of, this waiver, relinquishment and subordination,
specific loans and advances are being and will be made and, as part and parcel thereof,
specific monetary and other obligations are being and will be entered into which would
not be made or entered into but for said reliance upon this waiver, relinquishment and
subordination; and
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d. An endorsement has been placed upon the Note secured by the deed of trust first above -
mentioned that said deed of trust has by this instrument been subordinated to the lien or
charge of the deed of trust in favor of Lender above referred to.
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.
IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS
SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR
ATTORNEYS WITH RESPECT THERETO.
City of San Luis Obispo, Beneficiary:
Michael Codron, Community Development Director
Owner:
Eric F
(ALL SIGNATURES MUST BE ACKNOWLEDGED)
7
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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 San Luis Obispo
On �4 L3 Z UC before me, P fA1Ve ! i5f Vw , W T- p
a e Name I Me o iThiGcer
personally appeared, M d G fLcp 0 91 9 IV Noma s
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.
DIANE DOSTALEK
WITNESS my hand and official seal. Commission M 21393 +1 Notary Pubhc - California
San Luis Obispo County
My Comm. Ex Tres Dec 25, 2019
Signature �r11'
161JI- 9ui
EXHIBIT "One"
LEGAL DESCRIPTION OF REAL PROPERTY
Real property in the City of SAN LUIS OBISPO, County of SAN LUIS OBISPO, State
of California, described as follows:
LOT 57 OF TRACT NO. 2977 UNIT 2, IN THE CITY OF SAN LUIS OBISPO,
COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO
MAP RECORDED DECEMBER 30, 2013 IN BOOK 34 PAGES 8 THROUGH 13 OF
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
APN: 004 - 952 -034
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CND OF DOCUMENT