HomeMy WebLinkAbout2004-03-29 Correspondence re Loan Disbursement Instructions - - __
- P.O.Box 922
~ San Luis Obispo,CA 93406
GiCa6<ie4.4 , ��2
OFFICE OF CITY ATTORNEY - "Mk \ Phone:(805)541-2560 '" ' FAX:(805).543=3857
March 29,2004
..VIA FAX ORIGINAL BYFEDERAL'EXPRESS •
TICOR Title Insurance Company
Attn: Ms. Deborah Heideman -
• 25950 Acaro Street, Suite 320 • • .-
- Mission Viejo, CA.92691 - -_ - - - .. "
RE: ', Loan'Disbursement Instructions ,. -
" Loan No:213229 ' - : - -
- Borrower: Joshua and Jaydyn Blair, - ' • . -
_ APN:077-163-044 '- '
Property Location: 266 Aspen Street,Arroyo Grande, CA
. -Dear Ms..Heideman.• -
As you are aware, the City of.Arroyo Grande ("City") holds a promissory note in the amount of
' $30,000 secured by a trust deed in the above described property, dated as of October-1,2002, and
' - .' recorded in San-Luis Obispo County on November 14,2002 as Document No. 2002099224. The
- Blairs._have_requested that-the City execute a subordination agreement to subordinate the above
referenced trust deed to a first trust deed in favor of Brooks America in the sum of$232,000 in order
'to enable the Blairs to refinance their home for the specific purpose of expanding and improving.the
- home.' The City is willing to enter into a subordination agreement to accommodate the Blairs.
- However, in order to ensure that the funds are used to finance the improvements and to protect the -
_ City's security interest, the City requires that the following terms and'conditions be specifically. -
complied with: . ;- . -
- 1. Funds from the loan in-the minimum amount,of$30,000 will be withheld until the City --
:authorizes the release ofsaid funds in writing directed to TICOR as set forth below; and
2: ',' The City must approveall invoices in writing before disbursement checks are issued; and
3. -All disbursement checks will be made payable jointly'to the borrower and the contractor-
performing the work on the above referenced property; and - -
- 4. - The City will be copied on all correspondence that relates 'to seeking or making
disbursements in connection with this loan. -
TICOR Title Company
RE: Loan No. 213229
March 29,2004
Page 2 - -
In order to expedite,this matter, I have enclosed the duly executed Subordination Agreement
which you are authorized to use and record once you have advised us in writing that the above
terms and conditions are acceptable to TICOR,the borrowers and any other necessary party.
Please call if you'have any questions. .
Sincerely,
LYON&CARMEL
mothy J.
ity Attorney .
TJC:rjl -
Enclosure -
cc: Steven Adams, City Manager(without end.) ,