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HomeMy WebLinkAboutSubordination Agreement (3) **This document was electronically submitted to San Luis Obispo County for recording** 2020051234 Tommy Gong San Luis Obispo-County Clerk-Recorder 09/18/2020 12:14 PM RECORDING REQUESTED BY AND Recorded at the request of CHICAGO TITLE COMPANY-RESI WHEN RECORDED MAIL TO: Titles: 1 Pages:7 Fees:$114.00 CITY OF ARROYO GRANDE ,Taxes: $0.00 300 E. BRANCH STREET Total: $114 00 ARROYO GRANDE, CA 93420 ATTN: CITY CLERK SPACE ABOVE THIS LINE FOR RECORDER'S USE ONLY 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. ck ILO THIS AGREEMENT, made this' ( 1dhy of August, 2020 by Andrew L. James and Carol James, owners of the land hereinafter described and hereinafter referred to as "Owner," and the City of Arroyo Grande, present owner and holder of the deed of trust first hereinafter described and hereinafter referred to as "Beneficiary"; WITNESSETH WHEREAS, Owner executed a Deed of Trust and Security Agreement, dated May 13, 2005, recorded4as Instrument No. 2005043766 (the "Deed of Trust")to the City of Arroyo Grande as Trustee, covering: 4. imaq a,1 •),Dor i v San Lu,S obi spo coutrly See Exhibit"A," attached hereto and incorporated by reference herein. (APN: 077-121-006) to secure performance under the Buyer's Occupancy and Resale Agreement with Option to Purchase, dated May 13, 2005, recorded*as Instrument No. 2005043765, in favor of Beneficiary; and IMAy a.1 . bO In San (It ObtSpo n WHEREAS, Owner has exe u ed, or is about to execute, a deed of trust and note in the ch.of $275,500 dated � I [1. ( 7-0 in favor of Summit Funding, Inc., hereinafter referred to as "Lender," payable with interest and upon the terms and conditions described therein, which deed of trust is also to be recorded concurrently herewith; and 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 said 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: • 1) 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 first above mentioned. 2) That Lender would not make its loan above debcribed without this subordination agreement. 3) 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 first above mentioned to the lien or charge of the deed of trust in favor of lender above referred to and specifically described, any prior agreement as to such subordination including, but not limited to, 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) It consents to the note and deed of trust in favor of Lender above referred to, and 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 by 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) It 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 d) An endorsement has been placed upon 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 LAND. BENEFICIARY: OWNER: 0(4..,0 ?-•-sa--,J gee,LtAr___- Bill Robes , Acting City Manager Andrew L. James C4411 Carol James (ALL SIGNATURES MUST BE ACKNOWLEDGED.) 5 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 San Luis Obispo On 4U Ltcfr/% ZOi' , before me, n, afv1Acuzl Vt , notary public, personally appeared Any,,reu) Cidh'g.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. WITNESS my and and official seal. e . (Notary Signature) (Seal) i, a as ^ ra a a a a a a a a i ,,,4?1,,�,f C.DASMANN . s. Notary Public-California 4 San Luis Obispo County n -T. ,,. Commission U 2242437 '" My Comm.Expires May 13,2022 9 1 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 San/ Luis Obispo ) On 6(46a51----/f�/f za ZG , before me, V _DX)Ilan . , notary public, personally appeared (57d( Ja vyi(5 , 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. e ii) _ (Notary Signature) (S --�- --- - -44 t 1,.._:,j“'-2;'`, ,N C.DASMANN Y`s. Notary Public-California , San Luis Obispo County f.1,4 ° Commission#2242437 My Comm.Expires May 13 2022 Acknowledgment n public or other officer completing this certificate ver' '-s only the identity of the in ' idual who signed the document to which thi ertificate is attached, and not the thfulness, accuracy, or validity of t . document. State of Califor •. County of San Luis Ob .0 On ` vttF /l 76 1 , ._ .re me, 0 GG!'V1/I40i/V , notary public, personally appeared Si , who proved to me on the basis of satisfactory evidence to .e the perso . whose name(s) is/are subscribed to the within instrument and ack . ledged to me that ' : she/they executed the same in his/her/their authorized capae• y(ies) and that by his/her/the' ignature(s) on the instrument the person(s), or e entity upon behalf of which the pe - •n(s) acted, executed the instrumen . I certif nder PENALTY OF PERJURY under the laws of th- tate of California that the fore•.ing paragraph is true and correct. NESS my hand and official seal. e .A (Notary ignature) (Seal) • �,,r ,ti' .. NN .7 ,r • y Public •-California 7. •• zt" Luis Obispo County ` Com •sion N 2242437 '"" My Comm.Exp -s May 13,2022 .t CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 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 5 Ap. 15 0 615 Pa ) On 0 ' -AO 9-0 before me, KE2 y WE Tm ,14J P,3L(C; Date ^ Here Insert Name and Title ofthe-Officer— personally appeared L L Q L i O 8 E5 D IJ Name(s) of Signer(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. L•>. KELLY WETMORE WITNESS my flans and official seal. Q ,,.,��� = Notary Public-California k`..,, r� San Luis Obispo County `,fir,J Commission k 2181303 �f•�Y�I / / My Comm.Expires Feb 21,2021 Signature r/%L_..�� A `11 -- '• 7„)'gn6 re of Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: E Corporate Officer — Title(s): ❑Corporate Officer — Title(s): ❑ Partner — E Limited ❑General ❑ Partner — ❑ Limited ❑General ❑ Individual ❑Attorney in Fact ❑ Individual ❑Attorney in Fact ❑Trustee ❑Guardian or Conservator ❑Trustee ❑Guardian or Conservator ❑Other: ❑ Other: Signer Is Representing: Signer Is Representing: ©2014 National Notary Association •www.NationalNotary.org • 1-800-US NOTARY(1-800-876-6827) Item#5907 I EXHIBIT A Lot 26 of Tract No. 2505, in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to map recorded August 18, 2004 in Book 24, Pages 12, 13, 14 & 15 of Maps, in the office of the County Recorder of said County. APN: 077-121-006