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HomeMy WebLinkAboutSubordination Agreement **This document was electronically submitted = to San Luis Obispo County for recording** Re;c•- ' -pou:Es.ed by 2021028683 FIRS .--orERICAN TITLE CO. Tommy GongSan Luis Obispo-County Clerk-Recorder 04/16/2021 10:23 AM Recorded at the request of: RECORDING REQUESTED BY AND FIRST AMERICAN TITLE COMPANY WHEN RECORDED MAIL TO: Titles: 1 Pages: 5 Fees:$108.00 Taxes: 00 CITY OF ARROYO GRANDE Total: $$108.00 300 E. BRANCH STREET ARROYO GRANDE, CA 93420 Original Document ATTN: CITY CLERK laSl0 (-1 —S-p -7 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. THIS AGREEMENT, made thisg)6Clay of March, 2021 by Francesca Ardizzone, owner 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 December 22, 2009, recorded as Instrument No. 2010000542 (the "Deed of Trust") to the City of Arroyo Grande as Trustee, covering real property located in the City of Arroyo Grande, commonly known as 468 Bakeman Lane (APN: 077-255-017) and more specifically • described in Exhibit A, attached hereto and incorporated herein by this reference, to secure performance under the Buyer's Occupancy and Resale Agreement with Option to Purchase, dated December 22, 2009, recorded as Instrument No. 2010000541, in favor of Beneficiary; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $278,000 dated April /2� 2,021 in favor of Nationwide Home Loans, 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 Recording requested by FIRST AivERICAN TITLE CO. RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF ARROYO GRANDE 300 E. BRANCH STREET ARROYO GRANDE, CA 93420 ATTN: CITY CLERK to S10 q 7.1 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. THIS AGREEMENT, made this.')4t-day of March, 2021 by Francesca Ardizzone, owner 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 December 22, 2009, recorded as Instrument No. 2010000542 (the "Deed of Trust") to the City of Arroyo Grande as Trustee, covering real property located in the City of.Arroyo Grande, commonly known as 468 Bakeman Lane (APN: 077-255-017) and more specifically described in Exhibit A, attached hereto and incorporated herein by this reference, to secure performance under the Buyer's Occupancy and Resale Agreement with Option to Purchase, dated December 22, 2009, recorded as Instrument No. 2010000541, in favor of Beneficiary; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $278,000 dated l /'il 12.1 221 in favor of Nationwide Home Loans, 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 described 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' AO 4zeiftykdok Asvcc7( /1* ki Whitney McDonald, City Manager F ancesca '• (ALL SIGNATURES MUST BE ACKNOWLEDGED.) 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 ) ) CountyCounlyg San Luis Obispo ) pubtX On c,32../ , before me,Zch Jq " 4.4 - ,-A , personally appeared fit,,1- rc� IlVenn . Ar�1,zz 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 signatures) 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. (No ature) (Seal) 40f tyE, ZACH TERESI NotaryPublic-California =L = W T. San Luis Obispo County F. ° Commission#2311819 My Comm.Expires Nov 8,2023 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 r\ 1207.1 , before me, =osc ' rl , notary public, personally appeared \,x 1?-q40Paar1 , 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. � JESSIG MATSON - C49 Ar4).-Z,61 "ri( N 4. Notary Public-California Z otary Signature) (Seal) San Luis Obispo County f. C • ommission a 2235281 My Comm.Expires Mar 22,2022 . r EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: Lot 16 of Tract 2310-2, in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to the map recorded May 23, 2006 in Book 28, Page 45 of Maps, in the office of the County Recorder of said County. Document Number 2006-03592 APN: 077-255-017