HomeMy WebLinkAboutSubordination Agreement •
JULIE RODEW'D MEL
San Luis Obispo C`ry— Clerk/Recorder 7/03/2007
Recorded at the request of . 8:00 AM
First American Title Company
D 0 C #: 2007044925 Titles: 1 Pages: 5
Taxes 19.00
t A QING REQUESTED BY II IIII Will 01111 III Others 0.00
First American Title Company
PAID $19.00
AND WHIN RECORDED MAIL TO:
City of Arroyo Grande
P. 0. Box 550
Arroyo Grande, CA 93421
Space Above This Line for Recorder's Use Only
A.P.N.: 077 - 128 -004 File No.: 4010 - 2765645 (BR)
SUBORDINATION AGREEMENT
(EXISTING TO NEW)
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 Twenty- seventh day of June, 2007, by
Andrew L. James and Carol A. James
Owner of the land hereinafter described and hereinafter referred to as "Owner ", and
City of Arroyo Grande, a municipal
present Owner and Holder of the Deed of Trust and Note first hereinafter described and hereinafter referred to as
"Beneficiary";
WITNESSETH
THAT WHEREAS, Owner has executed a Deed of Trust dated May 13, 2005 to City of Arroyo Grande, as Trustee,
covering:
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, AND 15 OF
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
to secure a Note in the sum of $no amount shown, dated May 13, 2005, in favor of City of Arroyo Grande, which
Deed of Trust was recorded May 27, 2005 in Book n /a, Page n /a, or Instrument No. 2005- 043766, of said
County; and
Page 1 of 5
•
A.P.N.: 077 - 128 - 004 Subordination Agreement - continued File No.: 4010 -
2765645(BR)
Date: June 27, 2007
WHEREAS, Owner has executed, or is about to execute, a Deed of Trust and Note in the sum of $324,500.00,
dated June 26, 2007, in favor of First National Bank of Arizona, 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
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:
(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 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 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) 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 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) 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
Page 2 of 5
A.P.N.: 077 - 128 - 004 Subordination Agreement - continued File No.: 4010 -
2765645(BR)
Date: June 27, 2007
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 Note secured by 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 THE IMPROVEMENT OF THE LAND.
(ALL SIGNATURES MUST BE ACKNOWLEDGED)
IT 15 RECOMMENDED THAT PRIOR TO THE EXECUTION OF THIS SUBORDINA77ONAGREEMENT,, THE PARTIES
CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
(CLTA SUBORDINATION FORM "A ")
OWNER:
OL/
Andrew L. James Carol A. James
Page 3 of 5
A.P.N.: 077 - 128 -004 Subordination Agreement - continued File No.: 4010 -
2765645(BR)
Date: June 27, 2007
STATE OF CALIFORNIA }
}ss.
COUNTY OF SAN LUIS OBISPO }
On .tti�. � , before me, ►L rNr.-j , Notary
Public, personally appeared Anrkfv u , t.-. le AN s ,nil Ce, re A 16 S
personally known to me (or 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 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.
WITNESS my hand and official seal.
KELLYKLE
� ; COMM. #1465166 '"
a t;4 NOTARY PUBLIC - cans r u
Signature f 7 i M � , w ' � fMy Canrw Expres 26, 2008
My Commission Expires: 1j,WO9 This area for official notarial seal
Notary Name: Notary Phone:
Notary Registration Number: County of Principal Place of Business:
Page 4 of 5
A.P.N.: 077 - 128 -004 Subordination Agreement - continued File No.: 4010-
2765645 (BR)
Date: June 27, 2007
BENEFICIARY:
CITY OF ARROYO GRANDE
By: stave Ad ogs
STATE OF 1 • A )SS
COUNTY OF A... ..,.'S O:• ,, )
On 772A/ a l a007 , before
me, 44 a t 40 .a
iP -1714.14 , Notary Public, personally appeared
.C'tPvv /ani , personally known to me (or--proved
to = o the b si of satisfactory evidenee) to be the persons) whose name(s)is /erasubscribed to the within
instrument and acknowledged to me that he /she/they executed the same in his /heytheir authorized
capacity(iesj, and that by his /hentheir signatures} on the instrument the person(s), or the entity upon behalf of
which the persort(s) acted, executed the instrument.
WITNESS my hand and official seal. . MARIYNREARDON-9S
- ,; Y . Commission $ 1444076
Roby Public - Callomb
,�(JA�. r� San lr,406YpeCourly
Signature 4n
N _ r MY Comm. Ewkes Oct 7.2007
My Commission Expires: 0C l Ol6f / 200 777is area for official notarial seal
Notary Name: MA1P / <YN 8&4CD0N4C0q /7Y9 Notary Phone: (eaS) 473- Sal 20
Notary Registration Number: /444 07$ County of Principal Place of Business: Snry 4 1.4'4 t13
Page 5 of 5
END OF DOCUMENT