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20-125 Subordination Agreement (City to Lender), Sai Pradeep Vanka (Owner), Guild Mortgage Company (Lender) **This document was electronically submitted This document,signed in counter to Santa Clara County for recording** part, when recorded together 24661238 constitutes one and the same Regina Alcomendras instrument. Santa Clara County-Clerk-Recorder 10/19/2020 04:56 PM RECORDING REQUESTED BY: Titles: 1 Pages: 10 AND WHEN RECORDED MAIL TO: Fees: $0.00 Tax: $0 City of Cupertino Total: $0.00 10300 Torre Avenue Cupertino, CA 95014 Attention: City Manager No fee for recording pursuant to Government Code Section 27383 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) SUBORDINATION AGREEMENT (CITY TO LENDER) NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN AND RESTRICTIVE COVENANTS AFFECTING THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT AND RESTRICTIVE COVENANTS. THIS SUBORDINATION AGREEMENT(the "Agreement") is entered into as of September 2. ,2020, by and among the City of Cupertino,a municipal corporation (the "City"), Sai Pradeep Vanka,a married man, as sole and separate property(the "Owner") and Guild Mortgage Company (the "Lender"). RECITALS A. Owner is the fee simple owner of that certain real property located at 10745 North De Anza Boulevard, Cupertino, California, as more particularly described in Exhibit A attached hereto(the ".Property"),which is a below market rate unit restricted under the City's Below Market Rate Housing Program. B. In connection with the Owner's purchase of the Property,the City and the Owner entered into the following documents (collectively,the "City Documents"): (i) That certain Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (the "City Resale Restriction Agreement")dated as of July 26, 2013, by and between City and the Owner, and recorded in the official records of Santa Clara County (the "Official Records") on August 1, 2013 as Document No.22328422; (ii) That certain Promissory Note dated as of July 19,2013, executed by Owner for the benefit of the City (the "City Promissory Note"); and 1 394\09\2528698.1 RECORDING REQUESTED BY Old Republic Title Company Escrow No.: 0120028434 APN: 326-26-071 WHEN RECORDED MAIL TO City of Cupertino Attn: City Manager 10300 Torre Avenue Cupertino, CA 95014 SPACE ABOVE THIS LINE FOR RECORDERS USE Subordination Agreement LL/pr This document,signed in counter part, when recorded together constitutes one and the same instrument. RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Attention: City Manager No fee for recording pursuant to Government Code Section 27383 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) SUBORDINATION AGREEMENT (CITY TO LENDER) NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN AND RESTRICTIVE COVENANTS AFFECTING THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT AND RESTRICTIVE COVENANTS. i I THIS SUBORDINATION AGREEMENT(the "Agreement") is entered into as of September 2, , 2020, by and among the City of Cupertino, a municipal corporation(the I "City"), Sai Pradeep Vanka, a married man, as sole and separate property (the "Owner") and Guild Mortgage Company(the "Lender"). I RECITALS A. Owner is the fee simple owner of that certain real property located at 10745 North De Anza Boulevard, Cupertino, California, as more particularly described in Exhibit A attached hereto (the "Property"), which is a below market rate unit restricted under the City's Below Market Rate Housing Program. B. In connection with the Owner's purchase of the Property,the City and the Owner entered into the following documents (collectively,the "City Documents"): (i) That certain Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (the "City Resale Restriction Agreement") dated as of July 26, 2013, by and between City and the Owner, and recorded in the official records of Santa Clara County (the "Official Records") on August 1, 2013 as Document No. 22328422; (ii) That certain Promissory Note dated as of July 19, 2013, executed by Owner for the benefit of the City (the "City Promissory Note"); and 1 394\09\2528698.1 (iii) That certain Deed of Trust dated as of July 19, 2013, executed by the Owner, as trustor,naming the City as beneficiary, securing the City Promissory Note and the City Resale Restriction Agreement, and recorded in the Official Records on August 1, 2013 as Document No. 22328423. s 1 C. Owner desires to refinance the Owner's first loan on the Property (the "First Loan"),which was secured by a deed of trust dated October 13, 2015 and recorded on October 21, 2015 against the Property as Instrument No. 23121348 in the Official Records (the "First Loan Deed of Trust"). I D. Lender has agreed to refinance the First Loan in an amount not to exceed Two Hundred Four Thousand Dollars ($204,000), at a fixed interest rate of two and eight hundred seventy-five thousandths percent(2.875%)per annum,for a term of thirty (30)years (the "Refinanced Loan"). The proceeds of the Refinanced Loan will be used to pay off the First Loan and to reconvey the First Loan Deed of Trust. The Refinanced Loan will be evidenced by a promissory note (the "Lender Note"), and secured by a deed of trust(the "Lender Deed of Trust")dated as of o . oher 9 , 2020, and recorded concurrently herewith in the Official Records. The Lender Note and the Lender Deed of Trust are hereinafter collectively referred to as the "Lender Documents." Recording Concurrently Herewith E. It is a condition of the Refinanced Loan that the Lender Documents shall unconditionally be and remain at all times a lien or charge upon the Property,prior and superior to the lien or charge of the City Documents. F. As a condition to subordinating the City Documents,the City requires that the Lender provide the City notice of defaults and the right to cure defaults under the Lender Documents. G. It is to the mutual benefit of the parties herein that the Lender Documents shall constitute a lien or charge upon the Property which is unconditionally prior and superior to the lien or charge of the City Documents. NOW, THEREFORE, in consideration of the recitals hereof, the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, it is hereby declared, understood and agreed as follows: 1. Owner represents and warrants that proceeds of the Refinanced Loan will be used to repay the First Loan. i 2. The Lender Documents and any renewals, modifications, extensions or advances thereunder or secured thereby shall unconditionally be and remain at all times liens, claims or I charges on the Property therein described,prior and superior to the lien or charge of the City Documents. 3. The City declares, agrees and acknowledges that it intentionally and unconditionally waives,relinquishes and subordinates the lien or charge of the City Documents in favor of the lien or charge upon the Property of the Lender Documents and understands that in reliance upon, 2 394\09\2528698.1 and in consideration of,this waiver,relinquishment and subordination, specific monetary obligations are being entered into which would not be made or entered into but for said reliance upon this waiver,relinquishment and subordination. 4. Lender covenants and agrees that in the event that Lender delivers to Owner a notice of default under the Lender Documents,Lender shall deliver to the City a copy of said notice concurrently with delivery to Owner, and the City shall have the right(but not the obligation)to cure any or all defaults specified in said notice for a period of ninety(90)days after the date of such notice, and Lender hereby agrees to accept all payments and all acts done by the City on behalf of Owner within the cure period specified herein as though the same had been timely done and performed by Owner, so that such acts and payments shall fully and totally cure and correct all such defaults, breaches,failures or refusals for all purposes. 5. As a condition for approval of this subordination, a request for notice of default and notice of sale regarding the Refinanced Loan shall be recorded in the Official Records for the i benefit of the City. 6. With regard to the priority of the deeds of trust described herein,this Agreement shall be the sole and only agreement with regard to the subordination of the lien of the City Documents to the liens, claims or charges of the Lender Documents and shall supersede and cancel any prior agreements as to such subordination including,but not limited to,those provisions, if any, contained in the City Documents, which provide for the subordination of the restrictions contained therein to another deed or deeds of trust or to another mortgage or mortgages or to another regulatory agreement. 7. This Agreement shall be binding on and inure to the benefit of the legal representatives, heirs, successors and assigns of the parties. 8. This Agreement shall be governed by and construed in accordance with the laws of the State of California. i 9. If any of the provisions or terms of this Agreement shall for any reason be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other of the terms hereof, and this Agreement shall be construed as if such unenforceable term had never been contained herein. I 10. This Agreement may be signed by different parties hereto in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement. [Signatures on following page] 3 394\09\2528698.1 IN WITNESS WHEREOF,the parties have executed this Agreement as of the day first above written. NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND LOWER PRIORITY THAN THE LIENS) OF SOME OTHER LATER SECURITY INTEREST(S). IT IS RECOMMENDED THAT PRIOR TO THE EXECUTION OF THIS AGREEMENT,THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT HERETO. CITY: OWNER: CITY OF CUPERTINO, a municipal corporation Sai Pradeep Vanka By: SIGNED IN COUNTERPART Name: � ✓Gc!r, l�, Its: LENDER: Guild Mortgage Company By: SIGNED IN COUNTERPART Name: Its: 4 394\09\2528698.1 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day first above written. NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND LOWER PRIORITY THAN THE LIEN(S)OF SOME OTHER LATER SECURITY INTEREST(S). IT IS RECOMMENDED THAT PRIOR TO THE EXECUTION OF THIS AGREEMENT,THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT HERETO. CITY: OWNER: CITY OF CUPERTINO, a municipal corporation Sai Pradeep Vank By: Name: ^LG�Cr-, Its: --- LENDER: Guild Mortgage Company By: SIGNED IN COUNTERPART Name: Its: 4 39410912528698.1 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day first above written. NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND LOWER PRIORITY THAN THE LIEN(S) OF SOME OTHER LATER SECURITY INTEREST(S). IT IS RECOMMENDED THAT PRIOR TO THE EXECUTION OF THIS AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT HERETO. CITY: OWNER: CITY OF CUPERTINO, a municipal corporation Sai Pradeep Vanka By: �f � �� SIGNED IN COUNTERPART Name: �- Its: LENDER: Guild Mo gage C mpany By: Name: aco ASSIST T SECRETARY Its: 4 394109\2528698,1 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 ?p„A-t 0jAra ) On SQ bra e,- Z 7—z—_, before me, Laure,N SgP(,<-Aar ,Notary Public, personally appeared e,(,or i, �c,^ ,who proved to me on the basis of satisfactory evidence to be the p,!�s)whose (s)ds✓are subscribed to the within instrument and acknowledged to me that he/O/they executed the same in hiss/their authorized c aft (ies), and that by his/fie /their s' n Res) on the instrument the I s (s), or the entity upon behalf of which the er •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. MAR Notary Public SAublic-California z Santa Clara County Commission#2247155 My Comm.Expires Jun 22,2022 Name: (-,AURkN SA'P✓DA,9— Notary Public i 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 1 ) COUNTY OF Sa c:LC "G } On Q� O(� 9L"2-f-) ,before me, SIVANAGARAJU YARRAMANENI, Notary Public Notary Public, personally appeared SA�PRA IMP-Witit4who proved to me on the basis of satisfactory evidence to be the person(s) whose nam(s) is/Mv subscribed to the within instrument and acknowledged to me that he/sRUAiwoy executed the same in his/kerAh,&k authorized capacity(ies), and that by his/hsrA�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. Name: SIVANAGARAJU YARRAMANE otary Public Notary Public SIVANAGARAJU YARRAMANENI Comm. No.2171230 > m NOTARY PUBLIC-CALIFORNIA SANTA CLARA COUNTY My Comm.Expires Nov.17,2020 u�4.4xr`:s:m-i�r����6 �. trowA�4 �Vi bi F e'!�r 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 DIEGO ) On October 12, 2020 , before me, Dorothy Giacalone ,Notary Public, personally appeared David Canseco , 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. Name: Dorothy Giacalone Notary Public 0DOROTHY G ACALONE COMM. #2297837 to ��ftV NOTARY PUBLIC•CALIFORNIA c SAN DIEGO COUNTY. ommission x ires Au .16 2023 �j: ' �'A :�t RCu �! r ,rt�a .. _` - .. . ...... .'a.'...... �i ORDER NO. : 0120028434 EXHIBIT A The land referred to is situated in the County of Santa Clara, City of Cupertino, State of California, and is described as follows: PARCEL ONE: Unit 315, as shown on the Condominium Plan recorded September 6, 2007, as Document No. 19576335, Official Records, as amended by document recorded August 29, 2008 as Document No. 19976841 of Official Records ("Plan") and described and defined in the Declaration of Covenants, Conditions and Restrictions recorded June 23, 2008, as Document No. 19893757, of Official Records together with any amendments, modifications, or annexations thereto, as may occur from time to time ("Declaration"), being a portion of Lot 1 as shown on the Map entitled "Tract 9729", filed September 21, 2005, in Book 791 of Maps, at Pages 43 and 44, Santa Clara County Records. PARCEL TWO: An undivided 2.18% interest in and to the Building Common Area as shown, described and defined in the Plan and the Declaration. RESERVING THEREFROM, exclusive easements appurtenant to each unit for the use, occupancy and possession of the restricted common areas which are shown on the plan, as said easements are provided for in the Declaration. PARCEL THREE: Exclusive easements appurtenant to Parcel One above for the use, occupancy and possession of the Patio, Deck and Garage Space/s shown as "PT", "D" and "G" and the corresponding unit number on the plan, as is applicable, together with the additional restricted common areas set forth in Section 2.2C of the Declaration, as said easement(s) is/are provided for in the Declaration. PARCEL FOUR: Non-exclusive easements over the Association Common Area, as set forth in the Declaration. APN: 326-26-071 Page 1 of 1