24-008 Subordination Agreement, City To Lender, 10280 Park Green Lane #844, APN 369-54-044RECORDING REQUESTED BY
OLD REPUBLIC TITLE COMPANY
Escrow No.:
APN:
0611028143
369-54-044
WHEN RECORDED MAIL TO
City of Cupertino
10300 Torre Ave ,
Cupertino, CA 95014
Attn: City Manager
tNo Fee'recording Persuant to Government Code 4-
Section 27383
"This document was electronlcally submitted
to Santa Clara County for recording"
25576054
Regina Alcomendras
Santa Clara County - Clerk-Recorder
12/15/2023 03:13 PM
Titles: 1 Pages: 31
Fees: $0.00
Tax: $0
Total: $0.00
SPACE ABOVE Tt-JIS LINE FOR RECORDER5 USt
Subordination Agreement
(CITY TO LENDER)
RA/mr
4
RECORDING REQUESTED BY
OLD REPUBLIC TITLE COMPANY
Escrow No.: 0611028143
APN: 369-54-044
WHEN RECORDED MAIL TO
City of Cupertino
10300 Torre Ave
Cupertino, CA 95014
Attn: City Manager
tNo Fee recording Persuant to Government Code fSection 27383
SPACE ABOVE THIS LINE FOR RE(')ORDERS USE
Subordination Agreement
(CITY TO LENDER)
RA/mr
RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO:
City of Cupertino
Attention: City Manager
No fee for recording pursuant to
Government Code Section 27383
(SPACE ABOVE THIS LINE FORRECORDER'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 (tlie "Agreement") is entered into as of
December 14 ,2023,byandamongtheCityofCupertino,amunicipalcorporation(the
"City"), Ralph Ale.iandro Aguinaga, a single man, and Janet Aleiandra Linarez, a single woman,
as ioint tenants (the "Owner") and American Pacific Mortgaze Corporation, a California
corporation (tlie "Lender").
RECITALS
A. Owneristhefeesimpleowneroftliatcertainrealpropertylocatedatl0280Park
Green Lane #844, 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:
(i) That certain Occupancy, Refinancing, and Resale Restriction Agreement
with Option to Purchase (the "City Resale Restriction Agreement") dated as of
uwrd (ha-a.'s
39=RO9'i3 137609.2
Page 1 of 10
J
(ii) That certain Promissory Note dated as of 12-14-2023 , executed by
Owner for the benefit of the City (the "City Promissory Note"); and
(iii) ThatcertainDeedofTrustdatedasof 12-14-2023 ,executedbythe
Owner, as trustor, narning the City as beneficiary, securing the City Promissory Note aqd the
asDocumentNoe*caal[p4 (the"CityDeedofTrust",andcollectivelywiththe
City Promissory Note, the "City Documents"
C. Lender has agreed to finance the First Loan in an amount not to exceed Four
Hundred Eighty-Six Thousand One Hundred Fourty-Three Dollars ($ ,486143), at a fixed
interest rate of Six and Six Hundred Twenty-Five Thousandths percent (%) per annum, for
a term of thirty (30) years (the "First Loan"). The First 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 December 14 , 2023, and recorded concurrently herewith in the Official Records.
The Lender Note and the Lender Deed of Trust are hereinafter collectively referred to as tlie
"Lender Documents."
D. Owner, the City, and Lender hereby acknowledze and agree that the documents
referenced herein sliall be recorded in the Official Records in the following order:
1. City Resale Restriction Agreement
2. Lender Deed of Trust
3. City Deed of Trust
E. It is a condition of the First Loan tliat the Lender Documents shall unconditionally
be and remain at all times a lieu or charge ripon the Property, prior and superior to the lien or
cliarge of the City Documents.
F. As a condition to subordinating the City Documents, tlie 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. The Lender Documents and any renewals, modifications, extensions or advances
Documents.
394SO913 137609.2
Page 2 of 10
2. The City declares, agrees and acknowledges that it intentionally and
inconditionally waives, relinquishes and subordinates the lien or charge of tlie City Documents
in favor of the lien or charge upon the Property of the Lender Documents and understands that in
reliance upon, 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. Lender acknowledges and agrees
for the benefit of the City that the City Resale Restriction Agreement shall unconditionally be
and at all times remain an encumbrance on the Property prior and superior to the rights of Lender
under the Lender Documents. Lender intentionally and unconditionally subordinates all of
Lender's right, title and interest in and to the Lender Documents to the enciunbrance of the City
Resale Restriction Agreement.
3. 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 tlie 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 sucli acts and payments shall fully and totally cuffie and correct
all such defaults, breaches, failures or refusals for all purposes.
4. As a condition for approval of this subordination, a request for notice of default and
notice of sale regarding the First Loan shall be recorded in the Official Records for the benefit of
the City.
5. With regard to the priority of the deeds of trust described lierein, 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 tlie Len,der I)ocuments and shall supersede and
cancel any prior agreements as to such subordiriation including, but not limited to, those
provisions, if any, contained in the City Documents, which provide for tlie subordination of the
restrictions contained therein to another deed or deeds of trust or to another mortgage or
mortgages or to anotlier regulatory agreement.
6. This Agreement shall be binding on and iruire to the benefit of the legal
representatives, heirs, successors and assigns of the parties.
7. This Agreement shall be governed by and construed in accordance with the laws of
the State of California.
8. If any of the provisions or terms of tl'iis Agreement shall for any reason be held
invalid or unenforceable, sucli invalidity or unenforceability shall not affect any other of the
terms hereof, and this Agreement shall be construed as if such unenforceable term hadnever
been contained herein.
394109'l3 137609.2
Page 3 of 10
9. 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]
39410913 137609.2
Page 4 of 10
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day first
above written.
NOTICE: RD
SECURITY'
SUBJECT TO
ON AGREEMENT RESULTS IN YOUR
IN THE PROPERTY BECOMING
WER PRIORITY THAN THE LIEN(S) OF
SECURITY INTEREST(S).
IT IS RECOMMENDED THAT PRIOR TO THE EXECUTION OF TmS
AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH
RESPECT HERETO.
CITY:
CITY OF CUP TINO, a municipal corporation
Pam 'Mu, City Manager
APPROVED AS TO FORM AND
LEGALITY BY:
ChC4<e/:'rD'3oZ: !7,'P23'2"8"!'!"
Christopher Jensen, City Attorney
Date: Dec 7, 2023
LENDER:
American Pacific Mortgage Company, a
California corporation
Name:
394'l09S3 137609.2
Page 5 of 10
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.
ST ATE OF CALIFORNIA
COUNTY 0 ' ('
J( q) Santa Clara Ca9rity #
Commission # 246CH68
I s My Comm. Expires Aug 2 t, 2027
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/tlieir authorized capacity(ies)
and that by his/her/their signature(s) on the instrument the person(s), or the entity upon bel'ialf of
which the person(s) acted, executed tlie instrument.
I certify {JNDER 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.
Notary Public
39410913 137609.2
Page 6 of 10
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
attaclied, and not the truthfulness, accuracy, or validity of that document.
Lia prel
Name:
Notary Public
Sadaslva Murthy >ill:ilamarri (
Comm. #2408849 z
Notary Public - California :O
San Joaqulri County o
MyComm.Explresj,uty,18,Xl2S (.
39AO9S3 137609.2
Page 8 of 10
A notary public or otlier officer completing tl'iis 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 dociunent.
ST ATE OF CALIFORNIA
COUNTYOF Mavffn
evidence to be the person(s) wliose riarm(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/lier/their signature(s) on the instrument the person(s), or the entity'upon belialf 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.
eT.'A!'A16 i
No$ry Publki - California '!aladn County
MyCs'n. EqAma %. 10, 2024
Notary Public
394SO913 137609.2
Page 7 of 10
ORDER NO. :0611028143
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:
A CONDOMINIUM COMPRISED OF:
PARCEL ONE:
Unit 44, as said unit is depicted on that certain Condominium Plan for Sterling Square at Civic
Park, which shall hereafter be referred to as (the "Plan"), which Plan is attached as Exhibit "B"
to the Declaration of Covenants, Conditions and Restrictions of Sterling Square at Civic Park
Owners Association (the "Declaration"), which Declaration recorded June 16, 2006 as Document
No. 18977691, Official Records; said Unit being situated on Lot 6, as said lot is shown upon that
certain Map entitled "Tract No. 9612", which map was filed in the Office of the Recorder,
County of Santa Clara, State of California on December 28, 2004 in Book 779 of Maps, at Pages
48 and 49.
PARCEL TWO:
A 1/12th undivided tenancy-in-common interest, in the Building Common Area D, including all
improvements therein which are not part of any unit, as defined in the Declaration and depicted
on the Plan,
EXCEPTING AND RESERVING THEREFROM THE FOLLOWING:
1. All the Condominium Units depicted on the plan and defined in the Declaration other
than the unit described in Parcel One above,
2. The Exc(usive Use Common Areas as defined in the Dec(aration and/or depicted on the
Plan which are set aside and allocated for the exclusive use of the owners of the
condominiums other than the condominium unit described in Parcel One above.
3. Non-exclusive easements for access, ingress, egress, support, utilities and other rights,
over, under, upon and through the Common Area, appurtenant to all units, as said
easements and rights are defined in the Declaration.
PARCEL THREE:
The exclusive right to the use, possession and enjoyment of the Exclusive Use Common Areas,
appurtenant to Parcel One above, as defined in the Declaration and depicted on the Plan which
is set aside and allocated for the exclusive use of the owner of the unit to which they are
attached or assigned.
PARCEL FOUR:
Page 9 of 10
A non-exclusive easement, appurtenant to Parcel One above, for access, ingress, egress,
support, utilities and other rights, over, under, upon and through the Common Areas as said
easements and rights are defined in the Declaration.
APN: 369-54-044
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