Loading...
20-156 Subordination Agreement (City to Lender), Parsa J. Hajjarian and Anne C. Hajjarian (Owner), American Pacific Mortgage Corporation (Lender), 19503 Stevens Creek "'This document was electronically submitted to Santa Clara County for recording— REC:ORDFD AT THE REOUESTOF 24690596 OLD REPUBLIC TITLE COMPANY Regina Alcomendras Santa Clara County-Clerk-Recorder 11/05/2020 11.53 AM RECORDING REQUESTED BY: Titles: 1 Pages: 12 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 , 2020, by and among the City of Cupertino,a municipal corporation (the "City'), Parsa J. Hajjarian and Anne C.Hajjarian,husband and wife as community property with right of survivorship(the "Owner")and American Pacific Mortgage Corporation(the "Lender"). RECITALS A. Owner is the fee simple owner of that certain real property located at 19503 Stevens Creek Boulevard Unit 220, 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 January 19,2016, by and between City and the Owner, and recorded in the official records of Santa Clara County (the "Official Records")on February 9, 2016 as Document No.23217342; (ii) That certain Promissory Note dated as of January 19,2016, executed by Owner for the benefit of the City(the "City Promissory Note"); and 1 . 394109\2528698.1 REC+DP?ND AT THE REOUE&I OF OLD REPUKIC,-CiTLE L;01MR41 21` 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. THIS SUBORDINATION AGREEMENT(the "Agreement") is entered into as of JD Zl oze) , 2020, by and among the City of Cupertino, a municipal corporation (the "City'), Parsa J. Hajjarian and Anne C. Hajjarian, husband and wife as community property with right of survivorship (the "Owner") and American Pacific Mortgage Corporation (the "Lender"). RECITALS A. Owner is the fee simple owner of that certain real property located at 19503 Stevens Creek Boulevard Unit 220, 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 January 19, 2016, by and between City and the Owner, and recorded in the official records of Santa Clara County (the "Official Records") on February 9, 2016 as Document No. 23217342; (ii) That certain Promissory Note dated as of January 19, 2016, 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 January 19, 2016, 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 February 9, 2016 as Document No. 23217343. 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 February 5, 2016 and recorded on February 9, 2016 against the Property as Instrument No. 23217341 in the Official Records (the "First Loan Deed of Trust"). D. Lender has agreed to refinance the First Loan in an amount not to exceed Two Hundred Seventeen Thousand Dollars ($217,000), at a fixed interest rate of Two and six hundred twenty-five thousandths percent(2.675%)per annum, for a term of twenty (20) 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 IIA7A 2oZc) , 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." 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. 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 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 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. S. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 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. 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 By. l J Parsa J. Ha iarian Its: Anne C. Hajiarian LENDER: American Pacific Mortgage Corporation By: �ig►gd%Acw"u 9 �. 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 Parsa J. Hajjarian L, Its: � � Anne C. Hajjarian LENDER: �gikL, ►A Coop'ief Qa(� American Pacific Mortgage Corporation By: $)G VA1. -m CwAlef loaf+ 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 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 Parsa J.Hajjarian Name: Its: Anne C.Hajjarian LENDER: American Pacifi •Mortgage Corporation By: AA Name: X�/C� �� L Its: 4 394\09\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 fah]G- C (�t rQ > On l 7,0-7/o , before me, X, oh W ,Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s)whose me(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. X. ZHA0 Name: Notary Public-California z Notary Public z , Santa Clara County z z Commission #21679N D My Comm.Expires Nov 11,2020 v®P® 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 Sa,,l,�7ri C l car ) On o Z `1� , before me, .-2-6, ,Notary Public, personally appeared &yj ne �yjwho proved to me on the basis of satisfactory evidence to be the person(s) w ose n e(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. r r1p X. ZHAO Notary Public -California Name: z • Santa Clara County z Notary Public Z Commission #2167968 D rY My Comm.Expires Nov 11,2020 CALIFORNIA ALL-PURPOSE CERTIFICATE OF 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 Santa Clara On 0C+AV ZJ 1,37_,_, before me, Lauren Sapudar ,Notary Public, (Here insert name and title of the officer) personally appeared he bck a who proved to me on the basis of satisfactory evidence to be the JjE&;�(s)whose #e(s)Oare subscribed to the within instrument and acknowledged to me that he CshcVthey executed the same in his/liCtheir authorized effaci (ies), and that by hiss&n/thei i gr t rre s) on the instrument the�s), or the entity upon behalf of which th perso (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. LAUREN SAPUDAR a llotary Public-California WITN S my hand and official seal. = Santa Clara County Commission q 2247155 My Comm.Expires Jun 22,2022 (Notary Seal) gnat*.fN.tw73y Public ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM Any acknowledgment completed in California must contain verbiage exactly as DESCRIPTION OF THE ATTACHED DOCUMENT appears above in the notary section or a separate acknowledgment form must be properly completed and attached to that document. The only exception is if a document is to be recorded outside of California.In such instances,any alternative (Title or description of attached document) acknowledgment verbiage as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in California(i.e. certifying the authorized capacity of the signer). Please check the (Title or description of attached document continued) document carefully for proper notarial wording and attach this form if required. • State and County information must be the State and County where the document Number of Pages Document Date signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which must also be the same date the acknowledgment is completed. (Additional information) • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. El Individual(s) he/she/the}--is/are)or circling the correct forms.Failure to correctly indicate this information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines.If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. ❑ Attorney-in-Fact Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. ❑ Other Indicate title or type of attached document,number of pages and date. Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document C 2004-2015 ProLink Signing Service,Inc.—All Rights Reserved www.TheProLink.com—Nationwide Notary Service CALIFORNIA 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 Ca ' ornia�+County of �r�x l Jumltr J , V—'ko before me, Date �{ Here Insert Name and Title of e Officer personally appeared 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 CORINNE LONDON laws of the State of California that the foregoing Notary Public-California paragraph is true and correct. ' �- Placer County Commission:22e4049 WITNESS my hand and official seal. My Comm,Expires Apr 2,2023 Signature U r V Place Notary Seal and/or Stamp Above Signature of Notary Public 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: ❑ Corporate Officer—Title(s): ❑ Corporate Officer— Title(s): ❑ Partner— ❑ 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: ©2018 National Notary Association ORDER NO. : 0715027361 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 No. 220 located in Building B, as depicted uopn that certain Condominium Plan for Metropolitan at Cupertino (the "Plan") is attached as Exhibit A to the Declaration of Covenants and Restrictions Establishing a Plan for Condominium Ownership for Metropolitan at Cupertino (the "Declaration") which Declaration recorded December 1, 2005 as Document No. 18700161, Official Records, Santa Clara County, said Unit and Building being situated on Lot 1 as said lot is shown upon that certain Map entitled "Tract No. 9655", which Map was filed in the Office of the Recorder, County of Santa Clara, State of California on January 27th in Book 780 of maps, at pages 40 and 41. Parcel Two: An undivided percentage interest in the Building B - Building Common Area in which the condominium unit described in Parcel One above is located, as depicted on the Plan and as defined on the Declaration and as said undivided interest is set forth in Exhibit E attached thereto. Excepting 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 Exclusive Use Common Areas as deined in the Declaration and the Exhibits attached thereto, and as depicted on the Plan which are set aside and allocated for the exclusive use of the owners of condominiums other than the condominium unit described in Parcel One above. 3. Non-exclusive easements for ingress, egress, support, encroachment, use, enjoyment and rights over, under, upon and through the common areas appurtenant to all units as said easements and rights are defined in the Declaration. Parcel Three: The exclusive right to use, possession and enjoyment of the Exclusive Use Common Areas appurtenant to Parcel One above, as defined in the Declaration and the Exhibits attached thereto and as depicted on the Plan which are set aside and allocated for the exclusive use of the owner of the unit to which they are attached or assigned. Parcel Four: Page 1 of 2 A non-exclusive easement for ingress and egress, support, encroachment, use, enjoyment and rights over, under, upon and through the common areas as shown on the Plan and defined in the Declaration. APN: 316-49-055 Page 2 of 2