21-188 Subordination Agreement (City to Lender), Jaime A. Torres Jr and Rosa Torres, 10531 Manzanita CourtRecording Requested By
Old Republic Title
RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO:
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Attention: City Manager
**This document was electronically submitted
to Santa Clara County for recording**
25049799
Regina Alcomendras
Santa Clara County - Clerk -Recorder
07/30/2021 12:02 PM
Titles:1 Pages:11
Fees: $55.00
Tax: $0
Total: $55.00
No fee for recording pursuant to
Government Code Section 27383
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
Exempt from fee per GC27388.1 (A)(2)
Document recorded in connection with a
concurrent transfer that is residential SUBORDINATION AGREEMENT
dwelling to an owner -occupier. .
(CITY TO LENDER). Recorded concurrently herewith
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
2021, by and among the City of Cupertino, a municipal corporation (the
"City"), Jaime A. Torres Jr and Rosa Torres husband and wife as community property with
right of survivorship (the "Owner") and Silicon Valley Bank, successor in interest to Boston
Private Bank & Trust Comp gL(the "Lender").
RECITALS
A. Owner is the fee simple owner of that certain real property located at 10531
Manzanita Court, 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"):
W That certain Occupancy, Refinancing, and Resale Restriction Agreement
with Option to Purchase (the "City Resale Restriction Agreement") dated as of May 25, 2017, by
and between City and the Owner, and recorded in the official records of Santa Clara County (the
"Official Records") on June 12, 2017, as Document No. 23671939;
394\09\2528699.1
Recording Requested By
Old Republic Title
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)
Exempt from fee per GC27388.1 (A)(2)
Document recorded in connection with a
concurrent transfer that is a residential SUBORDINATION AGREEMENT
dwelling to an owner -occupier.
(CITY TO LENDER) Recorded concurrently herewith
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
:1-ul7 , 2021, by and among the City of Cupertino, a municipal corporation (the
"City"), Jaime A. Torres Jr and Rosa Torres, husband and wife, as commuri ty property with
right of survivorship (the "Owner") and Silicon Valley Bank, successor in interest to Boston
Private Bank & Trust Company (the "Lender").
RECITALS
A. Owner is the fee simple owner of that certain real property located at 10531
Manzanita Court, 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 May 25, 2017, by
and between City and the Owner, and recorded in the official records of Santa Clara County (the
"Official Records") on June 12, 2017, as Document No. 23671939;
394\09\2528698.1
(ii) That certain Deed of Trust dated as of May 25, 2017, executed by the
Owner, as trustor, naming the City as beneficiary, securing the City Resale Restriction
Agreement, and recorded in the Official Records on June 12, 2017 as Document No. 23671940.
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 26, 2018 and recorded on
November 5, 2018 against the Property as Instrument No. 24056222 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 Three
Hundred Eight Thousand Dollars ($308,000), at a fixed interest rate of Three and One Hundred
Twenty -Five Thousandths percent ( I25%) 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 "Le der Note"), and secured by a deed of trust (the "Lender Deed of
Trust") dated as of � ['I , 2021, 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." Recorded 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.
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,
and in consideration of, this waiver, relinquishment and subordination, specific monetary
394\09\2528698.1
2
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.
8. 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]
394\09\2528698.1
3
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:
CITY OF CUP RTINO, a municipal corporation
By:
Name: (�,r> Lars-aW
Its: �"�c r: r,. �� �r a►Ja►3 2.�^
Greg Larson
Interim City Manager
LENDER:
Silicon Valley Bank, successor in interest to Boston
Private Bank & Trust Company
Signed in
By: Counterpart
Name:
Its:
OWNER:
Signed in ��� �CCLi�l1, k��s
Counterpart Ex UTED *1 GdUNTER'Ar
Jaime A. Torres Jr.i;
Signed in XE�y�S�'Ep C.oU �i fE �r'07
Counterpart
Rosa Torres
394\09\2528698.1
4
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:
CITY OF CUPERTINO, a municipal corporation
By:
Naive: ��� Wit.(• , L--, �r=r-
O W ER:
117 —
G�Jaime A. Tones -Jr
�D�'
Its: ��' -- (1 �. Gcd- �� r-si" Rosa Torres
in
Counterpart
u d i i�ra y��C�iPfri:i� ► ��a�.�
LENDER:
Boston Private Bank & Trust, a Massachusetts
corporation
Signed in
By:
Counterpart
Name:
Its:
394\09\2528698. t
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:
CITY OF CUPERTINO, a irninicipai corporation
Signed in
Counterpart By:
Nanne:
Its;
LENDER;
Boston Private Bank & Trust, a Massachusetts
corporation
By: —
Name: %'YL( @
Its:?=---
394109\2528698A
NA17OW . ER" Signed in
Counterpart
!` Jaime A_ Tones
Signed in
Counterpart
Rosa Torres
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 July 15, 2021 , before me, Kirsten Scluarcia , Notary Public,
personally appeared Greg Larson , who proved to me on the basis of satisfactory
evidence to be the persons j whose named is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(j4,
and that by his/her/their signature90-Yon the instrument the person, or the entity upon behalf of
which the p re soro 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.
KIRSTEN SQUARCIA
Notary Public • California z
Santa Clara County ;
Commission # 2257322
My Comm, Expires Oct 4, 2022 Name:
Notary Public
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 &Q A6 CCU 2�
On "'VO t t 23, I-UZ l , before me, Anna Mendez , Notary Public,
personally appeared-JLL� rr c A- I prt, e-Ssr, who proved to me on the basis of satisfactory
evidence to be the person
,(s�rwhose name(%)�-e subscribed to the within instrument and
acknowledged to me tha 1 kte/tl}ey executed the same irilWLer/their authorized capacity),
and that bye / r/their signature(s) on the instrument the person(4, or the entity upon behalf of
which the personA 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.
ANNA MENDE2 Name: Anna MenriJz
o�=' 9 COMM. #2257246 z
W o Notary Public . California o Notary Public
z San Mateo County
�, ,Fow ' NlComm. Expire Sep. 3, 2022'
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 M-ZL CLcIru
On � UW 7-1 2tSZk , before me, Anna Mendez , Notary Public,
personally appeared —[a I ,who proved to me on the basis of satisfactory
evidence to be the person(s)r whose name(9 rs apesubscribed to the within instrument and
acknowledged to me that 1 e/4-DlVy executed the same in �iauthorized capacity),
and that by h s lk it signatureo on the instrument the persop(-9), or the entity upon behalf of
which the person 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: Anna Mende
Notary Public
ANNA MENDEZ
COMM. #2257246 z
a Notary Public • California -'D
z San Mateo County
,o a M Comm, Expires Sep, 3, 2022
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 Californi•
County of
On before me, -
May Gacutan-Alferez, Notary Public
(insert name and title of the officer)
personally appeared'_�
who proved to me on the basis of satisfao -y evidence to be the pers ) whose nam s is re
subsr to the within instrument d acknowledged me that he / y execute th ame in
his/ er ei authorized capacity - s), and that by his(t it signatur�(§) On the instrument the
persons , or the entity Capon behalf of which the per ) acted, exercuted 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.
Signature
(Seal)
MAY GACUTAN•ALFEREZ
COMM. #2229978 z
` o Notary Public - California ;U
San Mateo County
M Comm, Ex ires Feb, 1 2022
ORDER NO.: 0621014570
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:
Fee simple title in and to Lot 40, as shown on that certain Map entitled, "Tract No. 9076, Oak
Valley -Unit 3", which Map was filed in the Office of the Recorder of the County of Santa Clara,
State of California on July 9, 1998 in Book 705 of Maps, at Pages 30 through 38.
Parcel Two:
A private easement for ingress and egress appurtenant to Parcel One above, over a portion of
Lot 39, as said lot is shown on that certain Map entitled, "Tract No. 9076 Oak Valley -Unit 3" and
being more particularly described as follows:
Beginning at the most Southerly corner of said lot; thence along the Southerly line of said lot
North 850 31' 00" West, a distance of 75.56 feet to a point on the Easterly right-of-way line of
Manzanita Court and the beginning of a non -tangent curve to the left from which point a radial
line bears North 840 15' 58" West, thence along said right-of-way line and said curve having a
radius of 464.50 feet, through a central angle of 020 8' 02", an arc length of 20.00 feet; thence
leaving said right-of-way line South 850 31' 00" East, a distance of 64.56 feet; thence North 040
29' 00" East, a distance of 4.00; thence South 850 31' 00" East, a distance of 11.00 feet to the
Easterly line of said lot; thence along said line South 040 29' 00" West, a distance of 24.00 feet
to the point of beginning as defined in the Amendment to Supplemental Declaration of
Covenants, Conditions, and Restrictions, recorded March 31, 2000 under Series No. 15199317
("The Supplemental"), and as depicted in Exhibit "B" attached thereto.
APN : 342-61-020