22-025 Subordination Agreement (City to Lender), 23644 Oak Valley Rd APN #342-57-023RECORDINCi RE0UESTED BY
NAMli NATIONAL LINK
WHEN RECORDED MAIL TO:
,,,,, NATIONAL 11NK
abi+utss: 1000 COMMERCE DR 3RD FLOOR
,,,,,.,,,, PITTSBURGH, PA 15275
"This document was electronically submitted
to Santa Clara County for recording'
25236578
Regina Alcomendras
Santa Clara County - Clerk-Recorder
02/09/2022 09:46 AM
Titles: 1 Pages: 12
Fees: $0.00
Tax: $0
Total: $0.00
(DOCUMENT Will ONLY BE RE'nlRNED TO NAME & ADDRES!i IDENnFIED ABOVE)
(SPACE ABOVE FOR RECORDER'S USE)
SUBORDINATION AGREEMENT
(DOCUMENT TITLE)
SEPARATE PAGE, PURSUANT TO CA. GOV'T. CODE 27361.6
RECORDING RE0UESTED BY
NA,,, NATIONAL LINK
WHEN RECORDED MAIL TO:
,,,,,,,,, NATIONAL LINK
,DD,,,, 1000 COMMERCE DR 3RD FLOOR
C,TYlsTAT,z,, PITTSBuRGH, PA 15275
(DOCUM)ENT WILL ONLY BE REnJRNED TO NAME & ADDRESS n)ENTIFIED ABOVE)
(SPACE ABOVE FOR RECORDER'S USE)
SUBORDINATION AGREEMENT
(DOCUMENT TITLE)
SEPARATE PAGE, PURSUANT TO CA. GOV'T. CODE 27361.6
RECORDING REQUESTED BY:
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Attention: City Manager
A Ptv : s q Z -(,y- 013
No fee for recording pursuant to
Government Code Section 27383
4737877
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
SUBORDINATION AGREEMENT
(CITY TO LENDER)
NOTICE:THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN AND RF,STRICTIVE 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
0( - 7S - 2.022-, , by and among the City of Cupertino, a municipal corporation (the
"City"), Bianli 0u and Xin Li, wife and husband as community property with right of
survivorship (the "Owner") and PNC Bank, N.A. (the "Lender").
RECITALS
A. Owner is the fee simple owner of that certain real property located at 23644 0ak
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 August 6, 2018,
by and between City and the Owner, and recorded in the official records of Santa Clara County
(the "Official Records") on August 9, 2018 as Document No. 23999990a
(ii) That certain Promissory Note dated as of August 6, 2018, executed by
Owner for the benefit of the City (the "City Promissory Note"); and
1
39=RO912528698 1
(iii) That certain Deed of Trust dated as of August 6, 2018, executed by the Owner, as
trustor, roaming the City as beneficiary, securing the City Promissory Note and the City Resale
Restriction Agreement, and recorded in the Official Records on August 9, 2018 as Document
No. 23999992.
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 August 6, 2018 and recorded on
2018 against the Property as Instrument No. 23999991 in the Official Records (the "First Loan
Deed of Trust").
D.Lender has agreed to refinance the First Loan in an amormt not to exceed Four
Hundred Thousand Dollars ($ 400000), at a fixed interest rate of Three and Twenty-Five
Hundredths percent (3.25%) 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
00 - p) - 202,2 , 2el-, 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, 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. 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
394SO912528698. 1
and in consideration of, this waiver, relinquishment and subordination, specific monetary
obligations are being entered into which worild not be made or entered into but for said reliance
ripon this waiver, relinquishment and subordination.
4. Lender covenants and agrees that in the event that Lender delivers to Owner a notice
of default rinder 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 tlie 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]
3
394SO912528698. l
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:SEE ATTACHED
DOCUMENT
CITY OF CUPERTINO, a municipal corporation
SEE ATTACHEr
DOCUMENT
Its: City Manager
Xin Li
LENDER:
PNC Bank, N.A.
SEE ATTACHED
DOCUMENT
By:
Name:
Its:
4
39=RO912528698 l
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.
I
ST ATE OF CALIFORNIA
COUNTYOF f;'x -1 -k CAr-q
evidence to be the persoQ whose named is/are subscribed to the within instrument and
acknowledged to me tha:she/they executed the same inhis/her/their authorized capacQ
and that by his/her/their signatureion the instrument the person.d, or the entity upon behalf of
which the persol acted, executed the instrriment.
I certify {ITNDER 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.
My Csmm. Expirei act 4. 2022 Na
Notary Public
IN WITNESS WHEREOF, the patties have executed this Agreement as of the day first
above written.
NOTICF,:THIS SUBOR?)mATION AGREEMENT RESULTS IN YOUR
SR,CURITY 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
AGREEMF,NT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH
RESPECT HERETO.
CITY:OWNER:
CITY OF CUPERTINO a municipal corporation
Its: City Manager
Xin Li
LENDER:
PNC Bank, N,A,
B)r:
Namg;
Its: /'Vp ClOS(aJt MIAM/bGr!
-4-
39410912528698.1
A notaiy public or other officer completing this ceitificate verifies only the
identity of the individual who signed the document to whicli this ceitificate is
attached, and not the truthfulness, accuracy, or validity of that document.
COUNTY OF
a'lWtW : befoye
personally :appeare!l /flvvh j Qk"tzh , who proved to me on the basis of satisfactory
evidence to be the person(s) wbose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their arithorized 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 instrumerit.
Icettify {JNDERPENALT\ OF PERJ[JRY under the laivs of the State of California that the
Notatay Public
comtnotiweaiih OT P e nns:tlvania - NOtary Seal
Carl J. Barl-iarino, Notary Public
AilerJ'ieny County
My cominissicn ex7.iresApril 'i5, 2022
Comrrission rnnnLier i 1)06475
Member, Pennsylvania Association of Notaries
IN WITNESS WHEREOF, the paities have executed tliis Agreement as of the day first
above written.
NOTICE:THIS SUBORDINATION AGREEMENT RESULTS IN YOUR
8ECURIT\ INTEREST IN THE PROPERTY BECOMING
SUBJECT TO AND LOWER PRIORITY THAN THE LIEN(S) OF
SOMF, OTHER LATER SECURITY INTEREST(S).
IT IS RECOMMENDED THAT PRIOR TO THE EXECUTION OF THIS
AGRlrEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH
RESPECT HERETO.
CITY:
CITY OF CUPERT:INO a municipal corporation
Its: City Manager
OWNER:
Bianli 0u
Xin Li
L'ENDER:
PNC Bank, N.A.
B7:
Natne:
Its:
,-4-
394l09'i252869)!.1
A notary public or other officer completing this ceitificate verifies only the
identity of the individual who signed the document to ivhicli this ceitificate is
attached, and not the truthfulness, accuracy, or validity of that document.
ST ATE OF CALIFORNIA
coyoptSl ]
personally appeared wlio proved to me on the basis of satisfactory
evidence to be the person(s) wliose name(s) is/are subscribed to the within instrtiment 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 instrtiment the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrumerit.
I ceitify {JNDERPENALTY OF PERJURY under the laws of the State of California that the
fotegoing paragraph is true and correct.
WITNESS my liand and official seal.
'kWlN -l{ €lOl j rl tN
c
il93) 5anta Clara County @
Commission # 2336929
4 9 MY Comm. Expires Nov 9, 2024
J Ha Ha jijl N)I fllj affl I!jj jljl Ila I
A notaty public or ottier officer completing this certificate verifies only the
identity ofthe individual who signed the documem to which this ceitificate is
attaclied, and not the truthfulness, accuracy, or validity of that document.
I
STATE OF CALIFORNIA
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me tbat }ie/slie/tliey executed the same in liis/her/their authorized capacity(ies)
and that by his/her/their signatute(s) on the instrument the person(s), or the entity upon belialf of
which the person(s) acted, executed the instrument.
foregoing paragraph is true and correct,
WITNESS my hand and official seal.
177 11Vfk 1% 0('Jr
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Order No.: 29496623
LEGAL DESCRIPTION
EXHIBIT "A"
The following described property:
SITUATEDINTHECITYOFCUPERTINO,COUNTYOFSANTACLARA ANDSTATEOFCALIFORNIA.
PARCEL ONE:
LOT 2, AS SHOWN ON THAT CERTAIN MAP ENTITLED, "TRACT N0. 9078 0AK VALLEY - UNIT 5", WHICH
MAP WAS FILED FOR RECORD IN THE OFFICE OF THE RECORDER OF THE COU'NTY OF SANTA
CLARA, STATE OF CALIFORNIA ON JULY 9, 1998 IN BOOK 705 0F MAPS, AT PAGES 44 THROUGH 51.
PARCEL TWO:
A PRIVATE EASEMENT FOR INGRESS AND EGRESS OVER A PORTION OF LOT 3, AS SAID LOT IS
SHOWN ON THAT CERTAIN MAP ENTITLED, "TRACT N0. 9078 0AK VALLEY-UNIT 5," AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE MOST WESTERLY CORNER OF SAID LOT; THENCE ALONG THE
NORTHWESTERLY LINE OF SAID LOT, NORTH 54 DEGREES 11 '1 9" EAST A DIST ANCE OF 24.00 FEET:
THENCE LEAVING SAID LINE SOUTH 35 DEGREES 48' 43" EAST A DIST ANCE OF il .00 FEET; THENCE
SOUTH 54 DEGREES 11 ' 19" WEST A DISTANCE OF 24.00 FEET TO THE SOUTHWESTERLY LINE OF
SAID LOT: THENCE ALONG SAID LINE NORTH 35 DEGREES 48' 43" WEST A DISTANCE OF 11 .00 FEET
TO THE POINT OF BEGINNING, AS DEFINED IN THE "SUPPLEMENTAL".
PARCEL THREE:
A PRIVATE EASEMENT FOR PARKING OVER A PORTION OF LOT 3, AS SAID LOT IS SHOWN ON THAT
CERTAIN MAP ENTITLED, "TRACT N0. 9078 0AK VALLEY-UNIT 5", AND BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
BEGINNING AT THE MOST WESTERLY CORNER OF SAID LOT: THENCE ALONG THE
SOUTHWESTERLY LINE OF SAID LOT, SOUTH 35 DEGREES 48' 43" EAST A DISTANCE OF 11 .00 FEET:
THENCE NORTH 54 DEGREES i i ' 19" EAST A DISTANCE OF 1 .00 FOOT TO THE TRUE POINT OF
BEGINNING, THENCE NORTH 54 DEGREES 11' 19" EAST A DISTANCE OF 8.50 FEET: THENCE SOUTH
35 DEGREES 48' 43" EAST A DISTANCE CSF 16.00 FEET; THENCE SOUTH 54 DEGREES 11 ' 19" WEST A
DISTANCE OF 8.50 FEET; THENCE NORTH 35 DEGREES 48' 43" WEST A DISTANCE OF 16.00 FEET TO
THE TRUE POINT OF BEGINNING, AND AS DEFINED IN THE "SUPPLEMENTAL".
Assessor's Parcel No:342-57-023