2003-95443
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DO.# F"\OO"""lJ' O''''i'qr ,/ ,/ ""'f ,
c-" L J- IU,. 844j I
8561
JAN 28, 2003 8=56 AM
RECORDING REQUESTED BY
First American Title Company
OFFICIAL RECORDS
SAN DIEGO COUNTY ~HO~:DER'S OFFICE
GREGORY J. SMITH, COUNTY RECORDER
FEES: 26.00
AND WHEN RECORDED RETURN TO:
City Encinitas
Attn.: Amanda Mills
505 S. Vulcan Avenue
Encinitas, CA 92024
III~I 11111111111111111111 11111 111111111 11111 11111 III 111111I
2003-0095443
(SPACE ABOVE THIS LINE FOR RECORDER'S USE ONLY)
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i \ I V i I
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE
PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER
OR LATER SECURITY INSTRUMENT.
THIS SUBORDINATION AGREEMENT ("AGREEMENT'), is dated as of this 23rd day of January,
2003, by Cantebria Senior Homes, a California nonprofit public benefit corporation, owner of the real
property ("Owner") described on the attached Exhibit A ("Property"), and by this reference made a part
hereof, and CITIBANK (WEST), FSB, a federal savings bank ("Subordinate Lienholder") present owner and
holder of the promissory note and deed of trust first hereinafter described.
RECITALS:
A. With respect to the Property, Owner has executed, or is about to execute, the following
documents in favor of Subordinate Lienholder in connection with the Federal Home Loan
Bank of San Francisco Affordable Housing Program:
1. Affordable Housing Program Promissory Note evidencing a loan in the original
principal amount of $176,000.00
2. Affordable Housing Program Deed of Trust, Assignment of Rents, Security
Agreement and Fixture Filing
3. Affordable Housing Program Nonrecourse Agreement
The foregoing documents are hereinafter referred to collectively as the "Subordinate Lienholder
Documents" .
B. With respect to the Property, Owner has executed, or is about to execute, the following
documents in favor of City of Encinitas ("Senior Lienholder"):
1. Promissory Note evidencing a loan in the original principal amount of $614,000.00
2 Deed of Trust with Assignment of Rents
3 Regulatory Agreement
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The foregoing documents are hereinafter referred to collectively as the "Senior Lienholder Documents".
C. It is a condition precedent to making the Senior Lienholder loan, that the Senior Lienholder
Documents shall unconditionally be and remain at all times a lien, restriction and charge upon
the Property, prior and superior to the Subordinate Lienholder Documents and any and all
rights, restrictions, agreements, liens and charges in favor of Subordinate Lienholder.
D. Senior Lienholder is willing to make the Senior Lienholder loan, provided the condition
precedent described above is satisfied and that Subordinate Lienholder will specifically and
unconditionally subordinate the Subordinate Lienholder Documents and any and all other
rights, restrictions, agreements, liens and charges in favor of Subordinate Lienholder to the
lien, restrictions and charge of the Senior Lienholder Documents.
E. It is to the mutual benefit of the parties hereto that Senior Lienholder make the Senior
Lienholder loan, and Subordinate Lienholder and Owner are willing to provide the
subordination required by the condition precf1dent de~crjbed above.
NOW, THEREFORE, in consideration of mutual benefits accruing to the parties hereto and other
valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in
order to induce Senior Lienholder to make the Senior Lienholder loan, it is hereby declared, understood and
agreed as follows:
(a) The Senior Lienholder Documents and any extension or renewal thereof shall
unconditionally be and remain at all times a lien, restriction and charge on the Property, prior and
superior to the Subordinate Lienholder Documents and any and all other rights, restrictions,
agreements, liens and charges in favor of the Subordinate Lienholder. All advances made by Senior
Lienholder and any extension or renewal agreed to by Senior Lienholder with respect to the Senior
Lienholder loan, the Senior Lienholder Documents or any other documents and instruments
governing, evidencing or securing the Senior Lienholder loan shall be secured by the lien, restrictions,
and charge of the Senior Lienholder Documents, which shall at all times be prior and superior to the
Subordinate Lienholder Documents and any and all other rights, restrictions, agreements, liens or
charges in favor of the Subordinate Lienholder;
(b) The Senior Lienholder would not make the Senior Lienholder loan without this
Agreement; and
(c) This Agreement shall be the whole and only agreement with regard to the
subordination of the Subordinate Lienholder Documents and any and all other rights, restrictions,
agreements, liens or charges in favoi of the Subordinate Lienholder to the lien, restrictions and charge
of the Senior Lienholder Documents and shall supersede and cancel, but only insofar as would affect
such priority, any prior agreements as to such subordination, including, but not limited to, those
provisions, if any, contained in the Subordinate Lienholder Documents in favor of the Subordinate
Lienholder, which provide for the subordination of the rights, restrictions, agreements, lien or charge
thereof to another deed or deeds of trust or to another mortgage or mortgages.
Subordinate Lienholder declares, agrees and acknowledges that:
(d) Subordinate Lienholder consents to and acknowledges (i) all provisions of the Senior
Lienholder Documents in favor of Senior Lienholder and (ii) all agreements, including but not limited
to any loan or escrow agreements, between Owner and Senior Lienholder for the disbursement, if
any, of the proceeds of Senior Lienholder's loan;
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(e) Senior Lienholder in making disbursements pursuant to any such agreement is under
no obligation or duty to, nor has Senior Lienholder represented that it will see to the application of
such proceeds by the person or persons to whom Senior Lienholder disburses such proceeds and
any application or use of such proceeds for purposes other than those provided for in such agreement
or agreements shall not defeat the subordination herein made in whole or in part;
(f) Subordinate Lienholder intentionally and unconditionally subordinates the
Subordinate Lienholder Documents and intentionally and unconditionally subordinates any and all
other rights, restrictions, agreements, liens or charges in favor of Subordinate Lienholder in favor of
the lien, restrictions and charge upon the Property of the Senior Lienholder Documents. Subordinate
Lienholder understands that in reliance upon, and in consideration of, this Agreement, specific
concessions are being and will be made by Senior Lienholder, and as part and parcel thereof, specific
monetary and other obligations are being and will be entered into which would not be made or entered
into but for said reliance upon this Agreement;
(g) The undersigned hereby acknowledges and agrees that its agreement with Owner,
and any terms and conditions thereof, whether expre3s or implied, are solely between it and Owner
and are of no concern to Senior Lienholder. Senior Lienholder is and will be, throughout the terms
of its loan and extension or renewal thereof, under no duty or obligation to assure compliance with
the terms and conditions of any agreement between Owner and undersigned; nor will Senior
Lienholder be under any obligation or duty to take any action because of any knowledge it has or may
have regarding any breach by Owner. The undersigned further agrees, notwithstanding anything to
the contrary in the law, equity or its agreement with Owner, that the subordination of its interest is not
subject to compliance, substantial or otherwise, with any provision of such agreement with Owner,
whether express or implied. The undersigned acknowledges that Senior Lienholder considers this
acknowledgment and agreement to be a material condition for making its loan with Owner.
INTENTIONALLY LEFT BLANK
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NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION, WHICH ALLOWS THE
PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN, A PORTION OF
WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENTS OF THE LAND. IT IS
RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE
PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
OWNER:
CANTEBRIA SENIOR HOMES,
a California nonprofit public benefit corporation
By:
Name:
Title:
AmY~%~~
Secretary/Treasurer
SUBORDINATE LIENHOLDER:
elTlBANK (WEST), FSB,
a federal savings bank
By:
Name:
Title:
AGREEMENT IS NOT BE EXECUTED UNDER A POWER OF ATTORNEY
ALL SIGNATURES MUST BE ACKNOWLEDGED
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ACKNOWLEDGMENTS
STATE OF CALIFORNIA )
0.. ( )ss
COUNTY OF ~(anCiSrA) )
On this Z~J day ohJlAI1UllY~ ,2003 before me, M. G. ~C'r()(;O a
Notary Public in and for said State, pelSonallyappeared GAtt.( L. Nell-tiS . personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person( s) whose name( s) ~are-
subscribed to the within instrument and acknowledged to me that ~sAe/lIl~Y executed the same in
his/her/their authorized capacity(ies), and that b~ir signature(s) on the instrument the person(s),
or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
STATE OF CALIFORNIA )
)ss
COUNTY OF San Francisco)
On this 11 day of January ,2003 before me, G. Hoshiyama a
Notary Public in and for said State, personally appeared Amy Bayley , personally
known to me (or 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.
WITNESS my hand and official seal.
G. HOSHIYAMA
COMM.' 1353809
warNJrtPt&lCe ~..
SAN FMHCISCO COUNTY
Comm. . APRIL 27. 2008
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Notary ublic
My Commission expires:
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EXHIBIT "A"
LEGAL DESCRIPTION
The Property is located in the City of Encinitas, County of San Diego, State of California and is described as
follows:
LOT 44 OF AMENDED MAP OF CITY OF ENCINITAS MAP NO. 13258, CITY OF ENCINITAS TRACT NO.
94-066, UNITS I, II AND III, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, ACCORDING TO MAP THEREOF NO. 13333, FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY, JUNE 3,1996.
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GOVERNMENT CODE 27361.7
I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON
THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS
FOLLOWS:
Name of Notary: M~ ().. ()<l~'~
Commission No: / 35' q 7 tP Q
Date Commission Expires:
(P-Io -()(/;,
County where bond is filed:
~ ~ '
,,-./Cii~ (-.~ <i,t{~
Manufacturer or Vendor Number: AJ A.) 11/
Signature: (I#lJA:~ A (!J?a~
~JJ
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Place of execution: ,c;n 4< ~ ~o--
Date: I - OZcr-03