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21-031 Subordination Agreement, 10456 Manzanita Court, APN 342-61-006W a RECORDING REQUESTED BY Old Republic Title Company Escrow No.: 0626033138 APN: 342-61-006 WHEN RECORDED MAIL TO City of Cupertino Attn: City Manager 10300 Torre Avenue Cupertino, CA 95014 **This document was electronically submitted to Santa Clara County for recording** 24957452 Regina Alcomendras Santa Clara County - Clerk -Recorder 05/12/2021 08:31 AM Titles:I Pages:16 Fees: $0.00 Tax: $0 Total: $0.00 SPACEA60VE THIS LINE FOR RECORDERS USE Subordination Agreement 1 ❑ Exempt from fee per GC27388.1(a)(2); document recorded in connection with a concurrent transfer subject to the imposition of documentary transfer tax 2 ❑ Exempt from fee per GC27388.1(a)(2); document transfers real property that is a residential dwelling to an owner -occupier 3 ❑ Exempt from fee per GC27388.1(a)(2); document recorded in connection with a concurrent transfer that is a residential dwelling to an owner -occupier 4 ❑ Exempt from fee per GC27388.1(a)(1); fee cap of $225 reached 5 ❑ Exempt from fee per GC27388.1(a)(2); document is subject to the imposition of documentary transfer tax 11 ER Exempt from fee per GC27388.1(a)(2); document is executed or recorded by the state or any county, municipality, or other political subdivision of the state 12 ❑ Exempt from fee per GC27388.1(a)(2); executed or recorded by the federal government in accordance with the Uniform Federal Lien Registration Act (Title 7 (commencing with Section 2100) of Part 4 of the Code of Civil Procedure) AC/ka RECORDING REQUESTED BY Old Republic Title Company Escrow No.: 0626033138 APN : 342-61-006 WHEN RECORDED MAIL TO City of Cupertino Attn: City Manager 10300 Torre Avenue Cupertino, CA 95014 SPACE ABO VE THIS LINE FOR RECORDER S USE Subordination Agreement 1 ❑ Exempt from fee per GC27388.1(a)(2); document recorded in connection with a concurrent transfer subject to the imposition of documentary transfer tax 2 ❑ Exempt from fee per GC27388.1(a)(2); document transfers real property that is a residential dwelling to an owner -occupier 3 ❑ Exempt from fee per GC27388.1(a)(2); document recorded in connection with a concurrent transfer that is a residential dwelling to an owner -occupier 4 ❑ Exempt from fee per GC27388.1(a)(1); fee cap of $225 reached 5 ❑ Exempt from fee per GC27388.1(a)(2); document is subject to the imposition of documentary transfer tax 112 Exempt from fee per GC27388.1(a)(2); document is executed or recorded by the state or any county, municipality, or other political subdivision of the state 12 ❑ Exempt from fee per GC27388.1(a)(2); executed or recorded by the federal government in accordance with the Uniform Federal Lien Registration Act (Title 7 (commencing with Section 2100) of Part 4 of the Code of Civil Procedure) AC/ka 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 Recording Concurrently Herewith (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 April 26 , 2021, by and among the City of Cupertino, a municipal corporation (the "City") ' City"), Michael C. Drake and MaU J. Drake, husband and wife as joint tenants (the "Owner") and Boston Private Bank & Trust Company a Massachusetts corporation (the ".Lender"). RECITALS A. Owner is the fee simple owner of that certain real property located at 10456 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"): G) That certain Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase (the "City Resale Restriction Agreement") dated as of June 12, 2001, by and between City and the Owner, and recorded in the official records of Santa Clara County (the "Official Records") on June 29, 2001as Document No. f.`%'46b; and 15748596 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 July 24.2013 and recorded on August st 6, 394\09\2528698. l 2013 against the Property as Instrument No, 22331459 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 Forty -One Thousand Dollars ($241,000), at a fixed interest rate of Two and Seventy - Five Hundredths percent (2.75%) 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 May 6 , 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." Recording 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 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 394\09\2528698. ! 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 tenns 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] 39410912528698.1 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:cc% NgF_ Arm M141 CITY OF CUPERT,rINO, a municipal corporation By:_ - Name: J Its: -- LENDER: Boston Private Bank & Trust, a Massachusetts corporation By: Name: ctil� Its: fK 41 394\09\2528698. I Signed in Counterpart OWNER: Michael C. Drake signed in counterpart Mary J. Drake signed in counterpart Anne Guzman Asst. Vice President 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: Name: ���� L Its: Deborah L. Feng, aka Deborah Feng City Manager LENDER: Boston Private Bank & Trust, a Massachusetts corporation By: signed in counterpart Name: Its: OWNER: Michael C. Drake Mary J. Drake 394\09\2528698.1 4 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 April 26, 2021 , before me, Kirsten Squarcia , Notary Public, personally appeared Deborah Feng , who proved to me on the basis of satisfactory evidence to be the person f s) whose nameH 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 f s) on the instrument the personO, or the entity upon behalf of which the person f 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. Name: 1lief 4eo q v arC/'Q Notary Public KIRSTEN SQUARCIA Notary Public - California Santa Clara County Commission p 2257322 My Comm. Expires Oct 4, 2022 ILLEGIBLE NOTARY SEAL CERTIFICATION (Government Code 27361.7) 1 certify under penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of Notary Commission Number Vendor No. County/State where Bond is filed Commission Exp. Date Executed in the City of ooteSlIZ f 408-652-7870 Phone Number Kirsten Squarcia 2257322 NNAI Santa Clara/CA Oct 4, 2022 San Jose , State of California decording Partners Network By: Signature of Declarant BenedictAyap Type or Print Name 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 ) On , b or me,"� , Notary Public, personally ppeared ,who r ved 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 laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. MARYANN GEE Name• Comm. No. 2308709 > Notary Pu is a NOTARY PUBLIC- CALIFORNIA SANTA CLARA COUNTY My Comm. Expires Oct 13.2023 GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THIS MATERIAL IS A TRUE COPY OF THE ORIGINAL MATERIAL CONTAINED IN THE DOCUMENT: State of CALIFORNIA ) County of Santa Clara ) On May 6, 2021 , before me, Mary Ann Gee, Notary Public, Personally appeared Michael C. Drake , who proved to me on the basis of satisfactory % ePN AS AGENT p 1n n DATE: I �� A� AP Signature Print V Executed: San Jose, CA (Government Code 27361.7) 1 certify under penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of Notary Mary Ann Gee Commission Number 2308709 Vendor No. ABPI County/State where Bond is filed Santa Clara/(A Commission Exp. Date Oct. 13, 2023 Executed in the City of San Jose, State of California eRecording Partners Network By: UJ Date Signature of Declarant Print 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 OF1 IV4,—&d On 44� 61be -ore me, � d e, , Notary Public, personall ap eared / '� u , w o proved to me on the basis of satisfactory evidence to be the persons) whose names) 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. MARY ANN GEE L a Comm. No. 2308709 'm m NOTARYPUBLIC- CALIFORNIA v a SANTA CLARA COUNTY My Comm. Expires OcI. 13, 2023 GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THIS MATERIAL IS A TRUE COPY OF THE ORIGINAL MATERIAL CONTAINED IN THE DOCUMENT: State of CALIFORNIA ) ) County of San M(A U ) On May 5, 2021 , before me, Mary Ann Gee, Notary Public, Personally appeared Anne Guzman , who proved to me on the basis of satisfactory ePN AS AGENT DATE: S � � / l.� � � `� 1 -vv' I N'T Sig nature Print Executed: San Jose, CA (Government Code 27361.7) 1 certify under penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of Notary Mary Ann Gee Commission Number 2308709 Vendor No. ABP1 County/State where Bond is filed Santa Clara/CA Commission Exp. Date Oct. 13, 2023 Executed in the City of San Jose, State of California eRecording Partners Network By: Date Signature of Declarant Print 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 CKoil) 00rdLou J — _ -V.. — a — 4On MO)A 6 .r-)&kI bqforeme,Al-<, , Notary Public, personally appeared , who roved to me on the basis of satisfactory evidence to be the persons) w ose 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 laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. �MARY ANN GEE Comm. No. 2308709 m NOTARY PUBLIC- CALIFORNIA a SANTACLARA COUNTY My Comm. Expires Oct, 13, 2023 'Ila, Name: -� Notary Public GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THIS MATERIAL IS A TRUE COPY OF THE ORIGINAL MATERIAL CONTAINED IN THE DOCUMENT: State of CALIFORNIA ) County of Santa Clara ) On May 6, 2021 , before me, Mary Ann Gee, Notary Public, Personally appeared Mary J. Drake, who proved to me on the basis of satisfactory ePN AS AGENT DATE: Signature Print p Executed: San Jose, CA (Government Code 27361.7) 1 certify under penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of Notary Mary Ann Gee Commission Number 2308709 Vendor No. ABPI County/State where Bond is filed Santa Clara/CA Commission Exp. Date Oct. 13, 2023 Executed in the City of San Jose, State of California eRecording Partners Network By. "`'' QVl " Date Signature of Declarant Print A notary public or other officer completing this certificate verifies o the identity of the individual who signed the document to which this c ificate is attached, and not the truthfulness, accuracy, or validity of that do ument. STATE OF CALIFORNIA COUNTY OF On , before me, personally appeared , who evidence to be the person(s) whose name(s) is/are s acknowledged to me that he/she/they executed the and that by his/her/their signature(s) on the instrum which the person(s) acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under foregoing paragraph is true and correct. / WITNESS my hand and official seal. Public Notary Public, e to me on the basis of satisfactory ed to the within instrument and in his/her/their authorized capacity(ies), ie person(s), or the entity upon behalf of laws of the State of California that the ORDER NO.: 0626033138 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 52, 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 53, 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 Easterly corner of said lot; thence along the Southeasterly line of said lot, South 460 28' 11" West a distance of 11.00; thence leaving said line North 430 43' 11" West a distance of 24.00 feet; thence North 460 28' 11' East a distance of 11.00 feet to the Northeasterly line of said lot; thence along said line South 430 43' 11" East a distance of 24.00 feet to the point of beginning, as defined in the "Supplemental", and as depicted in Exhibit "B" attached thereto. Parcel Three: A private easement for parking appurtenant to Parcel One above, over a portion of Lot 53, 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 Easterly corner of said lot; thence along the Southeasterly line of said lot, South 460 28' 11" West a distance of 11.00; thence leaving said line North 43143' 11" West a distance of 1.00 foot to the true point of beginning; thence South 460 28' 11" West a distance of 16.00; thence North 430 43' 11" West a distance of 8.50 feet; thence North 460 28' 11" East a distance of 16.00 feet; thence South 43143' 11" East a distance of 8.50 feet to the true point of beginning, as defined in the "Supplemental", and as depicted in Exhibit "A" attached thereto. APN:342-61-006