21-029 Subordination Agreement, 10090 Imperial Avenue, APN 357-22-020RECORDING REQUESTED BY:
First American Title Company
"This document was electronically submitted
to Santa Clara County for recording"
24794934
WHEN RECORDED MAIL DOCUMENT TO:
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
City Manager
A. P. N .: 357-22-020
Property Address: 10090 Imperial Avenue, Cupertino, CA 95014
Regina Alcomendras
Santa Clara County - Clerk -Recorder
01/21/2021 12:56 PM
Titles:1 Pages:11
Fees: $0.00
Tax: $0
Total: $0.00
Space Above This Line for Recorder's Use Only
Subordination Agreement (City to Lender)
Title of Document
File No.: 4307-6335716 (SC)
The undersigned declares that the document to which this page is affixed and made a part of is exempt from the
fee imposed by the Affordable Housing & Job Act (SB2) (GC 27388.1)
(x ) Recorded [concurrently] in connection with a transfer of real property subject to the Imposition of
Documentary Transfer Tax per GC 27388.1 (a) (2).
( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner -
occupier per GC 27388.1 (a) (2).
() Maximum fee of $225 has been reached per GC 27388.1 (a) (1).
() Not related to real property GC 27388.1 (a) (1).
( ) Transfer of real property subject to the imposition of Documentary Transfer Tax - GC 27388.1 (a)(2)
( ) Transfer of real property that is a residential dwelling to an owner -occupier - GC 27388.1 (a)(2)
THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE
(SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies)
RECORDING REQUESTED BY:
First American Title Company
WHEN RECORDED MAIL DOCUMENT TO:
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
City Manager
Space Above This Line for Recorder's Use Only
A.P.N.; 357-22-020 File No.: 4307-6335716 (SC)
Property Address: 10090 Imperial Avenue, Cupertino, CA 95014
Subordination Agreement (City to Lender)
Title of Document
The undersigned declares that the document to which this page is affixed and made a part of is exempt from the
fee imposed by the Affordable Housing & Job Act (SB2) (GC 27388.1)
(x ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of
Documentary Transfer Tax per GC 27388.1 (a) (2).
( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner -
occupier per GC 27388.1 (a) (2).
() Maximum fee of $225 has been reached per GC 27388.1 (a) (1).
() Not related to real property GC 27388.1 (a) (1).
( ) Transfer of real property subject to the imposition of Documentary Transfer Tax - GC 27388.1 (a)(2)
( ) Transfer of real property that is a residential dwelling to an owner -occupier - GC 27388.1 (a)(2)
THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE
(SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies)
RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO:
City of Cupertino
10300 Torre Avenue, 7 �
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 SUBORDINA�ION AGREEMENT (the "Agreement") is entered into as of
oQnsvq 11 , 2027, by and among the City of Cupertino, a municipal corporation (the
"City"), Pdrick Darius Phipps, an unmarried man, sole and separate (the "Owner") and Guild
Mortgage Company LLC (the "Lender").
RECITALS
A. Owner is the fee simple owner of that certain real property located at 10090
Imperial Ave, 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
/toyq t p ` , by and between City and the Owner, and recorded in the official
records ,f�cSanta Clara Count (the "Official Records") on O 1 I211202 as Document No.
'f Recording Concurrently Herewith
(ii) That certain Promissory Note dated as of t&tAf /-r ??' e#1ecuted by
Owner for the benefit of the City (the "City Promissory Note"); and
394\09\2528698.1
(iii) That certain Deed of Trust dated as of Sanu6�X 1 -2-6 21, executed by the
Owner, as trustor, naming the City as beneficiary, securing the ity Promissory Note and the
City Resale Restriction Agreement, and recorded in the Official Records on D 21 Z o Z
as Document No. T
Recording Concurrently Herewith
C. Lender has agreed to finance the First Loan in an amount not to exceed Three
Hundred Ninety -Six Thousand Four Hundred Thirty -Three Dollars ($396,433), at a fixed
interest rate of three and one hundred twenty-five thousandths percent (3.125%) per annum, for
a term of thirty (30) years (the "First Loan"). The proceeds of the First 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 /c AL__j A, 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."
D. It is a condition of the First 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.
E. 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.
F. 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. 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.
2. 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.
3. 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
2
394\09\2528698.1
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.
4. As a condition for approval of this subordination, a request for notice of default and
notice of sale regarding the First Loan shall be recorded in the Official Records for the benefit of
the City.
5. 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.
6. This Agreement shall be binding on and inure to the benefit of the legal
representatives, heirs, successors and assigns of the parties.
7. This Agreement shall be governed by and construed in accordance with the laws of
the State of California.
8. 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.
9. 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
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:
CITY OF CUPERTIN ; a municipal corporation
By: /f � �� �
Deborah Feng, City Manager
APPROVED AS TO FORM AND
LEGALITY BY:
Heather Minner, City Attorney
Date: Jan 4, 2021
OWNER:
Patrick Darius Phipps, an unmarried man, sole and
separate ��
Signed in Counterpart
Patrick Darius Phipps
4
394\09\2528698.1
LENDER:
Guild Mortgage Company LLC
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 CUPERTIN , a municipal corporation
By:
Deborah Deng, City Manager
APPROVED AS TO FORM AND
LEGALITY BY:
Kea+.Mor M. M4mw
Heather Minner, City Attorney
Date: Jan 4, 2021
OWNER:
Patrick Darius Phipps, an unmarried man, sole and
separate
Patrick Darius Phipps
LENDER:
Signed in Counterpart
Guild Mortgage Company LLC
Dino Castro
ASSISTANT SECRETARY
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
On , before me,: , Notary Public,
personally appeared , 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 laws of the State of California that the
foregoing paragraph is true and correct _..
WITNESS my hand:and,official seal
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 S awA ON
On 3QY1�4�W1 �� t`��� , before me, K*tM '1WW(A gV1E Notary Public,
personally appeared 1-)gQ1fZ1 `• W4 , who p�d.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. ASHLEY ANGELINA SANKS
WITNESS my hand and official seal. COMM. #2194591 z
z Notary Public • California c
Monterey County 0
Comm. Expires Apr. 29, 2021 P
Name:
Notary P c
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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 )SS
COUNTY OF
On is 0-I S'1214'k 1before me,� u I Notary Public, personally appeared
who proved to me on the basis of satitfactory evidence to be the person s) whose name(so Is re subscribed to the within F/their
ment
and acknowledged to me th he he/they executed the same i i er/their authorize capacity(ies), and that by is
signature(s) on the instrumenftt" rson(s), or the entity upon be a of which the person(s) acted, executed the instrume
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.
Notary 'gna
JANELLE DE LUCA
NotaryPublic— California ,
< = Santa Clara County
+ Commission * 2233595
My Comm. Expires Mar 9, 2022
This area for official notarial seal.
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 fkv P166 0
On (1,N114RY 13, 202�before me, 114014- %rO4660 Notary Public,
personally appeared _V tN0 CAS` IL-O who proved tome 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(ics),
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 haud:and official seat
Nam .( /i/1 Svvu& e o
Notary Public
MARK SCNGCO
NotaryPublic- California z
San Diego County n
Commission # 2181420
My Comm. Expires Feb 23, 2021
EXHIBIT A
LEGAL DESCRIPTION
For APN/Parcel ID(s): 357-22-020
Real property in the City of Cupertino, County of Santa Clara, State of California described as
follows:
LOT 20, AS SHOWN ON THAT CERTAIN MAP ENTITLED "TRACT NO. 9410 ASTORIA",
WHICH MAP.WAS FILED IN THE OFFICE OF THE RECORDER OF THE COUNTY OF
SANTA CLARA, STATE OF CALIFORNIA ON APRIL 26, 2002, IN BOOK 748 OF MAPS
PAGE(S) 12 THROUGH 17.
EXCEPTING THEREFROM THE UNDERGROUND WATER RIGHTS, WITHOUT RIGHTS
OF SURFACE ENTRY, AS CONVEYED TO THE CITY OF CUPERTINO BY DEED.
RECORDED JUNE 1, 1998 AS DOCUMENT NO. 14209355 OF OFFICIAL RECORDS.
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