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HomeMy WebLinkAboutCC RESO 8904RESOLUTION NO. 8904 RESOLUTION AUTHORIZING EXECUTION OF SUBORDINATION AGREEMENT (WALTON) BE IT RESOLVED by the City Council of the City of National City, California as follows: That the Mayor and City Clerk are authorized and directed to execute, attest and record that certain Subordina- tion Agreement dated May 4, 1965 between the City of National City and MARELL and. MARGARET WALTON, a copy of which is attached hereto and is hereby incorporated by reference. PASSED AND ADOPTED this 4th day of May, 1965. ATTEST: 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 AGREEMENT, made this 4th day of May , 1965, by Marell and Margaret Walton, owner of the land hereinafter des- cribed and hereinafter referred to as Owner, and the City of National City, present owner and holder of the deed of trust and.. note first hereinafter described and hereinafter referred to as Beneficiary, WITNESSETH: THAT WHEREAS, Marell and Margaret Walton did on April 19, 1965 execute a deed of trust to Security First National Bank, as trustee, covering the property more fully described on Exhibit A attached hereto, to secure a note in the sum of $30,000.00, dated April 19, 1965, in favor of the City of National City, which deed of trust was recorded April 29, 1965 , in book 1965 , page 75639 of Official Records of said County; a d~ WHEREAS, owner has executed, or is about to execute a loan escrow and loan agreement together with a deed of trust and note in the sum of $165,000.00, dated April `:7, 1965, in favor of Coronado Federal Savings and Loan Association,' hereinafter referred toas Lender, payable with interest and upon the terms.and condi- tions described therein, which deed of trust is to be recorded con- temporaneously herewith, and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust, last above mentioned, shall be and remain a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust, first above mentioned; WHEREAS, Lender is willing to make said loan provided the deed of trust to secure the same is a lien or charge upon the above -described property prior and superior to the lien or charge of the deed of trust owned by Beneficiary, and provided that Bene- ficiary.will specifically and unconditionally subordinate the lien or charge of his deed of trust above described to the lien or charge of the deed of trust of Lender.-r. row, THEREFORE, in consideration of the premises and other valuable consideration, receipt of which is hereby acknowle•- edged, and in order to induce Coronado Federal Savings and Loan Association to make the loan above referred to, it is hereby de- clared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Coronado Federal Savings and Loan Association shall be and re- main at all times a lien or charge on the property herein described,. prior and superior to the lien or charge of the deed of trust first above mentioned. (2) That Lender would not make its loan above described without this Subordination Agreement. (3) Beneficiary declares and acknowledges that he here- by intentionally waives, relinquishes, and subordinates the pri- ority and superiority of the lien or charge of the deed of trust first above mentioned, in favor of the lien or charge upon said land of the deed of trust in favor of Coronado Federal Savings and Loan Association,?above referred to, and that he understands that in reliance upon and in consideration of this waiver, relinquish- ment and subordination specific loans and advances are being and will be made, and as part and parcel thereof specific monetary and other obligations are being and will be entered into by third par- ties which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination. 14) Beneficiary further declares that an endorsement has been placed on'the note secured by the deed of trust, first above mentioned, that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Coronado Federal Savings and Loan Association above re- ferred to: (5) That Beneficiary does hereby declare that Benefi- ciary has personal knowledge of and does hereby approve and consent to all the provisions of the loan escrow and loan agreement between Owner and Lender for the disbursement of the proceeds of the loan of the Lender. (6) That Beneficiary does hereby agree that this agree- ment shall supersede, and operate as a cancellation of, those pros visions in the deed of trust first above referred to, which pro- visions, if any, provide for the automatic subordination of the lien of said deed of trust to. the lien or liens of a mortgage or deed of trust, or mortgages or deeds of trust, affecting the whole or part of the above described property. (7) This. Agreement contains the whole agreement between the parties hereto as to the deed of trust loans, and the priority thereof,herein described, and there are no agreements written or oral outside or separate from this Agreement and all prior negoti- ations, if any, are merged into this Agreement.; THIS AGREEMENT shall inure to the benefit and be bind- ing upon the legal representatives, heirs, devisees, successors, and assigns of the parties. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. Beneficiary CITY OF NATIONAL CITY. municipal corporation Beneficiary AYOR =N GCC CITY CLERK OWNER OWNER