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HomeMy WebLinkAbout2016 CON (Subordination Agreement) Venus Mcnight - 2738 Melrose Streetrorr!.inC rrr »" I by 2o'to -149 ��aa , r^ �, Tn. L L,OMPANY RECCII j� E'QUE TED BY FIRST AMERICAlr' TITLE COMPANY AND WHEN RECORDED MAIL TO: CITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD NATIONAL CITY,,CA 91950 ATTN: HOUSING & ECON DEV ORDER NO.: 10034169 DOC# 2016-0505025 11111111111111111111111111111111111111111111111111111111 Sep 23, 2016 08:00 AM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $24.00 PAGES: 4 SPACE ABOVE THIS LINE FOR RECORDER'S USE 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 20' day of September 2016 by Venus McKnight, owner of the land hereinafter described and hereinafter referred to as "Owners", and the City of National City, a public body, corporate and politic as present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary". WITNESSETH THAT WHEREAS, Owners has executed a deed of trust, dated April 1, 2015, to City of National City as trustee, covering the Real property in the City of National City, County of San Diego, State of California, described as follows: LOT 53 OF NATIONAL AWARD HOMES, UNIT NO. 1 IN THE CITY OF NATIONAL, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP, THERE OF NO. 4268, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY17, 1958. APN: 554-243-07-00 to secure a note in the sum of $23,809.00, dated April 1, 2015, in favor of the City of National City, a public body, corporation and politic, which deed of trust was recorded April 2, 2015, Recording Number 2015-0155148 Official Records of said county; and WHEREAS, Owners has executed, or is about to execute, a deed of trust and note in the sum not to exceed $268,000.00 dated Septembers. 1 6 2016, in favor of First California Funding, a California Corporation hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times 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; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing 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 first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor or Lender; and Page 1 of 3 Casuborda R vprellr y;, A . • 9�!{ C �T ,i L APANY RECORDfG E 'TED BY FIRST AMERICAN TITLE COMPANY AND WHEN RECORDED MAIL TO: CITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950 ATTN: HOUSING & ECON DEV ORDER NO.: 10034169 SPACE ABOVE THIS LINE FOR RECORDER'S USE 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 20TH day of September 2016 by Venus McKnight, owner of the land hereinafter described and hereinafter referred to as "Owners", and the City of National City, a public body, corporate and politic as present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary". WITNESSETH THAT WHEREAS, Owners has executed a deed of trust, dated April 1, 2015, to City of National City as trustee, covering the Real property in the City of National City, County of San Diego, State of California, described as follows: LOT 53 OF NATIONAL AWARD HOMES, UNIT NO. 1 IN THE CITY OF NATIONAL, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP, THERE OF NO. 4268, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY17, 1958. APN: 554-243-07-00 to secure a note in the sum of $23,809.00, dated April 1, 2015, in favor of the City of National City, a public body, corporation and politic, which deed of trust was recorded April 2, 2015, Recording Number 2015-0155148 Official Records of said county; and WHEREAS, Owners has executed, or is about to execute, a deed of trust and note in the sum not to exceed $268,000.00 dated September 1 6 2016, in favor of First California Funding, a California Corporation hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times 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; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing 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 first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor or Lender; and Page 1 of 3 Casuborda Order No.: DCVE-5242515 WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW THEREFORE, in consideration of the 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 Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein 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) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He/She consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender 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; (c) He/She intentionally and unconditionally waives, relinquishes and subordinates 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 Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon 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 Lender above referred to. 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 IMPROVEMENT OF THE LAND. City of National City By: Ron Morrison, Mayor Vitimmvitid enus McKnight Beneficiary Owner (All signatures must be acknowledged) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. Page 2 of 3 Casuborda 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 [ ] Y`4'` Dt,c30 } SS: On 1 P m-6•—r .94 1"0 1 ( before me, f ] Per•teUfa. Mj&re..6- - a Notary Public, personally appeared f 112.on Morn co-l., who proved to me on the basis of satisfactory evidence to be the personV)whose name') is/ale subscribed to the within instrument and acknowledged to me that he/sl/th$ executed the same in his/h r/thetr authorized capacity(i< and that by his/h fir/thOr signature(s)on the instrument the personcsir or the entity upon behalf of which the person) 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 official sealfi i iu Signature FOR NOTARY SEAL OR ST ANGEUTA MARCHANTE yI COMM. # r46693 G2 NOTARY PUBLIC'CALIFORNIA 0 SAN DIEGO COUNTY -; r �4 My Comm. Exp. October 25, 2011 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 CALIFO A COUNTY OF [ 1Wifi I'E' On i 1 n ) .'Tpr i a Notary Public, personally appear who proved to me on the basis of`Satisfactory evidence tNbe the person(p}whose name(?) ,Mare subscribed to the within instrument and acknowledged to me that he//they executed the same in his/h %their authorized capacity(4) and that by his/, e)their signaturefA)on the instrument the person(,, or the entiTy upon behalf of which the persons) 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. } SS: WITNESS my hand and official seal. Sig before me, YY0\6_ FOR NOTARY SEAL OR STAMP MORIENE J. TOOMEY Commission # 2127926 Notary Public - California San Diego County Comm. Expires Sep 25, 201 Page 3 of 3 suborda PRELIMINARY REPORT PACIFIC COAST TITLE COMPANY ESCROW NO.: 10034169-- TITLE NO.: 10034169-OCT-SM EXHIBIT A THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOT 53 OF NATIONAL AWARD HOMES UNIT NO. 1, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP NO. 4268, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 17, 1959. APN: 554-243-07-00 CLTA Preliminary Report Form — Modified (11/17/06) Page 3 RESOLUTION NO. 2016 — 149 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SUBORDINATION AGREEMENT ALLOWING A NEW MORTGAGE NOT -TO -EXCEED $268,000 TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME PURCHASE ASSISTANCE LOAN ON A SINGLE -UNIT PROPERTY LOCATED AT 2738 MELROSE STREET IN NATIONAL CITY WHEREAS, Venus McKnight ("Borrower") is the owner of a single -unit property located at 2738 Melrose Street in National City; and WHEREAS, on April 1, 2015 the City of National City made a loan to Borrower for $23,809 from the HOME Investment Partnerships Program to assist in the rehabilitation of the single -unit property; and WHEREAS, the Borrower desires to refinance the existing first mortgage to reduce the interest rate to 3.49% with a new mortgage with a principal amount not -to -exceed $268,000 from First California Funding, a California Corporation. ("Lender"); and WHEREAS, in order to provide the loan, the Lender requires the subordination of the Deed of Trust that secures the HOME funds. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute a Subordination Agreement and any other Escrow related documents as necessary. After being recorded by the County of San Diego, a copy of the Subordination Agreement will be on file in the office of the City Clerk. PASSED and ADOPTED this 20th day of Septembej_ p16 Morrison, Mayor ATTEST: el R. Dalla C t PPROVED AS TO FORM: audia Gacitua City Attorney Michy Clerk Passed and adopted by the Council of the City of National City, California, on September 20, 2016 by the following vote, to -wit: Ayes: Councilmembers Cano, Mendivil, Morrison, Rios. Nays: None. Absent: Councilmember Sotelo-Solis. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California // ie City CI rk of the City of%Jational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2016-149 of the City of National City, California, passed and adopted by the Council of said City on September 20, 2016. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT C`Ao‘6-''5 MEETING DATE: September 20, 2016 AGENDA ITEM NO. 9 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute a Subordination Agreement allowing a new mortgage that is not -to -exceed $268,000 to be and remain a lien prior and superior to a home purchase assistance loan on a single -unit property located at 2738 Melrose Street in National City. PREPARED BY: Angelita PaIm Comm. Dev. Specialist II DEPARTMENT: 'sing & Economic Dev. PHONE: 619-336-4219 APPROV Y: EXPLANATION: On April 1, 2015, the City of National City ("City") made a loan for $23,809 from the HOME Partnerships Program to assist in the rehabilitation of a single-family residence located at 2738 Melrose Street in National City. The City loan is a shared 1 % deferred interest with an outstanding balance of $23,809. Venus McKnight ("Borrower") is interested in refinancing the first mortgage loan on the property and has been approved for a new loan from First California Funding, a California Corporation ("Lender"). The Lender is requiring that the City execute the attached subordination agreement allowing the new loan to hold superior position to the City -issued loan. The City loan will maintain second lien position on the property. The purpose of the refinance is to reduce the interest rate paid to a fixed rate of 3.49% for a term of 30 years. There will be no cash proceeds to the Borrower through the refinance. rItaff has satisfactorily reviewed the combined loan -to -value, preliminary title report, new loan terms, nd underwriting summary that outline the closing costs of the transaction. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: IN/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: N/A, ATTACHMENTS: 1. Subordination Agreement .oww0NO • ra0k6•\N9 Attachment No. 1 RECORDING REQUESTED BY FIRST AMERICAN TITLE COMPANY AND WHEN RECORDED MAIL TO: CITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950 ATTN: HOUSING & ECON DEV ORDER NO.: 10034169 SPACE ABOVE THIS LINE FOR RECORDER'S USE 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 20Tn day of September 2016 by Venus McKnight, owner of the land hereinafter described and hereinafter referred to as "Owners", and the City of National City, a public body, corporate and politic as present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as 'Beneficiary". WITNESSETH THAT WHEREAS, Owners has executed a deed of trust, dated April 1, 2015, to City of National City as trustee, covering the Real property in the City of National City, County of San Diego, State of California, described as follows: LOT 53 OF NATIONAL AWARD HOMES, UNIT NO. 1 IN THE CITY OF NATIONAL, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP, THERE OF NO. 4268, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY17, 1958. APN: 554-243-07-00 to secure a note in the sum of $23.809.00, dated April 1, 2015, in favor of the City of National City, a public body, corporation and politic, which deed of trust was recorded April 2, 2015, Recording Number 2015-0155148 Official Records of said county; and WHEREAS, Owners has executed, or is about to execute, a deed of trust and note in the sum not to exceed $268,000.00 dated 2016, in favor of First California Funding. a California Corporation hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times 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; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing 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 first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor or Lender; and Page 1 of 3 Casuborda Attachment No. 1 Order No.: DCVE-5242515 WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW THEREFORE, in consideration of the 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 Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein 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) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He/She consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender 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; (c) He/She intentionally and unconditionally waives, relinquishes and subordinates 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 Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon 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 Lender above referred to. 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 IMPROVEMENT OF THE LAND. City of National City By: Ron Morrison, Mayor Venus McKnight Beneficiary Owner (All signatures must be acknowledged) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. Page 2 of 3 Casuborda Attachment No. 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 f 1 On[ ] f 1 } SS: before me, a Notary Public, personally appeared f ] 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 Califomia that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature FOR NOTARY SEAL OR STAMP 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 [ 1 On ] f 1 } SS: before me, a Notary Public, personally appeared f ] 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. Signature FOR NOTARY SEAL OR STAMP Page 3 of 3 suborda RESOLUTION NO. 2016 — 149 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SUBORDINATION AGREEMENT ALLOWING A NEW MORTGAGE NOT -TO -EXCEED $268,000 TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A HOME PURCHASE ASSISTANCE LOAN ON A SINGLE -UNIT PROPERTY LOCATED AT 2738 MELROSE STREET IN NATIONAL CITY WHEREAS, Venus McKnight ("Borrower") is the owner of a single -unit property located at 2738 Melrose Street in National City; and WHEREAS, on April 1, 2015 the City of National City made a loan to Borrower for $23,809 from the HOME Investment Partnerships Program to assist in the rehabilitation of the single -unit property; and WHEREAS, the Borrower desires to refinance the existing first mortgage to reduce the interest rate to 3.49% with a new mortgage with a principal amount not -to -exceed $268,000 from First California Funding, a California Corporation. ("Lender"); and WHEREAS, in order to provide the loan, the Lender requires the subordination of the Deed of Trust that secures the HOME funds. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute a Subordination Agreement and any other Escrow related documents as necessary. After being recorded by the County of San Diego, a copy of the Subordination Agreement will be on file in the office of the City Clerk. PASSED and ADOPTED this 20th day of September, 2016. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney ........ ..unll////pGe CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950-4397 619-336-4228 Michael R. Dalla, CMC - City Clerk VENUS MCKNIGHT Subordination Agreement 2738 Melrose Street Angelita Palma (Housing & Economic Development) Forwarded Copy of Agreement to Venus McKnight.