Agmt99 J.H.R. Trust - Laserfiche WebLink

Browse Search

remain a lien or charge on the Property prior and superior to the lien or charge of the Subordinated Deed of Trust thereon, and that Beneficiary specifically and unconditionally subordinates the lien or charge of the Subordinated Deed of Trust to the lien or charge of the Bank Deed of Trust. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agrees as follows: 1. SUBORDINATION. (a) The Bank Deed of Trust and any and all extensions, renewals, modifications or replacements thereof and/or of the promissory note evidencing the Bank Loan and secured thereby, shall be and at all times remain a lien or charge on the Property prior and superior to the lien or charge of the Subordinated Deed of Trust. (b) Beneficiary acknowledges that Bank would not make, or continue to extend credit under, the Bank Loan without this Agreement. (c) Beneficiary intentionally and unconditionally waives, relinquishes and subordinates the priority and superiority of the lien or charge of the Subordinated Deed of Trust to the lien or charge on the Property of the Bank Deed of Trust (including liens and charges thereunder securing all future advances of the Bank Loan and other advances contemplated thereunder), and Beneficiary understands that in reliance upon and in consideration of this waiver, relinquishment and subordination, specific loans and advances are being and will be made by Bank and, as a 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 waiver, relinquishment and subordination. (d) Beneficiary has placed an endorsement on the promissory note secured by the Subordinated Deed of Trust that the Subordinated Deed of Trust has, by this instrument, been subordinated to the lien or charge of the Bank Deed of Trust. (e) Beneficiary acknowledges that it has such information with respect to the Bank Loan, and all of the loan documents executed in connection therewith, including without limitation the above- described promissory note, as Beneficiary deems necessary in order to make the subordination provided herein. Beneficiary further agrees that Bank, in making disbursements under the Bank Loan, is under no obligation or duty to, nor has Bank represented that it will, see to the application of such proceeds by the person or persons to whom Bank distributes such proceeds, and any application or use of such proceeds for purposes other than those for which they were intended shall not defeat the subordination contained herein in whole or in part. C-530.CA -2- 05/98 . ~.' . . .