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RecDoc 2020-039722 - Subordination Agreement, Hallmark House (531 Woodside)
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RecDoc 2020-039722 - Subordination Agreement, Hallmark House (531 Woodside)
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Last modified
11/12/2020 9:11:58 AM
Creation date
11/12/2020 9:06:29 AM
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Recorded Docs
Recorded Docs - Type
Agreement
Subject
Subordination Agreement
Doc Num
2020-039722
Rec Date
5/4/2020
APN
059-092-290-2; 059-092-300; 059-092-310
Address
Hallmark House Apartments
Parties
Hallmatk 2017 LP and CitiBank N.A.
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amended from time -to -time in accordance with the terms hereof by an instrument -recorded in -the-- <br />Official Records. <br />Of even date herewith, Prior Owner, Subordinate Lender, and Borrower, will execute that <br />certain Assignment and Assumption Agreement whereby Prior Owner will assign its duties <br />under the Subordinate Loan Documents to Borrower, and Subordinate Lender will consent to the <br />assignment. Also of even date herewith, (i) the Deed of Trust will be amended by that certain <br />First Amendment to Deed of Trust with Assignment of Rents executed by Borrower for the <br />benefit of Subordinate Lender, (ii) the Covenant will be amended by that certain First <br />Amendment to Declaration of Affordability Covenants between Borrower and Subordinate <br />Lender, (iii) the Subordinate Note will be amended by that certain First Amendment to <br />Promissory Note executed by Borrower for the benefit of Subordinate Lender, and (iv) the <br />Owner Participation Agreement will be amended by that certain First Amendment to Owner <br />Participation Agreement between Borrower and Subordinate Lender. The parties hereto agree <br />that upon the execution and recordation of the foregoing, the terms "Deed of Trust," "Covenant," <br />"Subordinate Note," and "Owner Participation Agreement" shall refer to each respective <br />document as amended as set forth in this paragraph, and that by executing this Agreement, <br />Senior Lender hereby consents to the assignment and amendment of the same. <br />2. Permission to Place Mortgage Lien Against Property. <br />The Senior Lender agrees, notwithstanding the prohibition against inferior Liens on the <br />Property contained in the Senior Loan Documents and subject to the provisions of this <br />Agreement, to permit the Subordinate Lender to maintain the Subordinate Note, the Subordinate <br />Security Instrument, the Covenants, the Owner Participation Agreement and other recorded <br />Subordinate Loan Documents of record against the Property (which are subordinate in all <br />respects to the lien of the Senior Security Instrument) to secure the Borrower's obligation to <br />repay the Subordinate Note and all other obligations, indebtedness and liabilities of the Borrower <br />to. the Subordinate Lender under and in connection with the Subordinate Loan. Such permission <br />is subject to the condition that each of the representations and warranties made by the Borrower <br />and the Subordinate Lender in Section 3 is true and correct on the date of this Agreement. If any <br />of the representations and warranties made by the Subordinate Lender in Section 3 is not true and <br />correct, the provisions of the Senior Loan Documents applicable to unpermitted liens on the <br />Property shall apply. <br />3. Borrower's and Subordinate Lender's Representations and Warranties. <br />The Borrower and the Subordinate Lender, as applicable, make the following <br />representations and warranties to the Senior Lender: <br />(a) Relationship of Borrower to Subordinate Lender. The Subordinate <br />Lender and Borrower each represent that the Subordinate Lender is not an Affiliate of the <br />Borrower. <br />(b) Relationship of Borrower to Senior Lender. The Borrower represents <br />that it is not in possession of any facts which would lead it to believe that the Senior Lender is an <br />Subordination Agreement 4 Hallmark Hoose Apartments <br />Description: San Mateo,CA Document - Year.DoclD 2020.39722 Page: 6 of 24 <br />Order: eeee Comment: <br />
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