JAMBOREE HOUSING (2) - Laserfiche WebLink

Home Browse Search

to be recorded in the Official Records substantially concurrently herewith, securing a loan by the Locality to the Borrower; The Locality Regulatory Agreement, the Locality Loan Agreement, the Locality Deed of Trust and any other documents, recorded or unrecorded pertaining to the Project and the Locality loan are collectively referred to herein as the "Locality Loan Documents." B. WHEREAS, Jamboree has made a loan to Borrower (the "Jamboree Loan"). The Jamboree Loan is evidenced by a promissory note from the Borrower to Jamboree in the face amount of Five Hundred Thousand and No/100 Dollars ($500,000.00), titled `Borrower's Promissory Note Secured by Subordinated Deed of Trust" (the "Jamboree Promissory Note") and secured by a deed of trust. The deed of trust was executed by Borrower, as truster, to First American Title Insurance Company, as trustee, in favor of Jamboree, as beneficiary, and is titled "Subordinated Deed of Trust" dated March 1, 2021 (the "Jamboree Deed of Trust") recorded in the Official Records on April 1, 2021 as Document No. 2021000224393. The Jamboree Promissory Note, Jamboree Deed of Trust and any related unrecorded documents, shall hereafter be collectively referred to herein as the "Jamboree Loan Documents"; C. WHEREAS, it is a condition precedent to the Locality in malting the Locality Loan, that the Locality Loan Documents have priority over the Jamboree Loan Documents; and D. WHEREAS, it is beneficial to all parties that the Locality make the Locality Loan, and the parties are willing to subordinate the Jamboree Loan Documents in order that the Locality Loan is made. NOW THEREFORE, in consideration of the foregoing and other consideration the receipt and sufficiency of which are hereby acltnowledged, and in order to induce the Locality to make the Locality Loan, the parties hereto agree as follows: Subordination of Jamboree Loan Documents. (a) Jamboree and Borrower hereby unconditionally subordinate the Jamboree Loan Documents to the Locality Loan Documents, including all extensions, modifications, incremental disbursements of the original amount of the Locality Loan if made during construction, or additional advances made thereunder. Hereafter, the Locality Loan Documents shall unconditionally be, and remain at all times, liens and encumbrances on the Project prior and superior to the encumbrances of the Jamboree Loan Documents and to all rights and privileges of the parties thereunder, and the liens and encumbrances of the Jamboree Loan Documents together with all rights and privileges of the parties thereunder shall hereby be subject to and made subordinate to the liens and encumbrances of the Locality Loan Documents. In the event of a judicial or non judicial foreclosure of the Locality Loan, the lien of the Jamboree Loan Documents shall be extinguished. (b) The Locality agrees that it shall use its best efforts to provide Jamboree with a copy of all initial notices of default provided to Borrower under the Locality Loan Documents, provide d, the Locality shall have no liability to Jamboree and/or Borrower for its failure to do so, nor shall failure to do so constitute grounds for any restraining order, injunction, or other prohibition 2045/020587-0138 16387351.2 2