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Item 39 - Affordable Housing Project at 2530 & 2534 Westminster Avenue
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05/17/2022 Special and Regular
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Item 39 - Affordable Housing Project at 2530 & 2534 Westminster Avenue
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City Clerk
Doc Type
Agenda Packet
Agency
Clerk of the Council
Item #
39
Date
5/17/2022
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<br /> <br />Subordination Agreement (City of Santa Ana) Form 6456 Page 6 <br />Fannie Mae 08-13 © 2013 Fannie Mae <br /> [Westview House] <br />4883-3835-3436v.3 0113877-000026 <br />Unsubordinated City Regulatory Agreements, and other recordable Subordinate Loan Documents <br />against the Mortgaged Property to secure Borrower’s obligation to repay the Subordinate Notes <br />and all other obligations, indebtedness and liabilities of Borrower to Subordinate Lender under <br />and in connection with the Subordinate Loans. Such permission is subject to the condition that each <br />of the representations and warranties made by the Borrower and the Subordinate Lender in Section 4 <br />is true and correct on the date of this Agreement and on the date on which the proceeds of the <br />Subordinate Loans are disbursed to the Borrower. If any of the representations and warranties made <br />by the Borrower and the Subordinate Lender in Section 4 is not true and correct on both of those <br />dates, the provisions of the Senior Loan Documents applicable to unpermitted liens on the Mortgaged <br />Property shall apply. <br />4. Borrower’s and Subordinate Lender’s Representations and Warranties. <br />Borrower and Subordinate Lender each makes the following representations and warranties <br />to Senior Lender: <br />(a) Subordinate Loan Documents. <br />The Subordinate Loans are evidenced by the Subordinate Notes and is secured by the <br />Subordinate Mortgages, the Subordinate Loan Agreements and the other Subordinate Loan <br />Documents. <br />(b) Relationship of Borrower to Subordinate Lender and Senior Lender. <br />The Subordinate Lender is not an Affiliate of the Borrower and is not in possession of any <br />facts which would lead it to believe that the Senior Lender is an Affiliate of the Borrower. <br />(c) Term. <br />The terms of the Subordinate Notes do not end before the stated term of the Senior Note. <br />(d) Subordinate Loan Documents and Unsubordinated City Regulatory <br />Agreement. <br />The executed Subordinate Loan Documents and the Unsubordinated City Regulatory <br />Agreements are substantially in the same forms as those submitted to, and approved by, Senior Lender <br />prior to the date of this Agreement. Upon execution and delivery of the Subordinate Loan Documents <br />and the Unsubordinated City Regulatory Agreements, Borrower shall deliver to Senior Lender an <br />executed copy of each of the Subordinate Loan Documents and the Unsubordinated City Regulatory <br />Agreements, certified to be true, correct and complete. <br />5. Deliveries. <br />Upon execution and delivery of the Senior Loan Documents, Borrower shall deliver to <br />Subordinate Lender an executed copy of each of the Senior Loan Documents, certified to be true, <br />correct and complete. <br />EXHIBIT 6
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