UNION BANK - 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, MUFG has made a loan to Borrower (the "MUFG Loan'). The MUFG Loan is evidenced by a promissory note from the Borrower to MUFG in the face amount of Eight Hundred Ninety Thousand and No/100 Dollars ($890,000.00), titled "Promissory Note (AHP Rental Project)" (the "MUFG Promissory Note") and secured by a deed of trust. The deed of trust was executed by Borrower, as trustor, to UnionBanCal Mortgage Corporation, a California corporation, as trustee, in favor of MUFG, as beneficiary, and is titled "Construction and Permanent Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing" dated March 1, 2021 (the "MUFG Deed of Truse) recorded in the Official Records on April 1, 2021 as Document No. 2021000224391. The MUFG Promissory Note, MUFG Deed of Trust and any related unrecorded documents, shall hereafter be collectively referred to herein as the "MUFG Loan Documents"; C. WHEREAS, it is a condition precedent to the Locality in making the Locality Loan, that the Locality Loan Documents have priority over the MUFG 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 MUFG 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 acknowledged, and in order to induce the Locality to make the Locality Loan, the parties hereto agree as follows: Subordination of MUFG Loan Documents. (a) MUFG and Borrower hereby unconditionally subordinate the MUFG 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 MUFG Loan Documents and to all rights and privileges of the parties thereunder, and the liens and encumbrances of the MUFG 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 MUFG Loan Dircumentc shall he extinguished. (b) The Locality agrees that it shall use its best efforts to provide MUFG with a copy of all initial notices of default provided to Borrower under the Locality Loan Documents, rovided, the Locality shall have no liability to MUFG 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 16400554.2