HomeMy WebLinkAboutContracts & Agreements_88-2008_CCv0001.pdf ~ .
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RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
CitimnrtgoQe. |no.
45OMamaroneck Ave,
Harrison, New York 1OS2B
Attn: Gary R. Smith
Assessor's Parcel No. D2Q2-168-27
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR INTEREST IN THE
PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN
OF SOME OTHER OR LATER SECURITY INSTRUMENT.
THIS SUBORDINATION AGREEMENT ("Subordination Agreement") made as of June 17, 2008. by
LOk8A LINDA UNIVERSITY BEHAVIORAL MEDICINE CENTER. INC., o California non-profit religious
corporation (''Borrower'). the CITY OF REDLANDS, a municipal corporation (the "City"), and
C[T|KAORTGAGE. |NC, ("Lender"), as assignee of California Economic Development Authority ("Issuer"),
RECITALS
& Borrower, as ouoceoaur-in-interest tn Citrus Investors, LLC. o California limited liability company,
is the owner of o fee simple interest in and to that certain real property situated in the City of
Red|an6a. County of San Bernardino. State of California, as more particularly described in Exhibit
''/Y'attached hereto (the''Proporty'').
B, Pursuant to Paragraph of that certain StormwahsrTreatment Device and Control yWeaoun*
Access and Maintenance Agreement dated as of June 4. 2007. by and between the City and
Borrower("City Agreement"), and recorded on June 7, 2007, in the Official Records of the County
of San Bemandino. California, as Document No, 2007-0343802. the City Agreement constitutes a
lien against the Property ("City Lien") in such amount as will fully reimburse the City to cause any
necessary maintenance to be completed in the event Borrower fails to perform the necessary
maintenance required bythe City Agreement.
C. Borrower has obtained or will obtain m loan in the principal num of $17,464,558.75 (the ^Loan^),
which is evidenced by (i) that certain Promissory Note dated June 19. 2008. infavor ofIssuer
("Note"), which Note evidences o loan made by Issuer to Borrower. and (ii) that certain Loan
Agreement by and among Borrower, Issuer and Lender dated as of June 1. 2008 ("Loan
Agreement"). The Loan iesecured, in part. bythat certain Deed ofTrust, with Assignment of
Rents. Security Agreement, and Financing Statement dated as of June 1. 2008. executed by
Borrower for the benefit of |sauer, as assigned to Lender (the "Deed of Trust"), to be recorded
concurrently herewith in the Official Records of the County of Gan Bernardino, California. The
Note shall beassigned, orhas been assigned, from Issuer toLender.
D, As o condition of making the Loan. Borrower agreed to cause the Deed of Trust to be e lien or
ohargeuponthaP,opedyoovenadthenabyprio/endsuperior1othe !ienorCharQeoftheCityLien
5268443 1
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EIt is to the mutual benefit of the parties hereto that Lender make the Loan to Borrower, and the
City is willing that the Deed of Trust mho|1 be e lien or charge upon the Property covered thereby
unconditionally prior and superior tothe||enorcharge ofthe City Lien.
AGREEMENT
N(JVV. THEREFDRE, in consideration of the mutual benefits accruing to the parties and other valuable
considenatian,the receipt and sufficiency of which is hereby acknmm|edged, and in order to induce Lender
to maintain the Loam to Bornower, it is hereby declared, understood and agreed as follows:
1That the Deed of Trust and any and all documents evidencing or securing the Loan (collectively,
"Loan Dmcummrks''), and any modifiootiono, amendmento, nenmwo|o, increases or extensions
thereof. are and shall unconditionally be at all times a lien or charge on the Property therein
deoohbed, prior and superior to the lien or charge of the City Lien, including the rights contained
therein. In connection therewith and without limiting the generality of the foregoing, the City
acknowledges and agrees that, without the consent of the City. Borrower and Lender may. from
time totime, (|) modify, omend, renew orextend the Loan Documents or innnaaoo the principal
amount evidenced by the Loan Documents, (ii) enter into new documents \o secure the existing
Loon. (iii) enter into additional loans secured by the Property. or (iv) record against the Property
any of such documents after the execution of this Subordination Agreement (individually and
collectively, "Additional Doouments''), and the lien or charge of the City Lien shall be and remain
subordinate hothe lien or charge upon the property of such Additional Documents without any
further action by the City. Borrower or Lender.
2 That Lender would not make the Loan without this Subordination Agreement.
3 That this Subordination Agreement shall bethe whole and only agreement with regard to the
subordination of the lien or charge of the City Lien to the lien or charge of the Loan Documents
and shall supersede and cance|, but only insofar as would affect the priority between the Loan
Documents and the City Lien, any prior agreement ae to such subordination including, but not
limited to, those proviaionm, if any. contained in the City Agneement, which provide for the
subordination of the lien or charge thereof to another deed or deeds of trust or to another
mortgage nrmortgages.
4 The City declares. agrees and acknowledges that the City intentionally and unconditionally
subordinates the lien or charge of the City Lien in favor of the lien or charge upon the Property of
the Loan Documents. '
5, This Subordination Agreement may be executed in any number cfcounterparts, and any party
hereto or thereto may execute any counterpart, each of which, when executed and delivered, will
be deemed to be on ohgina|, and all of which counterparts of this Subordination Agreement,
taken together, will be deemed to be but one and the same instrument. The execution of this
Subordination Agreement by any party or parties hereto orthereto will not become effective until
counterparts hereof orthereof, as the case may be, have been executed by all the parties hereto
or thereto.
G. The Qty acknowledges and certifies to Lender that no vio|otion, default orevent ofdefault (or
events which would become such with the giving of notice or passage oftime orboth) currently
exist under the City Agreement.
7 The City agrees tunotify Lender ofany event cfdef uhundertheCit/AyreementbyBorrownra1
the same time awritten notice|s provided to Borrower atthe following address:
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CitimortgaQe. }nu.
45DMamaroneck Ave.
Harrison, New York 1D528
Attn: Attn: Healthcare &Energy Account Services
8, In furtherance of the foregoing, the City agrees to execute. 1f requested by Borrower or Lander,
an additional agreement, in form and content reasonably similar to this Subordination Agreement,
and otherwise in recordable form, to evidence the subordination of the lien or charge of the C}h/
Lien hothe lien orcharge ofany Additional Documents.
B. In the event of a conflict between any barm, condition or provision in this Subordination
Agreement and the City Agneement, the barm, condition and provision in this Subordination
Agreement shall prevail and the City Agreement is deemed to be amended thereby.
NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS
THE PERSON OBLIGATED ON REAL PROPERTY TO OBTA|N, K8[>D|FY OR EXTEND
A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES
THAN IMPROVEMENT OF SAID PROPERTY.
[Signature page tofoUow]
1,'16844 3
IN WITNESS WHEREOF, the City, Borrower and Lender have executed this Subordination
Agreement as of the date first above written,
"BORROW'ER"
LOMA LINDA UNIVERSITY BEHAVIORAL
MEDICINE CENTER, INC.,
a California non-profit religious organization
By:
Name:
Its:
By
Name:
Its: "Zoe-
"CITY""CITY"
CITY OF REDLANDS, a municipal corporation
By:
Name: Jon Harrison Lurie P�iy�er
It§v" Mayor City Cleric �
"LENDER"
CITIMORTGAGE, INC.
By.
Name:
Its:
526844,
EXHIBIT"A"
[Legal Description',
PARCELS 2 AND 3 OF PARCEL KAP NO, 13966, IN, THE CITY OF REDLAI'WS, COUNTY OF
SAN BERNARDINO. STATE OF CALIFORNIA, AS PER PLAT MAP 166, PAGES 12 THROUG14
14, INCLUSIVE, OF PARCEL &JAIIS, IN TjfE OFFICE OF TIME RECORDER OF SAID COUNTY,
TOGETHER WITH THAT PORTION OF IOWA STREET LYING BETWEEN THE WESTERLY
PROLONGATION OF Tf]E NORTHERLY AND SOUTHERLY LINES OF SAID PARCEL 2, AS
VACATED BY RESOLUTION NO. 6494,RECORDED JUNE 12,2006 AS INSTRUMENT NO.2006-
0399831,OF OFFICIAL RECORDS,AND THAT PORTION OF BARTON ROAD LYING BETWEEN
TtfE sojrTHERLY PROLONOATIONS OF THE WESTERLY AND EAS'M*RLY LINES OF SAID
PARCEL 3, AS VACATED BY RESOLUTION NO, 6495, RECORDED JUNE 12, 2006 AS
fNS'j*R(j',\4Ej4T'kN'O.2006-0399530 OF OFFICIAL"CORDS.
526844-3,
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STATE[FCALIFORNIA )
> as
COUNTY OF )
On before me a Notary Public, personally
appeared who proved to me on the basis of satisfactory evidence
to be the person(s)whose name(s) islare subscribed to the within instrument, and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph iutrue and correct.
WITNESS myhand and official seal.
Notary Public
STATE OFCALIFORNIA )
) as
COUNTY OF )
On before me a Notary PubUc, personally
appeered who proved 0omaonthe basis cn�x/�a�oryevmence
to be person(s),whose name(s) is/are subscribed to the within instrument, and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signatune(o) on the instrument the pemon(s), orthe entity upon behalf ofwhich the parson(o)aobad.
executed the
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph iatrue and correct.
WITNESS myhand and official seal.
Notary Public
5za»**3 6
^ � ` ^
^
STATE Or' CALIFORNIA )
) ss
COUNTY OF )
On before me, a Notary Public, personally
appeared .who proved 0omemnthe basis cfsatisfactory evidence
to be the person(o)whose name(o) is/are subscribed tothe within matrumont, and acknowledged no me
that ha/aha8heyexacuted the same in hia/hec/theirauthorized oapaoity(|eo), and that by him/her/their
signature(s) on the instrument the person(s), orthe entity upon behalf ofwhich the peraon(m)achsd.
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph istrue and correct,
WITNESS myhand and official seal.
Notary Public
STATE OFCALIFORNIA )
) as
COUNTY OF )
On . beforeme. . e Notary Public, personally
appeenad . who proved tomeonthe basis ofsatisfactory evidence
tubethe person(s)whose name(s) is/are subscribed to the within instrument, and acknowledged to me
that he/she/they executed the same in hidhec/the|reuthorized capeuity(ies), and that by his/her/their
signature(sl on the instrument the person(s'i, or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph iotrue and correct-
WITNESS myhondandoffioie| aea|.
Notary Public
uzs844,s 7
Teresa Ballin2er
From: Balisy, Sam S. [Sam.Balisy@KutakRock.com]
Sent: Tuesday, June 17, 2008 11:11 AM
To: Teresa Ballinger; Borrie Poyzer
Cc: Steven Dukett; Dave Saunders; Dan McHugh
Subject: Loma Linda University Behavioral Medicine Center
Attachments: Subordination Agreement (City of Redlands)—Citibank—Loma Linda (3).pdf
t
Subordination
Agreement(City...Attached is the correct version of the Subordination Agreement to be signed by
all of the parties. This version reflects two signature blocks for Loma Linda instead of
gust the one that was in the prior version. Could you please have three copies of this
document signed by the City? The signature should be notarized. Thank you for your
assistance.
<<Subordination Agreement (City of Redlands) Citibank Loma Linda (3) .pdf>> Sam S. Balis,,,,
Esq.
Kutak Rock LLP
515 South Figueroa Street
Suite 1240
Los Angeles, California 90071
Main (213) 312-4000
Direct (213) 312-4009
Fax: (1213) 312-4001
sam.balisv, kutakrock.com
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A1,1Y FEDERAL TAX ADVICE CONTAINED IN THIS MESSAGE SHOULD NOT BE USED OR REFERRED TO IN THE
PROMOTING, MJARKETING OR RECOMMENDING OF ANY ENTITY, INVESTMENT PLAN OR ARRANGEMENT, A114D
:,X 7� P V
SUCH ADVICE IS NOT INTENDED OR WPITTEN TO BE USED, PIj B A TAXPAYER FOR
CANNOT BE USED, Y
THE PURPOSE OF AVOIDING PENALTIES UNDER THE INTERNAL REVENUE CODE.
#li#####################-tltl##4t,############-Tllt###t4f####i4t,###############t4#i"t#####"r#####i.�####-t"#####4I
This E-mail message is confidential, is intended only for the named recipient (s) above and
may contain information that is privileged, attorney work product or otherwise protected
by applicable law. if you have received this message in error, please notify the sender at
402-346-6000 and delete this E-mail message.
Thank you.
###########################-Ut##########################################################Iut##4r
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Teresa Ballinger
From: Balisy, Sam S. [Sam.Balisy@ KutakRock,com]
Sent: Tuesday, June 17, 2008 11:31 AM
To: Teresa Ballinger
Subject: Subordination Agreement
Theresa,
Diane Boday, Vice President will be signing for citimortgage.
Sam S. Balisy, Esq.
Kutak Rock LLP
515 south Figueroa Street
Suite 1240
Los Angeles, California 90071
Main (213) 312-4000
Direct (213) 312-4009
Fax: (213) 312-4001
sam.balisygkutakrock.comp
#######################################################4##################################
###################
ANY FEDERAL TAX ADVICE CONTAINED IN THIS MESSAGE SHOULD NOT BE USED OR REFERRED TO IN THE
PROMOTING, MARKETING OR
RECOMMENDING OF ANY ENTITY, INVESTMENT PLAN OR ARRANGEMENT, AND SUCH ADVICE IS NOT
INTENDED OR WRITTEN TO BE USED,
AND CANNOT BE USED, BY A TAXPAYER FOR THE PURPOSE OF AVOIDING PENALTIES UNDER THE INTERNAL
REVENUE CODE.
####4##############################,#######################################################
###################
This E-mail message is confidential, is intended only for the named recipient (s) above and
may contain information
that is privileged, attorney work product or otherwise protected by applicable law. If you
have received this
message in error, please notify the sender at 402-346-6000 and delete this E-mail message.
Thank you.
##########################################################################################
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ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO SS
CITY OF REDLANDS
By the authority granted under Chapter 4., Article 3, Section 1181, of the California Civil Code, and Chapter I
/ 2
Division 3, Section 40814, of the California Government Code., on June 1", -008, before me, Teresa Ballinger,
Assistant City Clerk, on behalf of Lorne Poyzer, City Clerk of the City of Redlands, California, personally
appeared Jon Harrison, Mayor and Lorne Poyzer, City Clerk who proved to the on the basis of satisfactory
evidence to be the person(s) whose name(s) i4are subscribed to the within Instrument and acknowledged to me
that he/she4hey executed the same in his their authorized capacity(ies) and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
tttttrrj WITNESS my hand and official seal.
01
oj� FIE04
'0 LORRIE POYZER, CITY CLERK
PORA
n
0�1
Teresa Ballinger, Assistant City Cie&
(909)798-7531
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CAPACITY CLAIMED BY SIGNER(S)
Individual(s) signing for oneself/themselves
Corporate Officer(s)
Title(s)
Company
Partner(s)
Partnership
Attorney-In-Fact
Principal(s)
Trustee(s)
Trust
x Other
Title(s): Mayor and City Clerk
Entity Represented: City of Redlands, a municipal corporation
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THIS CERTIFICATE MUS TBE ATTACHED TO "THE DOCUMENT DESCRIBED BELOW:
Title or-Type of Document: Subordination Agreement
Date of Document: June 17, 2008
Signer(s.) Othei-Than Named Above: Loma Linda University Behavioral Medicine Center, Inc., by: Edward
Field. Executive Director Finance; Joe Pollock, Administrator. and CitlMortgage, Inc. by Diane Boday,
Vice President.