HomeMy WebLinkAbout05.I- Successor Agency Consent Calendar in
' City of San Bernardino
'. Request for Council Action a'
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Date: December 19, 2016
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To: Honorable Mayor and City Council Members
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From: Mark Scott, City Manager N
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By: Lisa A Connor, Successor Agency
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Subject: Resolution of the Mayor and Common Council of the City of L
San Bernardino Acting as the Successor Housing Agency to
the Redevelopment Agency of the City of San Bernardino °
Approving the Subordination of a Deed of Trust in Connection
with a Refinancing of the Senior Mortgage Relating to Real °
Property Located at 2347 West College Avenue, San o
Bernardino, California c
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Recommendation
Adopt Resolution. 0
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Background N
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On October 17, 1994, the Community Development Commission of the City of San
Bernardino ("Commission") approved Resolution 5409, establishing the Mortgage
Assistance Program, subsequently renamed Homebuyer Assistance Program, which a
made available a limited number of deferred payment (principal and interest) second
mortgages. This Program was designed to provide income-qualified families with down
payment/closing cost monies necessary to secure financing towards the purchase of a
single-family detached homes in the City and provided an additional avenue for the
former Redevelopment Agency of the City of San Bernardino ("Agency") to ensure the o
availability of affordable housing to income-qualified home buyers in the community.
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On January 9, 2012, the Mayor and Common Council adopted Resolution 2012-12 N
confirming that the City of San Bernardino would serve as the "Successor Agency" to c
the former Agency, in accordance with AB1X 26. On January 23, 2012, the Mayor and w
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Common Council adopted Resolution 2012-19 further confirming that the City would =
serve as the "Successor Housing Agency" to the former Redevelopment Agency and c
perform the housing functions previously performed by the Agency. n
Discussion d
The owner of the property located at 2347 West College Avenue obtained assistance
from the Agency, and the property owner wishes to refinance their existing first a
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mortgage. To proceed with the refinancing, the new lender and title company require =
the Agency's deed of trust to be expressly subordinated to the new first trust deed of Cn
trust. The property owner of the property listed above has submitted a subordination
request to Successor Housing Agency staff and the application has been underwritten
and approved. Presently, staff requests that the City Manager, or his/her designee, be a'
authorized to sign and cause to be recorded the subordination agreement and
associated documents which will allow the property owner to refinance their first ='
mortgage. v
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Fiscal Impact
There is no fiscal impact to the City or Successor Agency. M
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Conclusion
It is recommended the Mayor and City Council, Acting as the Successor Housing °
Agency, adopt the attached Resolution. L
Attachments °
Attachment 1 — Resolution, Subordination 2347 W College Ave
Attachment 2 -- Agreement, Subordination 2347 W College Avenue °
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Ward: S °
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Synopsis of Previous Council Actions: -a
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October 17, 1994: Resolution 5409 adopted by the Community Development
Commission establishing the Mortgage Assistance Program-subsequently
renamed Homebuyer Assistance Program.
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January 9, 2012: Resolution 2012-12 adopted, confirming the City would serve as 0
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the Successor Agency to the former Redevelopment Agency. M
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January 23, 2012: Resolution 2012-19 adopted, confirming the City would serve
as the Successor Housing Agency to the former Redevelopment Agency. d
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June 4, 2007, the Community Development Commission approved a programmatic
change in the Homebuyer Assistance Program to increase the down payment
assistance for up to a maximum of 30% of the maximum purchase price of N
$250,000. _
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1 RESOLUTION NO.
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2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA
3 BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THEm
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE
4 SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING O
THE SENIOR MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 2347 WEST=
5 COLLEGE AVENUE, SAN BERNARDINO,CALIFORNIA(#4742)
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WHEREAS, on January 9, 2012, the Mayor and Common Council of the City of San Bernardinom
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8 ("Council") adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve as
9 the Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bernardino
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10 ("Successor Agency") effective February 1, 2012, pursuant to AB1X 26 (The Redevelopment Agency
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11 Dissolution Act); and
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12 WHEREAS, on January 23, 2012,the Council adopted Resolution No. 2012-19 providing for th ~
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13 City to serve as the Successor Housing Agency and perform the housing functions previously performed 4)
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14 by the Agency; and
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15 WHEREAS,pursuant to Health &Safety Code Section 34181(c)of AB 1X26 the Oversight Boar 0
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is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligations an
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assets,to the Successor Housing Agency; and N n
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WHEREAS,pursuant to Health &Safety Code Section 34176(e)(1)of AB 1484 the restrictions o a'
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20 the use of real property such as affordability covenants entered into by the Agency are considered a 0
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21 housing asset; and
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22 WHEREAS, a Deed of Trust affecting real property located at 2347 West College Avenue, San v
23 Bernardino, California ("Property") exists as of May 29, 2008, and recorded on June 6, 2008, as
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Instrument Number 2008-259089 in the Official Records of the County of San Bernardino ("Deed o c
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Trust"); and c
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WHEREAS,the terms of the Deed of Trust allow the Trustor to obtain the release of the security �°
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interest of the First Mortgage Lender in the Property for the purpose of a third-party lender which
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1 refinances the purchase money mortgage of the First Mortgage Lender; and
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2 WHEREAS, an escrow has been opened on the Property affected by the Deed of Trust on whit F
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owners (Laura L Newcomb and Gary H Geffen) request the subordination so that they can proceed on
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refinance and a clear lenders title policy can be provided to the new lender of the Property; and
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WHEREAS, the Successor Housing Agency desires to confirm that the Deed of Trust is a Q
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7 housing asset and/or housing function, and desires to authorize Successor Housing Agency staff t o
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8 transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housing m
9 Agency; and
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10 WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded
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11 subordination agreement for the purposes of causing the new third-party lender to have a security interest (n
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12 in the Property senior to that of the Successor Housing Agency; and
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NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCI 4)
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OF THE CITY OF SAN BERNARDINO, ACTING AS THE SUCCESSOR HOUSING AGENCY c
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OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A :2
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FOLLOWS: a
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18 Section 1. Pursuant to Health &Safety Code Section 34176,the Successor Housing Agency in
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19 to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the
20 Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to execute
21 the Subordination Agreement (attached and incorporated herein as Exhibit "A") and cause it to be
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22 recorded with the San Bernardino County Recorder. 6
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Section 2. This resolution shall take effect upon its adoption and execution in the manner as I-
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required by the City Charter. c
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g.130
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN S
BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE
2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE
3 SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING OF m
THE SENIOR MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 2347 WEST M
q COLLEGE AVENUE,SAN BERNARDINO,CALIFORNIA(#4742) Cl)
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5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an >
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Common Council of the City of San Bernardino at a meeting thereof, held on
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the day of ,2016,by the following vote,to wit:
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9 Council Members Ayes Nays Abstain Absent N
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MARQUEZ L
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BARRIOS L
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VALDIVIA 0
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14 SHORETT o
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16 RICHARD
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MULVIHILL
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Georgeann Hanna, City Clerk
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20 The foregoing Resolution is hereby approved this day of ,2016. 44)
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R. Carey Davis,Mayor v
23 City of San Bernardino
Approved as to Form:
24 Gary D. Saenz N
City Attorney =
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26 By:
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When recorded mail to:
City of San Bernardino,acting in its 6
capacity as the Successor Housing Agency
to the Redevelopment Agency of >
the City of San Bernardino
300 North D Street C
San Bernardino,CA 92401 —
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Owner Name: Laura Newcomb d
2347 W College Avenue r
San Bernardino,CA 92407 N
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SPACE ABOVE THIS LINE FOR RECORDERS USE.
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Form of v
SUBORDINATION AGREEMENT
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NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER o
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
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This AGREEMENT,made this 19th day of December,2016,by(Laura Newcomb and Gary Geffen),Owner CU
of the land hereinafter described and hereinafter referred to as"Owner,"and the City of San Bernardino,acting in its Ls
capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino, present -0 0
owner and holder of the Deed of Trust and Note; 0
WITNESSETH 04
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WHEREAS, Owner(s) did on May 29, 2008, execute a Deed of Trust to First American Title Company, a
California Corporation,as trustee,covering:
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LEGAL DESCRIPTION: The land herein after referred to is situated in the City of San Bernardino,County P
of San Bernardino,State of California,and is described as follows: Q
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Lot 91 OF TRACT 12130 IN THE CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO >
STATE OF CALIFORNIA AS PER MAP RECORDED IN BOOK 168 PAGE(S) 39 TO 42 IN THE OFFICE OF m
THE COUNTY RECORDER OF SAID COUNTY. Commonly known as: 2347 West College Avenue, San
Bernardino,CA 92407 0
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to secure a Note in the sum of$191,000 dated May 29,2008 in favor of the Redevelopment Agency of the City of M
San Bernardino first hereinafter described and hereinafter referred to as 'Beneficiary", which Deed of Trust was N
recorded June 6,2008,as Instrument No.2008-259089,Official Records of said county; o
WHEREAS, all rights and obligations of the Beneficiary have since been transferred to the City of San
Bernardino as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino 0
("Successor Beneficiary") pursuant to Mayor and Common Council Resolution No. 2012-19 dated January 23, M
2012; cn
WHEREAS, Owner has executed, or is about to execute, a Deed of Trust and Note in the sum of not to
exceed $171,300.00, dated , in favor of Nationstar Mortgage, LLC dba Greenlight
Loans, hereinafter referred to as "Lender," payable with interest and upon the terms and conditions described
therein,which Deed of Trust is to be recorded concurrently herewith;and a
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WHEREAS,it is a condition precedent to obtaining said loan that said Deed of Trust last above mentioned �
shall unconditionally be and remain at all times a lien or charge upon the land herein before described, prior and
superior to the lien or charge of the Deed of Trust first above mentioned;and
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WHEREAS, lender is willing to make said loan provided the Deed of Trust securing the same is a lien or Q
charge upon the above described property prior and superior to the lien or charge of the Deed of Trust first above 0)
mentioned and provided that Successor Beneficiary will specifically and unconditionally subordinate the lien or °!
charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor of Lender;and U
WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and
Successor Beneficiary is willing that the Deed of Trust securing the same shall, when recorded, constitute a lien or
charge upon said land which is unconditionally prior and superior to the lien or charge of the Deed of Trust first M
above mentioned. N
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NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other ,o
valuable consideration,the receipt and sufficiency of which consideration is hereby acknowledged, and in order to y
induce Lender to make the loan above referred to,it is hereby declared,understood and agreed as follows:
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1. That said Deed of Trust securing said Note in favor of Lender,and any renewals or extensions thereof,
shall unconditionally be and remain at all times a lien or charge on the property therein described,prior
and superior to the lien or charge or the Deed of Trust first above mentioned. o
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2. That Lender would not make its loan above described without this Subordination Agreement. o
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3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien M
or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor =
' of the lender above referred to and shall supersede and cancel, but only insofar as would affect the o
priority between the Deeds of Trust hereinbefore specifically described,any prior agreement as to such o
subordination including,but not limited to,those provisions,if any,contained in the Deed of Trust first cn
above mentioned,which provide for the subordination of the lien or charge thereof to another Deed or N
Deeds of Trust or to another mortgage or mortgages. ti
Successor Beneficiary declares,agrees and acknowledges that: _
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(a) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to,nor 0 CD
has Lender represented that it will, see to the application of such proceeds by the person or persons to
whom Lender disburses such proceeds and any application or use of such proceeds for purposes other Q
than those provided for in such agreement or agreements shall not defeat the subordination herein >
made in whole or in part; 'Q
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(b) Successor Beneficiary intentionally and unconditionally waives,relinquishes and subordinates the lien
or charge of the Deed of Trust first above mentioned in favor of the lien or charge upon said land of U
the Deed of Trust in favor of Lender above referred to and understands that in reliance upon, and in
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consideration of,this waiver,relinquishment and subordination specific loans and advances are being N
and will be make and,as part and parcel thereof,specific monetary and other obligations are being and
will be entered into which would not be made or entered into but for said reliance upon this waiver,
relinquishment and subordination;and c
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(c) An endorsement has been placed upon the Note secured by the Deed of Trust first above mentioned °a
that said Deed of Trust has by this instrument been subordinated to the lien or charge of the Deed of
Trust in favor or Lender above referred to.
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NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE
PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A
PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT =
OF THE LAND.
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City of San Bernardino,acting as the Successor Housing Agency
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to the Redevelopment Agency of the City of San Bernardino
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Mark Scott,City Manager Owner
City of San Bernardino M
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Owner 0
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(ALL SIGNATURES MUST BE ACKNOWLEDGED)
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IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT,
THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. o
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