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1995-1221_SJC HOUSING INVESTORS, L.P._ Subord. Asgmt of Leases, Rents & ProfitsRECORDED AT REQUEST OF: WHEN RECORDED RETURN TO: San Juan Capistrano Redevelopment Agency 32400 Paseo Adelanto San Juan Capistrano, California 92675 Attn: Executive Director Recorded in the County of Orange, California Gary L. Granville, Clerk/Recorder III[IIIIIGII[Illlillll�llllllllllll[II01il�ll[IIII![I[lIIIIII 41.00 006 9002639 09 30 18950568795 11;16am 12/21/95 A34 A36 10 0 14.00 0.00 0.00 0.00 0.00 27.00 0.00 0.00 0.@0 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) This Assignment of Leases, Rents and Profits is recorded at the request and for the benefit of the San Juan Capistrano Redevelopment Agency and is exempt from the payment of a recording fee pursuant to Government Code Section 6103. SUBORDINATED \\ ASSIGNMENT OF LEASES, RENTS AND PROFITS THIS ASSIGNMENT OF LEASES, RENTS AND PROFITS (this "Assignment") dated this 30th day of November, 1995, is given by SAN JUAN CAPISTRANO HOUSING INVESTORS, L.P., a California limited partnership ("Assignor"), to the SAN JUAN CAPISTRANO REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"). RECITALS: A. Assignor is the owner of that certain real property located in the City of San Juan Capistrano, County of Orange, State of California, and more particularly described in Exhibit "A" attached hereto and made a part hereof (herein "Real Property"). B. Assignor has requested Agency to provide financial assistance in an amount of ONE MILLION FIVE HUNDRED FIFTY THOUSAND DOLLARS ($1,550,000) (the "Agency Loan") pursuant to the terms of a Promissory Note of even date herewith (the "Note"), a Deed of Trust of even date herewith ("Deed of Trust"), and an Owner Participation Agreement dated September 19, 1995 (the "OPA"). C. The Deed of Trust applies to the Real Property and all buildings, improvements and fixtures located thereon (hereinafter referred to together as the "Project"). NOW, THEREFORE, in consideration of the foregoing, Assignor does hereby grant, transfer and assign to Agency all of Assignor's right, title and interest in and SJCAAL. KB 113095 1 r to: (i) Any present or future lease or tenancy, whether written or oral, covering or affecting all or any part of the Project, and together with: (a) all guaranties of the aforesaid leases including guaranties of tenant performance; (b) all insurance proceeds, including rental loss coverage as to said leases; (c) all awards or proceeds from any condemnation of the property or any part thereof; (d) all judgments or settlements of claims in favor of Assignor and arising out of said leases in any court proceeding, including any bankruptcy, reorganization, insolvency or debtor proceeding or case or otherwise; and (e) all security deposits made thereunder (all of which, together with any extensions, modifications or renewals, are collectively referred to as the "Leases" or singularly as a "Lease"); (ii) All rents and other income or payments of any kind due or payable or to become due or payable to Assignor as the result of any use, possession or occupancy of all or any portion of the Project including but not limited to any payments for reimbursement of common area maintenance expenses, ad valorem taxes, insurance premiums, utilities, special assessments and cleaning and janitorial costs, or as the result of the use of or lease of any personal property constituting a part of the Project (all of which are collectively referred to as "Rents"), whether the Rents accrue before or after foreclosure of the Trust Deed or during any period of redemption from it; and (iii) all revenues, receipts, income, accounts, accounts receivable and other receivables from the Project including, without limitation, revenues, receipts, income, receivables and accounts relating to or arising from rentals, rent equivalent income, vending machines, telephone and television systems, guest laundry, the provision or sale of other goods and services, and any other items of revenue, receipts or other income, as from time to time amended, in excess of all costs, charges, and expenses which are directly attributable to the operation, repair and maintenance of the Project including all taxes, rates, charges, levies and assessments imposed by any competent authority upon or in respect of the Project (the "Profits"); to secure: (i) Payment of all indebtedness evidenced by the Note and all other sums secured by the Deed of Trust or this Assignment; and (ii) Performance and discharge of each and every obligation, covenant and agreement of Assignor contained herein and in the Note and Deed of Trust. Assignor further covenants and agrees with Agency as follows: 1. Performance of Leases. Subject to the provisions of the Restrictive Covenants recorded pursuant to the OPA, Assignor shall faithfully abide by, perform and discharge each obligation, covenant and agreement which it becomes liable to observe or perform under any present or future Lease and enforce or secure the performance of each obligation, covenant, condition and agreement to be performed by the tenant under each Lease. Except in the ordinary course of operating the Project and to the extent consistent with the Restrictive Covenants, Assignor shall not hereafter cancel, surrender or terminate any Lease. Assignor shall observe and SJCAAL. KB 113095 2 comply with all provisions of law applicable to the operation and ownership of the Project. Assignor shall further, at its sole cost and expense, appear in and defend any action or proceeding arising under, growing out of or in any manner connected with any Lease or the obligations, duties, or liabilities of Assignor pursuant to any Lease. 2. Collection of Rents and Profits. The condition of this Assignment is such that unless and until there occurs an Event of Default (as herein defined) under the provisions of this Assignment or the Note, Assignor has the right under a license retained and reserved hereby (but limited as provided in this Assignment) to collect (when due and not more than 3 months in advance) sums received pursuant to said Leases, Rents and Profits and apply the same in accordance with the provisions of the Note, provided, however, that from and after the occurrence of an Event of Default under this Assignment or, the Note or Deed of Trust, such license will, without any further action, be revoked and the right of Assignor to enjoy the powers and privileges of said Leases, Rents and Profits will wholly cease, whereupon Agency shall be entitled to all of Assignor's right, title and interest in and to the Leases, Rents and Profits hereby assigned, including specifically the right to collect Rents and Profits. 3. Events of Default. Any of the following constitutes an Event of Default under this Assignment: (i) Assignor fails to perform or observe any agreement, covenant, or condition required under this Assignment and such failure is not corrected to Agency's satisfaction within 60 days of notice to Assignor (the "Non -Monetary Cure Period"); provided, however, if Assignor cannot reasonably perform within such Non -Monetary Cure Period, Assignor may have such additional time to perform as may be reasonably required so long as Assignor has commenced such cure within the Non -Monetary Cure Period and thereafter diligently continues such cure to completion. (ii) There occurs an event of default by Assignor under the Note or Deed of Trust. 4. Remedies. Upon the occurrence of any Event of Default, Agency may, at its option, at any time: SJCAAL. KB 113095 (i) In the name, place and stead of Assignor and as a mortgage in possession (i) enter upon, manage and operate the Project or retain the services of one or more independent contractors to manage and operate all or any part of the Project; (ii) make, enforce, modify and accept surrender of the Leases; (iii) obtain or evict tenants, collect, sue for, fix or modify the Rents and Profits and enforce all rights of Assignor under the Leases; (iv) give notice to the parties obligated under the Leases to perform those 3 obligations for the benefit of Agency in like manner as if Agency were the Assignor; and (v) perform any other acts that may be necessary or proper to protect the security of this Assignment. (ii) With or without exercising the rights set forth in subparagraph (A) above, give or require Assignor to give notice to any or all tenants under the Leases, authorizing and directing the tenants to pay all Rents under the Leases directly to Agency and to perform those obligations for the benefit of Agency, in like manner as if it were the Assignor. (iii) Apply for the appointment of a receiver regarding the Project to take possession and to operate the Property and to collect the rents, profits, issues, and revenues thereof and Assignor will pay to Agency upon demand, all expenses including receiver's fees, attorneys' fees, costs and agents' compensation incurred in connection therewith together with interest thereon. The exercise of any of the foregoing rights or remedies and the application of the Rents, Profits and income will not cure or waive any Event of Default, or notice of default, or invalidate any act done pursuant to such notice. This Assignment in no way operates to prevent Agency from pursuing any remedy which it now has or hereafter may have under the terms and conditions of any other document securing the Note but will be deemed an additional remedy, cumulative with the remedies granted therein. 5. Protecting the Security of This Assignment. Should Assignor fail to perform or observe any covenant or agreement contained in this Assignment, Agency may, without obligation to do so and without releasing Assignor from any obligation of any kind, make or do the same in such manner and to such extent as Agency deems appropriate to protect its security as evidenced by this Assignment, including specifically and without limitation, the right to commence, appear in, and defend any action or proceeding purporting to affect said security, or the right or powers of Assignor, and also the right to perform and discharge each obligation, covenant and agreement of Assignor contained in the Leases, and in exercising any such powers to pay necessary costs and expenses, employ counsel and pay reasonable attorney's fees. Assignor shall pay immediately upon demand all sums expended by Agency under the authority of this Assignment, together with interest thereon at the rate stated in the Note, and the same will be added to said indebtedness and be secured hereby and by the Deed of Trust. 6. Present Assignment. This Assignment constitutes a perfected, absolute and present assignment. SJCAAL. KB 113095 4 7. Survival of Obligation to Comply with Trust Deed and This Assignment. This Assignment is given as security in addition to the Deed of Trust. Assignor shall observe and comply with all terms and conditions contained in the Deed of Trust and in this Assignment. 8. Agency Not to Become Liable and Third Parties Not to Acguire Rights. Agency is not obligated to perform or discharge, nor does it hereby undertake to perform or discharge, any obligation, duty or liability of Assignor under the Leases. This Assignment will not operate to place upon Agency responsibility for the control, care, management or repair of the Project or for the performance of any of the terms and conditions of the Leases. Agency shall not be responsible or liable for any waste committed on the Project, for any dangerous or defective condition of the Project, for any negligence in the management, upkeep, repair or control of the Project or for failure to collect the Rents. No third party shall acquire any rights against Agency as a result of this Assignment, the provisions of which have been granted to Agency by Assignor solely for the benefit of Agency. Notwithstanding any language to the contrary contained in this Assignment, Agency shall not be deemed to be in privity of contract with any party having contractual relations with Assignor pursuant to a Lease unless and until Agency has exercised the remedies provided by this Assignment following the occurrence of an Event of Default and has elected to require the contractual performance of a party obligated by said Lease, and then Agency shall be liable only during the period in which the remedies provided by this Assignment are so exercised and not before or after. 9. Satisfaction. Upon the payment in full of all indebtedness secured hereby, as evidenced by a recorded satisfaction of the Deed of Trust, this Assignment becomes, without the need for any further satisfaction or release, null and void and of no further effect. 10. Unenforceable Provisions Severable. All rights, powers and remedies provided in this Assignment are intended to be exercised only to the extent that such exercise does not violate any applicable provision of law or render this Assignment invalid, unenforceable or unreasonable. If any term of this Assignment is held to be invalid, illegal or unenforceable, the validity of other terms are intended to remain unaffected. 11. Successors and Assigns. The covenants and agreements herein contained will be binding upon, and the rights hereunder will inure to, the respective successors and assigns of Assignor and Agency, including any purchaser at a foreclosure sale. 12. Cautions; Amendments. The captions and headings of the paragraphs of this Assignment are for convenience only and are not intended to interpret or define the provisions of this Assignment. This Assignment can be amended only in a writing signed by Assignor and Agency. SJCAAL. KB 113095 5 13. Governing Law. The provisions of this Assignment shall be governed by and construed in accordance with the internal laws of the State of California. 14. Subordination. This Assignment is subject and subordinate to all of the following: See Addendum to the Deed of Trust recorded concurrently herewith. The Note which is secured by this Assignment contains a subordination agreement for the subordination of this Assignment, and this Assignment shall be subject and subordinate to all of the liens and other matters referred to therein. NOTICE: THIS ASSIGNMENT CONTAINS A SUBORDINATION CLAUSE WHICH MAY RESULT IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT AND THE SUBORDINATION CLAUSE CONTAINS A PROVISION WHICH MAY ALLOW 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. IN WITNESS WHEREOF, the undersigned has executed this Assignment as of the day and year first written hereinabove. "Assignor" SAN JUAN CAPISTRANO HOUSING INVESTORS, L.P., a California limited partnership By: SJCAAL. KB 113095 LINC Housing Corporation, Genera ' By: 13. Governing Law. The provisions of this Assignment shall be governed by and construed in accordance with the internal laws of the State of California. 14. Subordination. This Assignment is subject and subordinate to all of the following: See Addendum to the Deed of Trust recorded concurrently herewith. The Note which is secured by this Assignment contains a subordination agreement for the subordination of this Assignment, and this Assignment shall be subject and subordinate to all of the liens and other matters referred to therein. NOTICE: THIS ASSIGNMENT CONTAINS A SUBORDINATION CLAUSE WHICH MAY RESULT IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT AND THE SUBORDINATION CLAUSE CONTAINS A PROVISION WHICH MAY ALLOW 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. IN WITNESS WHEREOF, the undersigned has executed this Assignment as of the day and year first written hereinabove. AUNCY "Assignor" SAN JUAN CAPISfRANO REDEVE� NT Acs, Y SAN JUAN CAPISTRANO HOUSING INVESTORS, L.P., a California limited partnership By: LINC Housing Corporation, General Partner ive By: President SJCAAL.KB 113095 PUBLIC AGENCY FORM OF ACKNOWLEDGEMENT (Gov't Code 40814 & Civil Code 118 1) State of California ) County of Orange ) ss. City of San Juan Capistrano ) On December 20, 1995 , before me, Cheryl Johnson City Clerk, personally appeared George Scarborough personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. (SEAL) WITNESS my hand and official seal. City Clerk OPTIONAL Capacity Claimed by Signer Municipal Corporate Officer Executive Director Title Signer is Representing City of San Juan Capistrano Community Redevelopment Agency Description of Attached Document Subordinated Assignment of Leases, Rents and Profits Title or Type of Document 8 Number of Pages November 30, 1995 Date of Document San Juan Capistrano Housing Investors, LP by LINC Housing Corporation Signer(s) Other Than Named Above STATE OF CALIFORNIA ) ss. COUNTY OF On this OM day of Wr , 19_rbefore me, . , idersigped ,a Notary public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(e) whose names) Fare- subscribed to the within instrument and acknowledged to me that &9heithey executed the same ini&her4hek authorized capacity(iea), and that by Wherfth& signature(s) on the instrument the person( or the entity upon behalf of which the person(e) acted, executed the instrument. Witness my hand and official seal. JEFFREY S. NO2AKI Uj ic NOTARY P(1B.1CCFORNIA M M �• COUNTY � [SEAL] STATE OF CALIFORNIA ss. COUNTY OF RAPER � , � Ali, MM • 11 Le -� On this day of , 19_, before me, the undersigned a Notary public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the 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 signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. [SEAL] SJCAAL. KB 113095 7 Notary Public SJCAAL.KB 113095 EXHIBIT "A" Description of Real Property 0 EXHIBIT "A" That portion of the Southwest quarter of Section 6 Township 8 South, Range 7 West, San Bernardino Base and Meridian, in the City of San Juan Capistrano, County of Orange, State of California, described as follows: Beginning at the intersection of the center lines of Ganado Road and the old Ortega Highway, as shown on a map filed in book 27 page 8 of Record of Surveys in the office of the County Recorder of Orange County, California, said point being the most Northerly corner of land described in the deed to Arley H. Leck and wife, recorded December 24, 1954 in book 2905 page 363 of Official Records; thence South 42° 02' 00" East 104.10 feet along the center line of said Ganado Road to an angle point in said land of Leck; thence South 03* 20' 10" West 169.97 feet; thence South 63* 23' 00" West 7.24 feet along the Southeasterly line of said land of Leck to the true point of beginning, said point lies on the Westerly right of way line of Rancho Viejo Road; thence South 21 ° 00' 15" East along the Westerly right of way line of Rancho Viejo Road 15.27 feet; thence leaving said right of way line, South 03° 20' 10" West 294.00 feet; thence South 74° 29' 00" West 255.73 feet; thence North 15* 28' 37" West 12.93 feet; thence North 59* 36' 20" West 20.50 feet to a point on a non -tangent curve concave Northwesterly having a radius of 25.00 feet; thence Southerly and Westerly along said curve an arc distance of 19.25 feet, through a central angle of 440 07' 43" to a tangent line; thence South 74° 31' 23" West 51.29 feet to a tangent curve concave Northeasterly, having a radius of 25.00 feet; thence Westerly and Northerly along said curve an arc distance of 46.89 feet, through a central angle of 107° 27' 18" to a tangent line; thence North 01* 58' 40" Fast 87.43 feet; thence North 40° 17' 45" East 36.81 feet; thence North 03° 24' 18" Fast 65.51 feet to the Southerly line of Parcel 2 of Parcel Map No. 85-328 as filed in book 241 pages 12 and 13 of Parcel Maps, records of the County of Orange; thence North 63° 23' 00" East along the Southerly line of said parcel map 218.99 feet to the Southeasterly corner of said Parcel Map No. 85-328; thence North 160 33' 40" West along the Easterly line of said parcel map 202.59 feet to the Southerly right of way line of Ortega Highway; thence North 680 59' 45" East along the Southerly right of way line of Ortega Highway 124.81 feet to a tangent curve concave Southwesterly having a radius of 25.00 feet; thence Easterly and Southerly along said curve an arc distance of 39.27 feet, through a central angle of 90° 00' 00" to a tangent line, said point lying on the Westerly right of way line of Rancho Viejo Road; thence South 21 ° 00' 15" Fast along the Westerly right of way line of Rancho Viejo Road 160.67 feet to the true point of beginning. Said land is also shown as Lot 2 of Lot Line Adjustment No. 95 -PM 85-328-1, recorded October 30, 1995, as Instrument No. 95-480794, Official Records. SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY Office of the Agency Secretary 32400 Paseo Adelanto San Juan Capistrano, California 92675 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) This is to certify that the interest in real property conveyed by the Subordinated Assignment of Lease, Rents and Profits, for property located at the southwest corner of Ortega Highway and Rancho Viejo Road, dated November 30, 1995, from San Juan Capistrano Housing Investors, L.P., to the SAN JUAN CAPISTRANO REDEVELOPMENT AGENCY, a political corporation and/or governmental agency, to secure a Promissory Note of even date therewith to the Agency in the sum of $1,550,000, is hereby accepted by order of the San Juan Capistrano Redevelopment Agency Board of Directors on September 19, 1995, and the grantee consents to recordation thereof by its duly authorized officer. (SEAL) _ Cheryl Johnsdi, A ency Secretary San Juan Capistrano, California DATED: This 14th day of December, 1995 • � - ; ��' t � • - .. �. t