HomeMy WebLinkAbout888049When Recorded Return To:
Community First National Bank
Attn: Shelby Moon
142 East 200 South
Salt Lake City, UT 84111
SBA Loan Name: BLS Express, Inc
SBA Loan Number:291-219-4008
RECEIVED
LINCOL!'I CO!Ji',.~TY CLERK
SUBORDINATION AGREEMENT
THIS AGREEMENT is dated for reference January 22
2003, and is between Brian L. Schrieber and Kimberly K. Schrieber,
owner(s) of the land described in the Mortgage referenced below
("Owner"), First Magnus Financial Corporation ("Lender") and Community
First National Bank ("CFB").
RECITALS:
Owner executed a Mortgage, dated May 19, 1999, to secure a note
in the sum of $75,000.00 in favor of CFB ("CFB Mortgage"). The CFB
Mortgage was recorded on June 7, 1999 in the Official Records of
Lincoln County, Wyoming as Document Number 859096, Book 431, Page 189.
..,..j, Owner has also executed, or is about to execute, a mortgage and
'"~. note in the sum of $91,500.00, dated February 13 2003, in
~ favor of Lender ("Lender's Mortgage") Lender's Mortgage is to be
z [. ~.,,1¢~ recorded concurrently herewith.
~': ~']' 'iI~ As a condition precedent to Lender ' s performance, the CFB
Mortgage must be subordinated to the Lender's Mortgage. CFB is willing
to subordinate the lien of the CFB Mortgage provided it retains its
lien priority with respect to all other legal or equitable interests
in the property.
AGREEMENT:
In consideration of the mutual benefits accruing to the parties
and to induce Lender to make a loan to Owner, it is hereby agreed and
WY/DT-Subordination-Real Property- 98.1
understood as follows:
(1) Lender's Mortgage, and any renewals or extensions thereof,
shall be a lien on the property prior to the lien of the CFB
Mortgage.
(2) Lender would not make its loan without this subordination
agreement.
(3) Lender will not make any additional advances under Lender's
Mortgage except make such disbursements which become necessary to
protect its security interest and which are recoverable from
Owner under terms of Lender's Mortgage. Any lien securing funds
advanced of disbursed contrary to this paragraph or monies due as
a result of a default interest rate shall be subordinate to the
lien of the CFB Mortgage..
(4) This agreement shall be the whole and only agreement with
regard to the subordination of the CFB Mortgage to Lender's
Mortgage.
(5) By virtue of the execution of this Subordination Agreement,
the Owner and Lender hereby indemnify the CFB from any lien,
which is claimed to have gained priority over the CFB Mortgage as
a result of this subordination other than the Lender's Mortgage.
(6) CFB's agreement to subordinate its lien interest to that of
the Lender is expressly conditioned upon Lender's, Borrower's and
Guarantor's (if any) execution of this subordination agreement.
This subordination agreement is null and void if not duly
executed by the foregoing parties.
(7) A default in the obligation secured by the' Lender's
Mortgage may be cured (including purchase of the property at
foreclosure sale) by the CFB via cash, certified funds or a
United States Treasury check, at the option of the CFB.
Provisions for a so-called "default rate of interest" or any
similar penalty payment that may be contained within the Lender's
Mortgage are inapplicable to CFB.
(8) Ail proceeds of Lender's loan shall be applied to satisfy
debt secured by a lien(s) presently superior to the lien of the
CFB Mortgage, the following described uses, if any , plus
customary closing costs. Any other use of proceeds not described
herein shall void this agreement.
WY/DT-Subordination-Real Property- 98.1
Brian L Schrleber, Owner
ieber, Owner
FIRST NATiONA~
(Ail signatures must be acknowledged)
State of Wyoming ~r~.~
County of Jackson -
P~ic, perso' nally appeared :af~ X, ~c/,~'m.'~b~e%'~~-/~
kno~ to me to be the person whose name is s~bscribed to this
instr~ent and acknowledged to me that he/she executed this instr~ent
in his/her authorized capacity, and that by his/her signature on the
instr~ent Co--unity First National Bank executed the instr~ent.
Signature
WITNESS my hand and official seal.
WY/DT-Subordination-Real Property - 98ol