HomeMy WebLinkAbout902931When Recorded Return To:
U.S. Small Business Administration
Attn: Collateral
2719 North Air Fresno Dr., Suite 107.
Fresno, CA 93727-1547
Loan No. 5120284006 Aviat Aircraft
RECEIVED
LINCOLN L, uU~,:TY CLERK
9 0 2.9 3 I SFr:' I'7. i'?i tS
~nc.
0567
space above ~ine for recorder
SUBORDINATION AGREEMENT
'b
THIS AGREEMENT is dated for reference July 19, 2004, and is between Top-flight Properties Inc.
, owner(s) of the land described in the Deeds of Trust referenced below ("Owner"), First Interstate Bank
("Lender") and the SMAI.I. BUSINESS ADMINISTRATION, an agency of the UNITED STATES
GOVERNMENT, ("SBA").
SBA is the present holder and beneficiary of that/those certatn deed(s) of trust, dated March 26,
2002, to secure a note or notes in the sum of $482,600 ("SBA Deed(s) of Trust"). The SBA Deed(s) of Trust
was/were recorded on March 28, 2002 as Document Number(s) Book 486PR, page 289 , Lincoln County
Official Records.
Owner has also executed, or is about to execute, a deed of trust securing 'a'note in a sum not to
exceed $ 2,100,000 dated B~7-oc/ ~,-Q Cl - {6 ' 0 q , in favor of Lender ("Lender's Deed of Trust").
Lender's Deed of Trust shall be recorded concurrently herewith.
As a condition 'precedent to Lender's performance, the SBA Deed(s) of Trust must be subordina ted
to the Lender's Deed 61r' Trust. SBA is willing to subordinate the hen(s) of the SBA Deed(s) of Trust
provided it retains its hen priority with regard to all other legal or equitable interests in the property.
In consideration of the mutual benefits to the parties and to induce Lender to make a loan to Owner,
it is hereby agreed as follows:
(1) Lender's Deed of Trust, and any renewals or extensions thereof, shall be a hen on the
property prior to the lien of the SBA Deed(s) of Trust.
(2) Lender would not make its loan without this subordination agreement.
(3) Lender will not make any additional advances under Lender's Deed of Trust except such
disbursements which become necessary to protect its security interest and for which Owner is liable
under Lender's Deed of Trust and note. Any hen upon the property securing repayment of
additional advances or monies due as a result of a default interest rate shall be subordinate to the hen
of the SBA Deed of Trust.
(4) This agreement shall be the whole and only agreement with regard to the subordinauon of
the SBA Deed(s) of Trust to Lender's Deed of Trust.
(5) Except as expressly provided herein, this agreement shall not operate or be construed to
alter the priority of the SBA Deed(s) of Trust with regard to any legal or equitable interest in the
property. Owner and Lender shall hold SBA harmless from any impairment of its lien (wit.h regard
to any third party) which is occasioned by this subordination.
(6) All proceeds of Lender's loan shall be fipplied to satisfy debt secured by a lien(s) presendy
superior to the lien of the SBA Deed(s) of Trust, improvements to th~ encumbered and adjacent real
property and equipment for the operations thereupon, plus customary closing costs. Any other use
of proceeds not described herein shall void this agreement.
(7) A default in the obligation secured by the Lender's Deed of Trust may be cured (including
purchase of the property at foreclosure sale) by the SBA via cash, certified funds or a United States
.Treasury check, at the option of the SBA. Provisions for a so-called "default rate of interest" or any
similar penalty payment that may be contained within the Lender's Deed of Trust are-inapplicable to
SBA. If lender obtains possession or control of the subject premises, it shall grant SBA access
thereto and allow repossession of any personal property collateral in which SBA has an interest.
(8) This subordination agreement is void if not duly executed by Owner, Lender, SBA, the SBA
Borrower(s) and all Guarantors of the SBA loan.
Top Flight Properties Inc. p
,President
By:
, Secretary
LENDER
Comme_r c iai Loan~=~ ~ o~.~ ...... d ~q
The undersigned Guarantor(s)/Borrower(s) hereby consent to all terms above and acknowledge their
liability for the above referenced SBA loan is in no manner dhninished by this agreement.
Sky International, Inci~
,President
, Secretary
Aviat Aircraft, Inc. /9
,President , Secretary
Smart Horn, Individually
ALL BIBNATUFIESi MUST BE AEIKNDWLEDr'I-ED
State of Califomia
County of Fresno
On 1"~{-~ '~O~.i")q before me, [ I a Notary Public,
personally ;~peared ("r~-CL L'~O.'~'h/C~. ,personally known
to me (or proved on the basis of satisfactory evidence) to be the person whose name is subscribed to the within
instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her
signature on the instrument %ers~nlor the entity upon behalf of which the person acted, executed the instrument.
Signature~
My
State of Wyoming )SS.
County of Natrona )
Subscribed to and sworn before me by
Loans, First Interstate Bank, on the
Kermit S. Wille, Vice President, Commercial
13th day pf August, ~004.
~otary Public