HomeMy WebLinkAbout981955.tiff RESOLUTION
RE: APPROVE SUBORDINATION AGREEMENT FOR DEED OF TRUST AND AUTHORIZE
CHAIR TO SIGN -ALTERNATIVE HOMES FOR YOUTH, INC.
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with a Subordination Agreement for a Deed
of Trust between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and Alternative Homes for Youth, Inc., with terms and
conditions being as stated in said agreement, and
WHEREAS, after review, the Board deems it advisable to approve said agreement, a
copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Subordination Agreement for the Deed of Trust between the County
of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County,
and Alternative Homes for Youth, Inc., be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said agreement.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 12th day of October, A.D., 1998.
BOARD OF COUNTY COMMISSIONERS
® WELD COUNTY, COLORAD
ATTEST: ��/c�?.// �� ` j I� e � �6
` / f ��� Constance L. Harbert, Chair
Weld County Clerk to r - _ P � •-1
L
r V L. _ •-lv i
�� � W. H. ebster, Pro
BY: I ����, 5
Deputy Clerk to the' r0.f'MI
E. Baxter
APB D ORM:
Dale K. all
unty Attor y
Barbara J. Kirkmeyer
/ 981955
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09/28/98 MON 16:50 TEL 3034460259 NORWEST LAW DIV I�J002
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Space above line for recording purposes.
SUBORDINATION AGREEMENT
Subordination of Deed of Trust
Colorado
THIS SUBORDINATION AGREEMENT (the "Agreement") is made
and entered into this day of September 1998, by ALTERNATIVE HOMES FOR
YOUTH, A COLORADO NON-PROFIT CORPORATION (the "Owner"), and THE
COUNTY OF WELD, STATE OF COLORADO, BY AND THROUGH THE BOARD
OF COUNTY COMMISSIONERS OF COUNTY OF WELD (the "Beneficiary").
RECITALS
1. The Owner executed a deed of trust dated August 30, 1995 (the
"Beneficiary's Deed of Trust") to the Public Trustee of the County of Weld
encumbering the following described real property (the "Property"):
A part of Tract "C" Weld County Business Park P.U.D. a subdivision within the
City of Greeley, County of Weld, State of Colorado, more particularly described
as follows:
Commencing at the Northeast Corner of Section 31, Township 6 North, Range
65 West of the 6th Principal Meridian, and considering the East line of the
Northeast Quarter (NE1/4) to bear South 00°00'00" West to the East 1/4 corner
of Section 31, Township 6 North, Range 65 West, with all bearings contained
herein being relative thereto; thence South 00°00'00" West along the East line of
the Northeast Quarter(NE1/4), a distance of 850.00 feet to the Centerline of"M"
Street; thence North 90°00'00" West along the Centerline of "M" Street, a
distance of 80.00 feet; thence South 00°00'00" West a distance of 40.00 feet
perpendicular to the South Right-of-Way line of "M" Street, also being a point
on a curve and the True Point of Beginning; thence along said curve to the right
having a radius of 30.00 feet, a central angle of 90°00'00", an arc distance of
47.12 feet, the long chord of which bears South 45°00'00" East a distance of
42.43 feet to a point on the West Right-of-Way line of 11"' Avenue; thence
South 00°00'00" West along said West Right-of-Way line, a distance of 317.35
feet; thence leaving said West Right-of-Way line North 88°33'53" West a
distance of 91.13 feet; thence South 57°00'00" West, a distance of 91.35 feet;
thence North 33°00'00" West, a distance of 330.33 feet to a point on the South
Right-of-Way line of "M" Street; thence North 57°00'00" East, a distance of
80.00 feet to a point on a curve to the Right having a radius of 460.00 feet, a
central angle of 33°00'00", an arc distance of 264.94 feet, the long chord of
which bears North 73°30'00" East, a distance of 261.29 feet to the True Point of
Beginning;
to secure a promissory note dated August 30, 1995 in the amount of $399,811.00 in
favor of the Beneficiary, which deed of trust was recorded August 31, 1995 in Book
1509 at Page 193, as Reception No. 2453617 of the records of the County of Weld,
State of Colorado.
2. The Owner has or is about to execute a new deed of trust (the
"New Lender's Deed of Trust") and note in the sum of $942,248.00 dated September
, 1998 in favor of NORWEST BANK COLORADO, N.A. (the "New Lender"),
which will also encumber the Property and which will also be recorded in the official
records of the County of Weld, State of Colorado.
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3. It is a condition precedent to obtaining the new loan (the "New
Loan") from the New Lender that the New Deed of Trust shall unconditionally be and
remain at all times a lien upon the Property that is prior and superior to the lien of the
Beneficiary's Deed of Trust, and that the Beneficiary subordinates the Beneficiary's
Deed of Trust to the New Lender's Deed of Trust; provided, however, after the sum of
$224,886.50 principal has been repaid to the New Lender by the Owner, this
Subordination Agreement shall become null and void.
4. It is to the mutual benefit of the parties to this Agreement that the
New Lender make the New Loan to the Owner, and the Beneficiary is willing to
subordinate the Beneficiary's Deed of Trust to the New Lender's Deed of Trust.
NOW, THEREFORE, in consideration of the mutual benefits accruing to
the parties and other valuable consideration, the receipt and sufficiency of which
consideration is hereby acknowledged, and in order to induce the New Lender to make
the New Loan, the parties agree as follows:
(1) That the New Lender's Deed of Trust, together with any renewals or
extensions thereof, shall unconditionally be and remain at all times a lien or charge on
the Property that is prior and superior to the lien or charge of the Beneficiary's Deed of
Trust until the sum of $224,886.50 principal has been repaid on the New Lender's
promissory note secured by the New Lender's Deed of Trust. Notwithstanding anything
to the contrary, this Agreement shall not extend to any principal advances made by the
New Lender after the date of the New Loan, except that this Agreement shall extend to
future advances made for taxes, insurance, fees, costs, and expenses required to protect
the interests of the New Lender in connection with the New Loan;
(2) That the New Lender would not make the New Loan without this
Agreement; and
(3) That this Agreement shall be the whole and only agreement with
regard to the subordination of the Beneficiary's Deed of Trust to the New Lender's Deed
of Trust.
The Beneficiary agrees and acknowledges:
(1) That the New Lender in making disbursements pursuant to the
New Loan is under no obligation or duty to, nor has the New Lender represented that it
will, see to the application of such proceeds by the person or persons to whom the New
Lender disburses such proceeds;
(2) That the Beneficiary unconditionally subordinates the
Beneficiary's Deed of Trust in favor of the New Lender's Deed of Trust and understands
that in reliance upon, and in consideration of this subordination, specific loans and
advances are being and will be made and as part and parcel thereof specific monetary
and other obligations are being and will be entered into that would not be made or
entered into but for said reliance upon this subordination; and
(3) That the Beneficiary's Deed of Trust has by this instrument been
subordinated to the New Lender's Deed of Trust subject to the provisions of this
Agreement.
(4) The payment of all of Owner's indebtedness to the Beneficiary of
every type and description, whether now existing or hereafter created or incurred and
whether several or joint and several (all such indebtedness hereinafter collectively
referred to as "Subordinated Indebtedness"), is hereby expressly subordinated to the
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extent and in the manner hereinafter set forth until the payment of$224,886.50 principal
has been made by Owner on the New Lender's Indebtedness.
(5) Without the New Lender's prior written consent, the Beneficiary
will not demand, receive or accept any principal or interest payment from the Owner in
respect of the Subordinated Indebtedness until $224,886.50 principal has been paid.
ALTERNATIVE HOMES FOR YOUTH,
A COLORADO C ORATION
ATTEST:
BY_7-.
BY
Titlec<%)c-C eirceeke jet/ ®-4tcer
BY
Title
THE COUNTY OF WELD, STATE OF
COLORADO, BY AND THROUGH THE
BOARD OF COUNTY COMMISSIONERS
OF COUNTY OF WELD
BY
n f '
Title • ° `,..cr; \'
STATE OF COLORADO ) Attes
) SS. : l
COUNTY OF By:
Dep ;' „ o tP., Board
The foregoing instrument was acknowledged beforis day of September
1998, by as , and by
as , and by as
of ALTERNATIVE HOMES FOR YOUTH, A COLORADO NON-PROFIT
CORPORATION.
WITNESS my hand and official seal.
My commission expires:
Notary Public
STATE OF COLORADO )
) SS.
COUNTY OF WELD ) 11
The foregoing instrument was acknowledged before me this /-rn day of s€`
1998, by as
of THE COUNTY OF WELD, STATE OF COLORADO, BY AND THROUGH THE
BOARD OF COUN MMISSIONERS OF COUNTY OF WELD.
WITNE official seal.
My commis' iStpiter vie
2:• JEAN 0.
;•GIIUNGHAY Not Publ.
•
S\Subordinalion\AI[ •?' ''1 '
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6 Pileal 4404 TO: Board of County Commissioners
FROM: Bruce T. Barker, Weld County Attorney
lilliDDATE: October 6, 1998
C. RE: Subordination Agreement for Alternative Homes for
COLORADO Youth, Inc.
You may recall that in September, 1995, the Board of County Commissioners sold property in
the North Weld Business Park to Alternative Homes for Youth, Inc. The Deed of Trust
signed by AHY provided that it was subject to an existing note and deed of trust held by
Colorado National Bank (as AHY's lender). This in essence was a subordination of Weld
County's Deed of Trust in favor of that held by Colorado National Bank. A copy of the Deed
of Trust is attached.
AHY has recently refinanced to get a better interest rate. Mr. Eldon Holland, Director, has
requested that the Board subordinate its Deed of Trust in favor of a note and deed of trust for
AHY's new lender, Norwest Bank Colorado,N.A. A new Subordination Agreement is
attached. I have reviewed the form and it meets with my approval.
I recommend that the Board approve the Subordination Agreement and authorize the Chair's
signature. i
I�ruce T. Fjlirker
Weld Comity Attorney
BTB/db:Let/BOCC/AHY
Attachment
pc: Don Warden
981955
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