Laserfiche WebLink
7 <br /> PRIORITY AND SUBORDINATION AGREEMENT <br /> (New Century House Project) <br /> This Priority and Subordination Agreement("Agreement')is made as of the 30th day of April, <br /> 2020,by and among the CITY OF EVERETT,WASHINGTON, a municipal corporation(the"City of <br /> Everett"), SNOHOMISH COUNTY,a political subdivision of the State of Washington("Snohomish <br /> County");WASHINGTON STATE DEPARTMENT OF COMMERCE(the"State");BOEING <br /> EMPLOYEES' CREDIT UNION,a Washington state-chartered credit union("BECU"); and <br /> HOUSING HOPE,a Washington nonprofit corporation("Owner"). The City of Everett, Snohomish <br /> County,the State, and BECU are referred to collectively as"Lenders." This Agreement is made with <br /> reference to the following facts: <br /> RECITALS <br /> A. Owner's Interest. Owner owns the real property located at 2505 Howard Avenue, <br /> Everett,Washington 98203,more particularly described on Exhibit A attached hereto(the"Property"). <br /> Owner has acquired the Property to serve as housing for low-income persons. The term"Mortgaged <br /> Property"as used herein shall include the Property,all improvements on the Property and all personal <br /> property granted as security for any of the loans referred to below. <br /> B. BECU Loan Agreement;BECU's Interest. BECU is the holder of a loan(together <br /> with any extension,renewal or refinancing thereof,the`BECU Loan")to Owner in the aggregate <br /> principal amount of$1,055,000. The BECU Loan is made pursuant to a Loan Agreement of even date <br /> herewith(the"Loan Agreement"),and is evidenced by a Promissory Note of even date herewith(the <br /> "BECU Note")from Owner in the principal amount of$1,055,000. Repayment of the BECU Note is <br /> secured by, among other security documents,a Deed of Trust,Assignment of Leases and Rents, <br /> Security Agreement,and Fixture Filing of even date herewith encumbering the Property and naming <br /> BECU as Beneficiary,recorded under Snohomish County recording number (the <br /> `BECU Deed of Trust"). All documents,instruments and agreements evidencing or securing the <br /> BECU Loan are referred to collectively in this Agreement as the`BECU Loan Documents." The <br /> proceeds of the BECU Loan are being used,in part,to pay off an existing loan to Owner by <br /> Washington Mutual Bank("WMB")in the original principal amount of$700,000(the"WMB Loan"), <br /> which WMB Loan is more particularly described in that certain Priority and Subordination Agreement <br /> recorded March 11,2002,under Snohomish County recording number 200203110832(the"Original <br /> Priority Agreement"). - - <br /> C. The City of Everett's Interest. The City of Everett is the holder of a loan(together <br /> with any extension,renewal or refinancing thereof,the"City of Everett Loan")to Owner in the <br /> maximum principal amount of$160,000. The City of Everett Loan is evidenced by one or more <br /> promissory notes dated on or about September 7,2001, in the aggregate amount of$160,000,the <br /> repayment of which is secured by a deed of trust on the Property recorded under Snohomish County <br /> recording number 200109250370(the"Everett Deed of Trust"). All documents identified in this <br /> Recital C,and any documents executed by Owner in connection therewith,are referred to collectively <br /> in this Agreement as the"Everett Loan Documents." <br /> D. Snohomish County's Interest. Snohomish County is the holder of a loan(together <br /> with any extension,renewal or refinancing thereof,the"Snohomish County Loan")to Owner in the <br /> 075440-0196/4825-7411-2185.1 Page 3 <br /> 55 <br />