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This Subordination Agreement is made between CVDH LP, the County of Riverside, and the City of Coachella, concerning the financing of affordable rental housing units. It outlines the terms under which the County ARPA Loan and the City Loan have differing priorities in relation to the security interests in the property, and includes provisions for notification and resolution of defaults.
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What is subordination agreement?
A subordination agreement is a legal document that establishes the order of claims or mortgages on a property, indicating that one party agrees to subordinate their rights to another party's claim.
Who is required to file subordination agreement?
Typically, the party whose interest is being subordinated, such as a lender or lienholder, is required to file the subordination agreement.
How to fill out subordination agreement?
To fill out a subordination agreement, you need to provide details such as the names of the parties involved, descriptions of the original loan documents, terms of subordination, and signatures of all parties.
What is the purpose of subordination agreement?
The purpose of a subordination agreement is to clarify the priority of debts against a property, allowing a new lender to secure a loan against the property while acknowledging the rights of existing lenders.
What information must be reported on subordination agreement?
The subordination agreement must report the names of all parties involved, details of the original obligations, the terms of subordination, and the legal descriptions of the property.
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