HomeMy WebLinkAboutMortgage Subordination
MORTGAGE SUBORDINATION AGREEMENT
THIS AGREEMENT, entered into this 10th day of March, 1995,
between Northeast State Bank of Minneapolis, a Minnesota
corporation ("Northeast"), and the Housing and Redevelopment
Authority in and for the city of Columbia Heights, a public body
corporate and politic under the laws of Minnesota (the "HRA").
WHEREAS, Northeast will advance funds to Mobilia, Ltd., a
Delaware corporation in the principal amount of Seven Hundred
Thousand and NO/100 Dollars ($700,000.00) as evidenced by that
certain Promissory Note dated March 10, 1995, ("First Mortgage
Note") for the purpose of financing certain business interests
and for the payoff of certain liens on that certain parcel of
property legally described on Exhibit A attached hereto and
incorporated herein.
WHEREAS, Northeast will secure its First Mortgage Note by
taking a first mortgage against the Property, which first
mortgage will be dated March 10, 1995, and recorded March
1995, as document no. in the office of t~
Hennepin County Recorder and Registrar of Titles ("First
Mortgage").
WHEREAS, Northeast will not make the advances under the Note
until the Note is secured by a first mortgage on the Property.
WHEREAS, the HRA is the holder of a Note from Mobilia, Ltd.,
a Delaware corporation in the principal amount of One Million
Fifteen Thousand Ninety-nine and NO/100 Dollars ($1,015,099.00)
as evidenced by that certain Promissory Note dated March 10,
1995, ("Second Mortgage Note").
WHEREAS, the HRA will secure its Second Mortgage Note by
taking a second mortgage against the Property described on
Exhibit A attached hereto, which Second Mortgage will be dated
March 10, 1995, and recorded March , 1995, as document no.
in the office of the Hennepin County Recorder
and Registrar of Titles ("Second Mortgage").
WHEREAS, Northeast's First mortgage constitutes a prior and
superior lien than that of the second mortgage.
NOW, THEREFORE, in consideration of the mutual covenants
herein, the parties hereby agree as follows:
SECTION 1. SUBORDINATION
The HRA hereby covenants and agrees that the second mortgage
shall be considered and in all respects shall be subordinate to
the first mortgage and any note and any other extensions or
renewals of the first mortgage or the first mortgage note
provided that:
A. Any funds derived from the first mortgage note are used
solely for the purposes for which the first mortgage
note was procured.
B. In any extension or renewal of the first mortgage
and/or the first mortgage note, the interest then due
is paid and not capitalized.
C. The amount of this subordination shall not exceed the
original amount of $700,000.00, with interest thereon
as provided in the first mortgage note, together with
the statutory fees allowed for the foreclosure of the
first mortgage.
SECTION 2. DEFAULT
In the event of any default in the terms of the First
Mortgage or the First Mortgage Note, Northeast will immediately
give notice of such default to the HRA. The HRA, at its option,
shall be allowed to cure such default within a period of fifteen
(15) days after such notice is given.
SECTION 3. NOTICES
Any notices required to be given hereunder or otherwise by
law, shall be in writing and shall be sent by united States mail,
postage prepaid and deposited in a United States Post Office or a
branch thereof, and addressed to the party intended at its
address set forth below or such other address as it may designate
by notice given.
If to HRA:
Northeast State Bank
3989 Central Avenue NE
Minneapolis, MN 55421
city of Columbia Heights
Housing and Redevelopment Authority
590 NE 40th Avenue
Columbia Heights, MN 55421
If to Northeast:
Such notice shall be effective upon the date of deposit into
the mail as herein provided.
SECTION 4. BINDING EFFECT
All rights and obligations ar1s1ng out of this Agreement
shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties hereto.
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,FROM BARNA OUZ9
3a 9.19'9:5 9119
P. .
NOR'l'HEAST
NORTllEAST STATE BAN!< OF MINNEAPOLIS,
a ~in~neBotrc~oration. '
BY'~~
M ael Co ns
Its: Executive Vlce President
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IN WITNESS WHEREOF, tbe parties have oaused this Agreement
to be ex~ted the year and day above first written.
lIRA
HOUSING AND aEDEV2LOP~ENT AUTHORITY,
in and for the City of Columbia Helqhta
8YI ~JI /!t~~~t!:jt./l ();,
Its; ca. / ()
By:~a~~,~~
:Its: XeQut:ive 0 rec~or
S'l'ATB 011' MINNESOTA)
II ) ~B.
COUNTY Ol"~
The tore~einq instrument was ac~nowledqGd before me this
10th day of March, 1995, by Michael Collins, the Executive Vice
President of Northeast state Bank of Minneapolis, a oorporation
under the laws of Minnesota, Qn~e alf of the oorporation. '
€I) MICHAEL F. HURLEY
IIOTARVl'UtUC. MIHNESOTA
HENNEPIN COUNTY
lti_eom.l!n,31.2000 otary Publ c
COUNTY OF Anoka
STATE OF MINNESOTA)
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Tbe'fore9oinq inGt~mQnt was acknowledsed before me this
10th day of MarCh, 1995, by D.J. Murzyn., Jr'llnd ,
n"n;ll <! 8. Sr.hne i der , ,tho. Chai~ and. Executive
D1recto~, respeotively, Of COlumbia Keiqhts BouQinq and
R.developmen~ Authority, a pub lid body C rporate ~nd politic
under the laws of Minnesota, on behalf t the :Z'o
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THIS INSTRUMENT WAS DRAFTED BY:
BARNA, GUZY & STEFFEN, LTD.
400 Northtown Financial Plaza
200 Coon Rapids Boulevard
Minneapolis, MN 55433
(612) 780-8500 (MFH)
mfh\nesb\mobilla\subordln
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EXHIBIT A
LEGAL DESCRIPTION
Lot 32, Block 6, Reservoir Hills.
Lots 25 through 28, Block 1, Walton's
and 34, Block 6, Reservoir Hills.
Rearrangement of Lots 33
The vacated alley adjacent to Lots 25
Walton's Rearrangement of Lots 33 and
Hills.
through 28, Block 1,
34, Block 6, Reservoir
Those parts of Lots 28 through 31, Block 6, Reservoir Hills, Lots
23 and 24, Block 1, Walton's Rearrangement of Lots 33 and 34,
Block 6, Reservoir Hills, and of the vacated alley adjacent to
Lot 24, Block 1, Walton's Rearrangement of Lots 33 and 34, Block
6, Reservoir Hills, lying Southwesterly and Westerly of the
following described line: Beginning at a point on the South line
of said Block 1, Walton's Rearrangement, said point being 18.00
feet West of the Southeast corner of Lot 23, of said Block 1,
Walton's Rearrangement; thence Northerly on a line 18.00 feet
West of and parallel with said East line of Lot 23, a distance of
87.00 feet; thence on a straight line to a point on the North
line of Lot 30 of said Block 6, Reservoir Hills, said point being
47.23 feet Easterly of the Northwest corner of said Lot 30 and
there terminating, all in Anoka County, Minnesota.
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