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WHEREAS, it is to the mutual benefit of the Parties that Lender make the Lender Loan NOwner; and City has agreed to subordinate the City Deed of Trust to the Lender Deed of Trust. NOW, THEREFORE in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That the Lender Deed ofTrust securing the Lender Loan, and any renewals nrextensions thereof, shall unconditionally be and remain at all times a |ksn or charge on the Property, prior and superior to the lien or charge of the City Deed of Trust. (2) That Lender would not make the Lender Loan above described without this Subordination Agreement. (3)That this Subordination Agreement shall be the whole and only agreement with regard to the subordination ofthe lien orcharge ofthe City Deed ofTrust tothe lien orcharge ofthe Lender Deed and shall supersede and cancel, but only insofar aswould affect the priority between the City Deed of Trust, any prior agreement as to subordination including, but not limited, those provisions, if any, contained in the City Loan Agreement, which provide for the subordination of the lien or charge thereof toanother deed ordeeds oftrust orLoanother mortgage ormortgages. City declares, agrees and acknowledges that (a) City consents toand approves 0all provisions ofthe note and Lender Deed of Trust in favor of Lender, and Ai1all agreements, including but not limited to any loan mescrow agreements, between Owner and Lender for the disbursement o[the proceeds nfLender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation o,duty to, nor has Lender represented that iLwill, see Lothe application ofsuch proceeds bythe person orpersons Un whom Lender disburses such proceeds and any application or use ofsuch proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made inwhole orinpart; ki City intentionally and unconditionally subordinates the |kan or charge of the City Loan Agreement favor of the Lender Deed of Trust in favor and understands that in reliance upon, and in consideration o� 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 which would not be made or entered into but for said reliance upon this subordination; and (d) An endorsement has been placed upon the note secured by City Deed of Trust that the note is subordinate to the lien or charge of the Lender Deed of Trust. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY T0 OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. Signed In 010tinterpart City of San Leandro (ALL SIGNATURES MUST BE NOTARIZED) Page No. zo[3