890 Iowa Street -Jorja Moore_Subordination AgreementTHE CITY OF
DUB E
MEMORANDUM
-.
December 21, 2006
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Subordination Agreement for Jorja J. Moore
Economic Development Director Dave Heiar recommends City Council approval of a
subordination agreement to hold a secondary position with the Downtown Rehabilitation
Loan on a mortgage on property located at 890 Iowa Street owned by Jorja Moore with
Dupaco Credit Union.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
T7 Tl C11'Y OF G_.,,'~.4. ._.__.._.
~`~~
December 18, 2006
MEMORANDUM
TO: Mike Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director ~~'
SUBJECT: Subordination Agreement for Jorja J. Moore
INTRODUCTION
This memorandum presents for City Council review and approval a subordination
agreement to hold a secondary position with the Downtown Rehabilitation Loan on a
mortgage on property located at 890 Iowa Street owned by Jorja Moore with Dupaco
Credit Union.
BACKGROUND
The Economic Development Department was approached by Dupaco Credit Union to take a
subordinate position for the Jorja Moore Downtown Rehab Loan because she is trying to
refinance her mortgage. She is proposing to transfer the remaining principal on her EDSB
loan over to Dupaco.
DISCUSSION
The Downtown Rehabilitation Loan for property at 890 Iowa Street owned by Jorja Moore
took a subordinate position for the current mortgage with East Dubuque Savings Bank. The
mortgage amount with Dupaco Credit Union will be for $125,943. The Downtown
Rehabilitation Loan will remain at the same position on the new mortgage with Dupaco.
RECOMMENDATION
I recommend that the City Council approve the attached subordination agreement of the
Downtown Rehabilitation Loan to a mortgage on Jorja Moore's property with Dupaco
Credit Union.
ACTION STEP
The action step for the City Council is to adopt the attached subordination agreement.
Prepared by: Aaron M. DeJong, Assistant Economic Development Director
F:\USERS\Adejong\PMyhre\WPDOCS\LOANDOC\JORJA\061218 Subordination memo to council.doc
RECORDER'S USE ONLY
Prepared By: MELISSA KING, BUSINESS LENDING CONSULTANT, Dupaco Community Credit Union,
3299 Hillcrest, Dubuque, IA 52004-0179, (563) 557-1700
RECORDATION REQUESTED BY:
Dupaco Community Credit Union, 3299 Hillcrest, Dubuque, IA 52004-0179
WHEN RECORDED MAIL TO:
Dupaco Community Credit Union, 3299 Hillcrest, Dubuque, IA 52004-0179
NOTICE: THIS SUBORDINATION OF MORTGAGE RESULTS IN YOUR SECURITY INTEREST IN THE
PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR
LATER SECURITY INSTRUMENT.
SUBORDINATION OF MORTGAGE
The names of all Grantors (sometimes "Borrower") can be found on page 1 of this Subordination. The
names of all Grantees (sometimes "Lender") can be found on page 1 of this Subordination. The
property address can be found on page 2 of this Subordination. The legal description can be found on
page 2 of this Subordination. The related document or instrument number can be found on page 2 of
this Subordination.
THIS SUBORDINATION OF MORTGAGE dated December 6, 2006, is made and executed among
JORJA J. MOORE ("Borrower"); CITY OF DUBUQUE, IOWA ("Mortgagee"1; and Dupaco Community
Credit Union ("Lender").
SUBORDINATED INDEBTEDNESS. Mortgagee has extended the following described financial
accommodations (the "Subordinated Indebtedness") to JORJA J. MOORE ("Mortgagor"):
ORIGINAL NOTE IN THE AMOUNT OF 555,442.00, DATED APRIL 13, 1999, IN FAVOR OF JORJA
J. MOORE.
SUBORDINATED MORTGAGE. The Subordinated Indebtedness is secured by a mortgage dated April
13, 1999 from Mortgagor to Mortgagee (the "Subordinated Mortgage") recorded in DUBUQUE County,
State of Iowa as follows:
SUBORDINATION OF MORTGAGE
(Continued) Page 2
RECORDED APRIL 14, 1999 IN THE OFFICE OF THE DUBUQUE COUNTY, IOWA RECORDER,
INSTRUMENT #6257-99.
REAL PROPERTY DESCRIPTION. The Subordinated Mortgage covers the following described real
property Ithe "Real Property") located in DUBUQUE County, State of Iowa:
Lot 1 of the Subdivision of Block 2 in "Dubuque Downtown Plaza" in the City of Dubuque, Iowa,
according to the recorded plat thereof.
The Real Property or its address is commonly known as 890 IOWA ,DUBUQUE, IA.
REQUESTED FINANCIAL ACCOMMODATIONS. Mortgagee, who may or may not be the same person
or entity as Mortgagor, and Borrower each want Lender to provide financial accommodations to
Borrower (the "Superior Indebtedness") in the form of (A) new credit or loan advances, (BI an
extension of time to pay or other compromises regarding all or part of Borrower's present indebtedness
to Lender, or (C) other benefits to Borrower. Borrower and Mortgagee each represent and
acknowledge to Lender that Mortgagee will benefit as a result of these financial accommodations from
Lender to Borrower, and Mortgagee acknowledges receipt of valuable consideration for entering into
this Subordination.
LENDER'S LIEN. As a condition to the granting of the requested financial accommodations, Lender has
required that its mortgage or other lien on the Real Property ("Lender's Lien") be and remain superior to
the Subordinated Mortgage.
NOW THEREFORE THE PARTIES TO THIS SUBORDINATION HEREBY AGREE AS FOLLOWS
SUBORDINATION. The Subordinated Mortgage and the Subordinated Indebtedness secured by the
Subordinated Mortgage is and shall be subordinated in all respects to Lender's Lien and the Superior
Indebtedness* and it is agreed that Lender's Lien shall be and remain, at all times, prior and superior to
the lien of the Subordinated Mortgage. Mortgagee also subordinates to Lender's Lien all other Security
Interests in the Real Property held by Mortgagee, whether now existing or hereafter acquired. The
words "Security Interest" mean and include without limitation any type of collateral security, whether in
the form of a lien, charge, mortgage, deed of trust, assignment, pledge, chattel mortgage, chattel trust,
factor's lien, equipment trust, conditional sale, trust receipt, lien or title retention contract, lease or
consignment intended as a security device, or any other security or lien interest whatsoever, whether
created by law, contract, or otherwise.
**but not to exceed S125 943.22
MORTGAGEE'S REP ES~NTATI~NS AND WARRANTIES. Mortgagee represents and warrants to
Lender that: (A) no representations or agreements of any kind have been made to Mortgagee which
would limit or qualify in any way the terms of this Subordination; (B) this Subordination is executed at
Borrower's request and not at the request of Lender; (C) Lender has made no representation to
Mortgagee as to the creditworthiness of Borrower; and (D) Mortgagee has established adequate means
of obtaining from Borrower on a continuing basis information regarding Borrower's financial condition.
Mortgagee agrees to keep adequately informed from such means of any facts, events, or circumstances
which might in any way affect Mortgagee's risks under this Subordination, and Mortgagee further
agrees that Lender shall have no obligation to disclose to Mortgagee information or material acquired by
Lender in the course of its relationship with Mortgagee.
MORTGAGEE WAIVERS. Mortgagee waives any right to require Lender: (A) to make, extend, renew,
or modify any loan to Borrower or to grant any other financial accommodations to Borrower
whatsoever; (B) to make any presentment, protest, demand, or notice of any kind, including notice of
any nonpayment of any Superior Indebtedness secured by Lender's Lien, or notice of any action or
nonaction on the part of Borrower, Lender, any surety, endorser, or other guarantor in connection with
the Superior Indebtedness, or in connection with the creation of new or additional indebtedness; (C)
SUBORDINATION OF MORTGAGE
(Continued) Page 3
to resort for payment or to proceed directly or at once against any person, including Borrower; (D) to
proceed directly against or exhaust any collateral held by Lender from Borrower, any other guarantor, or
any other person; (E) to give notice of the terms, time, and place of any public or private sale of
personal property security held by Lender from Borrower or to comply with any other applicable
provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Lender's power; or
(G) to commit any act or omission of any kind, at any time, with respect to any matter whatsoever.
LENDER'S RIGHTS. Lender may take or omit any and all actions with respect to Lender's Lien without
affecting whatsoever any of Lender's rights under this Subordination. In particular, without limitation,
Lender may, without notice of any kind to Mortgagee, (A) make one or more additional secured or
unsecured loans to Borrower; (B) repeatedly alter, compromise, renew, extend, accelerate, or
otherwise change the time for payment or other terms of the Superior Indebtedness or any part of it,
including increases and decreases of the rate of interest on the Superiorlndebtedness; extensions may
be repeated and may be for longer than the original loan term; (C) take and hold collateral for the
payment of the Superior Indebtedness, and exchange, enforce, waive, and release any such collateral,
with or without the substitution of new collateral; (D) release, substitute, agree not to sue, or deal
with any one or more of Borrower's sureties, endorsers, or guarantors on any terms or manner Lender
chooses; IE) determine how, when and what application of payments and credits, shall be made on
the Superior Indebtedness; IF) apply such security and direct the order or manner of sale of the
security, as Lender in its discretion may determine; and (G) transfer this Subordination to another
party.
DEFAULT BY BORROWER. If Borrower becomes insolvent or bankrupt, this Subordination shall remain
in full force and effect. In the event of a corporate reorganization or corporate arrangement of
Borrower under the provisions of the Bankruptcy Code, as amended, this Subordination shall remain in
full force and effect and the court having jurisdiction over the reorganization or arrangement is hereby
authorized to preserve such priority and subordination provided under this Subordination in approving
any such plan of reorganization or arrangement. Any default by Borrower under the terms of the
Subordinated Indebtedness also shall constitute an event of default under the terms of the Superior
Indebtedness in favor of Lender.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this
Subordination:
Amendments. This Subordination constitutes the entire understanding and agreement of the parties
as to the matters set forth in this Subordination. No alteration of or amendment to this
Subordination shall be effective unless given in writing and signed by the party or parties sought to
be charged or bound by the alteration or amendment. /
orneys' Fees; Expenses. If Lender institutes any suit or action to enforce an a terms of
this ordination, Lender shall be entitled to recover such sum as court may adjudge
reasonable ttorneys' fees at trial and upon any appeal. Whe or not any court action is
involved, and to the ent not prohibited by law, all reas a expenses Lender incurs that in
Lender's opinion are necess any time for the pr ction of its interest or the enforcement of
its rights shall become a part of the tedn ayable on demand and shall bear interest at the
Note rate from the date of the expen re repaid. Expenses covered by this paragraph
include, without limitation, howe ubject to any lima er applicable law, Lender's attorneys'
fees and Lender's legal ex es, whether or not there is a la including attorneys' fees and
expenses for bankr proceedings (including efforts to modify or va ny automatic stay or
injunction), a s, and any anticipated post-judgment collection services, the t of searching
records aining title reports (including foreclosure reports), surveyors' reports, and ap al fees
an le insurance, to the extent permitted by applicable law. Mortgagee also will pay any c
SUBORDINATION OF MORTGAGE
(Continued) Page 4
Authority. The person who signs this Subordination as or on behalf of Mortgagee represents and
warrants that he or she has authority to execute this Subordination and to subordinate the
Subordinated Indebtedness and the Mortgagee's security interests in Mortgagee's property, if any.
Caption Headings. Caption headings in this Subordination are for convenience purposes only and
are not to be used to interpret or define the provisions of this Subordination.
Governing Law. This Subordination will be governed by federal law applicable to Lender and, to the
extent not preempted by federal law, the laws of the State of Iowa without regard to its conflicts of
law provisions. This Subordination has been accepted by Lender in the State of Iowa.
Choice of Venue. If there is a lawsuit, Mortgagee agrees upon Lender's request to submit to the
jurisdiction of the courts of Dubuque County, State of Iowa.
Successors. This Subordination shall extend to and bind the respective heirs, personal
representatives, successors and assigns of the parties to this Subordination, and the covenants of
Mortgagee herein in favor of Lender shall extend to, include, and be enforceable by any transferee
or endorsee to whom Lender may transfer any or all of the Superior Indebtedness.
No Waiver by Lender. Lender shall not be deemed to have waived any rights under this
Subordination unless such waiver is given in writing and signed by Lender. No delay or omission
on the part of Lender in exercising any right shall operate as a waiver of such right or any other
right. A waiver by Lender of a provision of this Subordination shall not prejudice or constitute a
waiver of Lender's right otherwise to demand strict compliance with that provision or any other
provision of this Subordination. No prior waiver by Lender, nor any course of dealing between
Lender and Mortgagee, shall constitute a waiver of any of Lender's rights or of any of Mortgagee's
obligations as to any future transactions. Whenever the consent of Lender is required under this
Subordination, the granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and in all cases such
consent may be granted or withheld in the sole discretion of Lender.
Waive Jury. All parties to this Subordination hereby waive the right to any jury trial in any action,
proceeding, or counterclaim brought by any party against any other party.
NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE
PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN, A PORTION OF
WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND.
EACH PARTY TO THIS SUBORDINATION ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF
THIS SUBORDINATION, AND EACH PARTY AGREES TO ITS TERMS. THIS SUBORDINATION IS
DATED DECEMBER 6, 2006.
MORTGAGEE ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS SUBORDINATION OF
MORTGAGE AND ALL OTHER DOCUMENTS RELATING TO THIS DEBT.
SUBORDINATION OF MORTGAGE
(Continued)
Page 5
MORTGAGEE:
CITY OF DUBUQUE, IOWA
By
Authorized Signer for CITY OF DUBUQUE, IOWA
By:
Authorized Signer for CITY OF DUBUQUE, IOWA
LENDER:
DUPACO COMMUNITY CREDIT UNION
X ~-1~c- ~~~~~-
STEVEN M BAUMHOVER, VICE PRESIDENT OF BUSINESS
LENDING
INDIVIDUAL ACKNOWLEDGMENT
STATE OF
COUNTY OF V hpt~~,~,-c
1 SS
On this (D ~ day of ~c¢~/ia~ , A.D., 20 0 [ ,before me, a Notary
Public in and for said County and State, personally appeared JORJA J. MOORE, to me known to be the
person named in and who executed the foregoing instrument and acknowledged that he or she
executed the same as his or her voluntary act and deed.
~~°rr"~~ JO~IP~VJh6~P~5 Notary Pubs' m t e to of e,,,,~q
7 ~ COMP,",!S'"i f~ ~~ "`R 1^8925
'*~~+-1 * MY COliudSSI01d E(PiittS
~mwa _ o ,f o
SUBORDINATION OF MORTGAGE
(Continued) Page s
CORPORATE ACKNOWLEDGMENT
STATE OF
COUNTY OF
)SS
1
On this day of A.D., 20 before me, the
undersigned Notary Public in said County and State, personally appeared
(Insert title(s) of executing officer(s)) to me personally known, who, being by me duly sworn did say
these/that person(s) is/are (an) authorized signerls) of said corporation, that no seal has been procured
by said corporation and that said instrument was signed on behalf of the said corporation by authority
of its Board of directors and that said
acknowledged the execution of said instrument tc be the voluntary act and deed of said corporation by
it voluntarily executed.
Notary Public in the State of
SUBORDINATION OF MORTGAGE
(Continued) Page 7
LENDER ACKNOWLEDGMENT
STATE OF
1 SS
COUNTY OF
On this day of A.D., 20 before me, the
undersigned Notary Public in said County and State, personally appeared
and known to me to be the
authorized agent for the Lender that executed the within and foregoing
instrument and acknowledged said instrument to be the free and voluntary act and deed of the said
Lender, duly authorized by the Lender through its board of directors or otherwise, for the uses and
purposes therein mentioned, and on oath stated that he or she is authorized to execute this said
instrument and that the seal affixed is the corporate seal of said Lender.
By
Residing at
Notary Public in and for the State of My commission expires
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Doc ID 008609880001 Type: GEN
Kind: RELEASE OF MORTGAGE
Recorded: 03/24/2017 at 02:47:37 PM
Fee Amt: $7.00 Page 1 of 1
Dubuque County Iowa
John Murphy Recorder
F11e2017-00003287
Prepared by and return to: Jill Connors, Economic Development Department, 50 W. 13th Street,
Dubuque, IA 52001, (563) 589-4393
RE: Lot 1 of the Subdivision of Block 2 in "Dubuque Downtown Plaza" in the City of Dubuque, Iowa
according to the United States Commissioner's Map of the Survey of the Town of Dubuque,
Dubuque, Iowa (the "Land"); and all buildings, structures and improvements now standing or at any
time hereafter constructed or placed upon the Land (the "buildings"), including all hereditaments,
easements, appurtenances, riparian rights, mineral rights, water rights, rights in and to the lands
lying in streets, alleys and roads adjoining the land, estates and other rights and interests now or
hereafter belonging to or in any way pertaining to the Land.
RELEASE OF REAL ESTATE MORTGAGE
The City of Dubuque, Iowa, Economic Development Department, the present owner of the Real
Estate Mortgage hereinafter described and encumbering the above-described real estate, hereby
acknowledges that said Real Estate Mortgage, bearing date of the April 13, 1999 made and executed by
Jorja J. Moore, mortgagor to the City of Dubuque, Iowa, mortgagee, and recorded in the records of the office
of the Recorder of the County of Dubuque, State of Iowa, as Instrument No. 6257-99 on the 14th day of April,
1999 is redeemed, paid off, satisfied and discharged in full.
Dated this 15th day of March, 2017.
City of Dubuque, Iowa
By:
State of Iowa )
ss:
Dubuque County )
Michael C. Van Milligen
City Manager
City of Dubuque
On this i 0 day of�Cu'i.e'A—A—/ f, before me, a Notary Public, in and for the state of
Iowa, personally appeared Michael C. Van Mi(ligen, to me personally known, and, who being by me duly
sworn, did say that she is the City Manager of the City of Dubuque, Iowa; and that the instrument was signed
on behalf of the said City of Dubuque, Iowa, by Michael C. Van Milligen, City Manager and that said Michael
C. Van Milligen, acknowledged the execution of the instrument to be her voluntary act and deed and the
voluntary act and deed of the City of Dubuque, Iowa, by it voluntarily executed.
Commission Number
703344
'' C mmisslon Expires_,,-
Notary Public in and for said
Co my and State
E ccno m i G Dcvel0-,..exit-