HomeMy WebLinkAbout93-45 Resolution No. 93-45
RESOLUTION
AUTHORIZING EXECUTION OF A SUBORDINATION AGREEMENT FOR
224 SENECA STREET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Larry L. Rice, City Manager, and Dolonna Mecum,
City Clerk, be and are hereby authorized and directed to
execute a Subordination Agreement on behalf of the City of
Elgin with Lowell J. Davis and K. Sharon Davis, and Home
Federal Savings and Loan Association of Elgin for the property
commonly known as 224 Seneca Street, a copy of which is
attached hereto and made a part hereof by reference .
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: February 24 , 1993
Adopted: February 24 , 1993
Vote: Yeas 7 Nays 0
Recorded:
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
P.
FILED L€ '_•ORD
KANE CCU! -,", !L L.
9 1 K 3 9 0 2 4 91 JUL 22 E 11:
MORTGAGE G'fri,Y' " !-'
•:CY.: ER
THIS INDENTURE made June 25. 1991, between Lowell J. Davis and Sharon K. Davis
herein referred to as "Mortgagors", and the City of Elgin, Illinois, a
Municipal Corporation, herein referred to as "Mortgagee", witnesseth:
THAT, WHEREAS, the Mortgagors are justly indebted to the Mortgagee upon
the note of even date herewith, in the principal sum of Thirty four thousand
and no/100 Dollars ($ 34,000.00) , payable to the order of and delivered to the
Mortgagee, in and by which note the Mortgagors promise to pay the said
principal sum as specified therein.
NOW, THEREFORE, the Mortgagors to secure the payment of the said
principal sum of money and such other amounts as may be due and owing under
said note, in accordance with the terms, provisions and limitations of this
mortgage, and the performance of the covenants and agreements herein
contained, by the Mortgagors to be performed, and also in consideration of the
sum of One Dollar in hand paid, the receipt whereof is hereby acknowledged,
due by these presents CONVEY AND WARRANT unto the Mortgagee, and the
Mortgagee's successors and assigns, the following described real estate and
all of their estate, right, title and interest therein, situate, lying and
being in the City of Elgin, County of Kane and State of Illinois, to wit:
the east half of Lot 4 in Block 22 of P.J. Kimball 's Jr. Third
Co)
Addition to Elgin, in the City of Elgin, Kane County, Illinois. CO
PIN: 06-12-357-014
Commonly known as: 224 Seneca Street, Elgin, IL
iV
which, with the property hereinafter described, is referred to herein as the
"premises",
• TOGETHER with all improvements, tenements, easements, fixtures, and
appurtenances thereto belonging, and all rents, issues and profits thereof for
so long and during all such times as Mortgagors may be entitled thereto (which
are pledged primarily and on a parity with said real estate and not
secondarily) and all apparatus, equipment or articles now or hereafter therein
or thereon used to supply heat, gas, air conditioning, water, light, power,
refrigeration (whether single units or centrally controlled) , and ventilation,
including (without restricting the foregoing) , screens window shades, storm
doors and windows, floor coverings, inador beds, awnings, stoves and water
heaters. All of the foregoing are declared to be a part of said real estate
% D whether physically attached thereto or not, and it is agreed that all similar
apparatus, equipment or articles hereafter placed in the premises by
Mortgagors or their successors or assigns shall be considered as constituting
part of the real estate.
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TO HAVE AND TO HOLD the premises unto the Mortgagee, and the Mortgagee's
successors and assigns, forever, for the purposes, and upon the uses herein
_ `` -�--
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set forth, free from all rights and benefits under and by virtue of the
Homestead Exemption Laws of the State of Illinois, which said rights. and
benefits the Mortgagors do hereby expressly release and waive.
THE MORTGAGORS HEREBY COVENANT WITH THE MORTGAGEE AS FOLLOWS:
1. Mortgagors shall (1) promptly repair, restore or rebuild any
r buildings or improvements now or hereafter on the premises which may become
damaged or be destroyed; (2) keep said premises in good condition and repair,
without waste. and free from mechanic's or other liens or claims for lien not
expressly subordinated to the lien thereof; (3) pay when due any indebtedness
which may be secured by a lien or charge on the premises superior to the lien
hereof, and upon request exhibit satisfactory evidence of the discharge of
such prior lien to the Mortgagee; (4) complete within a reasonable time any
building or buildings now or at any time in process of erection upon said
premises; (5) comply with all requirements of law or municipal ordinances with
respect to the premises and the use hereof; (6) make no material alterations
in said premises except as required by law or municipal ordinance.
2. Mortgagors shall pay before any penalty attaches all general taxes,
and shall pay special taxes, special assessments, water charges, sewer service
charges, and other charges against the premises when due, and shall , upon
written request, furnish to the Mortgagee duplicate receipts therefor. To
prevent default hereunder Mortgagors shall pay in full under protest, in the
manner provided by statute, any taxes or assessments which mortgagors may
desire to contest.
3. Mortgagors shall keep all buildings or improvements now or hereafter c=
situated on said premises insured against loss or damages by fire, lightening, GJ
and windstorm under policies providing for payment by the insurance companies CO
of moneys sufficient either to pay the cost of replacing or repairing the same
or to pay in full the indebtedness secured hereby, all in companies
satisfactory to the Mortgagee, under insurance policies payable, in case of N
loss or damage, to Mortgagee, such rights to be evidenced by the standard r..�
mortgage clause to be attached to each policy, and shall deliver all policies, co
including additional and renewal policies, to the Mortgagee, and in case of
insurance about to expire, shall deliver renewal policies not less than ten
days prior to the respective dates of expiration.
4. When the indebtedness hereby secured shall become due whether by
acceleration or otherwise, Mortgagee shall have the right to foreclose the
lien hereof. In any suit to foreclose the lien hereof, there shall be allowed
and included as additional indebtedness in the decree for sale all
expenditures and expenses which may be paid or incurred by or on behalf of
Mortgagee for attorney's fees, appraiser's fees, outlays for documentary and
expert evidence, stenographers' charges, publication costs and costs (which
t.C1 may be estimated as to items to be expended after entry of the decree) of
procuring all such abstracts of title, title searches, and examinations, title
insurance policies, Torrens certificates, and similar data and assurances with
respect to title as Mortgagees may deem to be reasonably necessary either to
prosecute such suit or to evidence to bidders at any sale which may be had
pursuant to such decree the true condition of the title to or the value of the
iV premises. All expenditures and expenses of the nature in this paragraph
mentioned shall become so much additional indebtedness secured hereby and
immediately due and payable, with interest thereon at the highest rate now
permitted by Illinois law, when paid or incurred by Mortgagee in connection
a.+
with (a) any proceeding, including probate and bankruptcy proceedings, to
which the Mortgagee shall be a party, either as plaintiff, claimant or
defendant, by reason of this mortgage or any indebtedness hereby secured; or
(b) preparations for the commencement of any suit for the foreclosure hereof
after accrual of such right to foreclose whether or not actually commenced; or
(c) preparations for the defense of any actual or threatened suit or
proceeding which may affect the premises or the security thereof.
5. Upon or at any time after the filing of a complaint to foreclose
this mortgage the court in which such complaint is filed may appoint a
receiver of said premises. Such appointment may be made either before or
after sale, without notice, without regard to the solvency or insolvency of
Mortgagors at the time of application for such receiver and without regard to
the then value of the premises or whether the same shall be then occupied as a
homestead or not, and the Mortgagee may be appointed as such receiver. Such
receiver shall have power to collect the rents, issued, and profits of said
premises during the pendency of such foreclosure suit and, in case of a sale
and deficiency, during the full statutory period of redemption, whether there
be redemption or not, as well as during any further times when Mortgagors,
except for the intervention of such receiver, would be entitled to collect
such rents, issued and profits, and all other powers which may be necessary or
are usual in such cases for the protection, control , management and operation
of the premises during the whole or said period.
6. The Mortgagee shall have the right to inspect the premises at all
reasonable times and access thereto shall be permitted for that purpose.
GO
7. Mortgagee shall have the right to declare the full balance due andCDowing under the note and shall have the right to foreclose hereunder in the
event Mortgagors are in default under any terms contained in said note.
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8. Further, in the event Mortgagors shall place said premises for sale N
and shall sell the same prior to the expiration of 5 years from the date
hereof, the remaining balance due and owing under said note may be accelerated 1
at the option of the Mortgagee and the same shall constitute an event of
default hereunder thereby permitting Mortgagee to foreclose upon said
premises.
9. Mortgagors further covenant and agree that they shall comply with
and perform all terms and conditions of the certain Elgin Rental
Rehabilitation Program Agreement entered into between Mortgagors and
Neighborhood Housing Services of Elgin on or about this date. In the event
Mortgagors shall fail to comply with or perform any of the obligations
required of them to be performed under said Agreement, then the remaining
balance due and owing under said Note may be accelerated at the option of the
Mortgagee and the same shall constitute an event of default hereunder thereby
permitting Mortgagee to foreclose upon said premises.
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1 . •
. •
I1/WITNESS WHEREOF, this mortgage has been duly executed the. day and
year first above written.
9-,
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X—_L- . .ti/t-'Sh-- b6i. e4,--c_4
State of Illinois )
County of Kane )
I, the und��ersignn�ed, a Notary Public in an for said County� the State aforesaid, DO HEREBY CERTIFY that
� a�1,zisrte��_ A_ --cif- - LA4ts..�- personally known to be the
same persona_ whose hameL_ Q1A, subscribed to the foregoing instrument, appeared before se this day in
person, and acknowledged that .h c _ signed, sealed, and delivered the said instrument as _te,c free
and voluntary act, for the uses a t purposes therein set forth, including the release and waiver of the right
of homestead.
Given under my hand and official seal this 1 day of __c , 19 QJ
L.
Commissions expires __41u42LC 022) , 1944 OFFICIAL SEA.v....•,°14...
ROBIN S. ZENTEFIS
Notary Public NOTARY PUBLIC. STATE OF ILLINOIS
(1 � �' / My Commission Exp^es 12-28-91
This instrument was prepared by cf l %fi r o2OS ti', 6, 6(g,r, Lc. (eQ__Z 0
Name and Address
Mail this instrument tc: d.ei642C_YboOdl��a�/n(s� -IlLS _0LEZ 1a---
Name and Address JCD
0205 N . ,, 0r'd S&. W
LS,n -n- 10120 m
City and State _
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El in
OFE4,. Agenda Item No. 8 (7)
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February 17, 1993
MEMORANDUM
TO: Mayor and Members of the City Council
FROM: Larry L. Rice, City Manager
SUBJECT: Rental Rehabilitation Loan - 224 Seneca Street
PURPOSE
To present a proposed Mortgage Subordination Agreement for 224
Seneca Street.
BACKGROUND
The Rental Rehabilitation Program provides deferred forgivable
loans for the rehabilitation of rental property located in low
and moderate income neighborhoods in Elgin. Typically, the
loans are secured by second mortgages on the rehabilitated
property. The property at 224 Seneca Street had no mortgage
when the property owner entered the Rental Rehabilitation
Program, and therefore, the Rental Rehabilitation loan to the
property was a first mortgage. The owner of the subject
property has proposed to refinance the property, and therefore,
requests that the City agree to subordinate its mortgage to the
proposed first mortgage on the property (see attached agreement
copy).
FINANCIAL IMPACT
There is no financial impact regarding any additional
expenditure of funds . Additionally, it appears that
subordinating the Rental Rehabilitation Loan would be secure
since the lender is providing a loan of 76% ($167,000) of
appraised value ($218, 000) for this rental property. The
combination of the refinancing and Rental Rehabilitation loan
( $34 ,000) would equal 92% ($201,000) of the value of the subject
property.
-1-
RECOMMENDATION
Neighborhood Housing Services has recommended (see attached
memo) that the City Council agree to subordinate the Rental
Rehabilitation loan to the proposed first mortgage for 224
Seneca Street. A resolution authorizing the execution of the
subordination agreement is contained on the City Council ' s
regular agenda.
t
Lar Rif, ty Manager
-2-
From : 9999922 ]] ' Feb. 17. 1993 02:30 PM P02
Neighborhood Housing Service of Elgin
205 N. Gifford Street
Elgin, IL 60120
708-695-0399
MEMORANDUM February 16, 1993
PO: Pat Andrews
FROM: Stuart Wasilowski
RE: 224 Seneca Street
.'":..,....�._......w...........^r..«.rM..............,.......wf.Nt�at�"..'°«.,.`r"1.wr,ww+....w,+.«
Regarding the pending refinance of the above captioned property, it is the feeling of the N$S Loan Conittee
Chairperson and Stiff that the City of Elgin's position and interest in the property will mot be adversely
impacted by the refinance. We believe that the spirit of the program has been to maintain a sibordinate
interest it the properties and by approving the subordination agreement, we are acting in the spirit of the
program.
Furthermore, although the loan to value is high for non-owner occupied properties, given the combination of
appreciation and rapid equity build-up throngb the Rental Rehab Program, our risk diminishes as the loan
ages. in addition, our experience with this borrower has been very good. Be is a reputable businessman and
operates clean, safe, affordable housing stock.
Recommendation: The NNS Loan Committee Chairperson and Staff remand the approval and execution of the
subordination agreement with respect to the above captioned property,
cc: G. Stace
. . ...._..--____-
Policy Number DECLARATIONS PAGE l•rf FARM
93-B9-6`701 -6 STATE FARM GENERAL INSURANCE COMPANY
REPLACES NUMBER 2702 IRELAND GROVE RD, BLOOMINGTON IL 61709-0001
92-03-3436-3 A STOCK COMPANY WITH HOME OFFICES IN BLOOMINGTON, ILLINOIS
2ND MORTGAGEE NAMED INSURED AND MAILING ADDRESS
2042/97 J
THE CITY OF ELGIN DAVIS, LOWELL & SHARON
150 DEXTER CT 1494 MAPLE LANE
ELGIN IL 60120-5570 ELGIN IL 60123-5132
APARTMENT POLICY - BASIC FORM 1 INFLATION COVERAGE INDEX: 132.9
Automatic Renewal — If the Policy Period is shown as 12 months, this policy will be renewed automatically subject
to the premiums, rules and forms in effect for each succeeding policy period. If this policy is terminated, we will
give you and the Mortgagee/Lienholder written notice in compliance with the policy provisions or as required by law.
POLICY PERIOD: 12 MONTHS THE POLICY PERIOD BEGINS AND ENDS AT 12:01 AM
EFFECTIVE DATE: 03/08/93 STANDARD TIME AT THE PREMISES LOCATION.
EXPIRATION DATE: 03/08/94
NAMED INSURED: INDIVIDUAL LOAN # 113041272-5
MORTGAGEE
HOME FEDERAL SAVINGS OF ELGIN
LOCATION OF COVERED PREMISES: 16 N SPRING
450 CENTER ST ELGIN IL 60120-5569
ELGIN IL 60120
COVERAGES AND PROPERTY LIMITS OF
INSURANCE
SECTION I
A BUILDINGS $ 202,400
B BUSINESS PERSONAL PROPERTY EXCLUDED
C LOSS OF INCOME $ ACTUAL LOSS
DEDUCTIBLES-SECTION I
$ 1 ,000 BASIC
SECTION II
L BUSINESS LIABILITY $ 300,000
M MEDICAL PAYMENTS $ 5,000
PRODUCTS-COMPLETED OPERATIONS $ 600,000 IN CASE OF LOSS UNDER THIS POLICY, THE
(PCO) AGGREGATE DEDUCTIBLE WILL BE APPLIED TO EACH
GENERAL AGGREGATE (OTHER $ 600,000 OCCURRENCE AND WILL BE DEDUCTED FROM
THAN PCO) THE AMOUNT OF THE LOSS. OTHER
DEDUCTIBLES MAY APPLY-REFER TO POLICY.
POLICY PREMIUM
$ 658.00
FORMS, OPTIONS, AND ENDORSEMENTS
BASIC FORM 1 FP-6106
AMENDATORY ENDORSEMENT FE-6213
TREE DEBRIS REMOVAL END FE-6451
POLICY ENDORSEMENT FE-6463
ADDITIONAL INSURED FE-6320
OTHER LIMITS AND EXCLUSIONS MAY APPLY- REFER TO YOUR POLICY
PREPARED COUNTERSIGNED 19
04/13/93 AGENT
FP-8020.2C C56 BY
BRYAN DENMAN
YOUR POLICY CONSISTS.,QF THIS PAGE,ANY ENDORSEMENTS (708) 428-3110
AND THE POLICY FORM."fJLEASE KEEP THESE TOGETHER. 555-7011.1 Rev.12-91 Printed in U.S.A.
.... ..... ...................... ........ .
FR NT SIDE C�
APARTMENT POLICY - BASIC FORM 1
For information or assistance with any insurance problem, be sure to contact your State Farm agent first. Your
good neighbor agent will be happy to help you.
Section 143c of the Illinois Insurance Code requires notification of the following addresses:
State Farm Insurance Companies
Illinois Regional Office
2702 Ireland Grove Road
Bloomington, Illinois 61709-0001
1-800-424-1162 (within Illinois)
Office hours: 8:00 a.m. to 4:00 p.m., Monday through Friday
— or —
Illinois Department of Insurance
Consumer Division
PREPARED Springfield, Illinois 62767
04/13/93 This message is provided by State Farm in compliance with Illinois law.
r
• r ADDITIONAL INSURED ENDORSEMENT =•"`•°^
DESIGNATED PREMISES ONLY
Policy No.:
Named Insured: i�"�4IS . LOWELc� & 3;�ARON
Name of Additional Insured: AUidREY +Il?Vi[Air
Address of Additional Insured: MC DONAGD RD
EGGIN IL 60120
Interest of Additional Insured:
Location of Premises: 50 CENTER ST
F.LGIN It, 60120
The word "insured", wherever used in this policy, also includes the designated person or organization named
above as Additional Insured under the provisions of the policy Sections shown below as applicable by an "X"
to the extent indicated.
SECTION I. This applies only to COVERAGE A - BUILDINGS.
❑ SECTION I. This applies only to COVERAGE B - BUSINESS PERSONAL PROPERTY.
Description of Property:
❑ SECTION II. This applies only to COVERAGE L - BUSINESS LIABILITY and COVERAGE M -
MEDICAL PAYMENTS and then only with respect to the ownership, maintenance
or use of the premises designated above and operations necessary or incidental thereto.
These SECTION II coverages do not apply to:
1. structural alterations or new construction performed by or on behalf of the designated person or
organization;
2. personal injury caused by the designated person or organization;
assumed under a or
3. liability the designated person or organizationcontract;
4. products-completed operations hazard arising out of goods or inventory which are not sold
or distributed by you or arising out of the manufacturing or packaging of such goods or inventory.
All other provisions of the policy apply.
FE-6320 Printed in U.S.A.
(7/88)
Policy Number DECLARATIONS PAGE AMENDED 05/10/93 abcp
93-B9-8701 -6 STATE FARM GENERAL INSURANCE COMPANY
1 2702 IRELAND GROVE RD, BLOOMINGTON IL 61709-0001
A STOCK COMPANY WITH HOME OFFICES IN BLOOMINGTON, ILLINOIS
2ND MORTGAGEE NAMED INSURED AND MAILING ADDRESS
2042/97 J
THE CITY OF ELGIN DAVIS, LOWELL & SHARON
150 DEXTER CT 1494 MAPLE LANE
ELGIN IL 60120-5570 ELGIN IL 60123-5132
APARTMENT POLICY - BASIC FORM 1 INFLATION COVERAGE INDEX: 132.9
Automatic Renewal — If the Policy Period is shown as 12 months, this policy will be renewed automatically subject
to the premiums, rules and forms in effect for each succeeding policy period. If this policy is terminated, we will
give you and the Mortgagee/Lienholder written notice in compliance with the policy provisions or as required by law.
POLICY PERIOD: 12 MONTHS THE POLICY PERIOD BEGINS AND ENDS AT 12:01 AM
EFFECTIVE DATE: 03/08/93 STANDARD TIME AT THE PREMISES LOCATION.
EXPIRATION DATE: 03/08/94
NAMED INSURED: INDIVIDUAL
YOUR POLICY IS AMENDED 05/10/93:
ADDL INSURED NAME & ADDRESS DELETED
LOCATION OF COVERED PREMISES: ENDORSEMENT FE-6320 DELETED
450 CENTER ST
ELGIN IL 60120
COVERAGES AND PROPERTY LIMITS OF
INSURANCE
SECTION I
A BUILDINGS $ 202,400
B BUSINESS PERSONAL PROPERTY EXCLUDED
C LOSS OF INCOME $ ACTUAL LOSS
DEDUCTIBLES-SECTION I
SECTION II $ 1 ,000 BASIC
L BUSINESS LIABILITY $ 300,000
M MEDICAL PAYMENTS $ 5,000
PRODUCTS-COMPLETED OPERATIONS $ 600,000 IN CASE OF LOSS UNDER THIS POLICY, THE
(PCO) AGGREGATE DEDUCTIBLE WILL BE APPLIED TO EACH
GENERAL AGGREGATE (OTHER $ 600,000 OCCURRENCE AND WILL BE DEDUCTED FROM
THAN PCO) THE AMOUNT OF THE LOSS. OTHER
DEDUCTIBLES MAY APPLY-REFER TO POLICY.
ENDORSEMENT
PREMIUM NONE
FORMS, OPTIONS, AND ENDORSEMENTS
BASIC FORM 1 FP-6106
AMENDATORY ENDORSEMENT FE-6213
TREE DEBRIS REMOVAL END FE-6451
POLICY ENDORSEMENT FE-6463
OTHER LIMITS AND EXCLUSIONS MAY APPLY- REFER TO YOUR POLICY
PREPARED COUNTERSIGNED 19
05/11/93
FP-8020.2C C49 BY AGENT
BRYAN DENMAN
YOUR POLICY CONSISTS OF OOS PAGE,ANY ENDORSEMENTS (708) 428-31 10
AND THE POLICY FORM. PLEASE KEEP THESE TOGETHER. 555-7011.1 Rev.12-91 Printed in U.S.A.
_ -..-- -_-- Fri 1 15r,
STATE
Policy Number CONTINUED FROM FRONT SIDE ®�
93- B9-8701 -6
tlNi'I RA NCC
LOAN # 113041272-5
MORTGAGEE
HOME FEDERAL SAVINGS OF ELGIN
16 N SPRING
ELGIN IL 60120-5569
APARTMENT POLICY - BASIC FORM 1
For information or assistance with any insurance problem, be sure to contact your State Farm agent first. Your
good neighbor agent will be happy to help you.
Section 143c of the Illinois Insurance Code requires notification of the following addresses:
State Farm Insurance Companies
Illinois Regional Office
2702 Ireland Grove Road
Bloomington, Illinois 61709-0001
1-800-424-1162 (within Illinois)
Office hours: 8:00 a.m. to 4:00 p.m., Monday through Friday
— or —
Illinois Department of Insurance
Consumer Division
PREPARED Springfield, Illinois 62767
05/1 1/93 This message is provided by State Farm in compliance with Illinois law. IFo122E1
L l liiiu
ILL.
93I; 1673tJ (7 lin 12 lam: 15
SUBORDINATION AGREEMENT
THIS AGREEMENT made this )-L day of February, 1993, by and between:The City of
Elgin, Illinois, a municipal corporation, Subordinator, and Home Federal Savings and Loan
Association of Elgin, mortgagee and Lowell J. Davis and K. Sharon Davis, Husband and
Wife ,Mortgagors, and
WHEREAS the Subordinator authorized Neighborhood Housing Services of Elgin Inc.
(hereinafter called NHS) to administer and manage it's rental rehabilitation program, and
to that end NHS loaned the sum of $34,000.00 to Mortgagors in order to facilitate the
mortgagors' rehabilitation of property at the common address of 224 Seneca Street, Elgin,
Illinois and
WHEREAS the terms of the $34,000.00 loan from the Subordinator to Mortgagors called cn
for repayment in ten years with 10% of the loan to be forgiven for each year that
mortgagors rent said property to low income renters and maintain said property in a
condition that satisfies all city building and zoning codes, and
WHEREAS on the 25th day of June, 1991 , Lowell J. Davis and Sharon K. Davis, J
Mortgagors, who are the same persons as Lowell J. Davis and K. Sharon Davis, Husband
and Wife, conveyed by mortgage a collateral interest in real property described as:
"The East Half of Lot 4 in Block 22 of P.J. Kimball's Jr. Third Addition to Elgin, IN
THE CITY OF ELGIN, KANE COUNTY, ILLINOIS."
permanent parcel number 06-12-357-014
Cai
common address: 224 Seneca Street, Elgin, IL 60120
c' to Subordinator to secure that certain obligation evidenced by a promissory note of even
date.
WHEREAS, said mortgage was recorded in the office of the Recorder of Deeds
of Kane County, Illinois on the 22nd day cf July, 1991, as document number 91K39024
to secure a Note for $34,000.00 and
WHEREAS, it is now the intention of Mortgagors to refinance the subject property
with Home Federal Savings and Loan Association of Elgin, which insists upon a first
mortgage position as security for its loan and
WHEREAS, Mortgagor has faithfully complied with the obligation set forth in the
aforesaid promissory note and mortgage, and
WHEREAS, Mortgagors are desirous of obtaining a first mortgage loan from Home
s,
fy
1 C 700/o l--/ . ,14'
Gurbars Pro Search,inc.
F.O. Box 1,.6
Geneva. II. 60134-01•».6
Federal Savings and Loan Association of Elgin in the amount of $167,000.00 and
NOW, THEREFORE, for and in consideration of the above and foregoing and the
mutual covenants and promises hereinafter made, the parties agree as follows:
1) Mortgagors shall execute any and all documents required by Home Federal
Savings and Loan Association of Elgin to secure a first mortgage position regard the loan
of $167,000.00 being made to Mortgagors.
2) Subordinator, by executing this document, agrees that the lien interest in the
property legally described herein which interest it now has by virtue of that certain
mortgage described above be and is hereby expressly made subject and subordinate to
the lien interests of Home Federal Savings and Loan Association of Elgin created by
virtue of the mortgage document dated January 26, 1993 that has been recorded in the
office of the Kane County Recorder of Deeds on January 27, 1993 as document number
93K06725.
It is the intent of the parties hereto to expressly treat, for the purposes of this
subordination agreement only,the Mortgage running to Subordinator, previously identified
herein, as if it had been dated and recorded immediately subsequent to the date of the
Home Federal Savings and Loan Association of Elgin mortgage that was recorded
January 27, 1993 and described above in this document.
3) The parties agree that this agreement shall bind Subordinator, its successors
and assigns and inure to the benefit of Home Federal Savings and Loan Association of
Elgin, its successors and assigns.
In witness whereof, the parties have executed this instrument this x!' day of February,
1993.
The City of • Illinois, a Municipal Corporation, Subordinator
by of by
its its
ViL ��� �ti��� Mortgagors
Lowell . Davis K. Sharon Davis
Home Federal Savings and Loan Association of Elgin
9 9
2
by4 if:16t ,e by
its(/1 Pi'e4;de,i y its �Oz�7 v�
STATE OF ILLINOIS
SS.
COUNTY OF KANE
I, the undersigned notary public, in and for, and residing in the county of Kane, State of
Illinois , do hereby certify that Larry Rice & Dolonna Mecum , personally known
to me to be the same persons whose names are subscribed to the foregoing instrument,
appeared before me this date in person and acknowledged that they signed the said
instrument as their free and voluntary act on behalf of the City of Elgin, Illinois for the
uses and purposes therein set forth.
Given under my hand and Notarial Seal this -of February, 1993.
OFFICIAL SEAL
notary public NANCY ROLL
NOTARY PUBLIC, STATE OF ILLINOIS
MY COMMISSION EXPIRES 8-10-93
STATE OF ILLINOIS )
) SS.
COUNTY OFKANE )
I,Jeff Rifken, a Notary Public in and for the County and State aforesaid, DO
HEREBY CERTIFY that Lowell J. Davis and K. Sharon Davis, his wife, of Elgin, Illinois,
personally known to me to be the same persons whose names are subscribed to the
foregoing instrument as such, appeared before me this day in person and acknowledged
that they signed and delivered the said instrument as their own free and voluntary act,
and as the free and voluntary act, for the uses and purposes therein set forth.
GIVEN Under my hand and Notarial Seal this /o"day of
February, 1993.
„4",4► 41k alk sdk lAik
` OFFICIAL AL
JEFF RIFKEN
4 NOTARY PUBLIC, STATE OF ILLINOIS
nary Commission Expires May 18,19930 Notary Public
STATE OF ILLINOIS )
SS.
COUNTY OF KANE )
I, , a Notary Public in and for said County and State, do
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hereby certify that David G. Towe and Kathleen A. Schroeder,
whose titles are Vice President and Secretary, respectively, of
Home Federal Saving and Loan Association of Elgin, as such Vice
President and Secretary, appeared before me this day in person and
acknowledged that they signed, sealed and delivered said instrument
as their free and voluntary act, and as the free and voluntary act
of said Association, for the uses and purposes therein set forth.
GIVEN under my hand and Notarial seal this ' ' 1day of
February, 1993.
( 0/) )49 44
Notary Public
This instrument prepared by '�� ,Aw�
Attorney Jeff Rifken ' FFICfq� Eq�''�r►�
Brittain & Ketcham, P.C. LOIS A. �Ep.GER
1695 Larkin , NOTM?y PUBLIC, STATE OF ILLINOIS t
Elgin, IL 60123 m44P4V Expires Aug,2 1994
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LAW OFFICES
BRITTAIN & KETCHAM, P. C.
ELGIN FEDERAL BUILDING HUNTLEY SQUARE
1695 LARKIN AVENUE 231 WEST MAIN STREET-SUITE 200
ELGIN, ILLINOIS 60123 CARPENTERSVILLE, ILLINOIS 60110
TELEPHONE(708)742-6100 TELEPHONE(708)428 4664
FAX NO.(708)742-6152 FAX NO.(708)551-9749
JOHN J.BRITTAIN BRUCE K.DAVID
WILLIAM R.KETCHAM
LEWIS W.TERLIZZI MARY ELLEN BALAGUER
LEO M.FLANAGAN,JR.
WILLIAM H.WEIR
RANDLE E.JOHNSON
H.WHEELER BRITTAIN,DECEASED
JEFF RIFKEN
W.BEN MORGAN.DECEASED
DANIEL E.COMPTON
LEIGH M.RAWSON
April 22 , 1993
Ms . Dolonna Mecum
City Clerk
150 Dexter Court
Elgin, IL 60120
In re: Lowell J. Davis
Dear Lonnie:
Enclosed please find an original of the Subordination
Agreement which is completely executed together with a copy of the
front page only showing the recording information. Thank you for
your patience in this regard.
Yours truly,
BRITTAIN & KETCHAM, P. C .
Jeff Rifken
JR/j ca
Enclosure