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Home My WebLink About2000-10-11 00-386 ORDERItem No 00-386 Date: October IL 2000 Item/Subject: ORDER, Authorizing Execution of Mortgage Subordination and Intercreditor Agreement-- Boyd Street Rousing Associates, LP Responsible Department: Legal The City Council approved! a Development Agreement wlth Boyd Street Housing Associates, LP for the construction of 32 residential units an a panel of land between Boyd Street and Newbury Street The agreement provided Mat me Clty would loan the Developer $60,000. The Mortgage Subordination and Intercred mer Agreement provides that any mortgage holder can are a default to protect Its interest and has other provision regarding me relationship of the mortgage h0lders m each other. . Department Head ManageesO nmeme: City Manager Associated Information: Mortgage Subordination and Intel -creditor Agreement Finance Director City Solicitor Passage _ First Reading Page of Referral f� Aui�etlro Councils al CITY OF BANGOR (MILE.) ORDER, Authorizing Execution of Mortgage Subordination and Intercreditor Agreement-- Boyd Street Housing Associates, LP ey[ 04, Cbontl/ofNe Ote a(Bangan ORDERED, THAT me City Manager is hereby authorized, on behalf of the City of Bangor, to execute a Mortgage Subordination and Intercieditor Agreement between the City of Bangor and other mortgage holders for the permanent financing of the Boyd Street Housing Associates, LP Boyd Sbeet development. Said document shall be in a final form approved by the City Solicitor's offs in substantially the form as the document attached hereto. w Cin COUNCIL October 11, 2000 Motion to: 5uspead.tbe Mules to Consider Council Order 800-386 Made sad secanaed/Males suspended Motion for Passage (rade amd Seconded Passed c 00-386 ORDER M% authorising Srecution of Mortgage suborafmtiou and Iutercreditor Agreement goys street Housing Associates, LP Rsaign dto COun ikr 00-386 MORTGAGE SIHIORDINATIONAND MTER(7REDITOR AGREEMENT This Subordination and literveditor Agreement CAgreement")is made this day of October2000, by and among MAINE COMMUNITY REINVESThOdT CORPORATION, a non-profit corporation duly organisd and existing under the laws of Me State of Maine, with a mailing address of 183 Middle SUM, 3rd Floor, Portland, ME 04101 ("MCRC") MAINE STATE HOUSING AUTHORITY, an Agency of Me State of Maine, with a mailing address of 353 Water Street, Augusta, NR 04333("MSHA"), CAMDEN NATIONAL BANK a Maine banking institution with entailing address oft Elm Street; P.O. Box 310, Camden ME W843 ("CNB'), and the CITY OF BANGOR a Maine municipality with a mailing address of 73 Harlow Street, Bangor, ME 04401("Bangor"). MCRC, MSHA, CHB, and Bangor, are hereby collectively referred m as the "1<nders . WITNESSETH: WHEREAS, MCRC has afreN to loan S400,00UD0 to Boyd Street Housing Associates, IR, a Maine limited pannersbile with a Principal place ofbusiness At 247 Commercial Street, Rockport, Maine 04856 ("Borrower"), to provide permanent Morning for a 32unit residential apartment complex on land at and new Boyd Strem in Bangor, Maine (Ihe'Project"), which loan shall be secured by a first privity secs ay interest in the Project and certain other property (the "Collateral'), rhe real amen of which is described in Exhibit A attached harem; and WHEREAS, MSHA has agreed to loan S400,00000 to the Borrower to provide financing for Me Project, which loan shell be secured by a accord priority security interest in the Collateral; and WFB3 S, CNB has agreed to loan $140,000.00 0 M Borrower to provide financing for the Profen, which loan shall be several by third priority security interest in the Collateral; WHEREAS, Bangor has agreed to Iran $60,000 to the Borrower to provide financing for the Project which loan shall be secured by a fount priority security interest in the Collateral; WHEREAS, Me parties desire to enter into this Agreement to reflect their agreements as to Me priority of Meir secariry interests in the Collateral and other marcors; NOW, THEREFORE, in consideration of Me motion promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto hereby agree as follows: 1. Notwithstanding Me priority in time of recordation or perfection of my mortgages, security agreements or other security devices and loan documents evidencing and securing Me Lenders loans each of Me Lenders ratifies, confirms and agrees that the order of Me collateral priorities of each of Me parties is m follows: LENDER STATUS OF SECURITY INTEREST MCRC tat MSHA 2nd CNB 3rd Bangor 4M 2. No party shall challenge or conuavene Me perfection of the encumbrance of my other party. 3. In Me event any parrm y shall determine in exclusive discussion to exercise the acceleration rights under as respective prom mory note and to proceed to exercise one or mom default incomes under in promissory time or mortgage, including, but not limrtetl W, Imalmure of me promises po6oartm due laws of me State of Maine or Feel Law, tseparly, which has made dordetenninauon shall give writtas notice maim otherpumet of ns intention In accelerate payment nada in now and m pursue its default right and remedies. 4. The relative priorities and right Of cards only, as provided in this Agreemarl, are applicable and available m Naticettymlyut paayerepeymmtin NII parry Bis Agun mahatparty. Upm the repaymmaN NII of such liabilities, ahM puty shell no longerbeaperty M1ereuotler, and Win Agreanmtshell commerce. S. FarA every hereto agees roat Ne mortgage; liens antl other security interests granary to inch party shall be wbordmate to the MSHA Low -Income Homing Tax Credit Fogm Extended Low -Income Housing Commitment Agreement, dosed IXcember 21, 1999, executed by MSHA and the Borrower. 6. This Agteemmt shall be goverment antl converted m aamdance wits burned laws of me Stave of Maine. This Agreement may not be amended, maxi supplanmtN, battered or waived, except m writing signed by the party, against whom co rot of such maser he sought That this Ageanmt may be recorded wits the Regismy. IN WITNESS WHEREOF, the wtlasigned paries have caused this Agreement to be duly executed es of me_ day of October 2000. WIRJESS: WITNESS: By: Name: nue: MAINE STATE HOUSING AUTHORITY 0 Title: WITNESS: CALmENNATIONAL BANK 0 WITNESS: CITY OF BANGOR By: Nam Tide STATE OF MAINE CUMBERLAND, SS. 08-386 October_,2000 Then personally appeared At above-named ,the duly suhoriad of Mame Community Reinveahnem Confetmioq and acknowledged the f going instrument o be hinher free act and deed in Fisrov capacity and At nett act and &ad of the said Maine Community Reinvestment Cmpamtion. Beficareme, Notary Public Mame Attorney At Law Nett Name: STATE OF MARIE CUh®ERLAND, SS. October _, 2000 Persoaally appeared before me At abovemmned the duty authorized of Maine State Housing Audi and acknowledged the foregamg leunument to be Fischer free an and deed m hit sthersend capacity and As bee ea and deed OF Maine State Housing AnAtie ry. Before me, Notary Publics Mane Attorney m Law Pfnt Nam<: STATE OF MARIE CUMBERLAND, SS. October_, 2000 Then personally appeared the above-namm' the duly authorized of deo National Bath:, and acknowledged the foregoing nammtem to be histher free act and deed to Fiala capuciry and the free W and deed of the said Camden National Baht, Befnrcmq Noary Public Maine Anomey At Law Amt Name: STATE OF NAME CUMBERLAND, SS. October_, 2000 Then personally appeared Ne above-named the duly authorized of As City of Bangor, and aclu o vocosed the foregoing bmmuoatt to be his/ner Act act and deed in Maher t-afacity and As from: act and deed of the mid Ciry of Bangor. Before me, Not Publubo ne Attorney At Law Troublesome: