Mortgages - Subordination Sample Clauses
The Mortgages - Subordination clause establishes the priority of different liens or mortgages on a property, specifying that one mortgage will be ranked below another in terms of repayment rights. In practice, this means that if a borrower has multiple mortgages, the subordination clause allows a new lender to take a higher priority position over an existing lender, often to facilitate refinancing or additional borrowing. This clause is essential for enabling borrowers to secure new financing while protecting the interests of new lenders, thereby ensuring the orderly repayment of debts in the event of default or foreclosure.
Mortgages - Subordination. This Lease Agreement and the rights of Tenant pursuant hereto shall, at all times, be subject and subordinate only to the lien of a First Mortgage at any time placed on the Building or Premises. Tenant shall, upon the written request of any First Mortgagee execute such instruments or documents as may be reasonably required at any time and from time to time to subordinate the rights and interest of Tenant herein to the lien of any such First Mortgage. At the election of the First Mortgagee, this Lease shall not be terminated or affected by any proceedings instituted to foreclose the lien of any First Mortgage, and this Lease shall continue in full force and effect, notwithstanding that any such First Mortgagee or any person claiming by, through or under any such First Mortgagee shall succeed to the title of Landlord by foreclosure or Deed in lieu of foreclosure, and in any such event, Tenant agrees to attorn to any such First Mortgagee or its successors and assigns. Should any First Mortgage be foreclosed, or in the event that the title of Landlord shall be conveyed to any such First Mortgagee by Deed in lieu of foreclosure, no such First Mortgagee, purchaser at such foreclosure sale or their successors or assigns shall be:
a) liable for any act or omission of any prior Landlord;
b) subject to any off-set or defense which Tenant may have against any prior Landlord; and
c) bound by a prepayment of rent or other payments made to Landlord by Tenant for more than the current month.
Mortgages - Subordination. This Lease Agreement and the rights of Tenant pursuant hereto shall, at all times, be subject and subordinate only to the lien of a first mortgage at any time placed on the Building or Premises. Tenant shall, upon the written request of any first mortgagee execute such instruments or documents as may be reasonably required at any time and from time to time to subordinate the rights and interest of Tenant herein to the lien of any such first mortgage. At the election of the first mortgagee, this Lease shall not be terminated or affected by any proceedings instituted to foreclose the lien of any first mortgage, and this Lease shall continue in full force and effect, notwithstanding that any such first mortgagee or any person claiming by, through or under any such first mortgagee shall succeed to the title of Landlord by foreclosure or deed in lieu of foreclosure, and in any such event, Tenant agrees to attorn to any such first mortgagee or its successors and assigns. Should any first mortgage be foreclosed, or in the event that the title of Landlord shall be conveyed to any such first mortgagee by deed in lieu of foreclosure, no such first mortgagee, purchaser at such foreclosure sale or their successors or assigns shall be:
a) liable for any act or omission of any prior Landlord;
b) subject to any off-set or defense which Tenant may have against any prior Landlord;
c) bound by a prepayment of rent or other payments made to Landlord by Tenant for more than the current month.