SUBORDINATION; MORTGAGES Clause Samples
The SUBORDINATION; MORTGAGES clause establishes the priority of the lease in relation to existing or future mortgages on the property. Typically, this clause states that the tenant’s rights under the lease are subordinate to the rights of a lender holding a mortgage on the property, meaning the mortgage takes precedence if there is a conflict. In practice, this may require the tenant to agree that their lease could be affected or terminated if the lender forecloses on the property, unless a non-disturbance agreement is in place. The core function of this clause is to protect the interests of lenders by ensuring their claims have priority over the lease, thereby facilitating property financing and clarifying the hierarchy of rights in the event of foreclosure.
SUBORDINATION; MORTGAGES. 20.1 This Lease is subject and subordinate to the lien of any and all mortgages (which term "MORTGAGES" shall include both construction and permanent financing and shall include deeds of trust and similar security instruments) which may now or hereafter encumber the Premises, and to all and any renewals, extensions, modifications, recastings or refinancings thereof; provided, however, that the effectiveness of such subordination is subject to the condition that Landlord obtain from any holder of any such mortgage or deed of trust on the Premises a non-disturbance agreement, to the end and intent that as long as Tenant pays all rent when due and punctually observes all other covenants and obligations on its part to be observed under this Lease (subject to applicable notice and cure provisions), the terms and conditions of this Lease shall continue in full force and effect and Tenant's rights under this Lease and its possession, use and occupancy of the Premises shall not be disturbed during the Lease Term by the holder of such mortgage or deed of trust or by any purchaser upon foreclosure of such mortgage or deed of trust. At any time after the execution of this Lease, the holder of any mortgage to which this Lease is subordinate shall have the right to declare this Lease to be superior to the lien of such mortgage, and Tenant agrees to execute all documents required by such holder in confirmation thereof.
20.2 In confirmation of the foregoing subordination and non-disturbance provisions and subject to the provisions of Section 20.1 above, Tenant shall, within fifteen (15) days of its receipt of a request therefor, promptly execute and deliver any reasonable and appropriate certificate or other document evidencing such subordination. Tenant agrees that neither the institution of any suit, action or other proceeding by the holder of any mortgage on the Premises to realize upon such mortgage holder's interest in the Premises, nor any sale of the Premises pursuant to the provisions of the mortgage in favor of such mortgage holder, shall, by operation of law or otherwise, result in the cancellation or termination of this Lease or of the obligations of Tenant hereunder, and that Tenant shall attorn to the purchaser at such foreclosure sale and shall recognize such purchaser as the landlord under this Lease. Tenant further agrees that for the purposes of this Section 20.2, the term "PURCHASER" or "PURCHASER AT A FORECLOSURE
SUBORDINATION; MORTGAGES. 32 6.1 Prohibition Against Mortgaging Hotels or Leasehold Estate................ 32 6.2 Fee Mortgages............................................................ 32 6.3 Subordination............................................................ 33 6.4
SUBORDINATION; MORTGAGES. 6.1 Prohibition Against Mortgaging Hotels or Leasehold Estate. Except as set forth in this Article VI, no mortgages, deeds of trust, liens, or other encumbrances to secure borrowed money may be placed on the Hotels. Westboy shall not mortgage or otherwise encumber its leasehold estate in the Hotels. The limitation in this Section shall not prohibit estoppels, subordinations, assignments and other customary certificates, agreements and instruments that may be necessary or required by an Approved Mortgagee in support of indebtedness of Owner.
SUBORDINATION; MORTGAGES. It is specifically understood and agreed by the parties hereto that this Agreement and all rights, privilege and benefits hereunder are and shall be at all times subject to and subordinate to the liens of such mortgages applicable to the building in which the Dwelling Unit is located by the Cooperative with the and expense, any instrument which the Cooperative or any lender may deem necessary or desirable to effect the subordination of this Agreement to any such mortgage, or trust deed and the Member hereby appoints the Cooperative and each of its officers, and any future officer, Member’s irrevocable attorney-in-fact during the term hereof to execute any such instrument on behalf of the Member. The Member does hereby expressly waive any and all notices of default and notices of foreclosure of any such applicable mortgage which may be required by law. In the event a waiver of such notice is not legally valid, the Member does hereby constitute the Cooperative as member’s agent to receive and accept such notice on the Member’s behalf.
SUBORDINATION; MORTGAGES. This Lease is subject and subordinate to the lien of any and all mortgages (which term "mortgages" shall include both construction and permanent financing and shall include deeds of trust and similar security instruments) which may now or hereafter encumber the Building, and to all and any renewals, extensions, modifications, recastings or refinancings thereof. This Lease shall also be subject and subordinate to (a) any new first mortgage that hereafter may encumber the Building and (b) any second or junior mortgages that hereafter may encumber the Building, provided that the holder of the first mortgage consents to the subordination. At any time after the execution of this Lease, the holder of any mortgage to which this Lease is subordinate shall have the right to declare this Lease to be superior to the lien of such mortgage, and Tenant agrees to execute all documents required by such holder in confirmation thereof.
SUBORDINATION; MORTGAGES. 36 ARTICLE XXI
SUBORDINATION; MORTGAGES