Superior Lien Clause Samples
A Superior Lien clause establishes that certain liens or security interests take precedence over others in relation to a property or asset. In practice, this means that if multiple parties have claims against the same property—such as a mortgage lender and a contractor with a mechanic's lien—the superior lienholder's claim will be satisfied first in the event of foreclosure or sale. This clause is essential for clarifying the order of payment priorities, thereby reducing disputes and ensuring that parties understand the hierarchy of claims in case of default or liquidation.
Superior Lien. Not applicable.
Superior Lien. If Trustor fails to pay any installment of principal or ------------- interest or any other sum due under any mortgage, deed of trust, security deed or other lien superior in lien to the lien of this Deed of Trust, as the same becomes due and payable, Beneficiary may, at its option, pay the same, and Trustor shall upon demand reimburse Beneficiary for all sums so expended by Beneficiary, with interest at a rate per annum equal to the Default Rate. All such sums expended by Beneficiary, with interest, shall be secured by this Deed of Trust.
Superior Lien. Not Applicable.
Superior Lien. At the time of origination of the Home Loan (other than an Unsecured Home Loan), each related Superior Lien, if any, was certified by the Obligor or verified by the applicable Superior Lien lender as not being 30 or more days delinquent;