The "Subordination of Lease" clause establishes that the tenant's lease is subordinate to the liens of any current or future mortgages on the property, giving the mortgage lender's rights priority over the tenant's rights. This means that if the property is foreclosed, the lease may be terminated unless the lender agrees otherwise.
K. Subordination of Lease: The following provision is hereby added to the Lease as Section 34: "This Lease shall be subject and subordinate to the lien of any bank or institutional or other mortgage or mortgages now or hereafter in force against the Premises, and to all advances made upon the security thereof, provided that the holder of any such mortgage shall execute and deliver to Tenant a Subordinate Non-disturbance and Attornment Agreement ("SNDA Agreement"), in form reasonably satisfactory to Tenant, providing further that such holder will recognize this Lease and not disturb Tenant's possession of the Premises in the event of foreclosure if Tenant is not then in default hereunder beyond any applicable cure period."
SUBORDINATION OF LEASE: This Lease is subordinate to any mortgage that now exists, or may be given later by Landlord, with respect to the Premises.
SUBORDINATION OF LEASE. This Lease is subordinate to any mortgage that now exists, or may be given later by Landlord, with respect to the Premises.
SUBORDINATION OF LEASE. This Lease is subordinate to any mortgage that now exists, or may be given later by Lessor, with respect to the Premises.
“Henrietta Subordination of Lease Agreement” shall mean that certain Lease Subordination and Attornment Agreement, dated as of the date hereof, among Lender, Borrower, Nocona Hospital District and Henrietta Manager, with respect to the Henrietta Hospital Lease, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
16.0Subordination of Lease. Tenant agrees that Landlord may subordinate this Lease to its present or any subsequent mortgage on the leased premises, provided that (a) such subordination shall not interfere with Tenant’s continued occupancy of the premises pursuant to the term of this Lease and (b) Landlord provides Tenant with a commercially reasonable written Estoppel, Non-Disturbance and Attornment Agreement (“ENDA”) executed by Landlord and the mortgagee. Tenant agrees to execute any and all instruments as may be reasonably requested from time to time by Landlord in order to evidence the above described subordination of this Lease to any mortgage. Tenant agrees to execute, acknowledge and deliver to Landlord written request from Landlord within thirty (30) days of a statement in writing certifying this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified, and stating said modifications), and the dates to which the rent and other charges have been paid in advance, if any, it being intended that any such statement delivered pursuant to this paragraph may be relied upon by any prospective purchaser, mortgagee, or assignee,
SUBORDINATION OF LEASE Tenant agrees that Landlord, if it so desires, may subordinate this Lease to any mortgage or mortgages which may hereafter be placed by the Landlord upon the Demised Premises or the Property. Tenant agrees that it will, upon request of Landlord, execute, acknowledge and deliver any and all instruments deemed necessary or desirable by Landlord to give effect to, or notice, of, such subordination, provided only that the holder of any such mortgage shall enter into an agreement with Tenant that such mortgagee will not disturb the possession and other rights of Tenant so long as Tenant performs its obligations hereunder, and which agreement shall further provide that, in the event of acquisition of title to the Demised Premises by the holder of any such mortgage, through foreclosure proceedings or otherwise, Tenant will recognize the holder of such mortgage as if it were named as Landlord hereunder, and will attorn to the holder of same. Any such agreement shall be expressly binding upon the successors and assigns of Tenant and of any such mortgagee, and upon anyone purchasing at a foreclosure sale. Tenant agrees that if it shall fail at any time to execute, acknowledge and deliver any such instrument within five (5) days after request by Landlord, then Landlord may, in addition to any other remedy available to Landlord, execute, acknowledge and deliver such instruments as Tenant’s attorney-in-fact for that purpose.
SUBORDINATION OF LEASE TO MORTGAGES: This Lease shall be subject and subordinate at all times to the lien of existing mortgages and of mortgages which hereafter may be made a lien on the Premises; provided, however, that with regard to any pledge or mortgage executed by the Landlord, Landlord shall use its best efforts to provide to the Tenant a non-disturbance agreement from any mortgagee or other lien holder of Landlord’s interest in the Premises. Such non-disturbance agreement shall be in form and content reasonably acceptable to Tenant and Landlord’s mortgagee or other lien holder, together with a representation that the Landlord is not in default of any of the terms of any such mortgage or security agreement as of the date thereof. Although no instrument or act on the part of the Tenant shall be necessary to effectuate such subordination, the Tenant will nevertheless execute and deliver such further instruments subordinating this Lease to the lien of any such mortgages as may be desired by the mortgagee. The Tenant hereby irrevocably appoints the Landlord as Tenant’s attorney-in-fact to execute and deliver such instrument for the Tenant. Provided, however, and notwithstanding the foregoing provisions hereof, upon foreclosure of the mortgage with the mortgagee succeeding to the rights of the Landlord, the Tenant shall, at the option of said mortgagee, be bound to the mortgagee under all of the terms of the Lease for the balance of the term hereof remaining with the same force and effect as if the mortgagee were the Landlord under the Lease, and the Tenant hereby attorns to the mortgagee as its Landlord, such attornment to be effective and self-operative if the mortgagee so elects. In no event, however, shall the mortgagee be liable for any act or omission of any prior Landlord, be subject to any offsets or defenses which Tenant might have against any prior Landlord, or be bound by any rent or additional rent which the Tenant might have paid to any prior Landlord for more than the current month.
40. SUBORDINATION OF LEASE; ESTOPPEL CERTIFICATE. This Lease is subject and subordinate to all present and future mortgages, deeds of trust and other security instruments that may be placed on the Premises. Although no further act by Tenant is necessary to accomplish the above, Tenant agrees to sign any other instruments subordinating this Lease as Management may reasonably request within ten (10) days of request by Management. Tenant shall execute and deliver to Management or Owner’s mortgagee(s) or lender(s), within ten (10) days of request by Management from time to time, estoppel certificates pursuant to forms reasonably acceptable to Management or Owner.
32. SUBORDINATION OF LEASE This Lease is subject and subordinate to any mortgages which may now or hereafter be placed upon or affect the property or Building of which the Premises are a part, and to all renewals, modifications, consolidations, replacements and extensions hereof, provided that the holder(s) of such mortgage(s) shall agree in writing not to disturb the possession of the Premises by Tenant or the rights of Tenant under this Lease so long as Tenant is not in material default (subject to applicable notice and cure rights in favor of Tenant as contained in this Lease) in the performance of its obligations thereunder and, in the event of foreclosure, Tenant agrees to look solely to the mortgagee’s interest in the Property for the payment and discharge of any obligations imposed upon the mortgagee or Landlord under this Lease. In the event that a successor landlord takes title to the Property, (i) successor landlord shall be bound to Tenant under all of the terms and conditions of this Lease, (ii) Tenant shall recognize and attorn to successor landlord as Tenant’s direct landlord under this Lease, and (iii) this Lease shall continue in full force and effect, in accordance with its terms, as a direct lease between successor landlord and Tenant. This clause shall be self-operative, and no further instrument or subordination shall be necessary unless requested by a mortgagee or the insuring title company, in which event Tenant shall sign, within five (5) business days after requested, such instruments and/or documents as the mortgagee and/or insuring title company reasonably request be signed (“SNDA”). In the event Tenant fails to execute a SNDA or an estoppel certificate as provided herein, Tenant hereby constitutes and appoints Landlord as its attorney-in-fact, with full power of substitution, to sign, execute, certify, acknowledge, deliver or record, where required or appropriate, in the name, place and stead of Tenant, all such SNDAs and estoppel certificates for and on behalf of Tenant as may be required.
12. Subordination of Lease to Encumbrances: This Lease and all of Tenant’s rights hereunder are and shall be subordinate to any mortgage, deed of trust or deed to secure debt (“Mortgage”) upon the Building, whether such Mortgage is in existence as of the Effective Date hereof or created hereafter. The subordination provided for in this section is self-operative, without the need for any further agreement to effect subordination of this Lease to any Mortgage.
Section Thirty-Two - Subordination of Lease This Lease is and shall always be subordinate to the lien of any mortgage or deed of trust which is now or shall at any time hereafter placed upon the Premises or any part thereof. Tenant agrees to execute and deliver any instrument, without cost, which may be deemed necessary to further effect the subordination of this Lease to any such mortgage or deed of trust and Tenant’s attornment to a successor Landlord through such mortgage or deed of trust, within ten (10) days after written request from Landlord.
16. Subordination of Lease. Tenant agrees that Landlord may subordinate this Lease to its present or any subsequent mortgage on the leased Premises, provided that such subordination shall not interfere with Tenant's continued occupancy of the Premises pursuant to the term of this Lease and provided further that any lender with a mortgage on the Premises agrees to deliver to Tenant a subordination, non-disturbance and attornment agreement in the lender’s standard and reasonable form with reasonable approval by Tenant. Tenant agrees to execute any and all instruments as may be reasonably requested from time to time by Landlord in order to evidence the above described subordination of this Lease to any mortgage. Tenant agrees to execute, acknowledge and deliver to Landlord within thirty (30) days following a written request from Landlord a statement in writing certifying this lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified, and stating said modifications), and the dates to which the rent and other charges have been paid in advance, if any, it being intended that any such statement delivered pursuant to this paragraph may be relied upon by any prospective purchaser, mortgagee, or assignee.
Subordination of Lease. This Lease is subordinate to any mortgage that now exists, or may be given later by Landlord, with respect to the Premises.
(iv) Assignment and Subordination of Lease with respect to the Lease, in form reasonably requested by Buyer or Lender, as acceptable in form and substance to Seller.
SUBORDINATION OF LEASE TO MORTGAGE ON THE DEMISED PREMISES Section 11.01 Subordination to Mortgages. At the option of Landlord, this Lease shall either be: (a) Subject and subordinate to all mortgages which may now or hereafter affect the Demised Premises, and to all renewals, modifications, consolidations, replacements or extensions thereof, provided however, that the holder of any such mortgage shall execute with Tenant a Non-Disturbance Agreement hereinafter described; or (b) This lease shall be paramount in priority as an encumbrance against the Demised Premises with respect to the lien of any mortgage which may now or hereafter affect the Demised Premises and to all renewals, modifications, consolidations, replacements and extensions thereof. Section 11.02 Non-Disturbance Agreement. The non- disturbance agreement referred in Section 11.01 shall be an agreement in recordable form between Tenant and the holder of such mortgage, binding on such holder and on future holders of such mortgages, or an agreement by such holder expressed in such mortgage, which shall provide in substance that, so long as Tenant is not in default under any of the terms, covenants, provisions or conditions of this Lease, neither such holder nor any other holder of such mortgage shall name or join Tenant as a party-defendant or otherwise in any suit, action or proceeding to enforce, nor will this Lease or the term hereof be terminated (except as permitted by the provisions of this Lease) or otherwise affected by enforcement of, any rights given to any holder of such mortgage, pursuant to the terms, covenants or conditions contained in such mortgage or any other document held by any holder or any rights given to any holder as a matter of law. Upon request of holder of a mortgage to which this Lease becomes subordinate, Tenant shall execute, acknowledge and deliver to such holder an agreement to attorn to such holder as Landlord if such holder becomes Landlord hereunder and/or execute, acknowledge and deliver to such holder an agreement not to pay the Basic Rent for a period of more than one (1) month in advance.
47. Subordination of Lease. This Lease is subordinate to any mortgage that now exists, or may be given later by Landlord, with respect to the Premises.
47. Subordination of Lease. This Lease is subordinate to any mortgage that now exists, or may be given later by Landlord, with respect to the Premises.
17. SUBORDINATION OF LEASE. Except as otherwise elected by the holder thereof, this Lease is subject and subordinate to any mortgages, ground leases, deeds of trust, voluntary liens and security interests which may now or hereafter be placed upon or affect the Building, and to all renewals, modifications, consolidations, replacements, and extensions thereof. This clause shall be self-operative, and no further instrument shall be required for its effectiveness. In addition, Tenant shall execute any commercially reasonable document that Landlord or Landlord’s lender or ground lessor reasonably requests to evidence such subordination and including reciprocal attornment provisions.
23. SUBORDINATION OF LEASE. Lessor shall have the right at any time, and from time to time, to place upon the Building and the land of which the premises are a part, a mortgage or mortgages which, together with all renewals, extensions, modifications, and replacements thereof, shall be wholly prior to the rights of Lessee and this Lease. It is the intention of the parties that such priority shall be established automatically and that no separate instrument shall be required to effectuate such subordination of this Lease. Lessee will, however, at any time and from time to time, upon request of Lessor, promptly execute and deliver to Lessor, without expense to Lessor, any and all instruments deemed by Lessor necessary or advisable to subject and subordinate this Lease and all rights given Lessee hereunder to such mortgage or mortgages. In the event any proceedings are brought for the foreclosure of any such mortgage, Lessee covenants that it will, to the extent of the Lessor's interest affected by such foreclosure, attom to the purchaser upon any such foreclosure sale and recognize such purchaser as Lessor under this Lease. Lessee agrees to execute and delivery to Lessor, without expense to Lessor, at any time and from time to time, upon the request of Lessor or of any such holder, any instrument which, in the sole judgment of Lessor, may be necessary or appropriate in any such foreclosure proceeding or otherwise to evidence such attomrnent. Lessee hereby appoints Lessor and the holder of any such mortgage or either of them, the attorney-in-fact, irrevocably, of Lessee to execute and deliver for and on behalf of Lessee any such instrument. Lessee further waives the provisions of any statute or rule oflaw, now or hereafter in effect, which may give or purport to give Lessee any right or election to terminate or otherwise adversely affect this Lease and the obligation of Lessee hereunder in the event any such foreclosure proceeding is brought, and agrees that this Lease shall not be affected in any way whatsoever by any such foreclosure proceeding.
Subordination of a lease refers to an agreement in which a tenant’s leasehold interest is made secondary to the interest of a lender who holds a mortgage on the property. In simpler terms, it means that the tenant agrees that the lender’s rights under the mortgage will take precedence over the tenant’s rights under the lease if the property is foreclosed upon.
You should consider using a Subordination of Lease in the following situations:
Here is a basic template for writing a Subordination of Lease:
Subordination, Non-Disturbance and Attornment Agreement
This agreement is made between [Lender], [Landlord], and [Tenant].
- Subordination: Tenant agrees that its leasehold interest in the Property is subordinated to the lien of the mortgage held by Lender.
- Non-Disturbance: Lender agrees that, in the event of foreclosure, Tenant’s possession of the Property and its lease will not be disturbed.
- Attornment: Tenant agrees to recognize any subsequent owner of the Property as its landlord.
Signed this [date] by:
[Lender’s Name]
[Landlord’s Name]
[Tenant’s Name]
The subordination clause typically appears in the following types of contracts:
By understanding these aspects, you’ll be well-equipped to handle situations involving the subordination of lease.
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