If you own commercial rental property, your bank or other lender may request--or demand that you include a subordination clause in your leases.
A subordination clause puts them at risk of losing their business location which can be critical to their operations and customer relationships through no fault of their own.
The rating on the subordinated bonds is one notch below the BBB+ rating on senior debts of the bank, owing to the
subordination clause.
John: So I need to ask that your Mortgage Deed include a standard
Subordination Clause, whereby you agree to put the lien of your Mortgage behind that of the construction lender.
The talks are supposed to focus on biodiversity, the
subordination clause (the environment in relation to World Trade Organisation rules), GMOs and rules applicable to shipments (notification and/or labelling).
The issue of a subordination clause has the potential to significantly influence the land-lease rate.
Unless a ground lease has a subordination clause, the landlord would receive a windfall if the tenant defaulted on the land lease.
This article examines the typical shopping center
subordination clause and some common problems (and some suggested solutions) when a tenant, especially an anchor tenant negotiates a "so-called" subordination and non-disturbance agreement with a landlord's mortgagee.
