subordination agreement


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subordination agreement

n. a written contract in which a lender who has secured a loan by a mortgage or deed of trust agrees with the property owner to subordinate the first loan to a new loan (thus giving the new loan priority in any foreclosure or payoff). The agreement must be acknowledged by a notary so it can be recorded in the official county records. (See: subordination)

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Additionally, these unsecured term loans became subject to an inter-creditor and subordination agreement and the annual interest rate on the same increased to 7%.
In June 2016, TDS and USM entered into a subordination agreement in connection with the latter's revolving credit facility.
With the money advanced to the defendants and the resulting mortgages, the lawyer got his client to sign a subordination agreement giving preference to the mortgages over the client's interest in the properties.
A subordination agreement, where the parties agree to subordinate lien rights to (usually) a mortgage interest, is enforceable, even if made before the lien rights have arisen.
a subordination agreement from the lender holding an outstanding
4th DCA 1988) (the court found that a subsequent mortgage took priority over a prior mortgage because the prior mortgage contained a subordination agreement).
The owner refinanced the 1999 loan in 2001, but the new lender did not obtain a subordination agreement. Defendant acquired the 2001 note and deed of trust.
In 2005, a subordination agreement was entered into, but the court found that the agreement should have taken place at the time the gift was made.
That means factoring in short sales, foreclosures, gift monies not yet received, refis with a subordination agreement, an influx of new business that may slow turn times, the sale of another home that may impact the closing, and so on.
Standridge returned with a signed subordination agreement from Phillip Ellis, the president of the Clinton branch of First Service Bank, so Chamber made the loan.
In most cases, this requirement is met when the secured parties enter into a priority or subordination agreement which allows each of the secured lenders to define their respective priority positions.
Section 510(a) of the Bankruptcy Code acknowledges the continued effectiveness in bankruptcy of a "subordination agreement." (27) However, courts have reached different results where the rights waived by the second lien lender in the intercreditor agreement involve basic bankruptcy rights beyond lien subordination or payment subordination.